He is the first ruler of the Progressive Era. Ruling the small coastal monarchy of Havre, he wishes to avoid dragging his nation into the conflict plaguing the continent, and so, he pleads neutrality. As such, he is willing (and strongly prefers) to negotiate, and would strongly dislike player's attempt to invade his homeland.
Prince Baudoin appears to be based on King Albert I of Belgium, who ruled the country during World War I. Similarly to how Belgium's neutrality was violated by Imperial Germany as a method of entering France, so does the player use the neutral country as a stepping stone for expansion into its neighbours.
Havré is a village in Mons, capital of the Hainaut province of Wallonia, a region of Belgium. Baudoin is a surname related to Baldwin, although it doesn't seem to have any connections to Belgium, nor is it a Belgian name.