Charles was crowned at Aachen, October 23, 1520, and some three months later presided at the famous diet of Worms, where he met Martin Luther face to face. Before starting on his momentous journey he again appointed Margaret regent, and gave to her Council, which he nominated, large powers; the Council of Mechlin, the Court of Holland and other provincial tribunals being subjected to its superior authority and jurisdiction. By this action the privileges of the provinces were infringed, but Charles was resolute in carrying out the centralising policy of his ancestors, the Dukes of Burgundy, and he had the power to enforce his will in spite of the protests that were raised. And so under the wise and conciliatory but firm administration of Margaret during a decade of almost continuous religious and international strife—a decade marked by such great events as the rapid growth of the Reformation in Germany, the defeat and capture of Francis I at Pavia, the sack of Rome by the troops of Bourbon and the victorious advance of the Turks in Hungary and along the eastern frontier of the empire—the Netherland provinces remained at peace, save for the restless intrigues of Charles of Egmont in Gelderland, and prospered. Their wealth furnished indeed no small portion of the funds which enabled Charles to face[pg.20] successfully so many adversaries and to humble the power of France. The last important act of Margaret, like her first, was connected with the town of Cambray. In this town, as the representative and plenipotentiary of her nephew the emperor, she met, July, 1529, Louise of Savoy, who had been granted similar powers by her son Francis I, to negotiate a treaty of peace. The two princesses proved worthy of the trust that had been placed in them, and a general treaty of peace, often spoken of as "the Ladies' Peace," was speedily drawn up and ratified. The conditions were highly advantageous to the interests of Spain and the Netherlands. On November 30 of the following year Margaret died, as the result of a slight accident to her foot which the medical science of the day did not know how to treat properly, in the 50th year of her age and the 24th of her regency.

Charles, who had a few months previously reached the zenith of his power by being crowned with the iron crown of Lombardy and with the imperial crown at the hands of Pope Clement VII at Bologna (February 22 and 24, 1530), appointed as governess in Margaret's place his sister Mary, the widowed queen of Louis, King of Hungary, who had been slain by the Turks at the battle of Mohacs, August 29, 1526.

Mary, who had passed her early life in the Netherlands under the care of her aunt Margaret, proved herself in every way her worthy successor. She possessed, like Margaret, a strong character, statesmanlike qualities and singular capacity in the administration of affairs. She filled the difficult post of regent for the whole period of twenty-four years between the death of Margaret and the abdication of Charles V in 1555. It was fortunate indeed for that great sovereign that these two eminent women of his house should, each in turn for one half of his long reign, have so admirably conducted the government of this important portion of his dominions, as to leave him free for the carrying out of his far-reaching political projects and constant military campaigns in other lands. Two years after Mary entered upon her regency Charles appointed three advisory and administrative bodies—the Council of State, the Council of Finance and the Privy Council—to assist her in the government. The Council of State dealt with questions of external and internal policy and with the appointment of officials; the Council of Finance with the care of the revenue and private[pg.21] domains of the sovereign; to the Privy Council were entrusted the publication of edicts and "placards," and the care of justice and police.

When Charles succeeded Philip the Fair only a portion of the Netherlands was subject to his sway. With steady persistence he set himself to the task of bringing all the seventeen provinces under one sovereign. In 1515 George of Saxe-Meissen sold to him his rights over Friesland. Henry of Bavaria, who in opposition to his wishes had been elected Bishop of Utrecht, was compelled (1528) to cede to him the temporalities of the see, retaining the spiritual office only. Charles thus added the Upper and Lower Sticht—Utrecht and Overyssel—to his dominions. He made himself (1536) master of Groningen and Drente after a long and obstinate struggle with Charles of Gelderland, and seven years later he forced Charles' successor, William of Jülich and Cleves, to renounce in his favour his claims to Gelderland and Zutphen. During the reign of Charles V the States-General were summoned many times, chiefly for the purpose of voting subsidies, but it was only on special and solemn occasions, that the representatives of all the seventeen provinces were present, as for instance when Philip received their homage in 1549 and when Charles V announced his abdication in 1555. The names of the seventeen provinces summoned on these occasions were Brabant, Limburg, Luxemburg, Gelderland, Flanders, Holland, Zeeland, Artois, Hainault, Namur, Lille with Douay and Orchies, Tournay and district, Mechlin, Friesland, Utrecht, Overyssel with Drente and Groningen. The bishopric of Liège, though nominally independent, was under the strict control of the government at Brussels. The relations of Charles' Burgundian domains to the empire were a matter of no small moment, and he was able to regulate them in a manner satisfactory to himself. Several times during his reign tentative attempts were made to define those relations, which were of a very loose kind. The fact that the head of the house of Habsburg was himself emperor had not made him any less determined than the Burgundian sovereigns, his ancestors, to assert for his Netherland territories a virtual independence of imperial control or obligation. The various states of which the Netherlands were composed were as much opposed as the central government at Brussels to any recognition of the claims of the empire; and both[pg.22] Margaret of Austria and Mary of Hungary ventured to refuse to send representatives to the imperial diets, even when requested to do so by the emperor. At last in 1548, when all the Netherland provinces had been brought under the direct dominion or control of one sovereign prince, a convention was drawn up at the diet of Augsburg, chiefly by the exertions of the Regent Mary and her tried councillors Viglius and Granvelle, by which the unity of the Netherland territories was recognised and they were freed from imperial jurisdiction. Nominally, they formed a circle of the empire,—the Burgundian circle—and representatives of the circle were supposed to appear at the diets and to bear a certain share of imperial taxation in return for the right to the protection of the empire against attacks by France. As a matter of fact, no representatives were ever sent and no subsidy was paid, nor was the protection of the empire ever sought or given.

This convention, which in reality severed the shadowy links which had hitherto bound the Netherlands to the empire, received the sanction of the States-General in October, 1548; and it was followed by the issuing, with the consent of the Estates of the various provinces, of a "Pragmatic Sanction" by which the inherited right of succession to the sovereignty in each and every province was settled upon the male and female line of Charles' descendants, notwithstanding the existence of ancient provincial privileges to the contrary. In 1549 the emperor's only son Philip was acknowledged by all the Estates as their future sovereign, and made a journey through the land to receive homage.

The doctrines of the Reformation had early obtained a footing in various parts of the Netherlands. At first it was the teaching of Luther and of Zwingli which