structural:expansion, quality:corruption, linguistic:paraphrasing
Reforms

Within the Holy Roman Empire, there was also a consensus that deep reforms were needed to preserve the unity of the Empire. For most of his reign, Frederick III had considered reform as a threat to his imperial prerogatives and wanted to avoid direct confrontations with the princes on the matter. However, in his last years, mainly to secure election for Maximilian, he presided over the initial phase of reform. Maximilian though was more open to reform. From 1488 through his reign as sole ruler, he practiced a policy of brokerage, acting as the impartial judge between options suggested by the princes. Many measures were launched in the 1495 Reichstag at Worms. A new organ was introduced, the Reichskammergericht, that was to be largely independent from the Emperor. A new tax was launched to finance the Empire's affairs (above all military campaigns), the Gemeine Pfennig. It was levied for the first time between 1495 and 1499, raising 136,000 florins, and another five times during the 1512–1551 period, before being supplanted by the matricular system which allowed common burdens to be assessed at imperial as well as Kreis level.

To create a rival for the Reichskammergericht, Maximilian established the Reichshofrat, which had its seat in Vienna. Unlike the Reichskammergericht, the Reichshofrat looked into criminal matters and even allowed the emperors the means to depose rulers who did not live up to expectations. Pavlac and Lott note that, during Maximilian's reign, this council was not popular though. According to Barbara Stollberg-Rilinger though, throughout the early modern period, the Reichshofrat remained by far the faster and more efficient among the two Courts. The Reichskammergericht on the other hand was often torn by matters related to confessional alliance. Around 1497–1498, as part of his administrative reforms, he restructured his Privy Council (Geheimer Rat), a decision which today induces much scholarly discussion. Apart from balancing the Reichskammergericht with the Reichshofrat, this act of restructuring seemed to suggest that, as Westphal quoting Ortlieb, the "imperial ruler—independent of the existence of a supreme court—remained the contact person for hard pressed subjects in legal disputes as well, so that a special agency to deal with these matters could appear sensible" (as also shown by the large number of supplications he received).

In 1500, as Maximilian urgently needed assistance for his military plans, he agreed to establish an organ called the Reichsregiment (central imperial government, consisting of twenty members including the Electors, with the Emperor or his representative as its chairman), first organized in 1501 in Nuremberg and consisted of the deputies of the Emperor, local rulers, commoners, and the prince-electors of the Holy Roman Empire. Maximilian resented the new organization as it weakened his powers, and the Estates failed to support it. The new organ proved politically weak, and its power returned to Maximilian in 1502.

According to Thomas Brady Jr. and Jan-Dirk Müller, the most important governmental changes targeted the heart of the regime: the chancery. Early in Maximilian's reign, the Court Chancery at Innsbruck competed with the Imperial Chancery (which was under the elector-archbishop of Mainz, the senior Imperial chancellor). By referring the political matters in Tyrol, Austria as well as Imperial problems to the Court Chancery, Maximilian gradually centralized its authority. The two chanceries became combined in 1502. Jan-Dirk Müller opines that this chancery became the decisive government institution since 1502. In 1496, the emperor created a general treasury (Hofkammer) in Innsbruck, which became responsible for all the hereditary lands. The chamber of accounts (Raitkammer) at Vienna was made subordinate to this body. Under Paul von Liechtenstein, the Hofkammer was entrusted with not only hereditary lands' affairs, but Maximilian's affairs as the German king too.

Historian Joachim Whaley points out that there are usually two opposite views on Maximilian's rulership: one side is represented by the works of nineteenth century historians like Heinrich Ullmann or Leopold von Ranke, which criticize him for selfishly exploiting the German nation and putting the interest of his dynasty over his Germanic nation, thus impeding the unification process; the more recent side is represented by Hermann Wiesflecker's biography of 1971–86, which praises him for being "a talented and successful ruler, notable not only for his Realpolitik but also for his cultural activities generally and for his literary and artistic patronage in particular".

According to Brady Jr., Ranke is right regarding the fact Berthold von Henneberg and other princes did play the leading role in presenting the proposals for creating institutions (that would also place the power in the hands of the princes) in 1495. However, what Maximilian opposed was not reform per se. He generally shared their sentiments regarding ending feuds, sounder administrative procedures, better record-keeping, qualifications for offices etc. Responding to the proposal that an Imperial Council (the later Reichsregiment) should be created, he agreed and welcomed the participation of the Estates, but he alone should be the one who appointed members and the council should function only during his campaigns. He supported modernizing reforms (which he himself pioneered in his Austrian lands), but also wanted to tie it to his personal control, above all by permanent taxation, which the Estates consistently opposed. In 1504, when he was strong enough to propose his own ideas of such a Council, the cowered Estates tried to resist. At his strongest point though, he still failed to find a solution for the common tax matter, which led to disasters in Italy later. Stollberg-Rilinger notes that had the Common Penny been successful, modern governmental structures would likely emerge on the Empire's level, but that was why it failed as it was not in the interest of territorial lords. Meanwhile, he explored Austria's potential as a base for Imperial power and built his government largely with officials drawn from the lower aristocracy and burghers in Southern Germany.

