Augsburg, the commercial and artisanal hub of Southern Germany, is known by many as "Little Florence."
Although the city's population numbers fewer than 30,000, its commerce and guilds have achieved a level of staggering prosperity. As the center of the linen textile industry for all of Southern Germany, Augsburg's textile guilds—under the control and management of the Fugger family—have achieved a near-total monopoly over the Swabian and Bavarian linen industries, spanning the entire process from raw material supply to the sale of finished products.
Cities such as St. Gallen, Ulm, and Konstanz either depend on the raw materials gathered and distributed by Augsburg or have simply abandoned the competition, passively accepting the dumping of its finished linens.
In Augsburg, where the linen industry serves as the bedrock of the economy, more than one-tenth of the citizens profit directly or indirectly from its services. Even the rural textile guilds widely distributed throughout the surrounding Austrian territories are deeply influenced by the city's industrial reach.
However, the value they generate is almost negligible to Augsburg's commercial cartels. Even the dominant Fugger family continues to manage and monopolize the linen trade primarily out of adherence to ancestral traditions. Under the management of Barbara, the widow of the late Austrian Finance Minister Jakob Fugger the Elder, the family's textile factories expanded in scale and branched out into wool and cotton.
In contrast, the current Finance Minister, Ulrich Fugger—who inherited his father's status and the bulk of the family fortune—rarely interferes with these ancestral assets. He has generously yielded these industries to his youngest brother, Jakob the Younger, who has shown great brilliance since childhood.
Compared to the textile industry that fueled the family's steady rise, sectors such as banking and finance, the proxy sale of Oriental goods, investments in gold and silver mining, and the monopoly on copper sales across the Empire and much of Europe are the true keys to the Fuggers' meteoric ascent.
With the assistance of the Welser family and two other merchant dynasties, the Fugger-controlled Augsburg has become the terminal distribution hub for Oriental trade directly linked to Venice. It has secured its status as the financial center of Southern Germany and the most vital pillar of the Imperial Bank.
The massive flow of Florins in and out of Augsburg has breathed intense vitality into the mining districts of Tyrol, Bohemia, and Slovakia. From gold and silver to copper, iron, and salt, there is no mineral wealth they do not touch. The burgeoning banking industry, offering currency exchange and commercial loans, has driven merchants into a frenzy. The risk of doing business in Augsburg is perhaps the lowest in the world, second only to trading in Vienna.
Of course, five years ago, the merchants of Augsburg would not have said the same. Back then, they were suffering through a wave of mass bankruptcies due to the war between Austria and Venice. That period essentially forced a "great reshuffling" of capital; those sturdy holders who survived won the market, the voice of authority, and the Emperor's trust.
Backed by the Empire, the Augsburg merchants have continuously pushed forward, expanding their capital and industries. They also serve the Emperor—not just through simple loans, but through deep involvement in royal enterprises. The payment of Imperial army wages and the supply of logistics during military campaigns are inseparable from their support.
Laszlo has formed an informal alliance with the wealthy merchants of Augsburg, led by the Fugger and Welser families, enjoying their services while providing protection for the merchants and the entire rank of Imperial Free Cities. This productive partnership has yielded mutually beneficial results; thus, when Laszlo arrived in Augsburg ahead of his court, he was greeted with an exceptionally warm welcome.
The city guilds collectively funded the renovation of his local palace, and the city councilors, alongside the Bishop of Augsburg—who serves as the Imperial Arch-Chancellor—held a welcoming ceremony for the Emperor at the Town Hall. Governors of the Austrian special districts of Burgau and nearby Rothenburg also hurried to the city to report personally to the Emperor.
Naturally, this process was accompanied by the now-customary negotiations for territorial transactions. The Augsburg municipal government raised its offer again, intending to purchase the Burgau territory for the high price of 50,000 Florins to greatly expand Augsburg's sphere of control and further stimulate the city's industries.
Laszlo's answer was the same as always: he is not currently short of money, and he has no intention of selling Austrian land. Furthermore, any enclave in Swabia is no longer a burden creating trouble for the Vienna government; instead, they have become vital levers for Laszlo to control the Swabian Circle.
***
"Your Majesty, these are the templates for the *Eternal Imperial Peace* and the *Common Penny* tax decree. What duration do you think is appropriate for this renewal?"
The Archbishop of Mainz looked up and handed the two drafted decrees to the Emperor.
"I intend to make these two decrees permanent, to endure as long as the Empire itself. What do you think?"
