Thirty Years War
The Thirty Years War began in 1618 when Holy Roman Emperor Ferdinand II attempted to reimpose Catholic authority over Austria and Bohemia. It was one of the most catastrophic wars in the history of Europe. After five years, he was more or less successful, but the conflict left Germany open to invasion by King Christian IV of Sweden. This continued until the Treaty of Westphalia in 1648. Since the conflict had turned most of Europe against the idea of a centralized religious authority in favor of secular nation-states, the Holy Roman Empire suffered a terrible defeat. Germany was negatively impacted even more.
In addition to the numerous war-related, plague-related, and famine-related deaths that would cause up to 40% of the populations of regions in what would become Germany to perish due to destruction and raids by unpaid mercenary armies, many Middle European governments frequently lost their ability to function. There are now 300 principalities in Germany.
Because each had its own expensive administration, the cost of government services increased much more quickly than the depleted economies could bear. A shipment along the Rhine could pass through as many as 27 principalities, making customs stops necessary even for the smallest orders. This made shipping products a headache. It's not surprising that Germany remained Balkanized for centuries given the poor and severely restricted trading conditions.
- Time: 1618 to 1648