The Habsburg Dynasty in Spain: 16th & 17th Centuries
The Habsburg Political Model
The Union of Kingdoms
The union of the kingdoms of Castile, Navarre, and Aragon was modeled on the Royal Council (RC). Each kingdom retained its institutions, courts, and privileges with few modifications. This system consolidated governance by councils.
The power of the King’s secretaries increased, becoming key figures. They reported council decisions to the monarch, eventually bypassing the councils altogether. The most important secretaries became secretaries of state.
Power was delegated to viceroys and governors in territories where the sovereign was absent. The administration grew more complex under the Habsburgs. Existing institutions, inherited from the RC, were expanded, resulting in slower governance and increased bureaucracy, especially under Philip II. From the second half of the 16th century, the Habsburgs settled in Madrid and established a professionalized administration. This administration, representing the omnipresence of the king, often overlapped and conflicted with the institutions of each kingdom.
The Habsburgs had substantial revenues but struggled to cover enormous expenses, particularly military ones. Revenue came from taxes paid by Castile (especially the sales tax). In 1590, a new general excise tax was introduced on essential goods, affecting all classes. Other revenue came from the Indies, allowing for urgent payments. The sale of public offices, sometimes created solely for this purpose, became widespread.
The gap between income and expenditure led to royal debt and ruin. The monarchs relied on credit, especially from bankers in Antwerp. Interest accumulated, leading to bankruptcy and defaults on several occasions.
Economy and Society in 16th Century Spain
The 16th century saw population and economic growth in Spain. The population increased by 40%, exceeding 7 million by the end of the century. Agriculture, particularly cereals and vineyards, expanded, although transhumant sheep farming (Mesta) remained the dominant activity. Craft production was limited, with notable exceptions like Segovia’s crafts, foundries, and Basque arms manufacturing.
However, the economy faced significant challenges. The influx of American gold and silver led to a “price revolution” and inflation. This gold and silver financed imperial policy and offset trade deficits.
The Spanish economy was already indebted to German bankers (Fugger) under Charles V. The situation worsened by the end of the century with successive bankruptcies of public finances. Poor harvests and wars depleted crown resources, making Philip II reliant on colonial gold and silver by his death in 1598.
Society was stratified, with the nobility holding significant power. A growing bourgeoisie aspired to noble status. Discrimination existed against New Christians (conversos) due to their ancestry. Accusations to the Inquisition were sometimes used to eliminate rival families.
Culture, Mentalities, and the Inquisition
The Renaissance in Spain (15th-16th centuries) spread through contact with Italy and the Netherlands. Royal and ecclesiastical patronage overshadowed that of the nobility and bourgeoisie, resulting in predominantly religious-themed works. Counter-reformation policies and the persecution of free thought, intensified by the Inquisition, hindered Spanish intellectual and scientific development.
Literary and artistic endeavors received significant impetus. The Holy Inquisition, established in 1478, served as a tool for religious uniformity across the kingdoms, including the Canary Islands and the Indies. Although an ecclesiastical institution, it was under crown control. Initially focused on conversos, its scope later expanded to include Moors and others. It operated with varying degrees of rigor until the 19th century.
Cardinal Cisneros and the Catholic Monarchs’ church reforms had addressed abuses within the Spanish Church (simony and concubinage), limiting the appeal of Northern heresies. However, some intellectuals and advisors to Charles V, notably Erasmus of Rotterdam, advocated for reform within the Catholic Church. Erasmianism flourished in Spain until 1527, even within the Inquisition. The spread of the Lutheran Reformation and its association with Erasmus led to a shift in imperial policy, and Erasmians were persecuted and banished (e.g., Michael Servetus).
In 1558, Protestant outbreaks in Seville and Valladolid among intellectuals and nobles led to Inquisitional intervention and executions in an auto-da-fé attended by Philip II in 1559. The Inquisition’s Index of Forbidden Books (1523) and the Council of Trent further suppressed heterodoxy.
“Statutes of purity of blood” restricted access to certain institutions based on Jewish ancestry, reflecting popular anti-Semitism and racism.
The 17th Century Habsburgs: Government and Internal Conflicts
Rule by validos, or royal favorites, was common in 17th-century Europe. Philip III, Philip IV, and Charles II relied heavily on validos. This position was not institutional but based on royal appointment. The valido’s power stemmed from the king’s confidence and ended with its loss.
The Duke of Lerma served as valido under Philip III until 1618, when he was replaced by his son, the Duke of Uceda. Both, like their successors, were aristocrats who governed independently of the councils, favoring relatives and friends with appointments.
During this period, the Moriscos were expelled. Reasons included their perceived lack of integration, alleged conspiracies with Turks and Berbers, and religious differences. Between 350,000 and 400,000 Moriscos were expelled, significantly impacting the economy, especially in Valencia.
Philip IV entrusted the government to the Count-Duke of Olivares, who pursued ambitious, authoritarian reforms to increase crown revenue for foreign policy amidst European hostilities. A key proposal was for Castilian kingdoms to increase contributions. This measure aimed to shift the financial burden onto Castile.
Olivares proposed the Union of Arms, a 140,000-man army recruited and maintained by the kingdoms based on their resources. This plan proved unrealistic due to the economic and social crisis, and the resistance of kingdoms with different rights and privileges. Faced with pressure from Aragon and Valencia, the king reduced the army contribution to a cash payment. Catalonia refused any contribution and remained outside the Union of Arms.