1585

Europe was in chaos.

First, in France, Huguenots and Catholics entered another war of religion. Also, in the Holy Roman Empire (Germany), Cologne War took place thanks to an Archbishop of Cologne who fell in love with a daughter of a Calvinist count. Since the Archbishop of Cologne was one of the 7 Prince-electors who had both the suffrage to elect a Kaiser of the Roman Empire and the passive suffrage to become a candidate for the Kaiser election, if he becomes a Calvinist, the next Kaiser of the Holy Roman Empire could be Protestant thus causing the House of Habsburg to lose the throne of the empire.

Meanwhile, Ivan the terrible of Russia suddenly died of a stroke in 1584, which led Russia into Times of Trouble. In addition, the Sokollu Mehmed Pasha, the Grand Vizier (Prime Minister) of the Ottoman Empire was assassinated in 1579, which started an era of Sultanate of Women – wives or/and mothers of the Sultan exerted extraordinary political influence - thereby weakening the empire from the inside.

The fall and the inner chaos of those 2 countries which were threatening the European Christianity Kingdoms were both good news and bad news. The latter was a tragedy in that Europe was no longer needed to unite against the barbaric heretics.

Thus, Europe was divided. The Peace of Augsburg in 1555 which was made by Charles V could no longer harmonize the Catholics and the Protestants. The civil wars in France and the Holy Roman Empire (Germany) were just a beginning. After the Sack of Rome in 1527, the Papal States (State of Church/the direct sovereign of the Pope) lost power, and the authority of the Kaiser was falling after a series of Interregnum. (The era where there was no emperor.)

So, if the Holy Roman Empire was divided due to a Civil War and could no longer exist as one nation, there’s no single party left who has the legitimate authority and claim to control the European world as one. What does the divide of Europe - which was united under the name of the Catholic Church till now – means?

Simple. A great war, which all European countries will be involved. Religion and/or Faith was just a justification. The law and order of the original great powers will shatter, and the new emerging powers will lead a new law and order of Europe. Didn’t they say one man’s gravy is another man’s poison?

The United Kingdom of Great Britain and the Netherlands (My Kingdom) had two choices. Either to take side with the original great powers and crush the new emerging powers or as one of the new emerging powers, to crush the original great powers and become a new great power. Neutral was out of the question from the first place.

The time to decide came earlier, unexpectedly. During my new year report, I received a message from the Head of the Amsterdam branch of the East India company that the Self-ruling Parliament of the Netherlands tries to help the John Casimir, Count Palatine of Simmern, who is currently fighting against the Catholics in the Cologne War as a “Protector of the Calvinist”

‘Hell, it’s about time.’

The Dutch loath Spanish. It was not inherent, but as a result of the 20 years of oppression and massacre under Felipe II’s rule before I, Edward VII, inherited the Netherlands from him. So, the Dutch plotted to fuck the Spanish. How is that possible?

First, Spain and the Ernst of Bavaria who had the legitimate succession right to inherit the Electorate of Cologne first announced support for the Catholics of the Holy Roman Empire in the Cologne War. However, because Spain army could not enter the Empire via France route - since their long archenemy France would not allow it and they were also in civil war of religion - they had no choice but to pass the Netherlands which was in my rule, who was the also the prince of Spain since my father is Felipe II.

Now, that left me in a dilemma. I had to please both the Dutch and the Spanish. If I desert the former, the Netherlands Self-ruling Parliament will try to escape the control of the London and the Dutch might even revolt against me, too. However, I didn’t have enough power to fight the Armada, yet. So…

“Your majesty. As a prince of Spain and the honorable protector of Catholic Faith, please allow your father, King Felipe II’s army to swiftly pass the Netherlands and crush those heresies in the Holy Roman Empire.”

“I’m afraid I can’t allow it, out of worries that the heresies in the Netherlands might cause harm to my father’s army. Instead, I’ll send my fleets and carry you safely across the North Sea and land you safely in Germany.”

“…Then, can you also provide supplies for the Catholic Alliance?”

“Of course. I wish you all the luck.”

My solution was this. First, I refused the passing of the Spain Army on the Netherlands soil.

The exterior justification was the worry of the worsening public peace in the Netherlands, but in reality, it was my expressing that I wasn’t willing to cooperate with Spain’s war. However, by promising that I will land the Spain Army in North Germany, I showed Spain that I’m not their enemy. But I swiftly granted their war supply request to earn money.

Of course, Alexander Farnese, Duke of Parma and the Commander of the Spain Army who came to my palace and requested this would have seen right through me, but he said nothing.

He didn’t want to make another enemy - by provoking the United Kingdom of Great Britain and the Netherlands out of anger that I’m not being cooperative as they want – which would be a damage to the Catholic Holy Alliance.

