Spanish Empire in 17th Century: Decline, Society & Economy
The Decline of the Spanish Empire in Europe During the 17th Century
Foreign Policy
Philip III initiated a period of relative peace, signing a peace treaty with England in 1604 and the Twelve Years’ Truce with the Dutch Republic from 1609 to 1621. However, under Philip IV, peace was shattered due to broader European conflicts, particularly the Thirty Years’ War. At the end of the Twelve Years’ Truce, fighting resumed in the Spanish Netherlands, with the Austrian and Spanish Habsburgs facing off against Protestant German states and the Dutch Republic. The Thirty Years’ War concluded with the Peace of Westphalia in 1648, which permanently ceded independence to the United Provinces (the Netherlands). Spain continued to war against France until the Peace of the Pyrenees in 1659, resulting in the transfer of Roussillon, Cerdanya, and Artois to France. Under Charles II, Spain recognized the independence of Portugal. Other significant treaties during this period included the Peace of Aix-la-Chapelle (1668), which ended the War of Devolution, the Peace of Nijmegen (1678), the Truce of Regensburg (1684), and the Peace of Ryswick (1697).
The Political Model of the Habsburgs in the 17th Century
The Union of Kingdoms
The Habsburgs maintained a decentralized monarchy, with the Crown of Castile holding a prominent position. The Austrians developed a system of government known as polysynody, which relied on councils (synods) to manage different aspects of the empire.
- A) The Council of State: Established by Charles I, this council comprised prominent figures from various kingdoms and represented the unity of the monarchy. Its responsibilities included foreign policy, matters of war and peace, and major state issues. The king presided over this council.
- B) Territorial Councils: These councils dealt with specific matters within individual kingdoms. They were staffed by experts in their respective fields, such as the Inquisition, military orders, and finance.
Territorial Administration
- A) Viceroys: Viceroys acted as the monarch’s representatives in non-Castilian territories.
- B) The Cortes: The Cortes (parliaments) maintained a similar structure and function to those of the late Middle Ages.
- C) Audiencias: Audiencias served as the highest courts within their respective territories.
Local Government and the Feudal System
During this period, there was a practice of selling municipal offices and privileges of *villazgo* (town status).
The Impact of America on Spain in the 16th and 17th Centuries
The discovery of America was one of the most significant events in European history. It confirmed the existence of a new continent, expanded the known world, demonstrated that the Earth was round, and revolutionized cartography and navigation.
Impact on Population and Economy
Emigration to America was relatively limited and predominantly male. It was restricted for Muslims, converts, those condemned by the Inquisition, Romani people, and criminals. Products of colonial origin, such as cocoa, tobacco, and maize, were primarily consumed by the ruling classes. The influx of silver and gold from the Americas dominated trade during the 16th and 17th centuries. This influx led to constant inflation in Europe, a phenomenon known as the Price Revolution. Much of this wealth was invested unproductively in luxury consumption rather than in productive economic activities. From the outset, Castilian society adopted a colonial mentality in its dealings with the Americas.
Economic and Social Trends in 17th Century Spain
The 17th century was a period of significant economic depression for Spain. The population declined due to major epidemics, the expulsion of the Moriscos (1609-1611), emigration, and constant wars. The royal treasury faced exhaustion, debt, and bankruptcy. New sources of income were sought through new taxes, the sale of public offices, the sale of *vassal* (subject) status, and the sale of noble titles. Population recovery began around 1680. Society remained rigidly stratified. The nobility grew, as did the clergy. The weak bourgeoisie invested in land and noble estates. Peasants were the most affected by the crisis, and banditry emerged as a means of escaping poverty.