Spain’s Empire & Absolutism

Absolutism in Spain

A. Charles V 1516: inherited Spain & possessions 1519: elected Holy Roman emperor Spanish holdings were too vast for one ruler

1556: gave up throne, divided lands among family Phillip II – Spain & Amer. possessions Ferdinand I – Holy Roman Emperor

Charles V retired to monastery (d. 1558)

B. Philip II

Born & educated in Spain (d. 1598) Worked long hours, devout Catholic 1580: claimed Port. & holdings Empire provided tremendous wealth

By 1600: Amer. mines = 339,000 pounds of gold Betw. 1550-1650: 16,000 tons of silver King of Spain claimed 20-25%

Built El Escorial (royal palace) Religious wars (must defend Catholicism!)

1571: Spanish & Venetian shipsdefeated Ottoman fleet (Battle of Lepanto)

1588: Spanish Armada to punish

England (Prots)---FAILURE!

III. The Spanish Empire Weakens

Amer. wealth caused long-term economic problems

A. Inflation & Taxes

Inflation: decline in value of $, accompanied by a rise in prices of goods

2 Causes: 1. growing pop. (more demand for food & goods) 2. abundance of silver (value went down)

Other causes of economic probs. 1. 1500: Spain expelled artisans & business people (Jews

& Muslims) 2. Nobles did not pay taxes (lower classes taxed more) 3. outdated manufacturing techniques = expensive goods—

looked elsewhere (favorable balance of trade?) 4. borrowed $ from German & Italian bankers to finance

wars

B. The Dutch Rebellion

Spanish Netherlands (paid army to control) Dutch had little in common w/Spanish rulers

Spain = Catholic Dutch = Calvinists Dutch had strong middle class

Philip’s 3 Errors that led to Dutch rebellion: 1. ignored self-rule in Neth. (HE was the ruler,

NOT local nobles!) 2. taxed the Neth’s. trade heavily 3. persecuted the Calvinists

1568: William the Silent led Dutch revolt Relied on guerilla warfare Philip sent the Spanish Duke of Alva

1579: Northern Neth. declared independence 1609-1621: 12 yr. truce 1621-1648: Northern Neth. won independence

Spain won loyalty of southern provinces

IV. The Dutch Prosper

Dutch dominated Euro. commerce/trade—North Sea

Amsterdam = world financial center Only Calvinists could hold office Neth. different from other Euros.

1. religious toleration 2. republic, NOT a kingdom

Stability of govt. allowed great economic growth