Habsburg Political Model and 16th Century Spanish Society

The Political Model of the Habsburgs: The Union of Kingdoms

The large conglomerate of kingdoms and territories held by the Spanish Habsburg Empire was no longer to become a monarchy under Philip II, whose sole link was the king. In 1561, the capital was set in Madrid, moving to be stable. Here are the institutions and the reinos.

The State Council

The State Council, the only organ common to all kingdoms, was created by Charles I and could be composed of members of any territory. Their mission was to advise the king in all matters.

Other Councils

Other councils with territorial functions were the Council of Castile, Aragon, Italy, Flanders, India, and Portugal. There was also the Inquisition, Treasury (only in Castile), and military orders.

Viceroys and Governors

Viceroys and governors replaced the king in realms where he could not be present, such as in Aragon, Navarre, Italy, and America. In Flanders and Milan, they were replaced by a Governor-General.

The Secretariat

The Secretariat assisted the king in the conduct of public affairs and in the daily management of the monarchy. Notable secretaries under Philip II include Gonzalo Perez and his son Antonio.

The Courts

The Courts were assemblies of notables from the nobility, clergy, and representatives of cities, which had jurisdiction in tax matters.

The Municipalities

The municipalities were increasingly controlled by the nobility and the business elite. In Castile, the king’s representative in the municipality was the mayor.

The whole institutional framework reported directly to the monarch, whose absolute power was consolidated with Charles I and Philip II.

Economy and Society in Spain in the 16th Century

Economy

In economics, agriculture was very outdated, and poor distribution of the land did not support modernization. Rainfed crops such as vines and cereals were important (especially in Castile), and irrigation was very important in Andalusia. In livestock, nomadic sheep were prominent in Castile, aided by the Catholic Monarchs and Charles I. The industry had remarkable progress in the early 16th century due to rising population and prices, the U.S. market, and the relative abundance of raw materials (wool, silk, leather, iron). Services: The transportation network in the interior was very poor, making trade difficult and more expensive. Seaborne trade was conducted with Italy, Flanders, England, and the Americas.

The monarchy’s effort to maintain hegemony in Europe squandered large amounts of money, necessitating a policy of raising funds through different pathways:

  • Taxes: Established by the Catholic Monarchs, taxes were expanded as needed.
  • American Silver: This became the main source of funding.
  • Lenders: German bankers were prominent lenders during the reign of Charles I.

Despite considerable income, the system was unsustainable, especially when shipments of American metal became scarce. Thus, throughout the century, there was a succession of bankruptcies.

Society

The Society of the 16th Century was a class society:

  • The Third Estate was formed by the bulk of the population and had to pay taxes.
  • The Nobility was composed of leading members of the aristocracy with palatial estates and enormous privileges. The lower nobility consisted of penniless nobles.