Decline of the Spanish Habsburgs: From Felipe III to Carlos II

Decline of the Spanish Habsburgs (1598-1700)

Reign of Felipe III (1598-1621)

A trade authority was founded in Sevilla to regulate trade with America, impose taxes on goods entering Spain, and control emigration. Unlike his energetic father, Felipe III delegated political decisions to a royal favorite, the Duke of Lerma, who prioritized personal interests over effective governance. This led to financial problems that severely impacted the Spanish economy. The Duke of Lerma's most disastrous decision was the expulsion of the Moriscos in 1609. This hard-working minority group's departure further damaged the already weakened economy. In foreign affairs, a period of relative peace followed the continuous wars of the previous century. Peace was signed with England in 1604, and the Twelve Years' Truce was signed with the Dutch rebels of the United Provinces.

Reign of Felipe IV (1621-1665)

Felipe IV's valido, the Count-Duke of Olivares, attempted to maintain Spain's position as a leading European power. Olivares aimed to reform the Spanish state through the Union of Arms, a project requiring all territories to make significant military contributions based on their size. However, these measures faced resistance, culminating in a revolt in Catalonia, which sought support from France. The Duke of Braganza declared himself King of Portugal, further weakening Spain's position. The Spanish defeat at the Battle of Rocroi during the Thirty Years' War marked the end of Spain's dominance as a military power. The Treaty of Westphalia, which concluded the war, forced Spain to recognize the independence of the United Provinces. The war with France continued until 1659.

Reign of Carlos II (1665-1700)

Carlos II succeeded Felipe IV at the age of two, with his mother ruling as regent. Before his death in 1700, Carlos II named Philip of Anjou, a member of the French Bourbon dynasty, as his heir. Philip became Felipe V of Spain, but his claim was contested, leading to the War of Spanish Succession. The Low Countries, England, and Austria supported a rival candidate. Carlos II's death marked the end of the Spanish Habsburg dynasty.