Laszlo picked up his pen, intending to write "indefinite," but paused to consult the opinion of the Imperial Arch-Chancellor. He had already commissioned royal advisors to compile the major resolutions passed by the Imperial Diet since his accession into a *Collection of Imperial Statutes*, using it as a foundation to deepen his reforms.
However, most resolutions of the Imperial Diet were temporary and born of compromise, a fact that left Laszlo weary. Never mind the risk of "policies dying with the man"; even while he still lived, the Imperial reforms faced the danger of being reversed.
From another perspective, his initial choice to sign temporary decrees and agreements with the Diet was a strategy to gradually lower the resistance of the Imperial subjects. His goal was to let these reform decrees take root and become constitutional pillars of the Empire, similar to the *Golden Bull*.
Archbishop Adolf was well aware of the Emperor's intentions. He shook his head without hesitation and predicted pessimistically: "Regarding the Imperial Peace, the various Imperial Estates generally welcome it; your proposal there will face no issues. However, the Common Penny has caused dissatisfaction among some Estates over the past five years. If you intend to impose a public tax upon them without setting a timeframe that meets their expectations, this decree will almost certainly fail to pass."
"Don't you find that ridiculous, Adolf?"
Laszlo set down his pen. His expression appeared relaxed, but his tone was terrifyingly stern.
"They want a broad peace, and I have given them peace. The Imperial Chamber Court, the Imperial Diet, and the Imperial Privy Council have all been instrumental in bringing the Empire to its current state. Without the Common Penny, these government institutions would all collapse, leaving the Empire in total chaos.
"In the end, they only wish to enjoy the protection of the Empire so they won't be easily annexed by enemies due to their own weakness. They crave representation, a voice, and judicial justice—yet they are unwilling to pay even a slight price for it!"
"Your Majesty, given that you launched two Imperial wars during the past five years of peace—targeting the Ottoman Empire and the Kingdom of France—the various Estates have suffered economic and military losses to varying degrees. Perhaps your primary goal should be to regain their trust."
Archbishop Adolf braced himself to remind Laszlo of what he had actually done during those five years of "peace."
Though Laszlo felt a pang of embarrassment and annoyance, he could find no excuse to retort. He simply cleared his throat and said, "Those were necessary sacrifices made for the long-term stability of the Empire's borders. Did the Empire not benefit greatly from the Crusade to the East and the punitive war against France?"
"The construction of the Imperial government is largely complete, and the Circle system is maturing, but most Imperial subjects have not profited from the wars. Instead, they have been forced to bear more taxes, while your family has greatly expanded its lands through these two conflicts. This inevitably breeds envy."
"But I invested the most money and troops! What right do they have to point fingers... fine. The subjects of the Empire will eventually understand my pains. As for those ambitious schemers hiding in the shadows, I will root them out sooner or later."
Laszlo remained quite confident in the Austrian court's ability to control public opinion. His writers were masters of rhetoric and grammar, and most importantly, they possessed superb skills in sophistry—they could argue that black was white. The necessity of the campaign against France and the sacrifices of the House of Habsburg—such propaganda was enough to dissolve the dissatisfaction of some.
As for the tax issues troubling the majority, Laszlo chose to shift their gaze, focusing instead on the precious peace and impartial justice they were currently enjoying. He emphasized what they had gained to obscure the price they had paid.
Unfortunately, the subjects of the Empire cared far more for their immediate interests than anything else. They also placed great value on German traditions of liberty and felt a natural aversion toward any form of taxation.
To ensure the smooth collection of taxes, Laszlo had established a three-tier collection system: Empire—Circle—Estate. The princes and other Estates were happy to assert their sovereignty and increase their own local revenue in the name of the Empire, which fundamentally guaranteed the basic efficiency of the tax collection.
As for the infamy of oppressing the subjects, it was shared among him (the Emperor), the Circle Governors, and the vast number of Imperial Estates—though he ultimately remained the "great villain" in the eyes of the people. This was something he could not change once he resolved to push for Imperial reform.
The princes would continuously throw mud at him; doing so was clearly profitable as it reduced the pressure and risk of rebellion they faced. As the greatest "scapegoat" of this era, Laszlo had long grown accustomed to it.
Through this, Laszlo could also judge who would oppose the Imperial taxes. There were the princes who could not afford them or were unwilling to keep paying, and the vast, ignored lower ranks of the Third Estate. Aside from the Knightly Leagues of the three Circles who had successfully resisted the tax and the Free Cities whose privileges were guaranteed, the rest were targets for extraction.
