On August 2, 1552, the Treaty of Passau was signed by Emperor Charles V who accepted the Lutheran religion. An excerpt from the article:
"The Interim was overthrown in 1552 by the revolt of the Protestant elector Maurice of Saxony and his allies. In the negotiations at Passau in the summer of 1552, even the Catholic princes had called for a lasting peace, fearing the religious controversy would never be settled. The emperor, however, was unwilling to recognize the religious division in Western Christendom as permanent. This document was foreshadowed by the Peace of Passau, which in 1552 gave Lutherans religious freedom after a victory by Protestant armies. Under the Passau document, Charles granted a peace only until the next imperial Diet. The meeting was called in early 1555.
The treaty, negotiated on Charles' behalf by his brother Ferdinand, effectively gave Lutheranism official status within the domains of the Holy Roman Empire. According to the policy of cuius regio, eius religio ("who rules, his religion", or "in the Prince's land, the Prince's religion"), the religion (Roman Catholic or Lutheran) of a region's ruler determined the religion of its people. During a grace period, families could choose to move to a region where their faith was practiced. (Article 24: "In case our subjects, whether belonging to the old religion or the Augsburg Confession, should intend leaving their homes with their wives and children in order to settle in another, they shall be hindered neither in the sale of their estates after due payment of the local taxes nor injured in their honour.") Knights and towns who had practiced Lutheranism for some time were exempted under the Declaratio Ferdinandei, but the Ecclesiastical reservation supposedly prevented the principle of cuius regio, eius religio from being applied if an ecclesiastical ruler converted to Lutheranism.
Main Principles
The Peace of Augsburg contained three main principles: The principle of cuius regio, eius religio ("Whose realm, his religion") provided for internal religious unity within a state: the religion of the prince became the religion of the state and all its inhabitants. Those inhabitants who could not conform to the prince's religion were allowed to leave, an innovative idea in the sixteenth century. This principle was discussed at length by the various delegates, who finally reached agreement on the specifics of its wording after examining the problem and the proposed solution from every possible angle.
The second principle, called the reservatum ecclesiasticum (ecclesiastical reservation), covered the special status of the ecclesiastical state. If the prelate of an ecclesiastic state changed his religion, the men and women living in that state did not have to do so. Instead, the prelate was expected to resign from his post, although this was not spelled out in the agreement.
The third principle, known as Declaratio Ferdinandei (Ferdinand's Declaration), exempted knights and some of the cities from the requirement of religious uniformity, if the reformed religion had been practiced there since the mid-1520s, allowing for a few mixed cities and towns where Catholics and Lutherans had lived together. It also protected the authority of the princely families, the knights and some of the cities to determine what religious uniformity meant in their territories. Ferdinand inserted this at the last minute, on his own authority. The third principle exempted knights and some of the cities under the jurisdiction of an ecclesiastical prince if they had practiced Lutheranism for some time (Lutheranism was the only branch of Protestantism recognized under the Peace). The provision was not publicized as part of the treaty, and was kept secret for almost two decades."