Whaley notes that the real foundation of his Imperial power lay with his networks of allies and clients, especially the less powerful Estates, who helped him to recover his strength in 1502—his first reform proposals as King of the Romans in 1486 were about the creation of a network of regional unions. According to Whaley, "More systematically than any predecessor, Maximilian exploited the potential of regional leagues and unions to extend imperial influence and to create the possibility of imperial government in the Reich." To the Empire, the mechanisms involving such regional institutions bolstered the Land Piece (Ewiger Landfriede) declared in 1495 as well as the creation of the Reichskreise (Imperial Circles, which would serve the purpose of organize imperial armies, collect taxes and enforce orders of the imperial institutions: there were six at first; in 1512, the number increased to ten), between 1500 and 1512, although they were only fully functional some decades later. While Brady describes Maximilian's thinking as "dynastic and early modern", Heinz Angermeier (also focusing on his intentions at the 1495 Diet) writes that for Maximilian, "the first politician on the German throne", dynastic interests and imperial politics had no contradiction. Rather, the alliance with Spain, imperial prerogatives, anti-Ottoman agenda, European leadership and inner politics were all tied together. In Austria, Maximilian defined two administrative units: Lower Austria and Upper Austria (Further Austria was included in Upper Austria).

Another development arising from the reform was that, amidst the prolonged struggles between the monarchical-centralism of the emperor and the estates-based federalism of the princes, the Reichstag (Imperial Diet) became the all-important political forum and the supreme legal and constitutional institution (without any declared legal basis or inaugural act), which would act as a guarantee for the preservation of the Empire in the long run.

Ultimately, the results of the reform movement presided over by Maximilian, as presented in the shape of newly formed structures as well as the general framework (functioning as a constitutional framework), were a compromise between emperor and estates, who more or less shared common cause but separate interests. Although the system of institutions arose from this were not complete, a flexible, adaptive problem-solving mechanism for the Empire was formed. Stollberg also links the development of the reform to the concentration of supranational power in the Habsburgs' hand, which manifested in the successful dynastic marriages of Maximilian and his descendants (and the successful defense of those lands, notably the rich Low Countries) as well as Maximilian's development of a revolutionary post system that helped the Habsburgs to maintain control of their territories (Additionally, the communication revolution created by the combination of the postal system with printing would boost the empire's capability of disseminating orders and policies as well as its coherence in general, elevating cultural life, and also help reformers like Luther to broadcast their views effectively.).

Recent German research explores the importance of the Reichstags that followed the 1495 one in Worms. The 1512 Reichstag in Trier that Maximilian assembled, for example, was decisive for the development of the Reichskammergericht, the Land Peace and the Gemeine Pfennig, although by this point it was clear that Maximilian was already past his best years (the early signs of crisis seemed to have showed already in Cologne, 1505)—which, according to Dietmar Heil, resulted in the fact that the Gemeine Pfennig was only partially approved and then partially implemented. Seyboth notes that, in his later years, he became more irritable, obstinate and closed, which led to growing alienation with the Estates. He recognized the trend of the Reichstag to become a more modern institution, the concern of the Estates with internal problems, and contributed to the solutions, but only so that his own interests will not be ignored.

According to Whaley, if Maximilian ever saw Germany as a source of income and soldiers only, he failed miserably in extracting both. His hereditary lands and other sources always contributed much more (the Estates gave him the equivalent of 50,000 gulden per year, a lower than even the taxes paid by Jews in both the Reich and hereditary lands, while Austria contributed 500,000 to 1 million gulden per year). On the other hand, the attempts he demonstrated in building the imperial system alone shows that he did consider the German lands "a real sphere of government in which aspirations to royal rule were actively and purposefully pursued." Whaley notes that, despite struggles, what emerged at the end of Maximilian's rule was a strengthened monarchy and not an oligarchy of princes. If he was usually weak when trying to act as a monarch and using imperial instituations like the Reichstag, Maximilian's position was often strong when acting as a neutral overlord and relying on regional leagues of weaker principalities such as the Swabian league, as shown in his ability to call on money and soldiers to mediate the Bavaria dispute in 1504, after which he gained significant territories in Alsace, Swabia and Tyrol. His fiscal reform in his hereditary lands provided a model for other German princes.

