She was in a somewhat difficult position, as the Pope and the Emperor argued about the authority over Parma.
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In 1567 Margaret resigned her post into the hands of the Duke of Alba and retired to L'Aquila in Italy.
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In 1578, her son Alexander Farnese was appointed to the office of governor-general of the Netherlands: Philip appointed her his co-regent, with the thought that they would balance each other.
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