1. The Rise of the Atlantic Economy
and
The Golden Age of Spain

2. Eastern Europe 1550 2

3. Expansion of Trade
Due to the crises of the 17th Century the Mediterranean decline in production
Production shifted from the Mediterranean to Western Europe
England, France, The United Dutch Provinces and Spain established colonies in North America giving them new items to trade
To help pay for these new goods credit was provided
Bills of Exchange began to be used which increased money through the interest charged on the bills
Also Joint-Stock companies will be used for the first time in order to pay for large colonial ventures

4. Increased Agriculture
In the 16th century more forests were cleared bringing more land under cultivation
Serfdom was increased in Eastern Europe and in order to sell excess grain to the West

5. The Global Economy
This expansion of trade and agriculture led to a globally linked economy
However there was great risk in this economy and disease was passed back and forth between the old world and new
Increased Spanish imports of specie lead to massive inflation
Also to finance wars monarchs would Debase (lower the amount of gold in) their currency

6. Absolute Monarchs
Most monarchs reigning in this time period ruled through absolutism, or complete control in the hands of one ruler
Monarchs legitimized their rule by invoking the idea of divine right, that God gave them the power to rule

7. The Families of Europe Hapsburgs – Holy Roman Empire, Spain, Austria
Bourbons – France
Tudors – England
These families competed over territory and power

8. The Hapsburgs
The Hapsburgs were one of the most powerful ruling families
Charles the V, ruler of the Holy Roman Empire, split his empire into two parts for his sons
Ferdinand – Central Europe, Austria
Philip II – Spain, the Netherlands, southern Italy, and Spain’s overseas empires

9. Empire of Charles V 9

10. The Habsburg Dynasty 10

11. Creation of Spain
Spain was created when King Ferdinand II of Aragon married Queen Isabella of Castile in 1469
This leads to the two largest powers on the Iberian peninsula to form the first nation state
This had many advantages leading to 1. Castilian becoming Spanish 2. A crusade forcing the Moors out of Spain in 1492

12. Kingdoms of Spain: 1492 12

13. Ferdinand and Isabella
The dual monarchs created a functioning bureaucracy
Stripped many nobles of their titles
Started the inquisition
Expanded colonial holdings in America

14. The Madonna of the Monarchs
Ferdinand & Isabella of Spain
The Madonna of the Monarchs 14

15. Spanish Economy
Due to lack of arable land Spain's economy was based on the wool trade and taxing its peasantry
Due to the heavy tax burden that was a revolt against Charles I (V) in 1520
When Charles abdicated he divided his kingdom between the Spanish holdings and the Austrian holdings

16. Spain and Phillip II
Spain was the leading power of western Europe at the start of the 1500s
Phillip II
Saw himself as the defender of Catholicism
Worked to increase Hapsburg (his family) power
Held power through elaborate court rituals meant to impress and intimidate

17. The Empire of Philip II 17

18. Phillip II and Religion
Phillip was concerned over the religious loyalty of different groups in Spain
Protestants – not Catholic
Marranos – Jewish converts to Christianity
Moriscos – Muslim converts to Christianity
He supported the Inquisition in Spain – which enforced Catholicism throughout Spain through
Torture
Execution

19. Spain and the Turks
Phillip felt it was his job to expel the Turks and carried out a naval war against Suleiman the Magnificent from
The Turks attempted to capture Granada but were defeated at the battle of Lepanto

20. Central Europe in 1600 20

21. The Growth of the Ottoman Empire21

22. Spain and the Netherlands
During this time, Spain controlled the Netherlands
Three main factors led to the Netherlands fighting for independence from Spain
Heavy taxation of the Netherlands by Spain to fund its empire
Protestantism in the Netherlands - As a Catholic king, Philip of Spain felt it was his duty to protect Catholicism and destroy Protestantism
Spain began to centralize its power and bring the Netherlands even more under their control, leading to resistance

23. Spain and the Netherlands
Phillip tried to bring the Netherlands more under his control by sending courts to hunt down people who didn’t obey him or Catholicism
Dutch Protestant nobles rebelled in 1560's
Spain Appointed the Duke of Alba to put down the revolt
Alba used a heavy hand executing leaders and imposing taxes and destroying self government in the Netherlands
Alba's terror prompted a full Dutch revolt led by William of Orange
This prompted Alba to execute thousands in retaliation

24. More Dutch
The Dutch were successful on the Sea but the Spanish were superior on land
By 1577 the Spanish army had dwindled from desertion, poor management, and mutinies
During this war for independence, the English, the French, and Suleiman of the Ottoman empire supported the Dutch against the Spanish
In 1588 the Spanish armada sailed to invade England and remove them from the war, the result was one of the greatest disasters in history
The Dutch win independence from Spain, in the peace of Westphalia in 1648
This was the beginning of the decline of Spain

25. The Spanish Armada
The English became increasingly troublesome for Phillip
English had supported the Dutch in their revolution
The English were increasingly challenging the Spanish for naval power
1586 – Phillip decides to invade England to overthrow Elizabeth; devotes all resources to preparing for this invasion for the next two years
Launches 130 ship armada (large fleet of ships), with 33,000 soldiers, which finds its way into the English Channel

26. Spain vs. England – Advantage?
Spanish armada
Larger ships
Heavier guns
Marines and soldiers trained in close combat – board opposing ships and take them over
English ships
Faster, more maneuverable
Longer range guns
Gunners better trained
Operating closer to home

27. Battle of Gravelines
Spanish crescent formation was broken up by the English, using fireships
Spanish never got close to the English – had to for their tactics to work
Spanish gunners hadn’t been trained to reload – fired once, then manned the top-decks to board enemy ships
Spanish armada can’t defeat English, fleet is gradually destroyed by lack of water, storms, and disease – only half the ships and around 10,000 men survive

29. Spanish Decline Over time, the Spanish empire declined from its glory
Economy
Borrowed large amounts of money to support wars, such as against the Dutch
Gold and silver from the New World first made the country rich, then inflated the currency
Industry and agriculture declined (some say because they were rich, they became poor)

30. Spanish Decline, continued
The Spanish and Portuguese also expelled Muslims and Jews from the country
Many Muslims and Jews were artisans, merchants, bankers, etc., so they took their knowledge, skills, and money with them – “brain drain.”
The new leadership after Philip was generally incompetent in running the empire effectively
Agricultural output fell
The colonies became a burden with huge administrative costs and few economic opportunities because of poor management

31. An Empire Spread to Thin
The Spanish Empire was spread from Italy, to Iberia, to the Netherlands, to South America, to the Philippines
Spanish entry in the 30 years war also cost a great deal of lives and treasure, further weakening Spain
Revolts occurred in Catalan and Portugal over increased taxation
In response the crown tried to centralize Spain even further under Philip IV
By the mid 1600's Spain had lost its Italian possessions to France

32. Summary So, in the golden age of Spain
Spain was ruled by the Hapsburg empire, a ruling family that ruled throughout Europe
Spain tried to exert influence and control over other countries, such as the Netherlands and England
Many factors, such as loss of the Netherlands, the defeat by England, the decline of the Spanish economy, and poor leadership following Philip the II led to Spain’s decline