spanish monarchy could not maintain its dominance over england, france and holland. Hacienda was in debt. Resources from india were not used. Few privileged social groups dominated. These groups lived from the rents of their land and were unable to stimulate a productive economy. Monarchs: they were not interested in government, were more concerned in maintaining their income and prestige. They dedicated their time to hunting, palace receptions... They delegated their functions to their favourites. Validos acted as head of governments. Many of them used their power for their own benefit. Corruption and inefficient administration increased, Favourites accumulated so much power that the court became a web of intrigue. Government of favourites: sell seats in state administration and honours in exchange for lucrative personal gain . The economy during this century decreased because there was a rise in prices that lead to poverty, american mines started to run out of precious metals, measures did not generate enough money. There were several bankrupts A. Thirty years war: reign of Philip III- agreements with england, twelve years' truce (1609) was signed in Netherlands. Reign of Philip IV- coincided with thirty years' war(1618-1648). It was a religious conflict and a fight for dominance in Europe. German protestant princes confronted catholic emperor of austria. Count-duke of olivares: in favour of entering the war in support of Austria to maintain habsburgs' dominance in europe and limit role of France. It ended with the defeat of imperial and spanish troops. 1648- peace of westphalia(independence of North netherlands from spanish crown, decline of spanish empire in europe)B. Revolts in 1640: fiscal pressure and union of arms led to the crisis. Portugal: rebellion driven by leaders who demanded independence and proclaimed duke of braganza king(john IV), support of France and England, ennemies of Spanish monarchy in this war. 1668- spain recognised portuguese independence. Catalonia: imposition of new taxes, housing of troops in territory provoked a peasant uprising. Catalonia under sovereignty of king of france. 1652- armed insurrection lasted twelve years, ended when Philip IV's army took city of barcelona C. Recognise french power: clashes between spain and france. 1659- peace of pyrenees, spanish empire lost territories in netherlands, on rhine, and rousillon and cerdanya. Charles II reign- war with france . Treaty of Nijemegen: France annexed France-Comté, Spanish Territories. Agreements marked a beginning of French dominance in Europe and eclipse of Spanish.