Decline of the Spanish Monarchy (17th Century)
The Decline of the Spanish Monarchy in the 17th Century
Philip III (1598-1621)
Philip III inherited a vast empire from his father, but also massive debt and ongoing wars with England and the Netherlands. The Duke of Lerma, and later the Duke of Uceda, controlled the government. Lerma’s attempts to address the depleted royal treasury through currency devaluation proved unsuccessful. While Philip III’s reign initially saw peace treaties with England and a truce with the Netherlands, Spain later entered the Thirty Years’ War, sending troops to support the Habsburg emperor in Bohemia.
The expulsion of approximately 300,000 Moriscos (converted Muslims) further worsened the crisis. This decision had severe demographic and economic consequences, as many of these skilled farmers and artisans fled to North Africa, some turning to piracy.
Philip IV (1621-1665)
Philip IV’s reign saw a shift in policy under the Count-Duke of Olivares, who aimed to restore Spain’s international prestige. This involved mobilizing resources from all territories, particularly Castile.
Foreign Policy: Spain’s involvement in the Thirty Years’ War ended in defeat against France. Following Olivares’ dismissal and his replacement by Luis de Haro, the Peace of Westphalia (1648) acknowledged French hegemony and religious pluralism. The war with France continued until the Peace of the Pyrenees (1659), resulting in the loss of Roussillon and Cerdanya.
Domestic Policy: Olivares’ reforms, including the Union of Arms (a plan for shared military funding across all Spanish territories), aimed to centralize power. However, this led to widespread revolts.
- Catalonia (1640): A rebellion erupted, fueled by tensions between local harvesters and royal officials. The viceroy was assassinated, and the French King Louis XIII was proclaimed Count of Barcelona.
- Portugal (1640-1668): The Duke of Braganza led a successful rebellion, proclaiming himself King John IV.
Charles II and the War of Succession
Charles II, who succeeded his father Philip IV at a young age, ruled under the influence of various advisors. Continued aggression from Louis XIV of France further weakened Spain.
The issue of Charles II’s successor divided Europe. The main contenders were Philip of Anjou, Louis XIV’s grandson, and Archduke Charles of Austria. Castile favored the French claim, while the Crown of Aragon supported the Archduke, fearing the loss of their traditional rights under a centralized French model.
Charles II ultimately named Philip of Anjou as his heir (the future Philip V), on the condition that he renounce any claim to the French throne. However, Louis XIV’s refusal to accept this condition led to the War of the Spanish Succession (1702).
Consequences of the Discovery of America
Demography
The indigenous population of the Americas drastically declined due to diseases, exploitation, and conflict. This led to the importation of enslaved Africans, resulting in a mixed-race population.
Colonial Exploitation
- Mining: Gold and silver mines were central to the colonial economy.
- Encomienda System: Indigenous labor was exploited under the guise of protection and Christianization.
- Mita System (Peru): Indigenous communities were forced to send workers to colonial mines for a portion of the year.
- Slavery: Enslaved Africans were brought to work on plantations.
Impact on the Spanish Economy
The influx of precious metals from the Americas initially fueled the Spanish economy and financed the monarchy’s ambitious foreign policy. However, it also contributed to inflation and did not lead to significant productive investments.
Trade with the Americas increased demand for Spanish goods like wine, oil, and textiles. However, other European countries often acted as intermediaries, benefiting from the Casa de Contratación’s monopoly in Seville.
While indigenous inhabitants were theoretically considered free subjects of the monarchy, they faced persecution and exploitation. This led to debates about the Crown’s rights over them and criticism of the settlers’ treatment of the indigenous population.