Pretty much as I suspected. Quite good.
Liberal vs. Conservative in Germany? Problem is, the conservatives had the army on their side, but, perhaps, it is not too impossible. Would've been interesting as to how the other powers react.
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As year 1600 came, Europe has lived through many wars, and was waiting for more - perhaps for one or two great, bloody wars to culminate everything that gathered since the end of the 15th century.
So, lets look at Europe. Religious division is pretty much the same - but Huguenots are increasingly stronger in France, especially without the St. Bathomelew massacre and the (open) Religion Wars. England is alittle stronger, but is more distracted from Europe - it is, however, comitted to the Alliance of Lisbon. France is still ruled by the Valois dynasty, but in essence, there are two factions (Catholics and Huguenots) within the court in a cold civil war (intrigue, diplomacy, competition for military and civilian rank and titles and, ofcourse, "hunting accidents") over religion and control of the king, Henri III - a rather weak and corrupt old man (even weaker and easaier to influence then the OTL Henri III). France has no allies, with the possible exception of Sweden and Denmark-Norway (unfortunately, the two are often at war with each other). It DOES have a(n) (un)healthy amount of enemies.
United Provinces of Castille and United Provinces of Netherlands are getting along quite well despite religious differences. Netherlands - with capital in Antwerpen - is also a member of the Alliance of Lisbon ever since its independance was confirmed in 1579 (much earlier then in OTL - Charles VI, being a more reasonable monarch then the utterly insane Rudolph II, and given the circumstances of Hapsburg decline and loss of Vienna, realized that with his limited manpower, he could not hope to win the war in Netherlands).
Aragon, despite its loss of Italy, was recovering. Charles I (V) was suceeded by Philip II in Aragon. Philip II concentrated on North Africa as well, defeating the Ottoman Fleet at Malta in 1573 (local near-equivalent of the Battle at Lepanto, but not as crushing) and acquiring North Africa all the way east to Tunis (includingly). It was hard to keep order there, but somehow, Philip managed that, in part since the Ottomans did not really want to send troops into that desert, being preoccupied with the Polish forces in Hungary as they were. Further expansion was not attempted for now.
Holy Roman Empire was, by then, most predominantly Protestant (though the Schmalkaldik League was slowly deteriorating again) with the exception of the southwestern areas (Austria was temporarily Ottoman with a large Protestant minority slowly changing into a majority). The Holy Roman Emperor, Frederick IV of the Palatinate, is Protestant as well.
In Italy, France now controls Milan, Liguria (Genoa), Two Sicilies (Kingdom of Naples and Sicily) and Florence. The current Pope is opposed to the French, as is Venice.
Ottoman Empire, as of now, is being slowly beaten back out of Hungary by the brand-new jugernaut of Eastern Europe - the Jagiellon Empire, AKA Poland-Lithuania-Bohemia-Austria-Hungary. Or Rech Pospolitaya. It had a series of succesful kings, such as Sigismund the Old and Stephen (Istvan) Bathory. It waged succesful wars against Turks, Russians and Protestants (albeit against the latter, the only obvious success was the conquest of the remaining Teutonic Order lands). Although Stephen's ambitions of conquering Muscovy weren't fulfilled and his later successors abandoned it until a better time, nevertheless, the Jagiellons were still powerful and their eastern borders were quite secure. They quickly became the new defenders of Catholic Faith.
Indeed, all this was heading to one bloody religious war, to be fought throughout Europe much unlike the regional Medieval conflicts. From Muscovy to Portugal, armies were preparing for war. A loose anti-French coalition was collapsing over religious reasons, yet all were sure that the next war would be against France. So it seemed - that is, until in 1603, Henri III finally died and a civil war broke out in France. The War of French Succession has begun.
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Should I continue it further? I do have the general idea about the War of French Succession's course, and some interesting results...