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During the Middle Ages, guilds and economic structures were initially open but became highly constricted by the late Middle Ages, with hereditary guilds and rigid regulations. This led to a divergence in Europe, where Northwest Europe reformed these institutions while Mediterranean Europe maintained them.

In medieval Europe, decentralization of monarchical institutions allowed capitalism to evolve because small governments couldn't maintain power, leading to a balance of social authorities like the church, state, nobility, and merchant guilds.

Chris Dawson explains that the distinct legal identities of medieval European cities developed to uphold Christian morality in densely populated areas, contrasting with the rural parishes. This led to the creation of Republican institutions to maintain moral codes.

During the early modern period, governments in Catholic Europe, such as Spain and France, collaborated with noblemen to suppress the merchant classes, leading to a decline in economic prosperity compared to Northwestern Europe.

The Catholic and Protestant churches were powerful in pre-modern Europe due to the weak state, providing social organization and fostering ideals of personal responsibility and individualism.

In early modern Europe, despite rigid social structures like feudal nobilities and government monopolies, there was significant cultural and innovative output. Modern Europe lacks these structures on paper, but government involvement in the economy is much higher today.

The Catholic Church's continuity is remarkable, especially considering the logistical challenges it faced in maintaining tradition and civilization through fragile communication networks in the past.

In the High Middle Ages, the Catholic Church's influence was so pervasive in Western Europe that it shaped the very identity of its people. They identified first as Christians rather than Europeans, and this religious framework influenced everything from science to ethics.

During the Dark Ages, the Catholic Church faced theological disputes, particularly with Arian Christians like the Visigoths and Ostrogoths. These groups believed Christ was a man connected to God, not divine. This theological stance led to political tensions and oppression of local Catholics by these Germanic elites.

Universities in medieval Europe originated as Catholic institutions and became key in developing cities as organizational alternatives to the Church. By the 12th century, they began secularizing, showing Europe's rapid adoption of logical traditions from Byzantines and Muslims.