Benjamin Curtis suggests that while Maximilian was not able to fully create a common government for his lands (although the chancellery and court council were able to coordinate affairs across the realms), he strengthened key administrative functions in Austria and created central offices to deal with financial, political and judicial matters—these offices replaced the feudal system and became representative of a more modern system that was administered by professionalized officials. After two decades of reforms, the emperor retained his position as first among equals, while the empire gained common institutions through which the emperor shared power with the estates. Dietmar Heil argues that the Estates actually offered Maximilian considerable financial help, in consideration of their financial capacity. According to Heil, historians have traditionally been too receptive to the statements of the deceptive emperor (who tried to create such an impression in order to generate motivation).

In 1508, Maximilian, with the assent of Pope Julius II, took the title Erwählter Römischer Kaiser ("Elected Roman Emperor"), thus ending the centuries-old custom that the Holy Roman Emperor had to be crowned by the Pope.

At the 1495 Diet of Worms, the Reception of Roman Law was accelerated and formalized. The Roman Law was made binding in German courts, except in the case it was contrary to local statutes. In practice, it became the basic law throughout Germany, displacing Germanic local law to a large extent, although Germanic law was still operative at the lower courts. Other than the desire to achieve legal unity and other factors, the adoption also highlighted the continuity between the Ancient Roman empire and the Holy Roman Empire.

To realize his resolve to reform and unify the legal system, the emperor frequently intervened personally in matters of local legal matters, overriding local charters and customs. This practice was often met with irony and scorn from local councils, who wanted to protect local codes. Maximilian had a general reputation of justice and clemency, but could occasionally act in a violent and resentful manner if personally affronted.

In 1499, as the ruler of Tyrol, he introduced the Maximilianische Halsgerichtsordnung (the Penal Code of Maximilian). This was the first codified penal law in the German speaking world. The law attempted to introduce regularity into contemporary discrete practices of the courts. This would be part of the basis for the Constitutio Criminalis Carolina established under Charles V in 1530. Regarding the use of torture, the court needed to decide whether someone should be tortured. If such a decision was made, three council members and a clerk should be present and observe whether a confession was made only because of the fear of torture or the pain of torture, or that another person would be harmed.

During the Austrian-Hungarian war (1477–1488), Maximilian's father Frederick III issued the first modern regulations to strengthen military discipline. In 1508, using this ordinance as the basis, Maximilian devised the first military code ("Articles"). This code included 23 articles. The first five articles prescribed total obedience to imperial authority. Article 7 established the rules of conduct in camps. Article 13 exempted churches from billeting while Article 14 forbade violence against civilians: "You shall swear that you will not harm any pregnant women, widows and orphans, priests, honest maidens and mothers, under the fear of punishment for perjury and death". These actions that indicated the early developments of a "military revolution" in European laws had a tradition in the Roman concept of a just war and ideas of sixteenth-century scholars, who developed this ancient doctrine with a main thesis which advocated that war was a matter between two armies and thus the civilians (especially women, children and old people) should be given immunity. The code would be the basis for further ordinances by Charles V and new "Articles" by Maximilian II, which became the universal military code for the whole Holy Roman Empire until 1642.

The legal reform seriously weakened the ancient Vehmic court (Vehmgericht, or Secret Tribunal of Westphalia, traditionally held to be instituted by Charlemagne but this theory is now considered unlikely), although it would not be abolished completely until 1811 (when it was abolished under the order of Jérôme Bonaparte).

In 1518, after a general diet of all Habsburg hereditary lands, the emperor issued the Innsbrucker Libell which set out the generaldefence order (Verteidigungsordnung) of Austrian provinces, which "gathered together all the elements that had appeared and developed over the preceding centuries.". The provincial army, based on noble cavalry, was for defence only; bonded labourers were conscripted using a proportional conscription system; upper and lower Austrian provinces agreed on a mutual defence pact in which they would form a joint command structure if either were attacked. The military system and other reforms were threatened after Maximilian's deạth but would be restored and reorganized later under Ferdinand I.

According to Brady Jr., Maximilian was no reformer of the church though. Personally pious, he was also a practical caesaropapist who was only interested in the ecclesiastical organization as far as reforms could bring him political and fiscal advantages. He met Luther once at the Diet of Augsburg in 1518, "a rehearsal for Worms in 1521". He saw the grievances and agreed with Luther on some points. However as the religious question was a matter of money and power to him, he had no interest in stopping the indulgences. At this point, he was too busy with his grandson's election. As Luther was about to be arrested by the papal legate, he granted him a letter of safe passage. Brady notes that blindness to the need to reform from above would lead to the reform from below.