The primary economic system in medieval feudal Europe was feudalism. This system was characterized by a hierarchical structure where land was the main source of wealth and power. Lords owned vast tracts of land and granted portions to vassals in exchange for military service and loyalty. In turn, peasants or serfs worked the land for the lords, providing agricultural produce in return for protection and a place to live. Feudalism created a rigid class system and formed the basis for social and economic relationships during the Middle Ages, significantly influencing European governance and society.