After the United Kingdom’s fleets landed them in North Germany, the Spain Army got permission from the Kaiser of the Holy Roman Empire, Rudolf II and entered the Holy Roman Empire territories, passing by the Free Imperial City Bremen. Bremen was also neutral this time and tried to evade the damage of the war. However, an unexpected thing happened.

At that time, Felipe II, who was boasting the Spain’s wealth and riches in the whole Europe by finishing the construction of the Royal Seat of San Lorenzo de El Escorial in 1584 and moved his father – my grandfather – Charles V’s tomb to there, again failed to pay the Spain Army’s salaries.

So, the Spain soldiers, who were just planning to bypass the Bremen were both enraptured by the wealth of the Free Imperial City Bremen and went bananas when their salaries were withheld. And that led to massive looting of the Bremen suburbs by the Spain army. The dominant families of Bremen were raged and demanded the Spain Army immediate compensation. However, since their national debt was over 1 billion ducats and their war with the Protestants were much more urgent, they just accommodated a note(bill) and expressed regret and tried to go away with it.

This attitude infuriated the dominant families of the Bremen, which led the Free Imperial City Bremen to take Protestant’s side in the Cologne War. Since Bremen - which was once neutral – was one of the member cities of the Hanseatic League, this resulted in the massive participation of the war of the Lutheran protestant feudal lords in north Germany. They were hesitant to take Protestant’s side in the Cologne War earlier, out of worry that the Archbishop of Cologne was a Calvinist.

In the end, all 3 Protestant Prince-electors of the Holy Roman Empire - Margrave of Brandenburg, Duke of Saxony, Count Palatine of the Rhine – joined the now Calvinist, Archbishop of Cologne’s side and all the other Protestant Feudal Lords gathered under their leadership. This put the war – which once seemed like an overwhelming victory of the Spain and Bavaria alliance – in a deadlock.

Yeah, this is the butterfly effect. In the original history, the Archbishop of Cologne fled to Elizabeth I’s England and died alone, with Spain and Bavaria victorious. Anyway, I have work to do. The longer the Holy Roman Empire and France suffered civil war, the more maneuver I can take.

1585 Summer

“Congressmen? I’m afraid that the Civil war of the Holy Roman Empire might cause harm to our United Kingdom’s continental territory – the Netherlands. So, I’m planning to post 8,000 standing armies in the Netherlands, just in case. What do you think?”

“Your majesty. I’m afraid that 8,000 is too much. Wouldn’t 6,000 be enough?”

“Very well. Then 6,000 army reserve it shall be and I’ll have new fortresses constructed at the continental borders.”

With an excuse of a Civil war of the Empire (Cologne War), I got permission from the Parliament and put the standing army in the Netherlands and built forts on the Netherlands-Germany borders. The exterior motive was to protect the Netherlands from the harm of the Civil war of the empire, but in reality, it was to take full control of the Netherlands. With only 1.5 million population and water-filled foreshores, the Dutch have nowhere to go if I grasp the sea with the Royal Navy and block the borders in the mainlands with forts and army reserves guarding the forts.

Of course, the Dutch would have realized this ulterior motive, but since they were facing the border with the Holy Roman Empire, they had no choice but to live with it and grumble.

1585 Winter (December)

“From now on, all stocks of the stock company in the United Kingdom of Great Britain and the Netherlands will be dealt with in ‘London Stock Exchange’. Also, I will establish a central bank – Bank of England – and grant it exclusive right to issue coins and administrate national treasury and monetary policies. The bank will also safely keep the money(gold) for those who want to keep their money safe and lend money to those who want to borrow money for various reasons."

“Your majesty, I’m afraid to say…but why are you acting like Jew? Please refrain from dirty money work. It’ll be a shame to your face! Please, reconsider!”

“…The central bank will set the Base rate, which will be a guideline to regulate the market’s loan interest rate.”

“…Long live King Edward VII!”

And that’s how I made the Bank of England and the London Stock Exchange. Although the Congress couldn’t interfere much since 1st stockholder of the East India Company was the Royal Household and the right to issue coins was the King’s unique privilege, they pointed out that the Royal Household is trying to play with money, just like filthy, lowly Jews.

Their objection disappeared right after I expressed guideline that I’ll regulate the market interest rates, thereby putting shackles on the money lenders. It was for 2 reasons. First, most of the Congressmen – whether they were from the House of Lords or the House of Commons – were debtors, with the amount being big or small.

Second, some Protestants from the House of Commons who were Calvinists were insisting their Protestant work ethic and took my side, thus supporting the establishment of the Central Bank.

“Yes, your majesty. Even it’s playing with money, if you do it honestly since it’s work, it’s not a sin!”

Of course, they didn’t realize those loan sharks will now copy the Bank of England (Central Bank) and establish private banks and ‘legally’ make them debtors. But who cares? Those banks will also have to pay taxes when they come to the light.