Habsburg Political System & 16th Century Spanish Society
The Habsburg Political Model
The Habsburg political model had two basic characteristics:
- The federal character of the monarchy, whereby each kingdom maintained its institutions, laws, and liberties without real political unity.
- A polysynodial system of government based on various boards that understood the government on specific cases.
At the apex of the political system was the King of Castile, who exercised absolute power. In other realms, his power was limited by the pactista doctrine. A fixed court was established in Madrid. The king delegated his powers in other realms through viceroys.
In government, the king was assisted by the councils, bodies composed of jurists and lawyers who advised the king and acted as courts. In front of each council was the secretary, who acted as an intermediary between the king and the council. Councils can be classified as follows:
- Council of State: handled general matters of the utmost importance.
- Territorial Councils: addressed issues of geographical areas (Council of Castile, Aragon, Indies).
- Technical Councils: dealt with specific areas of government (Treasury Board, Inquisition).
The other key institution was the Cortes, which were called with increasing infrequency and, except in the Crown of Aragon, were completely controlled by the power of the monarch.
The Government of the Americas
The government of America from Castile was done through the Council of the Indies, the true governing body that made the laws, appointed positions, and oversaw the accounts. The House of Trade controlled all trade with America, collected taxes, and ensured a trade monopoly with the Indies. All goods going to or coming from the Indies had to pass through this institution and pay fees to the king. The vast empire was divided into the Viceroyalty of New Spain, with its capital in Mexico City, and the Viceroyalty of Peru, with its capital in Lima. In these viceroyalties, the leading figure was the viceroy, the representative of the monarch.
Economy and Society in 16th-Century Spain
Throughout the 16th century, the Iberian Peninsula experienced a stage of demographic and economic growth. The population increased. The space for grain and vineyards widened at the expense of forests, while livestock remained the backbone of the economy. Craft activities remained limited. Product demand increased, in part because of the American colonists. In addition, the American conquest enabled the exchange of agricultural products. Gold and silver, the greatest riches of America, were extracted. The new territories amounted to a major source of income for Castile and the Crown.
However, Spain squandered its good economy and began to be relegated while other countries like France, England, and Holland began their economic takeoff. The costs of wars eventually caused the downfall of the royal treasury. Debt and increasing fiscal pressure led to the collapse of the productive sectors. Economic growth also resulted in a dangerous rise in prices.
Social Structure
As for society, it remained a class society of the Middle Ages, stressing the differentiation of a group of nobles: the Grandees of Spain, an elite instituted by Charles I after his coronation as emperor. Their number increased with time. They enjoyed certain privileges and held senior military and diplomatic positions. The requirement of purity of blood for access to certain positions or institutions was also generalized. This resulted in the rejection of key practices for economic development, as trade was repudiated as belonging to Jews or converts. Meanwhile, in Protestant countries, the consideration of the work of craftsmen and merchants improved.