Though the charge of absolute disloyalty has not been proved, still certain actions of Wallenstein coupled with his inactivity gave good colour to the accusation. The Emperor dismissed him from his command, and a little later he was murdered by some of his own soldiers.
The war and the negotiations were renewed alternately, but without any result as peace was not desired by either Sweden or France. At last the forces of the Emperor gained a signal victory at Nordlingen (1634). This success had at least one good result in that it detached the Elector of Saxony from the side of Sweden. He had never thrown himself whole-heartedly into the struggle, as he disliked the idea of supporting a foreign invader against his own Emperor, and was not sorry to escape from a very awkward position. The Peace of Prague was concluded between the Emperor and Saxony (1635), according to which the Edict of Restitution was abandoned in great measure, and religious freedom was guaranteed to the Protestants of Silesia.
But to promote their own interests the Swedes and the French insisted on complete equality between the Protestants and Catholics as an indispensable condition for peace. From this time onward it was a purely political struggle, inspired solely by the desire of these two countries to weaken Germany and to break the power of the House of Habsburg. On the death of Ferdinand II. in 1637 it was thought that the war might have been ended, but these hopes were disappointed.
Ferdinand III. (1637-57) who succeeded offered a general amnesty at the Diet of Regensburg (1641) without avail. French soldiers crossed the frontiers to support the Swedes and the Protestants. Finally after long negotiations the Peace of Westphalia (1648) put an end to a struggle, in which Germany had suffered enormously, and from which foreigners were to derive the greatest benefits.
The Peace of Westphalia was dictated to Germany by France and Sweden.
As a reward for the injury they had inflicted on the country both received large slices of German territory. France insisted on getting possession of Alsace, while Sweden received large grants of territory along the Baltic together with a war indemnity of five million thalers. In order to provide compensation for the secular princes, portion of whose territories had been ceded to these two powers, and also to reward others who had suffered for their alliance with Sweden, the secularisation of a considerable amount of the ecclesiastical states was arranged. Saxony, Brandenburg, Hesse-Cassel, Brunswick, and Mecklenburg were enriched by the acquisition of lands formerly ruled over by the bishops and abbots. This step meant that the Protestant states of Germany were strengthened at the expense of the Catholic Church, and that the people of these districts being now transferred to Protestant rulers were in great danger of being drawn over to the religion of their new masters. The jurisdiction of the bishops was abolished in these territories, and even in some of the new chapters, as for example at Osnabruck, Protestant canons were installed side by side with Catholics.