History of the Spanish Habsburgs: The Reigns of Carlos I and Felipe II

The Protestant Reformation

The Protestant Reformation was a religious movement that began in the first half of the 16th century ($1500$-$1550$) and resulted in the creation of new Protestant churches, carrying significant social and political consequences. The movement was rooted in widespread criticism of the Catholic Church. Critics denounced the Church's immense wealth derived from land rents, tithes, the administration of sacraments, the veneration of relics, and the sale of ecclesiastical offices and indulgences. Furthermore, there was a perceived lack of education among the lower clergy, who frequently fell into serious errors and superstitions. The high clergy were often seen as being more concerned with political and economic interests than religious functions, as these positions were frequently occupied by the younger sons (segundones) of noble families. Recurring scandals within both the high and low clergy provided a poor example to the faithful, fueling the desire for reform.

Martín Lutero (Martin Luther), a German monk, became the central figure of this movement by publicly criticizing Church corruption. In $1517$, he published his "95 Tesis de Wittenberg" (95 Theses of Wittenberg). His doctrine eventually led to a definitive break with the Pope and his declaration as a heretic. The core tenets of Lutheranism included the doctrine of justification, which asserts that only faith saves and sacraments are reduced to only Baptism and the Eucharist. He advocated for the free interpretation of the Bible without intermediaries, which necessitated its translation into vernacular languages, thereby eliminating the need for a priestly hierarchy. Lutheranism also involved the simplification of worship, including the rejection of church ornaments and images, and the suppression of the cult of the Virgin Mary, the saints, and relics.

The Extension of the Reformation

Lutheranism spread rapidly through central and northern Europe, diversifying into various doctrines. Ulrich Zwingli reformed the Swiss Church by denying papal authority and abolishing sacred images, monasteries, and priestly celibacy. In England, Enrique VIII (Henry VIII) proclaimed himself the head of the Church of England, or the Anglican Church, after the Pope refused to grant him a divorce from his first wife. Juan Calvino (John Calvin) created Calvinism, which was centered on the concept of predestination—the belief that individuals are destined by God for either eternal life or damnation from birth. From Switzerland, Calvinism spread to regions in France (where followers were known as Huguenots), the Netherlands (the Reformed), England (Puritans), and Scotland (Presbyterians).

Wars of Religion and the Counter-Reformation

Luther received support from German humanists and members of the bourgeoisie and nobility, allowing the Reformation to consolidate against papal authority. In $1521$, the Church excommunicated Luther and attempted to judge him for heresy. Carlos V (Charles V), grandson of the Catholic Monarchs and Emperor of the Holy Roman Empire since $1519$, attempted to resolve the conflict at the Dieta de Worms (Diet of Worms) in $1521$, though he was unsuccessful. Protestant princes formed the Liga de Esmalcalda (Schmalkaldic League), leading to a period of intermittent warfare. This conflict in Germany eventually concluded with the Paz de Augsburgo (Peace of Augsburg) in $1555$, which established that princes within the Holy Roman Empire could freely choose between the Catholic or Protestant faith, and their choice would be mandatory for all their subjects.

Religious division spread to other territories, leading to further conflict. In France, wars between Catholics and Protestants featured bloody episodes such as the St. Bartholomew's Day Massacre in $1572$ (matanza de hugonotes en la Noche de San Bartolom ); these reached a temporary conclusion in $1598$ with the Edicto de Nantes (Edict of Nantes), which granted tolerance to Protestants. In the Netherlands, the Guerra de Flandes (War of Flanders) or the Eighty Years' War ($1568$-$1648$) saw a Calvinist rebellion against the Catholic King Felipe II of Spain, ultimately resulting in the independence of the United Provinces. In the British Isles, confrontations between Catholics, Anglicans, and Puritans lasted until the end of the 17th century ($1600$-$1700$), eventually resulting in the dominance of Anglicanism.

The Hispanic Monarchy of the "Austrias Mayores"

During the 16th century ($1500$-$1600$), the Hispanic monarchy became the primary European power under the reigns of Carlos I and Felipe II. Both kings maintained the governmental system established by the Catholic Monarchs (Reyes Caticos), which involved: advisory Councils for specific topics (such as the Consejo de Hacienda for finance and the Consejo de Indias for the Indies); a centralizing policy that nonetheless respected regional peculiarities; and a network of officials designed to reduce the power of the nobility in favor of the monarchy. Carlos I and Felipe II are known as the first Habsburgs or "Austrias Mayores" (Great Austrians) because Spain became the hegemonic world power during their reigns. Their primary political objectives were the preservation of territorial heritage—which led to numerous, costly wars that forced the Crown into debt with Italian and German bankers—and the defense of Catholicism through the preservation of religious unity in their territories and across Europe.

