Europe in the eleventh century underwent enormous social, technological, and economic changes, but this did not create a new Europe—it created two new ones. The north was developed as a rigidly hierarchical society in which status was determined, or was at least indicated, by the extent to which one owned, controlled, or labored on land; whereas the Mediterranean south developed a more fluid, and therefore more chaotic, world in which industry and commerce predominated and social status both reflected and resulted from the role that one played in the public life of the community. In other words, individual identity and social community in the north were established on a personal basis, whereas in the south they were established on a civic basis. By the start of the twelfth century, northern and southern Europe were very different places indeed, and the Europeans themselves noticed it and commented on it.
Political dominance belonged to the north. Germany, France, and England had large Populations and large armies that made them, in the political and military senses, the masters of Western Europe. Organized by the practices known collectively as feudalism, these kingdoms emerged as powerful states with sophisticated machineries of government. Their kings and queens were the leading figures of the age; their castles and cathedrals stood majestically on the landscape as symbols of their might; their armies both energized and defined the age. Moreover, feudal society showed a remarkable ability to adapt to new needs by encouraging the parallel development of domestic urban life and commercial networks; in some regions of the north, in fact, feudal society may even have developed in response to the start of the trends toward bigger cities. But southern Europe took the lead in economic and cultural life. Though the leading Mediterranean states were small in size, they were considerably wealthier than their northern counterparts. The Italian city of Palermo in the twelfth century, for example, alone generated four times the commercial tax revenue of the entire kingdom of England. Southern communities also possessed urbane, multilingual cultures that made them the intellectual and artistic leaders of the age. Levels of general literacy in the south far surpassed those of the north, and the people of the south put that learning to use on a large scale. Science, mathematics, poetry, law, historical writing, religious speculation, translation, and classical studies all began to flourish; throughout most of the twelfth century, most of the continent's best brains flocked to southern Europe.
So too did a lot of the north's soldiers. One of the central themes of the political history of the twelfth century was the continual effort by the northern kingdoms to extend their control southward in the hope of tapping into the Mediterranean bonanza. The German emperors starting with Otto I (936-973), for example, struggled ceaselessly to establish their control over the cities of northern Italy, since those cities generated more revenue than all of rural Germany combined. The kings of France used every means at their disposal to push the lower border of their kingdom to the Mediterranean shoreline. And the Normans who conquered and ruled England established outposts of Norman power in Sicily and the adjacent lands of southern Italy; the English kings also hoped or claimed at various times to be, either through money or marriage diplomacy, the rulers of several Mediterranean states. But as the northern world pressed southward, so too did some of the cultural norms and social mechanisms of the south expand northward. Over the course of the twelfth century, the feudal kingdoms witnessed a proliferation of cities modeled in large degree on those of the south. Contact with the merchants and financiers of the Mediterranean led to the development of northern industry and international trade (which helped to pay for many of the castles and cathedrals mentioned earlier). And education spread as well, culminating in the foundation of what is arguably medieval Europe's greatest invention: the university. The relationship of north and south was symbiotic, in other words, and the contrast between them was more one of differences in degree than of polar opposition.