Spanish Empire Under Habsburg Rule: 16th-17th Centuries
The Spanish Empire Under the Habsburgs
Shifting Focus to a More Hispanic Monarchy
This period saw a move away from European possessions, equipping the Spanish monarchy with a more Hispanic character. Philip II’s closest associates were mostly Spaniards, and international politics and royal marriages increasingly took into account the interests of Castile, which financed most of his policies. Philip II’s foreign policy was inspired by the same principles as his father’s: the defense of Catholicism and combating its enemies. However, new problems arose, such as the revolt of the Netherlands and rivalry with England, which led to the defeat of the Spanish Armada in 1588. The failure of this policy and its high cost led Philip II to declare bankruptcy three times. By the end of his reign, Spain was bankrupt and exhausted, and its empire was on the verge of disintegration.
Mediterranean and North African Politics
In foreign policy, Aragon was interested in the Mediterranean, while Castile focused on the Atlantic. Aragon was involved in Italian politics, competing with France due to commercial and territorial interests, as both tried to gain control of Italy. To curb French influence, the Catholic Monarchs established alliances with England, the Netherlands, and the Papacy. Wars between Aragon and France took place with Italy as a backdrop. An army sent by King Ferdinand and directed by Gonzalo Fernández de Córdoba defeated the French, allowing the consolidation of the Crown of Aragon in Naples in 1504.
On the other hand, to end the threat posed to Christianity by Muslims, Castile pursued a policy focused on North Africa. Continuing struggles occurred with the Ottoman Empire. To slow its progression, in addition to the Inquisition, Castile invaded North Africa, occupying Melilla in 1497 and securing the Canary Islands. This was done to prevent a possible invasion of the Iberian Peninsula and to defend the Canaries.
The Impact of Latin America on Spain
In the field of food, the impact of the Americas was significant. Previously unknown products were introduced to Europe and would become essential to the diet from then on, such as potatoes, corn, cocoa, and tobacco. Most interesting is what this meant for Castile (or Spain) in terms of the accumulation of vast amounts of precious metals – gold and, above all, silver – through the exploitation of the mines of the Indies.
Upon the death of Ferdinand the Catholic, the Habsburg dynasty (Charles V, Philip II) began in Spain, achieving the acquisition of a huge empire “where the sun never set.” There is a clear relationship between the strength of Imperial Spain in the 16th century and the arrival of precious metals. However, the problem was that, while there was a possibility of developing the Spanish economy, all this metal entered Seville (the main port) and went directly out to Europe, either through military expenditures that the empire required or to pay the debts that the monarchy had with German and Genoese bankers. Hence, there was indeed a price revolution, which meant that having so much money and the same quantity of goods led to increased prices, but this did not translate into the development and expansion of the Spanish economy. The 17th century is considered a century of great crisis due to the mismanagement of all that stolen money.
The Empire of Charles V: Internal Conflicts
With Charles I, grandson of Ferdinand and Isabella, the Spanish crown came into the hands of the Habsburg dynasty, also known as the Austrians. The king arrived in Spain in 1517. The appointment of foreign nobles to high office, such as Adrian of Utrecht as regent of the kingdom, and his departure to be crowned emperor in 1520 after requesting funding from the Cortes for the trip, led to the revolt of the principal Castilian cities, with Toledo at the head.
In these cities, municipal power was replaced by communes (hence the name Communities), formed by artisans, merchants, and members of the lower nobility and clergy. Among their complaints were the return of Charles to Spain, the exclusion of foreigners from political office, the enhanced role of the Cortes, and tax reductions. The conflict became radicalized into an anti-aristocratic rebellion, so the nobility, which had so far remained uninvolved, joined forces with the king. The commoners were defeated at Villalar in 1521, and their leaders – Padilla, Bravo, and Maldonado – were executed. Despite his victory, Charles got rid of his Flemish entourage and paid more attention to Castilian issues.
The Germania movement (1519-1522) began in Valencia and Murcia and spread to Mallorca. From the beginning, it had a social character. The king had confirmed the artisans’ permission to form a militia, “Germania,” in case of attack by pirates. After meeting in council, they proposed reducing the privileges of the nobles. The conflict radicalized into a rebellion when many nobles left the cities due to a plague outbreak, and the germanías seized local power. The imperial army, with the support of the nobility, ended the rebellion. As in Castile, the alliance between the monarchy and the nobility was consolidated.
The Spanish Monarchy of Philip II: Iberian Unity
Philip II received only a portion of his paternal inheritance. Charles, aware of the difficulty of governing such diverse territories, retired to Yuste in 1556 and left the imperial title and the crown of Austria to his brother Ferdinand. However, Philip would amass an even greater empire than his father’s, because to the territories of Castile (including the New World and the Pacific), Aragon with Italy, and the Netherlands, he added the overseas empire of Portugal, inherited from his mother, Elizabeth. When King Sebastian I of Portugal died in 1578 without direct descendants, the throne passed to his great-uncle, Cardinal Henry, who died two years later, also without descendants. Following the line of succession, the rightful heir was Philip II, which meant the dynastic union of the two crowns and, therefore, Iberian unity.
An important part of the Portuguese nobility and the great traders believed that the union could bring significant political and economic benefits. The Portuguese lower classes, however, did not look favorably upon the annexation to Spain. Finally, Philip II decided to invade Portugal, commissioning the Duke of Alba for the task. The Spanish troops arrived in Lisbon without much resistance. The Portuguese Cortes proclaimed Philip II king in 1581. Following his father’s abdication, he established his court in Madrid, ending the traditional itinerant court.