While we work on the setting, we do need to keep in mind that a campaign has to be run in it. I see free trader and mercenary campaigns being severely restricted by suggestions so far.
I designed it quite to the contrary. To whit:
Mercenaries will run rampant outside of Federation Space, and may find ample opportunities within Federation Space to train/cadre/augment local Militias without the system's government needing to run to the FIN/FMC to protect them from every little off-world menace that crops up (including rival member worlds). Bolstering mainworld defenses by "outsourcing" will be at the discretion of local commanders. Surreptitiously hiring mercs (through a cut-out) for plausibly-deniable hostile actions in somebody else's backyard that politically or economically benefit your own homeworld will be a Standard Operating Procedure. And worlds that do not like it can bring their complains and demands for redress directly the MolaFed Senate when it next convenes in oh, about 6 months.
Free Traders will be ubiquitous throughout the area; the FMM will only constrain subsidy holders -- while making a nice profit off of FMB loans to any independents who want to take on the debt load. Other than making blatant piracy in the core systems a problematic business model, what restrictions do you see on Free Trade? Without megacorporations (cough, cough, Tukera, cough) to control supply & demand while cheating freely, the Moladon Federation and Environs should be a Trader's Paradise. No "tradewars," just underserved markets.
As to the Previous War, there will need to be either 1) a substantial outside aggressor as yet unidentified, or else 2) occasional insurrections and/or civil wars sparked by xenophobic groups that are not really that fond of the corrupting influences of cultural exchange and (for example) would love to see a terrorist attack on Moladon itself as payback.
This ain't Star Trek; the Moladon Federation strives to be a happy, orderly place, but as a practical matter, there are plenty of opportunities for shenanigans everywhere -- especially on the frontier. Which is where the initial action is set in the LBB0 description.