After Austria's most recent spanking(they had 7 provinces in 1533; at the war's end, they had lost 1 province each to Italy, France, Armagnac, Toulouse and Guyenne), Europe is pretty solidly under Italian rule, I'd say.
The Iberians are of course continuing to spam colonists the world over. The Portuguese have vassalised Aragon, and given the tendency of the AI to rapidly annex states in this game, this will be an interesting development.
I predict turmoil will eventually engulf the Iberian peninsula, since a series of interlocking alliances make it so each state is aligned to the others on the peninsula except at least one. While Iberia's been stable for decades as a result of this, Portugal annexing Aragon will throw a wildcard into the equation, not to mention the fact two of Castile's provinces are Reformed. As well, Castile's cores on Granada, Galicia, and finally Armagnac will likely spell the end of peace in Iberia.
Hopefully, Armagnac, Toulouse and Guyenne will fight a Cold War against eachother, with each boasting two provinces at home and one province in the former Austrian Lowlands. One of them(I think it was Guyenne) is also Reformed, and so this just invites wars of religion. Italy will, of course, see to it that the Catholic states of the south are protected from Reformist or Castilian aggression... one day, one day, Italy will have to butt heads with Castile in order to assert herself as the ruler of Western Europe..
The Muslim powers, meanwhile, have developed a habit of making alliances across continents. Songhai is aligned with the Ottomans and other faraway powers. As Italy has a core on Songhai's coastline(read: colonisation opportunities come much quicker), this would enable Italy to gain ground on several fronts, with much less badboy than fighting another war in Europe(Italy has about 13.5 badboy).
In due time, Sweden and Novgorod will form Scandinavia and Russia, respectively, and these states will pick up the slack as Italy's rivals once the Castilians are dealt with.