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3- THE SPANISH HABSBURG DYNASTY
THE RELIGIOUS WARS
Habsburg dynasty
Both monarchs belonged
They attempted to exert absolute political authority over Europe and pursued similar political objectives:
To defend Catholicism,
discriminatory.
who questioned Catholicism were repressed
published the Index of forbidden books
religiously motivated wars against the Protestant states.
To retain their territorial patrimony through numerous wars
they became indebted to Italian and German bankers.
ECONOMY AND SOCIETY IN THE 16TH CENTURY
The arrival of precious metals on the Peninsula affected the Spanish Monarchy in the following ways:
The craft industry began to grow due to an increase in demand from the America
rise in prices made Spanish products more expensive
the monarchs were able to begin more expensive projects
when these resources ran out they resorted to increasing taxes.
The arrival of metals enriched the nobility
used the silver and gold to buy luxury product
The economy continued to be based on agriculture.
enabled the kings to finance the numerous wars they were involved in throughout Europe
Sevilla
monopolised trade with the colonies through the Casa de Contratación
To protect the ships from pirate attacks, Felipe II organised a fleet system
be made in groups escorted by warships.
population increase
16th century
Spanish economy went into decline
small local craft industries
major industries, such as the Castilian wool industry and the Crown of Aragón's textile industry
economic decline deeply affected society.
fall in production
trade
fewer raw materials were bought and sold and the number of products manufactured decreased.