Habsburg Spain: Rise, Zenith, and Decline of a Global Empire

The Universal Empire of Charles V

There was a great inheritance, from the Catholic Monarchs and Philip of Habsburg. This inheritance included:

  • The realms of Spain, Navarre, and the Crown of Aragon
  • American possessions
  • Italian territories
  • From his father: the Netherlands and Luxembourg

Internal Problems in France

France, under Charles V’s reign, faced significant internal problems:

  • Revolt of the Communities: A protest by gentlemen, artisans, and traders against economic policy and a perceived lack of respect for the law.
  • The Brotherhoods and Peasant Revolt: Artisans and peasants called for an end to charges and improvement of municipal leases in the countryside.

External Conflicts

Charles V faced numerous external conflicts, notably against France, winning a decisive victory at the Battle of Pavia (1525).

The Hispanic Empire of Philip II

Government of Philip II

Philip II personally managed the government from Madrid. The Cortes (parliament) were not frequently summoned, and decisions were made by the king, aided by officials (a burgeoning bureaucracy). He extended the system of councils to advise him, creating the Council of State and the Council of War.

Defense of Catholic Orthodoxy

Philip II imposed the spirit of the Counter-Reformation, enacting strict laws that banned books and prohibited study abroad to maintain religious uniformity.

Hispanic Economy and Society in the 16th Century

Arrival of Gold and Silver

The influx of gold and silver from American mines could have improved economic conditions. Instead, it led to significant price inflation, which reduced the standard of living for many.

Economy

Demand for agricultural products increased significantly. Land, mostly held by nobles and used for livestock, was difficult to rent for cultivation. The monarchy’s policy favored wool exporters due to the substantial taxes it generated for the crown. Trade saw significant development, with Spanish and foreign merchants (French, German) distributing products throughout Europe and the Americas.

Demography

The population significantly increased in the 16th century, reaching approximately 5 million by the end of the century. Only a few cities like Barcelona or Valencia exceeded 30,000 inhabitants.

The 17th Century: Decline of the Empire

Philip III: The Era of the ‘Validos’

Philip III inaugurated a new era in Habsburg Spanish politics, delegating policies and tasks to powerful ministers known as ‘validos’ or ‘privados’. His reign was relatively peaceful and brief, with the Duke of Lerma as his chief minister, who maintained peace abroad. A significant domestic event was the expulsion of the Moriscos, which severely worsened agricultural problems as they constituted a vital part of the rural population.

Philip IV: End of European Hegemony

Philip IV returned Spain to involvement in European conflicts, notably with the outbreak of the Thirty Years’ War. His chief minister, the Count-Duke of Olivares, favored war to maintain Habsburg hegemony in Europe and curb France’s growing power. The Peace of Westphalia ended the war. This period was costly and impoverished Castile. Attempts to recruit men and levy taxes in other Hispanic territories led to uprisings in 1640 in Catalonia, Andalusia, and Portugal.

Charles II: End of the Habsburg Dynasty

The reign of the last Habsburg monarch marked the most critical moments of the empire. It was characterized by the king’s inability, corruption among the ‘validos’, a severe economic crisis, and a significant loss of international political influence.

17th Century Crisis

Demographic Crisis

The Hispanic realms experienced a severe demographic recession, with a decline of approximately 1 million people in 100 years. This was due to migration to the New World, wars, the expulsion of the Moriscos, and recurrent epidemics like the plague that ravaged the country between 1601 and 1685.

Economic Crisis

Agriculture worsened, and famine, war, and epidemics caused depopulation. Many peasants abandoned their lands and moved to cities, living as vagrants or beggars. Livestock also decreased due to drought. Industry and trade fell sharply due to foreign competition and low purchasing power.

Absolutist Europe

Political and Religious Changes

The 17th century saw the consolidation of nation-states and absolute monarchies. The principle of religious freedom for each state was established, often following the “Cuius regio, eius religio” (whose realm, his religion) principle.

Characteristics of Absolute Monarchies

In absolute monarchies, the monarch’s authority was believed to come directly from God, granting them absolute power. The king was the law, the highest governmental authority, the chief justice, and controlled both domestic and foreign policy. They were assisted by ministers, secretaries, and numerous officials.

Types of Monarchy

  • Feudal Monarchy: The king shared sovereignty with the nobles.
  • Authoritarian Monarchy: The king was positioned as the head of the nobility, various institutions, and the courts, but still shared power with them.
  • Absolute Monarchy: The king was the supreme law, and all others were his subjects.