The Reign of Carlos I ($1516$-$1556$)

Carlos I inherited a vast array of territories from multiple lineages. From the Reyes Caticos through his mother, Juana, he inherited Castile, Aragon, territories in Italy (Naples, Sardinia, and Sicily), North African territories (Oran, Ceuta, Melilla, and Tunis), and America. From Maximiliano I (House of Habsburg) and Mara de Borgoa (House of Burgundy) through his father, Felipe, he inherited the right to be elected Emperor of the Holy Roman Empire, the Netherlands, Burgundy, and various Austrian and German territories.

At the start of his reign, Carlos faced domestic challenges. He arrived in Spain without speaking Castilian, accompanied by Flemish advisors. In $1519$, he was elected Emperor of the Holy Roman Empire and used taxes collected in Castile to fund his coronation and travel to Flanders. This policy sparked the Revolt of the Comunidades in Castile ($1520$), a rebellion by the lower nobility and bourgeoisie of certain cities. It ended with the defeat of the comuneros at the Battle of Villalar ($1521$) and the execution of their leaders: Juan Bravo, Juan de Padilla, and Francisco Maldonado. Simultaneously, in Valencia and Mallorca, the Revolt of the Germanas ($1519$-$1523$) occurred as an anti-seigneurial uprising by the bourgeoisie and peasantry. The King supported the nobility, and the rebellion was repressed. These victories strengthened Carlos's position and consolidated the authoritarian monarchy.

His external policy was focused on defending Christianity and his inherited lands. This led to wars against France, notably the conquest of the Milanese at the Battle of Pava ($1525$), where King Francisco I was captured. He also fought the Ottoman Empire, halting the expansion of Sultan Solim
n el Magnfico (Suleiman the Magnificent) at Vienna in $1529$, and conquering Tunis in $1535$, though he failed at Algiers in $1541$. Finally, he fought the German Protestant princes, winning the Battle of M hlberg in $1547$ before signing the Peace of Augsburg in $1555$.

The Reign of Felipe II ($1556$-$1598$)

Felipe II inherited a global empire including Castile and its American domains, the Crown of Aragon and its Italian possessions, the Netherlands, and the Franco-Condado. He did not inherit the title of Emperor of the Holy Roman Empire, as those lands went to his uncle, Fernando. In $1580$, Felipe II inherited the Crown of Portugal along with its possessions in America, Africa, and Asia. Together with the conquest of the Philippines, the Spanish Crown's domains reached a global scale. To govern, he strengthened the bureaucracy, gave more power to secretaries (intermediaries between the King and the Councils), and established Madrid as the permanent capital in $1561$.

Internally, Felipe II faced a rebellion in Aragon in $1591$ in defense of its fueros (local laws), which he suppressed while limiting those laws. He also declared bankruptcy on three occasions, though American gold and silver and tax increases helped sustain military spending. A major conflict was the Rebellion of the Alpujarras ($1568$), caused by the Pragm
tica Sancin of $1567$, which forced Moriscos to abandon their culture and Muslim customs. The Moriscos, who controlled the silk industry in Granada and Almera, were viewed with suspicion by "Old Christians" and seen as a potential fifth column for the Ottoman Empire. The army eventually stifled the revolt and dispersed the Morisco population.

In foreign policy, Felipe II used marriage and war to maintain his territories. He continued the conflict with France, defeating them at San Quintn ($1557$) and Gravelines ($1558$), leading to the Peace of Cateau-Cambrsis ($1559$). In the Netherlands, he faced a Calvinist uprising starting in $1568$; while he secured the southern provinces (Flanders), the northern provinces (United Provinces) declared independence in $1581$, a war that lasted until $1648$. Against the Ottomans, he joined the Holy League (Spain, Venice, and the Papacy) to win the Battle of Lepanto ($1571$). Finally, after Queen Elizabeth I (Isabel I) supported English corsairs and Dutch rebels, Felipe II sent the Gran Armada (Spanish Armada) in $1588$ to invade England. The fleet's shipwreck (the disaster of the "Invincible Armada") damaged Spanish Atlantic leadership and emboldened Dutch rebels.

Economy and Society in the 16th Century

While the economy remained largely agrarian, the conquest of America brought a massive influx of precious metals (gold and silver) and new trade routes. Initially, this wealth financed European wars, enriched the nobility who purchased luxury items, and stimulated the artisan industry due to American demand. However, in the second half of the century, the influx caused the currency to lose value and generated inflation. Rising prices ruined the lower classes and destroyed the manufacturing sector, as it became cheaper to buy products from abroad. The Spanish economy deteriorated; the Castilian wool industry and the Crown of Aragon’s textile industry could not compete with foreign goods. To manage trade and migration, the Casa de Contratacin in Seville was established. Felipe II also organized a system of flotas (fleets) to protect treasure ships from pirates. Despite these measures, high expenses forced the Crown to increase taxes on the commoners (estado llano) and take out loans from foreign bankers, often leading to bankruptcies.