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The important terms of the peace of Augsburg in 1555 were: 

1. The ruler will have the right to determine his static-religion. 

2. Lutheran subjects in Catholic states in Germany will not be asked to renounce their faith.

Martin Luther was very much against the worldliness of the Pope Leo X, the Clergy and the spiritual emptiness of the Catholic Church. All his resentment provoked the Pope and he declared Martin Luther as a heretic and sent a letter, warning him that he would be excommunicated from the Church. Martin Luther defiantly burnt the Papal’s Bull of Excommunication in the presence of the public at Writen berg on December 10, 1520, theory marking his revolt.

The Reformation in Europe was the immediate cause of the division of the Roman Catholic church.

Puritans condemned and prohibited Sale of Indulgences. Seminaries were to be started for importing education and training to priests. The Church should not charge any fees for conducting religious services; sermons should be preached in the language of the people.

The results (Impacts) of the Reformation were as follows: 

1. The Church was split up: It led to the birth of Protestantism. With the spread of the Protestant Movement, some of the kings and princes of Europe sided with one faction, while others with the other. Luther was supported greatly by the masses, as there was a strong feeling against the abuses of power by the Roman Church. 

2. Religious Conflicts and Wars: The fanatics who never showed any respect to the sublime teachings of Jesus Christ, always encouraged cruel persecutions. Religious intolerance resulted in civil war in Germany. Subsequently, the Holy Roman Empire underwent Thirty Years War. The main object was to force the Protestant states to become Catholic. Religious frenzy drove the English Puritans to North America, that led to formation of the United States of America in the course of time. 

3. Counter Reformation (Rgjform in Catholic Religion): Reformation resulted in Counter-Reformation. Roman-Catholics under the Pope at the Council of Trent, took measures to revive the prestige of the Church. Christianity became more liberal, more tolerant of different kinds of opinions. 

4. The Rise of National Monarchies: Those princes who wanted to be freed of leading-strings of the Pope, stated with Martin Luther or Calvin. The Reformation assumed the form of nationalism particularly in Germany and in England. Had it not been for the support of English Parliament, Henry VIII would not have succeeded in his struggle against the Catholic Church. 

5. Rapid Economic Growth: The Clergy were hurt and crashed. The new age that was dawning, was “the age of traders, bankers or financiers”. Much of the Church property had passed to the kings. Therefore, they had considerable wealth at their disposal. They could now give attention to those sufferings, poverty and beggary.

It is the 16th century movement in Europe for the reform of the Church and the objectionable practices of the clergyman.

In context of measures taken to restore the reputation of Catholic Chinch, the given questions are answered as under: 

(a) The Reformation movement greatly damaged the very foundation of the Roman Catholic Church in the 16th century and brought about the birth of the Protestant Church. In order to restore the reputation of the Catholic Church, a large number of dedicated ^Christians; including some Popes, had adopted certain reforms within the Church. A Church Council was convened at Trent, in northern Italy in 1545 by Pope Paul III 

(b) The Council of Trent took up strict measures to maintain discipline among the Church officials. The sale of Church offices was stopped. It condemned and prohibited Sale of Indulgences. Seminaries were to be started for importing education and training to priests. The Church should not charge any fees for conducting- religious services; sermons should be preached in the language of the people.The Society of Jesus was founded by Ignatius Loyola, a Spanish noble man. He took a vow to serve Christ and turned into a Missionary after studying the life of Jesus Christ and other saints. He studied theology in Sorbonne University. He founded a religious Order by the name Society of Jesus with the permission of the Pope.St. Francis Xavier was one of the Jesuit followers of Ignatius Loyola. He went to China and Japan for the propagation of Christianity. He came to India and worked till he died. His mortal – remains were placed at the Church of Bom Jesus in old Goa. The selfless and dedicated service rendered by the Jesuits helped in restoring the prestige of the Roman Catholic Church.

(a) His Excommunication: Pope Leo X, declared Martin Luther as a heretic and sent a letter, warning him that he would be excommunicated from the Church. He defiantly burnt the Papal’s Bull of Excommunication in the presence of the public at Wittenberg on December 10, 1520, thereby making his revolt. In 1521, Emperor Charles V summoned Luther to attend the Diet at Worms to answer charges levelled against him by the Pope. Though his friends and well-wishers persuaded him not/to attend, Luther appeared before the Diet to defy the Church. He boldly declared that he would not revoke any of his statements as his conscience “is taken captive by the word of God.” The Emperor issued the famous Edict of Worms, declaring Luther as heretic and ordered for his arrest. 

(b) His success in mobilising princes’ and peoples’ support: Frederick the Wise, Duke of Saxony, saved Luther’s life by forcing him to hide. Luther spent one year in a lonely castle during which time, he translated the Holy Bible from Latin to German. Many German princes who supported Luther, raised their banner of revolt against the authority of the Church and formed a League to ‘protect Luther. Those who favored the new protest movement, broke away from the Catholic Church and came to be known as Protestants. Lutheran Churches were established all over the country. It divided Germany into two factions-one group, under Emperor Charles V and the other group, under the Protestant rulers of Germany. It led to religious conflict, which took a heavy toll and ended in the Peace of Augsburg in 1555. The Peace acknowledged the right of a ruler to determine his state- religion. Lutheran subjects in Catholic states in Germany were not asked to renounce their faith. Thus, the power and prestige of the Catholic Church led by the Pope suffered a serious setback.

