Decline of the Spanish Habsburgs (17th Century)
The Validos
The validos were royal favorites who essentially acted as kings due to the monarchs’ inability to govern. Kings relied on validos, primarily nobles, because they struggled to manage the complexities of governing. All validos attempted to govern outside of established councils, creating networks of clients (often family and friends appointed to civil service positions), selling offices (leading to corruption), and isolating the kings from reality.
- Philip III – Duke of Lerma and Duke of Uceda
- Philip IV – Count-Duke of Olivares and Duke of Haro
Political Crisis (Collapse of the Habsburg Dynasty)
Philip III (1598-1621)
Philip III pursued a policy of appeasement. In 1604, he signed the Treaty of London, ending the war with England. In 1609, he agreed to the Twelve Years’ Truce with the Dutch Republic. These actions were partly driven by Spain’s lack of funds for military expenses. Debasing the currency led to an economic crisis and bankruptcy, while the Dutch maintained naval superiority.
In 1609, approximately 300,000 Moriscos were expelled due to their reluctance to convert to Catholicism and fears they might support the Berbers. This led to depopulation in Valencia and Aragon.
Under the Duke of Uceda, Spain entered the Thirty Years’ War (1618-1648) to halt the advance of Protestantism in support of Austria. This ended the truce with the Dutch Republic and strained Spain’s resources.
Philip IV (1621-1665)
Philip IV prioritized maintaining Spain’s hegemony and sought to improve the country’s economic resources. His initial focus was on ending corruption, reducing expenses, stopping currency debasement, and promoting artisanal production. He introduced the Union de Armas reform in 1625, requiring all kingdoms to contribute resources and military support to strengthen the crown. This faced opposition from several kingdoms.
The Crisis of 1640 resulted in the kingdom’s bankruptcy and sparked several rebellions:
- Catalonia: In 1636, France entered the Thirty Years’ War, and the Spanish army’s presence in Catalonia caused conflict. The Corpus de Sang (Catalan Revolt) resulted in the death of the viceroy. While the army initially suppressed the revolt, the Catalans sought French aid, and King Louis XIII became Count of Barcelona. Philip IV regained control in 1652, but the 1659 Treaty of the Pyrenees forced Spain to cede Roussillon and part of Cerdanya to France.
- Portugal: Dutch attacks on the coast, the tax burden imposed by Olivares, Castilian control over trade, and worsening governance led to Portugal’s refusal to support the war effort against Catalonia. John IV was crowned king, and with English support, Portugal regained some colonies. The 1668 Treaty of Lisbon formally recognized Portugal’s independence.
- Andalusia: A failed attempt at independence occurred in 1641.
- Naples and Sicily: Several popular uprisings were suppressed.
Spain’s involvement in the Thirty Years’ War expanded to include England and Ireland. Initial successes lasted until 1626, but military and political decline followed from 1627. Bankruptcy and an inability to maintain the army led to Spain’s withdrawal from the War of the Mantuan Succession. The Peace of Westphalia confirmed the end of Spanish hegemony and the independence of the Dutch Republic. The Treaty of the Pyrenees resulted in territorial losses to France. Spain lost Portugal, withdrew from Germany, and France emerged as the new European power, while England and Holland dominated maritime trade.
Charles II (1665-1700)
Charles II’s reign began with his mother, Mariana of Austria, as regent. The first years were marked by economic crisis, power struggles with his half-brother, and incompetent validos. After 1680, the financial situation improved.
Demographic Crisis
Castile, particularly rural southern areas, suffered the most from the demographic crisis, while cities and coastal areas fared better and recovered more quickly. The causes included recurring plagues from the late 16th century to the 19th century, unfavorable weather leading to agricultural crises and famines, war casualties, and the expulsion of the Moriscos.
Economic Crisis
The demographic crisis caused agricultural labor shortages, resulting in reduced crop yields, food scarcity, and rising prices. The wool trade was disrupted by wars with England and Holland. The situation improved towards the end of the century with increased corn and vine production and the export of other products.
Artisanal Crisis
Foreign competition in cloth production led to job losses and decreased productivity. The iron industry also suffered due to outdated technology and lack of competitiveness.
Commercial Crisis
Low domestic demand, poor roads, and internal customs hindered internal trade. External trade suffered due to wars in the Americas and the inability to combat Dutch and English smuggling.
Arbitristas offered advice on improving the situation, suggesting exporting manufactured goods instead of raw materials, reducing fiscal pressure by removing internal tariffs, and ending wars.