History of Modern Spain: From the Catholic Monarchs to the Habsburgs the Habsburgs Habsburgs Decline of the House of Austria

The Catholic Monarchs: Fernando and Isabel ($1474-1504$) The Modern Era in Spain begins with the reign of the Catholic Monarchs, Fernando of Aragon and Isabel of Castile (both of the Trastámara dynasty). Their political vision was centered on the service of a modernized State characterized by several key pillars. Crucially, their union was a dynastic union rather than a territorial one; the individual kingdoms maintained their distinct laws and borders. They viewed the realm as a family patrimony that must be preserved and defended through an authoritarian monarchy. To maintain control, they established a professional army, a complex bureaucracy, a formal diplomatic corps with permanent ambassadors in major European kingdoms, and a Royal Treasury (Hacienda Real) to manage state finances. # Territorial Holdings and Expansion Under the Catholic Monarchs the territories were divided between the two crowns. The Crown of Aragon included Catalonia, Aragon, and Valencia within the Iberian Peninsula, alongside the Balearic Islands, Sardinia, Sicily, and Naples in the Mediterranean. They also held Roussillon and Cerdanya in southern France, and strategically occupied Melilla, Orán, and Bujía in North Africa. The Crown of Castile encompassed all peninsular territory except for the Crown of Aragon, eventually annexing Navarre and Granada. Their Atlantic expansion included the Canary Islands and the Antilles. Following the Treaty of Tordesillas with Portugal, Castile claimed all lands discovered west of a line located $200$ miles from the Cape Verde islands. # Strategic Marriage Policy and Religious Uniformity The Catholic Monarchs utilized their children's marriages to secure international alliances. Catherine (Catalina) was married to Henry VIII of England; John (Juan) was wed to Margaret of Habsburg of Austria; Joan (Juana) married Philip of Burgundy and Flanders (Philip the Handsome); and both Isabella and Mary were married to Manuel, the King of Portugal. Domestically, they sought religious uniformity through the Tribunal of the Inquisition, which targeted false converts (conversos), Moriscos (Muslims converted to Christianity), and heretics. This policy led to the expulsion of Jews who refused to convert; these exiles settled in France, the Netherlands, and across the Mediterranean, becoming known as Sephardim, a name derived from Sefarad, the biblical Hebrew name for Spain. # The Habsburg Dynasty: Charles I and the Austrias Mayores The Habsburg (Austrian) dynasty rose to power with Charles I ($1516-1556$), who was also Charles V of Germany. As the son of Juana and Philip of Burgundy and the grandson of both the Catholic Monarchs and Maximilian of Austria and Maria of Burgundy, he inherited a massive Spanish Empire. His reign faced intense internal and external conflicts. Internally, he met rejection in the Crown of Castile, leading to the Rebellion of the Comuneros led by Bravo, Padilla, and Maldonado. This revolt ended at the Battle of Villalar, where the leaders were executed. In the Crown of Aragon, he faced the revolt of the Germanías, led by the bourgeoisie in the kingdoms of Valencia and Mallorca. # External Conflicts of the Reign of Charles I Charles I positioned himself as the defender of Christendom, leading to multiple external struggles. He fought the Turks for control of the Mediterranean to mitigate the threat of Muslim expansion. He engaged in prolonged conflict with France, which challenged Habsburg hegemony in Europe. Surprisingly, he also clashed with the Papacy due to rivalries over imperial power and control of the Church. Additionally, he fought against the rise of Protestantism. These continuous wars led to the significant indebtedness of the Royal Treasury. # The Reign of Philip II ($1556-1598$) Philip II inherited his father's vast empire, excluding the Holy Roman Empire (Sacro Imperio Germánico). However, in $1581$, he annexed Portugal and its extensive overseas territories, creating an empire so large it was described as the "Empire where the sun never set." Despite the global scale, he governed strictly from Madrid and San Lorenzo del Escorial. Philip II was a staunch defender of Catholicism and utilized the Inquisition to maintain religious control. # Internal Revolts and Challenges Under Philip II Philip II faced several domestic crises. In Aragon, the "Alterations of Aragon" were triggered by Antonio Pérez, the King's secretary, who was accused of murder and fled to Aragon for protection under the Justice Juan de Lanuza. Lanuza, defending Aragonese fueros (local laws), was executed for refusing to hand over Pérez, and the King subsequently restricted many of Aragon's privileges. Other internal conflicts included the Morisco revolt in the Alpujarras region of Granada and ongoing strife against Protestants in the Netherlands (Países Bajos). # Foreign Policy and the Decline of Philip II Philip II formed the Holy League (Liga Santa) with the Papacy, Venice, and other Italian states to defend Christendom, leading to a major victory over the Turks at the Battle of Lepanto. He fought France, commemorated by the Battle of San Quintín and the construction of the Monasterio del Escorial. He claimed the Portuguese throne through his mother, Isabel of Portugal, though he had to overcome local resistance. His rivalry with England intensified as the English supported Dutch Protestants and challenged Spanish maritime and colonial dominance. His attempt to invade England with the Spanish Armada (Armada Invencible) failed due to severe weather. These military expenses resulted in massive debts and national bankruptcy. # The Austrias Menores and the Golden Age The $17th$ century saw the reigns of Philip III, Philip IV, and Charles II, a period paradoxically known as the Golden Age (Siglo de Oro) for its artistic splendor despite political decline. Philip III ($1598-1621$) relied on his favorite or "valido," the Duke of Lerma. He pursued an initial policy of appeasement, making peace with England and signing a truce with the United Provinces of the Netherlands. However, his reign was marked by the expulsion of the Moriscos and Spanish involvement in the Thirty Years' War (Guerra de los Treinta Años) to support the Austrian branch of the Habsburgs against Protestant forces. # The Crisis of the Spanish Empire Under Philip IV and Charles II Philip IV governed through his valido, the Count-Duke of Olivares, who increased taxes and initiated the recruitment of common citizens into the army to fund wars. This was met with fierce opposition in Catalonia and Portugal. The era was defined by the Crisis of $1640$. Catalonia attempted to declare a Republic and named the King of France as the Count of Barcelona, though this failed (referenced by the Citizenship of Alcañiz). Portugal, however, successfully gained independence under the Duke of Braganza. The Peace of Westphalia ($1648$) marked the end of Austrian hegemony and the formal recognition of Netherlands' independence. The subsequent Peace of the Pyrenees with France resulted in the loss of Flanders, Northern Catalonia (Roussillon and Cerdanya), and Franche-Comté (Franco Condado). The dynasty ended with Charles II, whose death triggered the War of Spanish Succession (Guerra de Sucesión española), leading to the rise of the Bourbon dynasty in Spain.