On Year 16 Day 21 leading dignitaries from the Avance Coalition and the Trade Federation met aboard the TFN Timoran Sunset in the orbit of Endor to announce that the two governments were merging under the Trade Federation name. Then First Seat Navik Ikron and Viceroy Jacob Jansen made the announcement together, declaring that the two governments had long maintained common goals of peace and economic strength. Now that the two had become leaders in the Galactic Concordiate, the similarities between the two governments became so obvious that it no longer made sense to pursue them independently.
Official reports cited commonality of mission as the primary cause for unity. Others, like TFNN economic analyst Moradin Kwyntehst theorized that the unique technology that Avancian companies like Centurion Arms and Rendili Stardrive offer played a large part in motivating the merge, as the Federation saw an opportunity to both strengthen their defense fleets and expand their control over the galactic economy. But for all the theories about what the Federation stood to gain by merging with the Avance Coalition, the Coalition had that much more to gain.
The Galactic Recession of Year ?? hit the Coalition, long believed to be the galaxy's great economic powerhouse, very hard. It devastated their jobs market and caused massive slowdowns and obstructions that halted public works and basic governance in many cases. The Hall of Houses and Hall of Justice became unable to function, and the Hall of Peoples, while active, was unable to maintain a chairperson to lead it. Massive public works projects were undertaken to offset the large scale unemployment, but these projects largely had adverse effects as they bankrupted systems and diverted workers and resources away from maintaining local infrastructure. Eventually all but a few of these projects were abandoned, and even where they continued progress was encouraged even at the expense of the health of the environment. Morale of the people fell and in the face of insecurity loyalties became more local. It is widely believed that the threats of collapse pressured Coalition leaders to look outside their borders for a way to preserve the Coalition and protect its citizenry. Strategists inside Avance began to predict that should trends persist, a massive collapse would be probable, and they suggested a merge with another neutral power would preserve and build on the foundations laid by Avance. If Avance would have fallen, its unique and rare technology might fall into hostile hands and put countless lives at risk. With Operation Deep Helm and the fall of Jandur still fresh in their memory, the Coalition leaders were eager to avoid a similar fate. A Merge soon became a leading opinion among the citizenry, and soon it was announced that a merge with the Trade Federation had been approved.
Division of Avance
Not all leaders were convinced a merge was the best way forward. Arklari Clise, owner of Golan Technologies and leader of House Vigihan was a vocal opponent of the concept, fearing that the Avancian culture and businesses would be stripped and erased when they are absorbed into the Trade Federation's structure. He was successful in convincing much of the membership of House Vigihan to oppose the merge, and rumors circulated that if the merge became official Clise would refuse to cede control of his corporations. These rumors proved to be true. After much deliberation and debate, it was decided that while Rendili Stardrive, Centurion Arms, and Alpha Medical Corps would be merged with into the Trade Federation, The Wraiths which was only associated with the Coalition, would be granted their independence. A similar arrangement was made for The Harbingers, Golan Technologies, and Czerka Corperation -all holdings of House Vigihan members. These companies, and the sectors they controlled, were given freedom to form what became the Kingdom of Elysia, and Arklari Clise was crowned as their first King.
Outcome of the Merge
There were many benefits from the Merge for both parties. For the Coalition, their territory became the Trade Federation's Southern Territories. This incorporation spurred growth in the economy due to adequate support for public job programs, spread of the Federation market into the southern economy, and the formation of 2nd Fleet, a defensive fleet organized to patrol the new territory. Stability was the chief gain of the former coalition. In addition to formerly restricted and protected technology, the Trade Federation gained many experienced and talented workers and leaders to flesh out its ranks. Salaries and benefits were soon increased to closer resemble Avancian compensation, which was notoriously lucrative. The Federation gained a closer relationship with the Wraiths, which further strengthened its defenses, and by integrating the House system laid the foundation for the cultural wealth that would ensue.