Spain’s Transition: From Old Regime to Modern Era

The Preliminaries of the Crisis

The concept of the Old Regime refers to the political, economic, and social order in Europe during the 16th, 17th, and 18th centuries. Considered a transition between feudalism and capitalism, it was characterized by:

  • A Primitive Population: High mortality and birth rates.
  • An Agricultural Economy: Land as the primary source of wealth.
  • Stratified Society: A closed social system.
  • Authoritarian Monarchy: Strong, and in some 18th-century countries, absolute, with enlightened despotism.
  • Religious Culture: Strong ties to religious elements.

The Old Regime crisis began in England in the mid-17th century, followed by France in the late 18th century (the French Revolution), and concluded in the first half of the 19th century. The new system ushered in bourgeois society, parliamentary politics, and a capitalist economy. In Spain, the Old Regime coincided with the Modern Age. With the turn of the 19th century, and during the reign of Charles IV, Spain entered a period of crisis.

1. Social Organization

Old Regime society was based on tradition, with wealth concentrated in the ruling classes. The estates were closed social groups governed by their own statutes, based on legal inequality. The primary division was:

  • Privileged Groups: Nobility and clergy.
  • Non-Privileged Group: The common people.

The privileged enjoyed legal advantages, including reserved positions, formal privileges, and, most importantly, economic privileges.

a) The Nobility: Not all nobles held equal privilege. At the top were the Grandees of Spain, holding titles like duke and earl. Primogeniture was common. The remaining nobility ranged from comfortable to impoverished. Land ownership was the basis of their economic power.

b) The Clergy: This privileged group had its own courts and tax exemptions. The Church received donations and amassed large estates. Spain had a large clergy, with significant economic and cultural disparities between the upper and lower clergy. The upper clergy lived well, while the lower clergy often shared the poverty of the commoners.

c) The Commoners: This group included peasants, farmers, traders, and others, with little distinction between urban and rural. The peasantry, the vast majority, suffered from low incomes and widespread illiteracy. The urban population was diverse, united only by their commoner status. Artisans formed guilds. A small bourgeois sector was represented in government.

d) Social Minorities: Marginalized groups, including foreigners, existed outside the stratified society. Lack of work and money led to marginalization in cities, with reliance on charity from the Church or the wealthy. Foreigners often engaged in banking or commerce.

2. Absolute Monarchy and Enlightened Policy

The 18th century saw a period of reform beginning with a dynastic shift from the Habsburgs to the Bourbons. The Bourbon victory in the War of Succession led to the unification of peninsular kingdoms and reforms inspired by Enlightenment ideals.

2.1. Characteristics of Absolute Monarchy

Every state has three fundamental powers: legislative, executive, and judicial. However, the Old Regime’s political system was absolute monarchy. The monarch held all power without limits, creating and enforcing laws and serving as supreme judge. Within their domains, however, nobles and the Church exercised some of these powers.

2.2. The Dynastic Change

a) Charles II’s Inheritance: The childless Charles II’s impending death led to intrigue. Three contenders emerged:

  • Joseph Ferdinand of Bavaria: Initially chosen by Charles II.
  • Philip of Anjou: Named heir in Charles II’s will after Joseph Ferdinand’s death.
  • Archduke Charles of Austria: Whose Habsburg dynastic rights were defended by his father, Leopold I.

The vast Spanish Empire was disputed between the Bourbons and Austria. England and the Netherlands, wary of a united Spain and France under Bourbon rule, favored dividing the empire. Following Joseph Ferdinand’s death, Charles II willed the throne to Philip of Anjou. The Archduke’s claim, backed by England and Holland, led to the War of Spanish Succession.

b) The War of Succession: After Charles II’s death, Philip of Anjou was crowned Philip V, initiating the Bourbon dynasty. Opposition arose within Spain and abroad, particularly from England, leading to a European and civil war.

The conflict had two main aspects:

  • Philip V’s claim to the Spanish throne.
  • The potential union of France and Spain under one monarch.

The Grand Alliance (Austria, England, Holland, Portugal, and Savoy) opposed Louis XIV and Philip V. Within Spain, Catalonia, Aragon, and Valencia supported the Archduke, while the rest remained loyal to Philip V.

The war unfolded as follows:

  • The Archduke attacked Extremadura from Lisbon and was proclaimed king in Barcelona.
  • He advanced on Madrid, but Philip V returned after the victory at Almansa.
  • The Bourbons were defeated at Ramillies, Oudenarde, and Malplaquet.
  • The Archduke entered Madrid and was proclaimed Charles III, but Philip V soon regained the capital.
  • The war ended with Philip V’s victory.

c) The Treaty of Utrecht: The war concluded with the Treaty of Utrecht (and the Peace of Rastatt between Austria and France). Its provisions included:

  • Philip V recognized as King of Spain, renouncing claims to the French throne.
  • The Spanish Netherlands and parts of Italy (Naples and Sardinia) ceded to Austria.
  • England gained Gibraltar, Minorca, and trade concessions.

The treaty’s consequences:

  • Spain became a secondary European power.
  • The Spanish Crown’s trade monopoly was broken.
  • A new balance of power emerged in Europe.
  • Rivalries developed between England and France, and Austria and Prussia.

2.3. The Reign of Philip V

Post-war, Spain was a secondary power. Domestically, the new dynasty brought centralization and reforms.

a) A New State Concept: Centralization: The new dynasty centralized power to strengthen the state. Key steps included the Nueva Planta decrees and administrative reform.

b) Nueva Planta Decrees: These decrees abolished the privileges and institutions of the Crown of Aragon.

c) Administrative Reform: Philip V adopted French-style absolutism, concentrating power in the king. This required unifying and centralizing political power.

Central Government: The king held all power, with officials as his representatives.

  • Habsburg councils were replaced by secretaries of state (forerunners of ministers).
  • Castilian courts became the General Cortes but lost significance.

Territorial Administration:

  1. The Bourbons aimed for uniform administration.
  2. Captains General were appointed to each province.
  3. Royal Audiencias were introduced.
  4. The institution of corregidores was expanded.
  5. Castilian institutions were extended throughout the kingdom.

d) Economic Policy: Colbertist mercantilism, modeled on French practices, was implemented.

  • Development: Encouraging all economic activities.
  • State Intervention: Active state involvement in the economy.

e) Military Policy

f) Religious and Cultural Policy: The Bourbons held strongly royalist religious views and introduced cultural innovations.