The Decline of Habsburg Spain and the Rise of the Bourbons
The Decline of the Hispanic Monarchy
Reign of Felipe III: A Pacifist Approach
Felipe III presided over the largest empire but delegated his authority to a valido who depended on the king’s favor. He faced several problems, which he solved with pacifist policies, including:
- Peace with England: Solidified by the Treaty of London.
- Peace with France.
- The Twelve Years’ Truce with the Netherlands: This was an indirect way of recognizing the northern provinces’ independence, as this truce could not be renewed. This independence was later confirmed by the Treaty of Westphalia at the end of the Thirty Years’ War.
Reign of Felipe IV: Aggression and Rebellion
Under Felipe IV, his valido, the Duke of Olivares, began an aggressive foreign policy. Spain participated in the Thirty Years’ War against the German Protestant princes as an ally of the Holy Roman Empire. France, wanting to reduce Spanish influence, began a war where the Habsburgs were defeated. This conflict concluded with the Treaty of Westphalia, but as a consequence, Spain lost all its territories in Europe.
The Duke of Olivares introduced financial reforms and, with the Union of Arms, tried to share military expenses. However, the monarchy’s economic difficulties made this impossible. Rebellions against the Union of Arms erupted in Catalonia and Portugal. Catalonia became part of France for a time, and Portugal took advantage of these rebellions to become independent. The war with France continued until the Peace of the Pyrenees was signed, which ended Spanish hegemony in Europe.
Reign of Carlos II and the Succession Crisis
Monarchs continued borrowing money, leading to several bankruptcies. Carlos II died in 1700 without children, leaving two main candidates for the throne: Felipe V of the House of Bourbon and Archduke Charles of Austria of the House of Habsburg. His will appointed Felipe V, but other European countries did not accept it, sparking the War of Spanish Succession (1701-1713). Felipe V ultimately won, and since then, the French Bourbon dynasty has ruled Spain.
The War of Spanish Succession
An International and Internal Conflict
The War of Spanish Succession was both an international and an internal conflict. The international conflict was between France and a European coalition, which ended with the Treaty of Utrecht in 1713. As a consequence, Spain lost all its European possessions; Flanders became independent, and the Italian kingdoms were lost. The internal conflict pitted Castile, which supported Felipe V, against the Crown of Aragon, which supported Archduke Charles of Austria. The war ended when Felipe conquered Catalonia. He had also previously defeated Valencia and Aragon in the Battle of Almansa.
The Bourbon Dynasty in 18th Century Spain
Domestic Policy: Centralization and Reform
After the war, Felipe V unified Castile and Aragon. He suppressed the laws and privileges of the Crown of Aragon and created new laws for the entire country. The Decretos de Nueva Planta (1707-1716) were issued to abolish the old privileges of Aragon and impose the Castilian administrative system. Spain was divided into provinces ruled by a captain general. Audiencias served as tribunals, corregidores governed municipalities, and intendentes collected taxes.
Felipe V, Fernando VI, and Carlos III centralized the administration, and the king held absolute power, assisted by secretaries and ministers. Fernando VI and Carlos III, seen as enlightened despots, introduced economic reforms to modernize the country. When Felipe V died, Fernando VI succeeded him. As Fernando VI died without children, Carlos III, then King of Sicily and Naples, became King of Spain.
Foreign Policy: Alliances and Conflicts
After the Treaty of Utrecht, Gibraltar became a British colony, and the asiento (a license to trade with America) was also ceded to Britain. Spain and France made different alliances called Family Compacts. Participation in wars was profitable at times, as it allowed Spain to recover possessions in Italy that were then ruled by Felipe’s sons. The foreign policy during Fernando’s reign was pacifist. In contrast, Carlos III signed the third Family Compact and participated in wars with varying results.