1. Spain’s Empire & Absolutism

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

3. 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)

4. 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%

5. Built El Escorial (royal palace) Religious wars (must defend Catholicism!)  1571: Spanish & Venetian ships defeated Ottoman fleet (Battle of Lepanto)  1588: Spanish Armada to punish England (Prots)---FAILURE!

6. III. The Spanish Empire Weakens Amer. wealth caused long-term economic problems

7. 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)

8. 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 outdated manufacturing techniques = expensive goods— looked elsewhere (favorable balance of trade?)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

9. 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

10. 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

11. 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

12. 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