Spanish Habsburg Dynasty: From Imperial Rise to Decline

Charles I and the Habsburg Empire Inheritance

Charles I of the Habsburg Empire was the heir to a vast territory accumulated by inheriting the Kingdom of Castile and, from his paternal side, the Low Countries.

Internal Problems and Revolts

• The Revolt of the Communities (Comuneros): This emerged in several cities to protest in Castile. It involved the hidalgos, merchants, and craftsmen. The conflict stretched on, and peasant revolts occurred.
• The Germanies (Germanias): This erupted in the Crown of Aragon. It was a revolt of artisans and peasants.

External Conflicts and Wars

External conflicts led King Charles I to engage in many wars:

• Facing France.
• The Turks were also faced.
• He initiated a long war of religion.

The Government of Philip II

• He was the son of Charles I and Isabella of Portugal.
• Philip established a comprehensive system of councils.

Defense of Catholic Orthodoxy

• In the peninsula, Philip maintained the spirit of the Counter-Reformation and his fight against Protestantism.
• The existence of many conversos (Jews and Moors) caused even more persecution on religious grounds.

Foreign Policy and the Annexation of Portugal

• Continuing the war against the French.
• Limiting the spread of Muslims in the Mediterranean.
• The biggest problem was the revolt of Flanders.
• His greatest success was the annexation of Portugal due to marriages between royal families.

16th Century Economy: Silver, Gold, and Trade

In the sixteenth century, there was a huge demand for new products from the Americas. This led to a large growth in trade that could have improved the economic situation, but it was not so. The entry of enormous quantities of precious metals caused a huge rise in prices and inflation, which reduced the standard of living.

Agriculture, Textile Industry, and Wool Exports

• The demand for farm products could hardly be met by the production of the Hispanic kingdoms.
• The handmade industry, especially the textile industry, also saw increased demand. This favored wool exporters due to the huge taxes the Crown received from exports.
• Trade was the sector that experienced the furthest development. Spanish and foreign merchants were responsible for bringing products to all of Europe and distributing what arrived from the Americas.

Demographics and Urban Growth in Castile

Throughout the sixteenth century, the population of the Hispanic kingdoms increased substantially, especially in Castile.

• The urban population was limited, and few cities had over five thousand inhabitants, although sometimes they exceeded 30,000 inhabitants.

Social Hierarchy and Religious Minorities

• Most social status was held by the nobility.
• The purchase of titles was common.
• 80% of the population were non-privileged, mostly peasants.
• There were also different social groups based on religion, such as the Moors and Jews.

The 17th Century: Philip III and Philip IV

The Validos and the Reign of Philip III

• He favored the validos (royal favorites).
• Philip III had a brief and generally peaceful reign. The Duke of Lerma managed the government and managed to maintain peace abroad.

Philip IV and the Struggle for European Hegemony

Spain became involved in European conflicts once again to maintain its hegemony.

The 17th Century Demographic Crisis

The seventeenth century was characterized by a strong demographic recession. The population recorded a major setback, dropping from 8 million to 7 million inhabitants.