Decline of the Spanish Empire & Golden Age | 17th Century Spain

8.3 The Decline of the Spanish Empire in Europe

The costly wars waged by Philip II and his father in the 16th century had depleted Castile's economy. As Philip III's reign began, a policy of pacification was adopted. Peace treaties were signed with two traditional enemies, England and France. In 1609, the Twelve Years' Truce (1609-1621) was signed with the Netherlands due to the war's stalemate and weariness on both sides. However, the Dutch continued to undermine the economic interests of the Spanish monarchy.

Under Philip IV and Olivares, the truce with the Netherlands was not renewed, and Spanish foreign policy was marked by involvement in the Thirty Years' War (1618-1648).

The Thirty Years' War began with religious and political clashes between German princes (Protestants vs. Catholics) and escalated into a European war involving major powers. It represented a clash between two visions of Europe: the interests of the House of Austria (Habsburg), defenders of the Catholic faith and their dynastic and imperial dominance, versus the Protestants (Holland, England, Sweden, and some German principalities) and Catholic France. The latter embraced Renaissance individualism and an incipient nationalism, defining Europe as a collection of independent sovereign states. France's entry into the war in 1635 proved decisive.

Initially, the Habsburgs gained the upper hand, achieving significant victories. However, the flow of silver from the Americas was disrupted by the war. The entry of Sweden and France, alongside England and Holland, weakened the Habsburgs' strategic position. Finally, the exhausted nations signed the Peace of Westphalia (1648). This treaty marked the decline of the Spanish and Austrian Habsburgs, confirmed French hegemony, and secured Dutch independence. It also transformed European politics, prioritizing rights and raison d'état over relationships between Christian princes. Diplomacy and international politics became more secular. The Holy Roman Empire retained its title but effectively dissolved into 354 sovereign entities, with Austria, Prussia, and Bavaria as major powers.

Spain refused to negotiate with France, prolonging the war until the Treaty of the Pyrenees (1659), which acknowledged the European order established at Westphalia. Mazarin, representing Louis XIV, and Luis de Haro, representing Philip IV, agreed on territorial exchanges (including Artois, Roussillon, and Cerdanya for France), establishing the Pyrenees as a natural border. Another crucial clause was the marriage of Louis XIV to Maria Theresa, daughter of Philip IV, paving the way for the Bourbons' accession to the Spanish throne in the 18th century.

During Charles II's reign, European foreign policy was dominated by Louis XIV, reducing the Spanish monarchy to a second-rate power.

8.4 Economic and Social Developments in 17th Century Spain

The 17th century in Spain was marked by a severe economic and demographic crisis, particularly impacting Castile. The demographic crisis led to population stagnation and decline. By the early 18th century, Spain's population was around eight million, lower than a century earlier. The causes were:

• Subsistence crises caused by consecutive poor harvests leading to famine.
• Periodic epidemics exacerbated by malnutrition. Particularly severe epidemics occurred in 1598-1602 (primarily affecting Castile, causing around 500,000 deaths), 1647-1652 (affecting Andalusia and Levante, with 200,000 deaths), and 1676-1685.
• Wars: From 1640 to 1668, wars within the Iberian Peninsula (rebellions in Catalonia and Portugal) coincided with wars against France and Holland.
• Expulsion of the Moriscos: This significantly impacted the kingdoms of Valencia (losing a third of its population) and Aragon. Around 300,000 people were expelled.

The economic crisis affected all productive sectors:

In agriculture, production declined due to several factors:

• Labor shortages resulting from the demographic crisis.
• Decreased demand.
• Plagues and poor harvests.
• Stagnant or rising prices.
• Heavy tax burdens.

Livestock also suffered, with the Mesta's herds declining from three to two million head, impacting wool exports.

The textile industry declined due to falling demand, fiscal pressure, and rigid guild regulations. Industrial production was reorganized in Catalonia and Valencia, while Castile experienced increased ruralization.

Economic difficulties also affected domestic trade (poor road network, a trend towards self-sufficiency) and foreign trade (naval blockades, rising freight costs, competition from other countries). By 1700, only 5% of goods shipped to the Americas were produced in Spain.

The dire economic situation also impacted public finances, leading to successive bankruptcies and discrediting state debt.

The economic crisis had severe social implications, particularly affecting the most disadvantaged, who faced increasing taxes and pressure from landlords. The growing number of beggars and vagrants reflected the social crisis and the suffering of the weakest. Spanish society remained stratified, with limited social mobility. Two privileged classes (nobility and clergy) dominated, while a large number of landless peasants worked for wages. The bourgeoisie's role remained limited due to low levels of craft production and trade.

8.5 Cultural Splendor: The Golden Age

The late 16th and 17th centuries marked a period of intense artistic and literary creativity known as the Golden Age. The dominant artistic movement was Baroque. Baroque culture served as propaganda for the Catholic Church and the monarchy, its primary patrons. Spanish thought and art defended the principles of the Catholic Counter-Reformation established by the Council of Trent. In literature, one characteristic genre was the allegorical play on religious themes, exemplified by Calderón de la Barca. Painting and sculpture focused on religious subjects or dramatic scenes, aiming to move the viewer and convey Catholic principles.

Alongside these values, there was an emphasis on nobility and disdain for manual labor. Another characteristic was vital pessimism, reflecting the social and economic malaise. This pessimism is evident in picaresque novels like Quevedo's The Buscon.

Despite masterpieces in painting (Velázquez, Murillo, Zurbarán) and literature (Lope de Vega, Cervantes, Quevedo, Calderón, Góngora), Spanish culture remained conservative and isolated, particularly in intellectual and scientific thought. This can be attributed to the Catholic climate prevailing in universities, the lack of an entrepreneurial middle class, and the economic and social backwardness. Scientific and philosophical ideas of the time (Galileo, Descartes, Newton) were largely banned and persecuted by the Inquisition. Consequently, Spanish science lagged behind the rest of Europe in the 17th century.