17th Century Spain: Political, Economic, and Social Crises
The Reign of Favorites and Internal Conflicts
The government of Spain was often characterized by the figure of the valido (favorite or private), a trustworthy person who acted on behalf of the king. This arose due to the king’s disinterest in government affairs, the increasing complexity of governance, and the need for streamlined decision-making, replacing councils with boards. The validos, belonging to the nobility, held court positions and wielded real power, mediating between the king and his subjects.
Internal Conflicts during Philip III’s Reign (1598-1621)
Under Philip III, the Duke of Lerma effectively directed policy. Corruption reached intolerable levels amidst an economic crisis and state debt, leading to bankruptcies in 1607 and 1609.
Reforms and Unrest under Philip IV (1621-1665)
The Count-Duke of Olivares, Philip IV’s favorite, focused on economic, administrative, and political reforms. His proposed measures included:
- Reducing courtiers and administrative staff.
- Protecting handicrafts and trade.
- Abolishing millones (tax), creating treasuries and pawnshops to manage government debt.
- Implementing new taxes.
- Promoting population growth by prohibiting emigration and rewarding large families.
- Establishing the Unión de Armas, a quota system requiring each territory to contribute men and weapons for war.
The Unión de Armas aimed to create a unified military force, with each territory providing troops and resources proportionate to its population and economic capacity.
The Crisis of 1640
Olivares’ reforms provoked reactions and revolts:
Catalonia
In 1635, due to the war between France and Spain, Catalonia became a military front. Tensions caused by the valido and the king’s actions led to the Corpus de Sang on June 7, 1640. This uprising, starting with a clash between harvesters and royal officials, resulted in the murder of the Viceroy. Catalans sought French aid and became a republic under French protection.
Portugal
The implementation of the Unión de Armas, new taxes affecting the privileged, the inability to defend trade, and Portuguese soldiers fighting against Catalans in 1640 fueled a nationalistic revolt. Lisbon revolted, proclaiming the Duke of Braganza as King John IV, supported by England and France.
Aragon and Andalusia
Noble revolts also occurred in Aragon and Andalusia.
Foreign Policy: The Decline of Habsburg Hegemony
Spanish foreign policy objectives included defending their heritage, protecting Catholicism against Lutherans and Calvinists, and maintaining commercial monopoly in America. However, Spain faced challenges such as lack of financial resources, heavy tax burdens, troop losses, Dutch and British actions in Spanish-Portuguese colonies, and the emergence of new enemies like England, France, the United Provinces, and Portugal.
Philip III (1598-1621)
Considered a pacifist and conservative, Philip III signed peace treaties with France and England and the Twelve Years’ Truce with the Netherlands in 1609, aiming to preserve the Netherlands and support the Habsburgs.
Philip IV (1621-1665)
Philip IV participated in the Thirty Years’ War (1618-1648), aiming to restore Spanish power. Despite initial victories, Spain suffered defeats against the French, leading to the Treaty of Westphalia in 1648. This treaty ended Habsburg hegemony in Europe, established religious pluralism, and confirmed French dominance.
Economic and Social Crisis in the 17th Century
The 17th century was a period of crisis in Spain. Agricultural production declined due to poor workmanship, heavy tax burdens on farmers, and reduced demand. The craft sector, especially textiles, experienced a recession due to lack of investment. Domestic trade suffered from poor communication and customs barriers. Foreign trade was unbalanced, with raw materials exported and manufactured goods imported. Difficulties arose in American trade due to competition from the French, English, and Dutch. The state faced repeated bankruptcies.
A demographic crisis occurred due to emigration to the Indies, epidemics, and the expulsion of the Moors, leading to a loss of 300,000 farmers, abandoned land, and reduced farm incomes. Society was structured into estates, with the growth of privileged groups. The nobility, no longer rural but urban, lived on land income and purchased positions and privileges. The clergy paid no taxes but collected them, receiving income from rural and urban properties. The commons or third estate, mostly farmers, paid direct taxes. The Spanish bourgeoisie focused on buying securities, income, and agricultural properties. The number of poor and beggars increased.