Fugger and Reformation: The rise of financial capital in Europe!

Fugger and Reformation: The rise of financial capital in Europe!

Augsburg, Deutschland - Destabilized newly created financial capital and social changes in Europe in the late Middle Ages. The role of the Augsburg Fugger, which originally started as a textile dealer and developed into a mighty financial trust in the late 15th century, is particularly concise. The Fugger decisively influenced the political landscape by loaning German emperors, including Maximilian I and Karl V, and shaping the emperor election by bribing. But their expansion was not just an economic nature; They were also directly connected to the looting in Latin America, since the Spanish Empire increasingly relyed on the funds that the Fugger made available to support Karl V. Compact-Online describes that the reformation and the subsequent peasant uprising are to be understood as reactions to these massive changes in social and financial structures.

The rise of the Fugger is inextricably linked to the advent of the financial market. Around 1500 they dominated the European copper and silver trade and developed trade routes from Italy to Scandinavia, from Hungary to Spain. In this context, the Fugger family became a serious competition for the Hanseatic League, one of the most important trading companies in the Middle Ages. Jakob Fugger used methods that can be regarded as early forms of industrial espionage. He established a network of agents to collect information about his competitors, which Planet Knowledge in detail.

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The Fugger united various economic activities under one roof in an impressive way. So they not only operated minerals, but also invested in the international Seehandel. Jakob Fugger insulted competitors through targeted false information and thus cleared the way for a monopoly -like position in retail. His financial commitment also extended to the Portuguese expedition to India, which began in 1505, and the establishment of an important branch in Antwerp. These achievements resulted in the Fugger company reached its peak in the early 16th century.

At the same time, the economic consequences of the Reformation show that economic and social change drastically impaired the role of the Church as an important economic actor. The Protestant movements called for the rejection of the ban on interest, which led to a change in banking. Banks could now request interest and granted loans, which promoted investments and economic development. Lexolino emphasized that these changes re-shaped the economic structures in Europe, which resulted in an educated workers and a greater importance of education and science. Protestant work ethics, which emphasized diligence and economy, contributed to the bloom of Europe.

In the result, the indulgence practices organized by the Fuggern led to the Reformation, which in turn led to uprisings and religious wars. These conflicts, including the devastating Thirty Years' War, were not only religious nature, but also an expression of rival forces of the emerging financial capital. Their far -reaching influence on European society and the economy is still important today.