The Habsburg Dynasty: Spanish Governance and Decline in the 17th Century

The Habsburgs in the 17th Century

The Reign of Philip III (1598–1621)

In 1598, Philip III ascended the throne of Spain. During his reign, the system of government initially mirrored that of his predecessors, but it was soon replaced by the delegation of power to a valido (a royal favorite) due to the monarch's perceived insufficient capacity. Consequently, the monarch placed state affairs in the hands of his favorite from the beginning of his reign.

Domestic Policy

The government addressed the issue of the Moors, whose integration into Spanish society had become increasingly difficult following the uprisings of the Alpujarras. In 1609, the king ordered their expulsion on religious and security grounds.

Foreign Policy

The period of peace ended in 1618 with the start of the Thirty Years' War, in which Spain supported Emperor Ferdinand II of Austria. Due to a deteriorating political and economic crisis, Philip III was forced to replace the Duke of Lerma with his son, the Duke of Uceda. While Philip III's reign maintained Spanish hegemony, its economic difficulties and the transfer of government to favorites predicted the decline of the empire.

The Reign of Philip IV (1621–1665)

Philip IV ascended the throne in 1621 at the age of 16. He entrusted the government to the Count-Duke of Olivares, who acted as his valido for over twenty years. Olivares presented his reform program to the king in 1624, aiming to:

• Maintain the reputation of the Hispanic Monarchy against enemies like France and Holland.
• Achieve uniformity across all kingdoms by replacing the traditional board system.
• Reinforce royal authority and foster collaboration among the kingdoms of the monarchy.

Administrative and Fiscal Reforms

Olivares implemented several measures, including:

• Comprehensive administrative reform.
• Reduction of the number of craft employees.
• Trade protection measures to increase the population.
• Fiscal measures to bolster the military.

The Union of Arms (1626)

In 1626, the Unión de Armas was established. This policy required each realm to contribute a quota of soldiers, aiming for a total of 140,000 trained and financed troops from all territories of the Crown.