The forces and factors that contributed to the rise of Nation States in Europe are as follows: 

1. Political Factors (Need for a strong Control Authority): Fighting was the chief occupation of the feudal lords. People were fed up of anarchy and disorder. They were prepared to lend moral and material support to those kings who could reduce the power of the nobles. The Tudor Monarch, Henry VII (1485-1509) destroyed the power of the feudal lords in England. Cardinal Richelieu, the leading statesman of France, strengthened the authority of the French Crown. He reduced the power of the nobles. At this time, Spain and Portugal also had very powerful monarchs. 

2. Economic Factors: The merchants and traders resented all such barriers as prevented them from moving from one part of the country to another. This new class gave presents and also advanced loans to the kings that added to their military strength. The kings could now raise their independent armies to crush the plots and rebellions of their nobles. 

3. Intellectual Factors (Renaissance): Science and literature also forged ahead during this period. England, Italy, France and Spain produced writers, inspired by nationalist ideas. Machiavelli, for instance, wanted to unite Italy under a strong central government. In his book ‘ The Prince’ He pleaded for a strong monarchy for Italians at that time. 

4. Religious Factors (Reformation): In view of the Protestant revolt, many princes of Germany and other European kings, sided with Reformation. They now, declared themselves as heads of the Church as well as of the Government. The kings had already crushed the feudal lords. Now, another great rival of the Crown i.e the Church also submitted to king’s authority. That completed the edifice of a Nation-State. In England, it was king Henry VIII (1509-1547) who championed the cause of Protestantism. He got the English Parliament to pass the Act of Supremacy to nullify Pope’s power over the churches in England. This made the king, the supreme Head of the Church of England.

Two divisions of the Church prevailed in the Scandanivian countries were Protestant Lutheran Church and Roman Catholic Church.

‘Reformation’ was a religious Movement launched by Martin Luther. It protested against the dogmas of Roman Catholic Church.

At first, Tuder ruler Henry VIII was a devout Catholic Christian and also wrote a book in praise of the Pope, but afterwards, due to some personal reasons, he stood against the Catholic Church. He made himself the Supreme Head of the Church of England.

John Calvin (1509-1564), a French scholar, popularised the Protestant movement in Switzerland after the death of Zwingli,who declared Bible as the sole authority. Calvanists were known as the ‘Puritans’ in England, ‘Huguenots’ in France and ‘Presbyterians’ in Scotland.

As the Protestant revolt grew in strength, many rulers who wanted to be freed of leading-strings of the Pope sided with Martine Luther or Calvin. Many European kings now declared themselves as Head of the Church as well as of the Government. The kings had already crushed the feudal lords. Now another great rival of the Crown i.e., the Church also submitted to King’s authority. That completed the edifice of a National-State.

Tetzel, who was sent to Germany by Pope, he used to sell Indulgences, offering pardon to those who paid money. This practice of his is said to be the Sale of Indulgences.

On account of the disorder and unrest during the feudal times, people came to the conclusion that there must be a peaceful condition and atmosphere with peaceful and amicable . relationship which could only be possible through formation of the Nation States with common creed and religion.

(a) John Calvin: A French Scholar, popularised the Protestant movement in Switzerland. Calvanists disliked feasting on a lavish scale. 

(b) King Henry VIII: He became against the Church due to not receiving a permission from the Pope, he broke away from the Catholic Church and made himself the Supreme Head of the Church in England. 

(c) Ulrich Zwingli: He spread Lutheranism in Switzerland. He regarded the Bible as the sole guide to right living. He was killed in a religious war against the Pope that broke out in AD 1531.

Main factors that contributed to growth ofNation States were as follows: 

1. Rise of nationalism 

2. Church were submitted to King’s authority. 

3. Rulers opposed the Supremacy of Church. 

4. After the long tussle between the rulers and the Church, after Reformation religion of the King became the religion of the people and at last the Nation States came into existence.

Mercantilism refers to a collection of economic maxims of strict practical utility aimed at maintaining a favorable balance of trade by discouraging imports and encouraging exports. These were meant to ensure the prosperity and security of the state.

The basic principles of mercantilism were identical in all the countries. These were the following: 

1. Foreign Trade: The Mercantilists believed that the strength and richness of a country depends on two things — the possession of gold and silver mines and favorable balance of trade. As all the countries did not have mines of gold and silver, they could built up stocks of these metals by exporting maximum of their manufactured goods and importing minimum of commodities from other countries. They, therefore, insisted on discouraging imports through imposition of heavy duties and prohibition on foreign goods and encouraging exports by promoting domestic agriculture and industry. 

2. Importance of Wealth: Mercantilists considered wealth as the sources of all power and laid great emphasis on the importance of gold and silver. 

3. Interest: Mercantilists favored charging of low rate of interest on the money as it could be profitably employed in trade to make profit. The high rates of interest made the money scare. 

4. Factors of Production: Mercantilists considered the land and the labor as the sole factors of production. Most of them laid emphasis on the need to increase production to attain self sufficiency in food-stuffs and to encourage exports. They laid emphasis on the cultivation of wastelands to increase production in agriculture. 

5. Large Population: Mercantilism emphasised the need of having large population for increasing production and participation in war. They regarded large population as the real strength of the community as it made inventions and developed industries which brought riches.to the nation. 

6. Commercial Regulations: For the maintenance of a favorable balance of trade the mercantilists favored commercial regulations. The European countries frame regulations to restrict the import of foreign goods and encourage export