Spain in the 18th Century: Carlos III & Foreign Policy

Posted on Mar 27, 2025 in History

Carlos III: Enlightened Despotism in Spain (1759-1788)

Carlos III (1759-1788), brother of Fernando VI and son of Felipe V and Elizabeth Farnese, had been King of Naples before being proclaimed King of Spain. Like many other European absolute monarchs, he adopted the idea of enlightened despotism. All power was concentrated in the king’s person, and he did not want to end the Old Regime. However, he wished for the welfare of his people, so his efforts were directed to encourage progress and rationality in politics and economics. Therefore, Carlos III initiated a policy of social and economic reforms, with the collaboration of trusted politicians.

Key Reforms and Events under Carlos III

  • Economic Reforms:
    • Implementation of free trade in grain, which ultimately failed due to poor harvests and speculation, contributing to the Squillace Mutiny.
    • Establishment of the Banco de San Carlos, a forerunner of the future Bank of Spain.
    • Encouragement of Royal Factories (Reales Fábricas) to stimulate luxury goods production.
    • Introduction of free trade between all Spanish ports and the American colonies.
  • Social and Political Changes:
    • The Mutiny of Squillace (Motín de Esquilache), largely triggered by the failed grain policy and other reforms, led to the fall of the minister Squillace and his replacement by Aranda.
    • The Society of Jesus (Jesuits) was accused of inciting the riot, leading to the king decreeing their expulsion from Spain and its empire in 1767.
    • Attempts were made to limit the power of the Catholic Church and strengthen royal authority over it (regalism).
    • Land reform had limited effect. Although reformers saw the need to address the vast, often unproductive landholdings of the nobility and clergy (especially entailed estates or mayorazgos), the government failed to significantly curtail the privileges of these large landowners.

Spanish Foreign Policy Evolution (18th Century)

Reign of Felipe V

Spain’s foreign policy under Felipe V went through several phases. Initially, his influential wife, Elizabeth Farnese, and Prime Minister Julio Alberoni dominated policy. Shortly after the Treaty of Utrecht, Alberoni attempted to recover Spain’s former possessions in Italy (invading Sardinia and Sicily), as well as Gibraltar and Minorca. This led to the formation of the Quadruple Alliance against Spain, forcing the abandonment of these aims.

After a brief alliance with Austria, Felipe V signed the ‘Family Pacts’ (Pactos de Familia) with France, aligning Spain against Great Britain. Consequently, Spain participated in:

  • The War of the Polish Succession (1733-1738)
  • The War of the Austrian Succession (1740-1748)

Reign of Ferdinand VI

Ferdinand VI (1746-1759) ended Spain’s involvement in ongoing wars and pursued a policy of neutrality in European conflicts.

Reign of Carlos III

Carlos III abandoned neutrality. Allied with France through the Family Pact, Spain entered:

  • The Seven Years’ War (1756-1763) against Great Britain. Spain lost Florida but received Louisiana from France as compensation.
  • The American War of Independence (1775-1783), supporting the American colonists against Britain. After this war, Spain regained Florida and Minorca.

Reign of Charles IV and the French Revolution

The beginning of Charles IV’s reign coincided with the French Revolution (1789). This dramatically shifted alliances, leading Spain into war against its former ally, France, in an effort to prevent the spread of revolutionary ideas. This period’s foreign policy would eventually lead Spain into the devastating Peninsular War (War of Independence) against Napoleon.