AD 1500-1650 Renaissance

In AD 1516, the Spanish crown passed to the Habsburg Charles I (reigned 1516-56), who became Emperor Charles V in 1519. He spent much of his reign abroad defending the Habsburg Empire and combating Protestantism, financing his wars with Spanish taxes and bullion from her New World colonies. Charles abdicated in 1556, leaving Spain, the Italian Habsburg territories and the Netherlands to his son, Philip II.

Philip, supervising every detail of government from Madrid, led the Catholic ‘Counter Reformation’ against Protestantism. From 1566, Spain fought a bitter campaign against the rebellious Protestant United Provinces in the northern Netherlands and their ally England, without decisive victory. Wars and the cost of maintaining the colonies led to bankruptcy. Under Philip III (reigned 1598-1621), peace was pursued, but a policy reversal under Philip IV (reigned 1621-65), produced revolts in Catalonia (1640-8) and Portugal (united with Spain in 1580), which ceded from Spain in 1640.

By the mid-17th century Spain was perceived as declining in power and wealth. At the end of the ruinous Thirty Years’ War (1618-48), in which Spain supported the Habsburgs, the United Provinces gained independence. This and the loss of Portugal were major blows to Habsburg prestige.