During Laszlo's stay in Rome, Ferdinand I made a special trip from Naples to meet him.
The two held a celebratory banquet for successfully thwarting France's ambition to advance into Italy.
During the banquet, Ferdinando revealed his ambition to annex Sicily to Laszlo, hoping to gain the Emperor's support.
From Ferdinando's words, Laszlo learned of Aragon's internal strife.
The Aragonese nobles forced Juan II to name his eldest son, Prince Carlos, Prince of Navarre and Aragon, as the heir to the Aragonese throne.
However, Juan II refused, wishing to name Ferdinando, his son with his second wife, as the heir, which led to a rebellion in Catalonia.
Ferdinand I believed this was a great opportunity; only by reclaiming Sicily could Naples truly become independent.
Laszlo was not interested in this proposal at all and politely declined Ferdinando's request.
Everyone knew that Aragon's King Juan II was pro-France and anti-Castile.
Juan II's daughter, Leonor, was married to Gaston IV, Count of Foix, of France.
The grandson of these two, Duke Gaston, was a famous French general in the Italian War in the original history, but he would not be born for several decades.
In short, Juan II's stance was quite dangerous.
The close relationship between Aragon and France could lead to more variables in future wars between Austria and France.
Laszlo did not intend to meddle in their family's internal affairs; if it escalated the conflict and completely pushed Aragon into France's camp, it would be a huge loss.
However, Ferdinando did give Laszlo a reminder: if he were to deal with France in the future, it would be better to find an ally on the Iberian Peninsula.
His brother-in-law's Portugal could be won over, but compared to that, the most powerful Castile on the peninsula had more value as an ally, while pro-French Aragon was not considered.
Shortly after the meeting with the King of Naples, Laszlo led his army north, advancing towards Verona.
Time flew by during the march, and soon it was early July when envoys sent by Venice met the Emperor near Modena.
In the military tent, Laszlo sat at the head, Ester led a squad of fully armed warriors lined up on both sides, and the Venetian envoys and their attendants knelt trembling between them.
Looking at the fierce eyes of these warriors, they would immediately draw their swords and tear these Venetians to pieces at the Emperor's command.
"I hear you intend to surrender?"
Laszlo's expression was cold, seemingly unfazed by the news.
The member of the Council of Ten leading the delegation cleared his throat and replied humbly, "Your noble Emperor, this war no longer has any meaning to continue. We have been ordered by the Senate to negotiate with you to achieve a stable peace."
"Peace?" Laszlo sneered, "Do you remember the tragedy that occurred in the Aegean Sea three years ago? Did you, these despicable traitors, ever think you would fall to this point today?"
All members of the Venetian delegation turned pale; the Emperor's wrath intimidated everyone present.
"Your Majesty, calm your anger," the envoy immediately conceded, "Our enmity with you was entirely due to the Doge's mistaken decisions. He is now under the control of the Senate, awaiting trial. We are willing to compensate for our mistakes with ducats, only asking that you spare Venice."
"You truly are thorough merchants," Laszlo almost laughed in anger at the Venetian envoy's words, "You don't think everything can be bought with ducats, do you?"
"Ducats always make people happy, don't they? Your noble Majesty, we will do our best to meet your demands, only asking to end this cruel war."
"Alright, grant these gentlemen seats. People often say, 'Peace is the victor's crown.'" Laszlo's expression softened slightly, "I admire practical people—for example, wise men who know how to solve problems with pens rather than swords.
I wonder if there are such wise men among you.
Want to hear my terms? Then listen carefully!
First, Venice cedes all territories from Friuli to Verona to Austria, the Dalmatia region to Hungary and Croatia, Thessaloniki to Bulgaria, Cattaro to Serbia, and Durazzo to Albania.
Second, the Republic of Venice must pay 200,000 ducats in war reparations within two years, and thereafter pay Austria 10,000 ducats annually as tribute and trade tax.
Third, the Republic of Venice must submit to the Emperor and sever all treaties with France and the Ottoman!
Fourth, the Republic of Venice must hand over the excommunicated Doge of Venice; the courts of the Empire and the Holy See will try him.
Fifth, Venice must transfer five Venetian galleys to the Austrian Navy."
Upon hearing the first few terms, the members of the Venetian delegation found them acceptable; these terms were almost identical to the harsh conditions they had anticipated.
However, the last term astonished them.
"Your Majesty, the first four terms are fine, but this fifth term…."
"Hmm? It seems you did not come to negotiate with the sincerity I imagined. Then—" Laszlo gestured, and Ester immediately prepared to have the soldiers throw these mercenary Venetians out of the Emperor's tent.
"Your Majesty, wait!" the chief Venetian envoy immediately shouted, "We… we can increase the annual tribute by 2,000 ducats to replace the fifth clause!"
"Two thousand? Too little, an increase of 5,000 ducats would be more appropriate."
Hearing the Emperor's words, the Venetian envoy immediately calculated in his mind; the cost of a main battleship was at least 30,000 ducats, and the navy was the foundation of Venice's nation.
Handing over warships to the Emperor was absolutely unacceptable to the Venetians; in comparison, it was better to pay to avoid disaster.
The treaty ultimately removed the fifth clause, raising Venice's annual tribute to 15,000 ducats.
The delegation, along with an envoy from the Emperor, rushed back to Venice overnight with the treaty, and the Senate finally agreed to it.
They were unwilling to continue sinking into this desperate war, exhausting Venice's national strength.
And the instigator of all this, Doge Francesco of Venice, was stripped of all his property and status.
He was heavily bound and, amidst the insults and curses of Venetian citizens and nobles, accompanied the Emperor's envoy to Verona, where the Emperor was, and would later face trial.
The bells of St. Mark's Campanile rang, the golden lion flag in St. Mark's Square was lowered, and the city's residents walked onto the streets with mixed feelings.
The war was over, which should have been a cause for joy, but Venice was the loser of this war, and the bitter peace treaty was made public.
Scaffolding began to be erected in front of the central arch of St. Mark's Basilica; the Emperor specifically requested the four bronze horses from the church arch to offset part of the reparations.
These treasures were plundered by them from the nearly destroyed Constantinople during the Fourth Crusade and were a symbol of Venice's rise and prosperity.
Venice's decline seemed inevitable; the Golden Lion of the Mediterranean Sea now had its wings broken by the Emperor.