Italy in the Late Middle Ages
By the Late Middle Ages (circa 1300 onward), Latium, the former heartland of the Roman Empire, and southern Italy were generally poorer than the North. Rome was a city of ancient ruins, and the Papal States were loosely administered, and vulnerable to external interference such as that of France, and later Spain. The Papacy was affronted when the Avignon Papacy was created in southern France as a consequence of pressure from King Philip the Fair of France. In the south, Sicily had for some time been under foreign domination, by the Arabs and then the Normans. Sicily had prospered for 150 years during the Emirate of Sicily and later for two centuries during the Norman Kingdom and the Hohenstaufen Kingdom, but had declined by the late Middle Ages.
The Rise of the Merchant Class
In contrast, Northern and Central Italy had become far more prosperous, and it has been calculated that the region was among the richest of Europe. The new mercantile governing class, who gained their position through financial skill, adapted to their purposes the feudal aristocratic model that had dominated Europe in the Middle Ages. A feature of the High Middle Ages in Northern Italy was the rise of the urban communes which had broken from the control by bishops and local counts. In much of the region, the landed nobility was poorer than the urban patriarchs in the High Medieval money economy whose inflationary rise left land-holding aristocrats impoverished. The increase in trade during the early Renaissance enhanced these characteristics.
This change also gave the merchants almost complete control of the governments of the Italian city-states, again enhancing trade. One of the most important effects of this political control was security. Those that grew extremely wealthy in a feudal state ran constant risk of running afoul of the monarchy and having their lands confiscated, as famously occurred to Jacques Coeur in France. The northern states also kept many medieval laws that severely hampered commerce, such as those against usury, and prohibitions on trading with non-Christians. In the city-states of Italy, these laws were repealed or rewritten.
The 14th century saw a series of catastrophes that caused the European economy to go into recession, including the Hundred Years' War, the Black Death, and numerous famines. It was during this period of instability that the Renaissance authors such as Dante and Petrarch lived, and the first stirrings of Renaissance art were to be seen, notably in the realism of Giotto. Paradoxically, some of these disasters would help establish the Renaissance. The Black Death wiped out a third of Europe's population. The resulting labour shortage increased wages and the reduced population was therefore much wealthier, better fed, and, significantly, had more surplus money to spend on luxury goods. As incidences of the plague began to decline in the early 15th century, Europe's devastated population once again began to grow. The new demand for products and services also helped create a growing class of bankers, merchants, and skilled artisans.
Warring Italians
Northern Italy and upper Central Italy were divided into a number of warring city-states, the most powerful being Milan, Florence, Pisa, Siena, Genoa, Ferrara, Mantua, Verona and Venice. High Medieval Northern Italy was further divided by the long-running battle for supremacy between the forces of the Papacy and of the Holy Roman Empire: each city aligned itself with one faction or the other, yet was divided internally between the two warring parties, Guelfs and Ghibellines. Warfare between the states was common, invasion from outside Italy confined to intermittent sorties of Holy Roman Emperors. Renaissance politics developed from this background. Since the 13th century, as armies became primarily composed of mercenaries, prosperous city-states could field considerable forces, despite their low populations. In the course of the 15th century, the most powerful city-states annexed their smaller neighbors. Florence took Pisa in 1406, Venice captured Padua and Verona, while the Duchy of Milan annexed a number of nearby areas including Pavia and Parma.
A popular explanation for the Italian Renaissance is the thesis, first advanced by historian Hans Baron, that states that the primary impetus of the early Renaissance was the long-running series of wars between Florence and Milan. By the late 14th century, Milan had become a centralized monarchy under the control of the Visconti family. Giangaleazzo Visconti, who ruled the city from 1378 to 1402, was renowned both for his cruelty and for his abilities, and set about building an empire in Northern Italy. He launched a long series of wars, with Milan steadily conquering neighbouring states and defeating the various coalitions led by Florence that sought in vain to halt the advance. This culminated in the 1402 siege of Florence, when it looked as though the city was doomed to fall, before Giangaleazzo suddenly died and his empire collapsed.
Baron's thesis suggests that during these long wars, the leading figures of Florence rallied the people by presenting the war as one between the free republic and a despotic monarchy, between the ideals of the Greek and Roman Republics and those of the Roman Empire and Medieval kingdoms. For Baron, the most important figure in crafting this ideology was Leonardo Bruni. This time of crisis in Florence was the period when the most influential figures of the early Renaissance were coming of age, such as Ghiberti, Donatello, Masolino, and Brunelleschi. Inculcated with this republican ideology they later went on to advocate republican ideas that were to have an enormous impact on the Renaissance.
The Medici Family
The House of Medici was an Italian banking family, political dynasty and later royal house that first began to gather prominence under Cosimo de' Medici in the Republic of Florence during the first half of the 15th century. The family originated in the Mugello region of the Tuscan countryside, gradually rising until they were able to fund the Medici Bank. The bank was the largest in Europe during the 15th century, seeing the Medici gain political power in Florence — though officially they remained citizens rather than monarchs. The biggest accomplishments of the Medici were in the sponsorship of art and architecture, mainly early and High Renaissance art and architecture. The Medici were responsible for the majority of Florentine art during their reign.
Their wealth and influence initially derived from the textile trade guided by the guild of the Arte della Lana. Like other signore families, they dominated their city's government, they were able to bring Florence under their family's power, and they created an environment where art and humanism could flourish. They along with other families of Italy, such as the Visconti and Sforza of Milan, the Este of Ferrara, and the Gonzaga of Mantua, fostered and inspired the birth of the Italian Renaissance. The Medici family was connected to most other elite families of the time through marriages of convenience, partnerships, or employment, so the family had a central position in the social network: several families had systematic access to the rest of the elite families only through the Medici, perhaps similar to banking relationships.
The Medici Bank was one of the most prosperous and most respected institutions in Europe. There are some estimates that the Medici family were the wealthiest family in Europe for a time. From this base, they acquired political power initially in Florence and later in wider Italy and Europe. A notable contribution to the profession of accounting was the improvement of the general ledger system through the development of the double-entry bookkeeping system for tracking credits and debits. The Medici family were among the earliest businesses to use the system.
Cosimo di Giovanni de' Medici was the first of the Medici political dynasty and had tremendous political power in Florence. Despite his influence, his power was not absolute; Florence's legislative councils at times resisted his proposals, something which would not have been tolerated by the Visconti of Milan, for instance; throughout his life he was always primus inter pares, or first among equals. His power over Florence stemmed from his wealth, which he used to control votes. As Florence was proud of its 'democracy', he pretended to have little political ambition, and did not often hold public office. Aeneas Sylvius, Bishop of Siena and later Pope Pius II, said of him: "Political questions are settled in [Cosimo's] house. The man he chooses holds office... He it is who decides peace and war... He is king in all but name."
Cosimo di Giovanni de' Medici
Portrait of Cosimo de' Medici, the found of the House of Medici, by Jacopo Pontormo; the laurel branch (il Broncone) was a symbol used also by his heirs.