Decline of Spanish Empire & Rise of Centralized Monarchy

Posted on Mar 24, 2025 in History

The Decline of the Spanish Empire in Europe

The seventeenth century marked the end of the Habsburgs’ hegemony in Europe, characterized by a loss of political influence and numerous possessions. Simultaneously, France rose as a major European power.

Under Philip III, a period of peace began after previous conflicts, known as The Twelve Years’ Truce. Philip IV, with his minister the Count-Duke of Olivares, aimed to restore the prestige of the Spanish monarchy by defending the Catholic religion and unifying the empire’s territories.

This ambition triggered the Thirty Years’ War (1618-1648). The Spanish defeat led to the Peace of Westphalia, resulting in the separation of the Netherlands and the Swiss Confederation.

The Catalan revolt, supported by the French, concluded with the Peace of the Pyrenees, leading to the loss of Roussillon and Cerdanya, and solidifying France’s dominance in Europe.

The weak monarchy of Charles II, known as “the Bewitched” (1665-1700), couldn’t halt French expansionism. His death without an heir triggered the War of Succession (1701-1713) to the Spanish throne. This internal conflict overlapped with the European Peace of Utrecht in 1713, marking the end of the Spanish Empire in Europe.

Reforms in the Organization of the State: Centralist Monarchy

The establishment of a strong, centralized, and unified monarchy, modeled after the French system, was undertaken by Felipe V, Fernando VI, and Carlos III. These reforms aimed to impact all areas of the State: Government, Administration, Army, Church politics, and economics.

Government

The objective was to strengthen central power, which led to the approval of the Decree of Nueva Planta (1716). This decree abolished charters, municipal autonomy, and the Courts.

  • A new model of territorial administration was established, based on the division into provinces.
  • A new territorial tax system was created.
  • Royal Hearings were held for judicial matters.
  • The Basque Country and Navarra retained their jurisdictions, as supported by Felipe V during the War of Succession.

Administration

  • Councils disappeared, except for the Council of Castile.
  • Secretaries of Dispatch were created, forming the basis of the Council of Ministers.
  • Quartermasters were created to act between the center and the provinces on tax issues and public works.
  • Municipalities lost authority.

Ecclesiastical Policy

The gift was the rights of the monarchy in ecclesiastical matters, which manifested in:

  1. Appointments of church officials.
  2. Perception of vacant sees’ income by the Crown.
  3. Royal Initiative proposals.

This policy led to two significant events: the expulsion of the Jesuits (1767) and the reduction of the Inquisition’s power.

Army

  • Creation of a coherent control system.
  • Replacement of the old Tercios with Regiments.

Economy

  • Attempts to reform the Hacienda by the Marquis de la Ensenada.
  • Elimination of crop intensification of the offices of the Crown of Aragon.
  • End of the monopoly of the House of Trade and commerce with America.
  • Support for industry: disappearance of guilds and the creation of Royal Factories.