This thesis makes the case that the Holy Roman Empire in the second half of the twelfth century under the reign of Frederick I Barbarossa (1122 – 1190) was as, if not even more, impactful to Medieval Western Europe as the kingdoms of England and France, the County of Flanders, and the Italian city-states. The degree of influence is measured by comparing the economies of each realm to the empire’s and determined by analyzing if the Holy Roman Empire was a ‘modern’ state of the period. This is expanded by an investigation, which applies modern state theories onto the empire’s state structure to figure out if it had components of a modern state of today. Furthermore, the interplay between politics and economy of the empire is showcased by drawing on the logistics and negotiations that were necessary to execute the Third Crusade. In conclusion, the Holy Roman Empire of Frederick I Barbarossa was a political and economic equal to its contemporary realms, albeit not a modern state.