From Italian Ministry of Foreign Affairs
Mutual Protection Pact cost
erepublik.com/en/article/2369588/1/20
What is a Mutual Protection Pact?
A Mutual Protection Pact (MPP) is a treaty between two nations.
In a direct war (after a Natural Enemy or a Declaration of war) between two nations, all the players who reside in a region (citizenship doesn’t matter) belonging to a nation which is alliated with one of the two fighting countries can fight in the battle.
For example, if there’s an MPP between Italy and Croatia, all the citizens in Italian regions can fight in croatian battles and all the citizens in croatians regions can fight in italian ones.
A Mutual Protection Pact doesn’t work with Resistance Wars.
Mutual Protection Pact is a law that only Country Presidents can propose; when, from his administration panel, the president starts a vote, are automatically frozen 10000 ITL from the treasury of the two involved countries. If in both the Congresses the poll reaches the necessary quorum (the 50%+1 of the congress members), the law is approved and the two countries get the MPP, that has a duration of a month, but it immediately expires when two MPPs get in conflict, due to the Friend of a Friend Cancellation.
Another benefit of the Mutual Protection Pacts is the feature “Daily Orders”. A Military Unit, in fact, can set up as a Daily Order only a battle which his own coutry or an allied one is involved in. The Military Unit is located in the citizenship country of the creator when the MU was founded, and it can’t be changed.
The MPP’s must not be confused with the Alliances, that are more nations united to reach common goals (formalized in this page) or with the Peace Treaty.

The cost of the Mutual Protection Pacts
Once upon a time, the cost of an MPP was 100 gold.
Since 2011, it has consisted in 10,000 ITL, making the costs for the two countries rise to 20,000 ITL, (now 1,200 gold 100 gold). For little nations like ours that's a huge amount of money, especially with the new Tax Formula, one of the latest updates.
A country that does not reach the full amount of taxes which are imposed by the commercial changes, that grow comparatively with the number of possessed regions and original ones (and 20% more bonus taxes). That’s why, with many little nations’ choice of putting the taxes at the lowest possible (in theory it's 1%, in fact it's 0%), it involves that little countries taxes are null, and the incomings only come from speculation (if any). That’s why 10,000 ITL is too much for our actual conditions.

So what?
With such a high price, it’s very hard for little countries to sign MPPs.
That’s why:
• little countries can’t be helped from bigger nations and can’t win any battle.
• with a so huge cost every nations tries to sign MPPs with bigger nations, leaving little countries alone.
• little countries can’t set up as a DO foreign battles and, as a consequence, in moments of NAP, the can’t gave bonus (a bazooka and an energy bar), slowing the young soldiers’ growth.
This is like a suicide that can only emphasise and stress the differences between the core contries and the periphery ones.

What are we asking for?
We’re asking the admins to fix the rules about MPPs putting on a more equal system. For example, it would be great calculating MPPs using a method similar to the one of the AirStrike, to encourage congregations and friendship also between little countries.