17th Century Spain: Habsburg Rule, Crisis, and Decline

17th Century Habsburg Spain: Government and Conflicts

Philip III and the Rise of the *Valido*

With Philip III (1598-1621), the practice of delegating governance to a trusted man, known as the valido or privado, began. While lacking an official position, the valido effectively acted as a prime minister. Philip III’s valido was the Duke of Lerma, a mediocre and ambitious politician. Lerma was succeeded by his son, the Duke of Uceda, who proved unable to solve Spain’s serious problems.

The Expulsion of the Moriscos

The most prominent domestic event during Philip III’s reign was the expulsion of the Moriscos (converted Muslims) in 1609.

Philip IV and the Count-Duke of Olivares

The Count-Duke of Olivares, valido to Philip IV (1621-1665), possessed great political savvy and a sincere desire for reform. However, his most important projects failed to come to fruition. His proposals provoked widespread rejection, leading to major clashes. These events emphasized the valido’s unpopularity, and in 1643, Philip IV removed him from politics.

The Reign of Charles II

During the first part of Charles II‘s (1665-1700) reign, his mother, Mariana of Austria, served as regent. Later, Juan José de Austria, and subsequently the Duke of Medinaceli and the Count of Oropesa, ruled. They implemented a successful financial policy of tax cuts and spending restraint, which helped end the 17th-century crisis and laid the groundwork for 18th-century recovery.

The Crisis of 1640

In the 17th century, due to the imperialist policies of the previous century, Spain, and particularly Castile, suffered an economic downturn and a significant population decline. Philip IV’s reign unfolded against an international backdrop of permanent war, notably the Thirty Years’ War, which left the country bankrupt and in internal turmoil.

Olivares’ Reforms and the Union of Arms

To address the situation, the Count-Duke of Olivares launched a series of reforms, including the Union of Arms. This initiative aimed to create a common army funded by the different kingdoms and to impose the Castilian political model throughout the territories. The proposal provoked widespread rejection, leading to major clashes.

The Catalan Revolt and the Corpus of Blood

On June 7, 1640, the Corpus of Blood uprising took place in Barcelona. The Catalans sought help from France, and in January 1641, Catalonia became a republic under French protection. However, the economic crisis eventually led to the Catalans’ surrender in 1652, on the condition that their old rights were respected.

Portuguese Independence

Taking advantage of the Catalan rebellion, the Portuguese Cortes proclaimed the Duke of Braganza king as John IV. All Spanish attempts to regain control of Portugal failed, culminating in the defeat at Villaviciosa in 1665. The new Portuguese monarchy consolidated with the help of France and Great Britain, and Spain was forced to recognize its independence in 1668 during the reign of Charles II.

The Decline of the Spanish Empire in Europe

Peace with England and the Twelve Years’ Truce

The reign of Philip III saw a departure from the warlike tendencies of the previous century. The death of Elizabeth I of England allowed for peace with that country, and financial ruin forced the crown to sign a truce with the Netherlands for twelve years (1609-1621).

The Thirty Years’ War and the Peace of Westphalia

The Austrian and Spanish Habsburgs aimed to maintain their hegemony in Europe, facing rival powers led by France. In 1621, the Twelve Years’ Truce ended, renewing hostilities between Spain and the Netherlands. The Thirty Years’ War concluded in 1648 with the Peace of Westphalia. Spain recognized the independence of the United Provinces (Netherlands) but continued the war against France alone until 1659.

The Peace of the Pyrenees

The Peace of the Pyrenees in 1659 saw Spain cede Roussillon, Cerdanya, Artois, and parts of Flanders to France, marking the loss of Spanish hegemony in Europe.

The Reign of Charles II and the Rise of France

During Charles II’s reign, Spain recognized Portuguese independence in 1668. Spain became a victim of the aggressive and expansionist policies of Louis XIV of France. France emerged as the undisputed European power, while Spain was relegated to a secondary role in the international arena.

The War of the Spanish Succession

At the end of Charles II’s reign, Spain became embroiled in the disputes of the great powers vying for the Spanish succession, leading to the War of the Spanish Succession (1702-1713).

Social and Economic Developments in 17th Century Spain

The 17th century was a period of depression throughout most of Europe. In Spain, this led the Crown to seek new revenue sources, such as:

  • Creating new taxes
  • Selling public offices
  • Selling noble privileges

Demographic Decline

The economic crisis was compounded by a population decline caused by increased mortality due to epidemics. This situation was exacerbated by the expulsion of the Moriscos in 1609, particularly in Valencia and Aragon.

Economic Crisis

The economic downturn manifested in:

  • Declining agricultural production
  • Reduced livestock
  • A decline in the Castilian textile industry

The crisis affected all social strata:

  • The nobility increased in number.
  • The number of clergy grew as people sought a way of life.
  • The peasantry was the most affected sector, with many farmers forced to sell their land and emigrate.

By 1680, the crisis began to subside.