Spain’s 16th Century: Mediterranean Dominance, Portuguese Union, and English Conflicts
The Dominance of the Mediterranean
The Ottoman Empire became a major power in the eastern Mediterranean after occupying Constantinople in 1542, renaming it Istanbul and establishing it as their capital. The Ottomans aimed to expand into Central Europe, besieging Vienna in 1529, and into the Western Mediterranean. Barbary pirates, such as Red Beard, attacked coastal towns, plundering for loot and capturing slaves. Charles I successfully attacked Tunisia in 1535, but failed to conquer Algiers in 1541.
During Philip II’s reign, coinciding with the Ottoman Empire’s peak under Suleiman the Magnificent (1520-1566), the Turks threatened the entire Mediterranean by seizing Cyprus and Tunisia. Venice and the Papacy formed the Holy League and assembled a large fleet. The Battle of Lepanto in 1571 resulted in a significant Christian victory, securing the western Mediterranean from Turkish threats for years. While no territorial changes occurred, a tacit truce emerged between the two empires.
The Incorporation of Portugal
Portugal, under the young King Sebastian I, possessed a vast colonial and commercial empire. Inspired by chivalry and aiming to spread Christianity, Sebastian intervened in a Moroccan dynastic conflict. He landed in 1578 but was defeated and killed at the Battle of Alcácer-Quibir, leaving the Portuguese throne vacant.
His elderly uncle, Henry I, ruled until 1580. Upon Henry’s death, Philip II, Sebastian’s uncle, claimed the throne and invaded Portugal with the Duke of Alba. Facing little resistance and with the support of the Portuguese nobility and clergy, Philip promised to respect Portuguese traditions and freedoms. He was recognized as King Philip I of Portugal by the Cortes of Tomar in 1581, marking a major foreign policy success.
Clashes with England
England had been Spain’s ally against France since the reign of Ferdinand and Isabella. Philip II’s second marriage was to Mary Tudor, the Catholic Queen of England. However, upon her death without heirs, the throne passed to her sister, Elizabeth I (1558). As an Anglican, Elizabeth supported the Protestant Flemish rebels and sought to rival Spain’s control of the Atlantic and American trade. She also protected English pirates, like Hawkins and Drake, who attacked Spanish ships.
Philip II decided to confront England, assembling a large fleet known as the Spanish Armada. The 1588 expedition was a disaster, with the Armada decimated by the English and storms. While the English failed in their counterattacks, peace was eventually signed in 1605.
The 16th-Century Economy
Demographically, Spain’s 16th century saw continued population growth in Castile, about 15% annually between 1530 and 1594, concentrated in southern regions linked to American trade. Aragon’s population growth was less significant.
Driven by population growth and demand for American goods, agriculture experienced constant pressure. Arable land was scarce, controlled by nobles and clergy, with high rental prices. Landless farmers and smallholders, encouraged by high agricultural prices, mortgaged their farms or borrowed to rent more land. However, poor harvests or falling prices often led to defaults, forcing them to cede land to larger landowners. The 16th-century economic expansion failed to improve or transform the medieval agrarian structure.
The early 16th century also witnessed growth in cottage industries, fueled by American demand. This included Basque metallurgy, shipbuilding in Valencia and Catalonia, and textile guilds in Seville, Toledo, and Segovia. However, the monarchy favored wool merchants over fabric producers and protected the Flemish textile industry, leading to foreign control of the American market.
Trade flourished throughout the 16th century due to New World exploitation. Castilian cities and Atlantic ports became commercial hubs, while trade declined in Aragon and Mediterranean ports due to the Turkish presence.
Castile’s rigid agricultural structure couldn’t meet demand. This scarcity, combined with the influx of American gold and silver, caused dramatic price increases. The monarchy allowed imports of all kinds, both for domestic consumption and for onward shipment to America. Heavy taxes on farms reduced profits and discouraged production. Ultimately, the vast American trade failed to transform Castile’s economic structure.