They had agreed to sign the *Common Penny* decree for a five-year term out of a longing for peace. Now that the five years were up, whether they were willing to renew—let alone upgrade it to a permanent law—remained a question.
"So, how do you intend to ensure the decree passes the Imperial Diet?" Seeing the Emperor fall into a long silence, Adolf couldn't help but ask.
"Ensure it passes? No, this time we shall try a different approach. If the College of Electors and the College of Princes agree to renew these two bundled decrees, then everything remains as before. If the decree fails to be extended, I will sign the decree only with those princes and Estates who *are* willing to renew, and provide them with protection. As for the rest, they will have to find their own way to survive within the Empire."
Laszlo's "brilliant" strategy made Adolf's vision go dark. This was an overt encouragement for the Imperial Estates to attack and annex one another! At that point, the Imperial government and Diet would return to a primitive state, and the authority of the Imperial courts would be crippled.
What kind of solution was this? Wouldn't this just return the Empire to the age of factions and military intimidation?
"Your Majesty... perhaps we should set a more acceptable timeframe to increase the probability of the decree passing."
"Then set it to ten years. Not a day shorter. If they are unwilling to accept peaceful reform, I have other ways to make them recognize their place."
Laszlo filled in the duration on the two decrees and placed them atop the stack of resolutions to be discussed.
"Let it be so, Adolf. You should later consider how to downsize the Imperial Privy Council to keep the institution running if the budget falls short. One thing must be stated clearly: I will not use Austria's finances to feed the Imperial government."
"You certainly know how to give a man a difficult task," the Archbishop complained with a wry smile.
Laszlo was unconcerned. Sometimes, walking away or taking a step back to move forward is an extremely effective political tactic. Now that the two giants, France and the Ottomans, had been neutralized, he had plenty of flexible means to deal with the Imperial princes; he would simply wait to see who would buckle first.
"Alright, what is the next item on the agenda?"
"Regarding the re-demarcation and integration of the Imperial Circles. This should not pose any problems. The issue of enclaves often causes interference in Circle affairs; your proposal can alleviate many troubles."
"I hope Albrecht won't hold a grudge against me for this." Laszlo thought of the Elector of Brandenburg, who had argued with him over the representation rights of enclaves.
However, his handling of the matter was fundamentally sound. Brandenburg was a perennial second-place power in Upper Saxony, and Ansbach had no overwhelming advantage in Franconia; naturally, they shouldn't hold the dominant positions in two separate Circles. Austria's situation was unique; the unique point being that he was the Emperor, so extending his power wasn't a major issue.
"He should be able to understand your difficulties. Furthermore, in recent years, the call for Circle autonomy has grown louder. The various Estates are more concerned with Circle affairs; therefore, some have requested that the right to nominate and appoint Circle Governors be given to the Estates of each Circle. They prefer to decide major regional matters according to Imperial tradition."
"Oh? And who exactly supports this proposal?"
"The Bishop of Würzburg, the Elector of Brandenburg, and a few other Imperial Estates."
"Ignore them."
Laszlo breathed a sigh of relief. He had thought there was significant opposition to the current system, but it turned out to be just a few "big cats and small kittens."
When he designed the Circle system, he had left "back doors." In Austria, Bohemia, Burgundy, the Rhenish Electorate, and Upper Saxony, the positions of Circle Governor and the Circle President (acting as deputy) were merged, and it was clear which fixed ecclesiastical and secular princes would hold them.
The remaining Circles—Bavaria, Swabia, Franconia, the Rhineland, Westphalia, and Lower Saxony—either lacked powerful princes or were under Laszlo's direct influence. He used the opportunity to seize the right to appoint governors in these areas, effectively handpicking princes with decent strength and friendly relations to implement the resolutions and decrees passed by him and the Diet.
This customized system had passed smoothly through the Empire. Weak states lacked the courage to resist, and strong states were given concessions; no one felt truly cheated. The Elector of Brandenburg was naturally unhappy because his path for upward mobility was blocked, and the Bishop of Würzburg was jealous of Laszlo's favor toward the Elector. In reality, it was just a group of frustrated men huddling together for warmth—there was no need to pay them any mind.
Following this, Laszlo and the Archbishop of Mainz spent a long time finally smoothing out their thoughts for the upcoming Imperial Diet. As time passed, the princes began to arrive in Augsburg one after another, and the countdown to a new confrontation had begun.