[FONT="][Hello everyone! I am back! THis TL was almost dead, because I was terribly occupied until the 10th with a difficult exam, and then had a bit of a writers' block, but now I finally got around to write the italian Zollverein analogue. Unfortunately I have limited sparetime and therefore very small time to resnearch for this, especially for happenings outside Europe. I would like to get to the Italian unification, but writing an ATL 1848 that is somewhat credible is not easy... In any case good reading and feedback is much welcome!]
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[FONT="]The birth of the Lega Doganale Italiana[/FONT]
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[FONT="]Since 1831 both the Grand Duchy of Tuscany and the Duchy of Modena and Lucca had been experiencing significant economic growth, due to the introduction of some liberal reforms and to the influx of French capitals (that was especially noticeable in Modena-Lucca). The effects were even more visible in the Legazioni of Bologna and Romagna, that were prospering under the capable leadership of their High Commissioners. The Legazioni already formed a free market, according to the provisions of the London Convention, but customs and tolls still existed between them and their “protecting States”. The Legazione delle Marche kept closer relationships with Rome and the rest of the lands still directly controlled by the Pope, with Ancona enjoying its role as the main Adriatic port in Central Italy, and as a safe haven for liberals unwelcome in Rome.[/FONT]
[FONT="]The complex system of tariffs created by the new political asset appeared however untenable, because it hampered commerce between territories that were now becoming politically socially and economically very close. This was especially evident between Modena and Bologna: the two cities were close, there were advanced projects for a railway connecting the two, and Pellegrino Rossi, the High Commissioner for the Legazione di Bologna, was also foreign minister for Duke Carlo Ludovico of Modena and Lucca, yet the two entities were still separated by tariffs and different regulations. [/FONT]
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[FONT="]It was in fact Pellegrino Rossi, whose influence in the Modenese court was now rivaling that of Ascanio Mansi, the Prime Minister, the one who proposed the creation of a customs union between the Legazioni and the protecting states. In this he was influenced by the writings of the German economist Friederich List and by the experience of the Zollverein, that had recently been created among most of the German states and that already was giving signs of having a great success in rationalizing and bringing together their economies. [/FONT]
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[FONT="]A customs union would imply the creation of a free market among the contracting parties, and the adoption of a common tariff towards third parties (necessitating also an uniformation of measurement systems). With time the contracting parties could get even closer, by adopting common commercial law codes and a common value. All this would surely bring closer political relationship, and if it could be expanded to the other Italian states, it would lead to a confederation among them, that in Rossi’s thought was the best way to peacefully solve the Italian question, possibly including Lombardy-Venetia, to which Austria would have to give, in future, a degree of autonomy, and being headed by the Pope, who would guarantee a balance between the Italian states, and reassure the catholic powers of the peacefulness of such a confederation.[/FONT]
[FONT="]Clearly this ideas clashed with the reality on the ground, with a papacy drifting towards more and more reactionary position and an Austria that gave no signs of wanting to ever relax its grip on Milan and Venice.[/FONT]
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[FONT="]Still, the proposal made much economic sense, and in 1836 Carlo Ludovico authorized Rossi to start negotiations with Tuscany and Naples. The Grand Duke Leopoldo was quick to be convinced, as the relationships between the two states had been very good since 1831, and a customs union would surely facilitate his project of building a railway line connecting Leghorn, Florence and Bologna.[/FONT]
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[FONT="]In Naples the proposal was met more coldly, and King Achille initially took refuge behind parliamentary prerogatives to avoid giving a direct answer.
The Kingdom of Naples had, since 1832, a free trade agreement with the Kingdom of Sicily, and thanks to the moderation of King Ferdinand IV, and to the good personal relationship between the two Kings, relationship between the former rivals were now pretty warm. Opening to the northern markets could have benefits, but entailed great risks for the still fragile Neapolitan economy. On the other hand, it could be a great occasion to advance the cause of Italian unity, and Naples would certainly have a leadership role in the union, being by far the more populated and militarily stronger State. If they didn’t join though, Tuscany, Modena and the Legations could become a sizable counterweight to the Kingdom.[/FONT]
[FONT="]In the end the question would have to be decided by Parliament, as it would entail a significant variation to tax laws, who were a parliamentary prerogative according to the Neapolitan constitution, but for the moment Achille gave a tentative assent to the agreement, conditioned to Sicilian participation (as otherwise the successful trade between the two States would have to be curtailed).[/FONT]
[FONT="]The Kingdom of Sicily consented too to the proposal, it was clear to Ferdinand that, if Sicily remained out of the customs union, it would be quickly outcompeted by Naples in trading with the rest of the Peninsula.[/FONT]
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[FONT="]The Papal States instead refused to accede to the union, even when the Pope was offered its presidency, as the resentment for the humiliation suffered in 1831 was still strong enough to trump financial considerations. Austrian concerns and pressure had proved insufficient to stop Tuscany from embracing Rossi’s plan, instead creating a rift between the independently minded Grand Duke and his relatives in Vienna. In Parma instead Maria Luisa was much more dependant on Austrian support and advisors, and refused to enter negotiations, as did Carlo Alberto of Sardinia when he was tentatively contacted.[/FONT]
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[FONT="]The negotiations were very difficult, and made longer by numerous disagreements on technical points on the functioning and even the naming of the union. It was 1838 when the treaty was signed, and only one year after came the ratification of the Neapolitan parliament and the Lega Doganale Italiana became a reality.[/FONT]
[FONT="]Its members were the Kingdom of Naples, the Kingdom of Sicily, the Grand Duchy of Tuscany, and the Duchy of Modena and Lucca. The Legazioni di Bologna, Romagna and Marche, whose ability to sign international treaties without the Pope’s assent was controversial, received the status of Associated Members.[/FONT]
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[FONT="]The Presidency of the Lega would pass from one monarch to the other each year, while important decisions and regulations would be adopted by a council of delegates from the member States (the associated members “delegated” their vote to the respective member State). The decisions would have to be unanimous, but didn’t need any ratification. The administration of the League’s activities and the implementation of its regulations would be the responsibility of a Secretariat based in Naples and presided by a Chancellor elected by the Council. The first Chancellor would be Pellegrino Rossi.[/FONT]
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[FONT="]The treaty provided for numerous exceptions and a fairly complex compensatory system, so the fiscal uniformation was not quick, nor complete, but significant steps were made, as the adoption of common standards of coinage and measurement between the states and the adoption of a uniform commercial code in 1845. Most importantly, all commercial treaties with third countries were to be conducted jointly, giving a seed of political unity to the League members.[/FONT]
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[FONT="]The Lega Doganale facilitated the construction of new infrastructures between member states, and its most significant success was the creation of the Società Anonima Strade Ferrate dell’Italia Centrale, that was responsible for the construction of a railway line linking Modena, Bologna, Prato and Firenze (and from there Leghorn through the Leopolda railway finished in 1842) that was completed in 1847. An even more ambitious project to link Ferrara and Brindisi, along the Adriatic coast was started, but failed to attract enough capitals to become viable.[/FONT]