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Currently, I am working on a TL in which King Francois I of France defeats Imperial forces in the 1521-1525 Italian War. My POD is simple:
Instead of Francois delaying his attack on Imperial forces at Valenciennes in October, 1521, and allowing Charles to retreat, the king instead attacks with full force and manages to score a crippling victory.

This sets off a chain reaction, whereby Charles is forced to send for reinforcements from his Italian campaign, buying the French time to pay the Swiss and adequately garrison Milan. The result is Colonna himself having to delay, in order to meet his master's needs and send troops to the Low Countries. With less troops, and facing a better prepared Lautrec, Colonna is defeated in Lombardy. With the French gaining the upperhand, the Venetians don't betray them and sue for peace in 1523 with the death of the pro-French doge, Antonio Grimani. This keeps the French secure in Italy, and allows them to fully engage Charles in the Low Countries, where he is defeated in a long and devestating battle (let's say hypothetically at Lille in early 1524).

While both sides suffer heavy casualties, to sweeten things, let's say that the Emperor himself falls at Lille: In this TL, the duke of Bourbon throws in his lot with Imperial forces somewhat earlier. King Francois, seeing victory near, has been more aggressive in seizing his lands, ensuring a more speedy falling out between the two. Bourbon's banner is seen on the field of this hypothetical battle of Lille as the defeated armies of the Emperor are retreating; so, the duke of Montmorency and his forces pursue them and manage to cut them off. Unknown to them, Emperor Charles and a contingent of his own guard are with Bourbon and his men. While the duke of Bourbon manages to escape, and join the bulke of the retreating Imperial army (now badly depleted from the war), in the confusion, there is a great massacre by French troops and Emperor Charles falls.

Now, assuming that all this occurs, I have several questions:
(1) If the French were gaining the upperhand in the war by summer of 1522, as they are in this TL, would the English have joined in the conflict, or would King Henry VIII have remained diplomatically neutral for the moment, perhaps on the advice of Wolsey?
(2) With Charles V dead without an heir, what will happen to the Habsburg lands? Obviously his brother will inherit in Austria, as he's already at Innsbruck at this time sitting as regent. And I'm sure his aunt Margaret in the Low Countries will ensure his succession there as well. However, will the Cortes of both Castille and Aragon be so kind this time? I have read that Ferdinand was raised in Spain by his grandfather and namesake, and that he was more popular than Charles there, so perhaps he'll win out.
(3) Which brings me to my next question: with Habsburg forces routed at Lille and now leaderless, I would assume Archduke Ferdinand would be forced to sue for peace immediately. In the resulting peace, the French would obviously be able to impose a humiliating treaty on the Hasburgs. What are the consequences of King Francois gaining Artois, Flanders, and Franche-Comte, along with Habsburg recognition of his right to Milan?

I'm curious to hear everyones' opinions. The first part of the TL isn't ready yet, but I plan on posting it soon enough.
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