The War of Spanish Succession & Bourbon Reforms in Spain
The War of Spanish Succession and the Utrecht System
The death of childless Charles II sparked a succession crisis, with two claimants to the throne: Archduke Charles of Austria and Philip of Anjou (grandson of Louis XIV). Charles II named Philip heir, hoping to maintain kingdom integrity and avoid war with France. However, this decision included two crucial clauses: the Spanish and French crowns could not unite, and Spanish territories must be preserved.
Initially, only Austria opposed Philip, but the potential Franco-Hispanic alliance alarmed other powers. This led to the Grand Alliance of The Hague, comprising Austria, England, the Netherlands, Portugal, Prussia, and Savoy. In 1702, the Grand Alliance declared war on France, initiating the War of Spanish Succession. A year later, Archduke Charles was named King of Spain (though not legally). The war became a global conflict against France, while the Iberian Peninsula saw conflict between Philip V’s and Archduke Charles’ supporters.
The Emperor’s death in 1711 shifted the balance. Archduke Charles’s succession to the throne caused Britain and many Grand Alliance members to lose interest, fearing Austrian dominance. Peace talks resulted in the Treaty of Utrecht (1713) and the Rastadt agreements (1714). However, fighting in the peninsula continued until 1714, when Bourbon troops captured Barcelona.
Consequences of the War and the Utrecht System
The Treaty of Utrecht:
- Established a new European political map.
- Prevented a union between the French and Spanish crowns.
- Austria and England were the main beneficiaries:
- Austria gained most of Spain’s European territories.
- England acquired Newfoundland, Gibraltar, Minorca, and exclusive trade concessions in the Americas.
Spain’s defeat marked its decline, reducing its territory to its current boundaries (excluding its American empire). Domestically, a centralized absolutist monarchy, modeled on France and Castile, replaced the previous system. Most ancient kingdoms’ charters were abolished.
The First Bourbons and State Reform
The war’s end enabled administrative reorganization in the former Crown of Aragon. The abolition of Aragonese privileges involved dismantling its institutions and establishing a centralized absolute monarchy. The Nueva Planta Decrees (1714) abolished the self-government of Aragon, Valencia, Majorca, and Catalonia, imposing Castilian laws and institutions. Only the Basques and Navarrese retained their privileges due to their loyalty to Philip V. Unified weights, measures, and taxes were imposed, along with Castilian administrative agencies. Castilian became the official language of administration.
Centralization and Administrative Reform
Key reforms included:
- The creation of secretariats for State and Foreign Affairs, Justice and Ecclesiastical Affairs, War and Navy, the Indies, and Finance.
- The abolition of regional courts (except Castile’s, which became advisory).
- The imposition of Castilian-style mayoral offices in municipal governments.
- Limitations on Church power.
- Treasury reorganization and centralized tax collection (except in Basque provinces and Navarre).
Evolution of Foreign Policy in Europe
Spain’s foreign policy shifted dramatically after Utrecht. The focus changed from defending lost European territories and Catholicism to forging an alliance with France (due to family ties) and enmity with Britain. Philip V initially aimed to recover lost territories, particularly in Italy, but later pursued rapprochement with France, culminating in the Family Compact. These pacts countered British naval power and involved Spain in wars against Britain, straining the Spanish treasury. Spain even aided France against Britain in the American War of Independence, recovering Minorca and Florida in the Treaty of Versailles (1783). The French Revolution created a dilemma: support Britain against the revolution or maintain the alliance with France. The French monarchy’s fall led Spain to initially close its borders, eventually leading to further conflicts with Britain.
Enlightened Despotism in Practice
Charles III’s reign saw the implementation of enlightened despotism reforms. The 18th century experienced uneven economic recovery, stronger in the periphery than the center. The first census was conducted to address economic and fiscal needs. The need for agricultural reform was recognized, leading to the creation of the Royal Economic Societies of Friends of the Country. Reform plans, such as those by Campomanes and Jovellanos’s Report on Agrarian Law, criticized entailed estates and advocated peasant land ownership. However, opposition from the clergy and nobility (including the Inquisition) hindered these reforms. Measures implemented included land distribution in Extremadura, unsuccessful stocking in Sierra Morena, reduction of Mesta rights, and some irrigation works.
Industrial development was promoted by breaking guild monopolies in 1772 and establishing Royal Factories (though private textile industries proved more competitive). Domestic trade was improved through better communication routes and the removal of internal tariffs. A 1778 decree liberalized trade with America, ending the Casa de Contratación’s monopoly, while maintaining protectionist policies toward other powers. The Banco de San Carlos (precursor to the Bank of Spain) was established, and the Spanish penny was introduced (though not official currency until 1868).
Charles III’s reign can be divided into two periods:
- 1759-1766: Esquilache’s government saw reform attempts, culminating in the 1766 Esquilache riots over dress codes. This was a popular uprising against Italian ministers, fueled by the clergy and nobility.
- 1766-1788: The governments of Aranda, Floridablanca, and Campomanes focused on economic reforms, hampered by opposition from the clergy and nobility. The Jesuits were expelled in 1767 for allegedly inciting the riots.
Bourbon American Policy
The 18th century was a period of economic growth for the American colonies. With European possessions diminished, Spain focused on America as a revenue source. The colonial population increased by almost 50%, with urban growth in cities like Mexico City, Puebla, Cartagena de Indias, Lima, and Cuzco. The colonial economy, previously based on large agricultural estates, transformed with the export of cacao, snuff, sugar, cotton, and coffee. This prosperity created a wealthy urban bourgeoisie, who, along with landowners, formed the privileged class. These Creoles, mostly descendants of Spanish colonists and officials, resented the continued Spanish dominance in colonial government. Following the American Revolution, they increasingly embraced liberal ideas.
The Enlightenment in Spain
The Enlightenment, originating in England and France, emphasized reason as the basis for ethics. Enlightenment leaders saw themselves as societal elites guiding the world toward progress. This movement fueled revolutions and independence movements (like those in the U.S. and France), the rise of capitalism, and the birth of socialism. In Spain, intellectuals embraced Enlightenment principles such as humanism, rationalism, and secularization. These ideals, present in Spain since the late 17th century, flourished under Charles III. Enlightened figures like Campomanes, Jovellanos, and the Count of Aranda advocated university reform, economic modernization, and the establishment of societies dedicated to studying national issues (like the economic societies and Friends of the Country). However, the French Revolution’s impact led to the decline of Enlightenment thought in Spain, with leading figures losing power, imprisoned, or forced to recant their ideas. The Enlightenment in Spain essentially advocated a revolution from above, for the people but without their direct participation.