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History of Spain (1700–1808)

Period of Spanish history

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Through Napoleon

The Kingdom of Spain and the Indies or Kingdom of the Spains (Spanish: Reino de España e Indias o Reino de las Españas) entered a period of reform. Ideas of the Age of Enlightenment entered Spain and Spanish America. The period ended with the invasion of the Iberian Peninsula by Napoleon Bonaparte in the Peninsular War (1808–1814), which upended the stability of the Spanish Empire, and although France was defeated, the turmoil in Spain led to the Spanish American wars of independence of 1808 to 1833, in which most of the empire was lost.

The 18th century in Spanish historiography is often referred to as Bourbon Spain, but this label can be misleading as the Spanish Bourbons returned from exile to reign from 1814 to 1868 (following the restoration), from 1874 to 1931, and since 1975.

Philip V, first Spanish Bourbon monarch (1700–1724, 1724–1746) and Louis I (1724)

War of the Spanish Succession

The last few years of the rule of the mentally challenged and childless Spanish Habsburg Charles II, were dominated by the politics of who would succeed the unfortunate monarch, the last Spanish king of the Habsburg dynasty. Spain was at the center of this political crisis, but it was the "object not the arbiter." Economic troubles, the decay of the Spanish bureaucracy, a series of defeats in wars against France, and the erosion of imperial institutions in the seventeenth century had left Charles the king of a declining empire, and his physical and mental weakness provided him with little ability to reverse the course of his country. The vastness and wealth of the ultramarine Spanish Empire in the New World and the Philippines, along with her naval resources, had made Spain a vital part of European power politics. If the throne of Spain was to go to a relative of the king of France, or if the two countries were to be united, the balance of power in Europe would shift in France's favor. The wealth of the Spanish overseas empire would flow to France. If it remained in the hands of another member of the anti-French, Austrian Habsburg dynasty, the status quo would remain. European politics at the end of the 17th century became dominated by establishing an orderly succession in Spain that would not alter the balance between Europe's great powers.

Bourbon France and Habsburg Austria and its allies went to war to determine the successor to Charles. The prize was the wealth of the Spanish Empire. The War of the Spanish Succession (1702–14) was won by France, but by the Treaty of Utrecht that ended the conflict, the French and Spanish Bourbon dynasties pledged not to unite formally. Louis XIV's exclamation that the "Now there are no more Pyrenees!", after his grandson became Spain's monarch, did not come to pass. Although Charles II's chosen heir inaugurated a new dynastic house in Spain, the Habsburg Spanish empire in Europe was reduced to the Iberian peninsula itself, with the loss of the Spanish possessions in Italy (the Duchy of Milan, Kingdom of Sicily, Kingdom of Naples, and Kingdom of Sardinia) and the Spanish Netherlands, and Britain captured Gibraltar and the island of Menorca as well. The Treaty of Utrecht ended the conflict and Philip V of Spain renounced any claims to the French throne. Before the conflict ended, Philip's young wife, Maria Louisa of Savoy (1688–1714) died, but the Bourbon royal succession was assured with the birth of two sons.

Changes in government under Philip

Philip V proved an effective administrator, centralizing the Spanish authority by eliminating regional cortes (parliaments) and beginning a process of making uniform the laws among the various regions of Spain's empire by eliminating special privileges (fueros). The Nueva Planta decrees (1716) dismantled the composite system of rule in Spain, and replaced it with rule from Madrid and unitary Castilian values. If the Austrian Habsburgs had won the War of the Spanish Succession, Habsburg pluralism promised to be continued, leading Aragon to support the losing Habsburg cause. The Nueva Planta decrees eliminated that regional autonomy. "The most enduring achievement of the reign of Philip V was to establish, for the first time since the Romans, a single, united polity."

Also eliminated with the Bourbon dynasty was the Habsburg system of conciliar government, replacing councils with four secretariats, later evolving into ministries: State & Foreign Affairs, Charity & Justice; Army & Navy, and The Indies, i.e., the overseas portions of the Spanish Empire. The four ministers formed a "cabinet council" and ministers were directly responsible to the crown. In general, aristocratic men no longer dominated government positions, but rather men of talent who were then elevated to high position and rewarded with noble titles. Some 200 new titles were created by Philip alone. Administrative reforms included the division of Spain into eight reinos (lit. 'kingdoms') headed by a military official and an audiencia was established for the administration of justice. Local level administrators (corregidores), which had already existed in Castile, were appointed to the other reinos. An important reform was in taxation and royal debt. Some bonds issued by the crown were repudiated while others had their interest rate downgraded. New tax officials were efficient in collecting and administering taxes, to the benefit of the new monarchy. Regions that had not paid taxes at the same levels as Castile were not subject to taxation by the unitary state. Since Spain under the Bourbon monarchs pursued many wars, having a tax base to pay for them was crucial.

