The Pope sat in his Chair with a hopeless expression. Not only did the peasant's Crusade to Iberia fail miserably, but due to the massive supply of forces sent to the region, the Catholic world was undergoing an economic crisis and a massive famine. Roughly half a million peasants from across Europe lie dead in Iberia, their corpses rotting under the hot sun.
Because of this, there were substantially fewer people to work the fields. The Catholic Kingdoms were severely lacking in agricultural technology compared to the Kingdom of Austria. Since practically all work had to be done by hand; the overwhelming majority of the population in the Catholic World were forced to work on farms.
Now that half a million men lie dead in a foreign country, the populations of France, Hungary, Poland-Lithuania, England, and the German States were depleted. This had led to a massive food shortage that could not easily be overcome.