Philip's selection of capable French and Italian ministers to key positions in the government reined in independent, isolated, and corrupt ministries that had flourished in the later period of Habsburg rule. Philip aimed at expanding economic activity and moved toward economic freedom, especially regarding Spain's trade in its overseas empire, in theory a Spanish monopoly. Expanding Spanish manufactures and agricultural exports was envisioned, so that trade did not benefit foreign powers who had horned in on the Spanish American trade. The House of Trade, long operating in Seville, was moved to Cádiz in 1717, while the monopoly on trade with the Spanish Empire was also opened to all the ports of peninsular Spain. Philip permitted the foundation of the Basque Caracas Company in 1728, on the model of Northern European trading companies, to trade with Venezuela, a major producer of chocolate. The free trade zone (comercio libre) within the Spanish sphere expanded further with later Spanish Bourbons.

Military conflicts

Philip was often dominated in his policies by his second wife, Elizabeth Farnese. He adopted an aggressive foreign policy that involved Spain in a series of costly wars throughout his reign. The loss of so much of the European territory promised to him by Charles II's will and Philip V's personal ambition put him at unease with the Treaty of Utrecht. Philip's wife Elizabeth, a member of the ducal house of Parma, and her favorite minister, Cardinal Giulio Alberoni, desired to have their claims in Italy and those of Philip restored. But an alliance of France, Britain, and the Dutch Republic challenged Spain's ambitions, which threatened the peace of Europe. In 1717, Philip invaded Sardinia, one of the territories lost to Austria after the War of the Spanish Succession. The invasion of Sicily thereafter prompted the formation of the Quadruple Alliance of Britain, France, Austria, and the Dutch to oppose Philip's ambitions. In 1720, embarrassed by the failure of Spanish arms at sea and on land in the War of the Quadruple Alliance, Philip dismissed Alberoni and signed a peace treaty with Austria, with both sides recognizing the Treaty of Utrecht.

The Spanish again attempted to regain some of their lost territory in the Anglo-Spanish War (1727–1729). An alliance was concluded in 1725 with the Austrians, who agreed to help the Spanish in retaking key naval bases in the Mediterranean—Menorca and Gibraltar—from the British.

In response, an alliance was forged by the British Secretary of State, Charles Townshend, 2nd Viscount Townshend, with France and the Dutch Republic; when Philip did finally lay siege to Gibraltar, Austria declined to intervene against the powerful alliance, and Spain was left alone once again. French armies invaded the Basque Country and Britain and Netherlands elected to capture Spain's New World empire and disrupt precious metal shipments, hoping to prevent Philip from buying the Austrians into intervention; the allies suffered greater losses in men than the Spanish but the plan succeeded and Philip was forced to sue for peace in 1729. Elizabeth Farnese did get one of her wishes, though; securing the succession rights in the Duchy of Parma and Piacenza and Grand Duchy of Tuscany.

After 1729, Philip was more reserved in his use of Spanish power and sought the close support of allies, in particular France: a more cautious strategy that yielded positive results. Philip sought a friendly axis with his relatives in France in the War of the Polish Succession, where he succeeded in regaining the kingdoms of Naples and Sicily for his son, the future Charles III of Spain. The Pacte de Famille with Louis XV of France was signed in 1733, bringing the two states closer together after the embarrassments of the Quadruple Alliance. Friction with Britain prompted by the War of Jenkins' Ear (1739–1741) pushed Philip into a closer alliance with France in the years leading to the War of the Austrian Succession, in which Philip obtained the Duchy of Parma and Duchy of Guastalla from Austria for his son Philip. This restored Spanish power in Italy to much of its pre-1700 extent and added new territories, albeit to a more indirect degree.

First Minister Ensenada

Late in his reign, Philip elected to place the reformation of his government in the hands of his ministers. The youthful and ambitious Zenón de Somodevilla had been created Marquess of Ensenada in 1736 for his successful diplomacy after the War of the Polish Succession, and seven years afterwards, in 1743, he was made Philip (and Elizabeth's) favorite at court, and for the remainder of Philip's reign, Ensenada effectively ruled Spain. Ensenada sought a cautious but independent foreign policy that distanced his country from both France or Britain, and desired a stable, peaceful environment in which Spain could reform her institutions. Ensenada commissioned a secret report on the state of Spanish America carried out by Jorge Juan and Antonio de Ulloa. Their report asserted that the overseas empire was inefficiently and incompetently administered by American-born Spaniards (criollos) and detailed the enmity between peninsular-born Spaniards and American-born colonials. Administrative reforms of the overseas empire was informed by the report Ensenada commissioned.

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