page_title: Habsburg Spain
section_title: Philip II (1558–1598)
hierarchical_section_title: Habsburg Spain / Philip II (1558–1598)
caption_attribution_description: Español: Mapa de los territorios del rey de España Felipe II en 1598 &#160;&#160; Territorios adscritos al Consejo de Castilla. &#160;&#160; Territorios adscritos al Consejo de Aragón. &#160;&#160; Territorios adscritos al Consejo de Portugal. &#160;&#160; Territorios adscritos al Consejo de Italia. &#160;&#160; Territorios adscritos al Consejo de Indias. &#160;&#160; Territorios adscritos al Consejo de Flandes abarcando los territorios disputados con las Provincias Unidas. English: Map of the territories of Philip II, King of Spain in 1598 &#160;&#160; Territories appointed to the Council of Castile. &#160;&#160; Territories appointed to the Council of Aragon. &#160;&#160; Territories appointed to the Council of Portugal. &#160;&#160; Territories appointed to the Council of Italy. &#160;&#160; Territories appointed to the Council of the Indies. &#160;&#160; Territories appointed to the Council of Flanders comprising the disputed territories of the United Provinces. Português: Mapa dos territórios do rei de Portugal Filipe I (Filipe II de Espanha) em 1598 &#160;&#160; Territórios atribuídos ao Conselho de Castela. &#160;&#160; Territórios atribuídos ao Conselho de Aragão. &#160;&#160; Territórios atribuídos ao Conselho de Portugal. &#160;&#160; Territórios atribuídos ao Conselho de Itália. &#160;&#160; Territórios atribuídos ao Conselho das Índias. &#160;&#160; Territórios atribuídos ao Conselho da Flandres abrangendo os territórios em disputa das Províncias Unidas. Français&#160;: Carte des territoires du roi d'Espagne Philippe II en 1598 &#160;&#160; Territoires soumis au Conseil de Castille &#160;&#160; Territoires soumis au Conseil d'Aragon &#160;&#160; Territoires soumis au Conseil de Portugal &#160;&#160; Territoires soumis au Conseil d'Italie &#160;&#160; Territoires soumis au Conseil des Indes &#160;&#160; Territoires soumis au Conseil de Flandres, y compris les territoires disputés aux Provinces-Unies. Italiano: Mappa dei territori del re di Spagna Filippo II nel 1598 &#160;&#160; Territori sottomessi al Consiglio di Castiglia &#160;&#160; Territori sottomessi al Consiglio d'Aragona &#160;&#160; Territori sottomessi al Consiglio del Portogallo &#160;&#160; Territori sottomessi al Consiglio d'Italia &#160;&#160; Territori sottomessi al Consiglio delle Indie &#160;&#160; Territori sottomessi al Consiglio delle Fiandre, che comprende i territori contesi delle Province Unite.
context_page_description: Habsburg Spain refers to Spain over the 16th and 17th centuries, when it was ruled by kings from the House of Habsburg. The Habsburg rulers reached the zenith of their influence and power. They controlled territory that included the Americas, the East Indies, the Low Countries, Belgium, Luxembourg, Italy, and territories now in France and Germany in Europe, the Portuguese Empire from 1580 to 1640, and various other territories such as small enclaves like Ceuta and Oran in North Africa. This period of Spanish history has also been referred to as the "Age of Expansion".
  Under the Habsburgs, Spain was the major political and military power in Europe and the world for much of the sixteenth and seventeenth centuries, but experienced a gradual decline of influence in the second half of the seventeenth century under the later Habsburgs kings.
  The Habsburg years also ushered in the Spanish Golden Age of cultural efflorescence. Among the most outstanding figures of this period were Teresa of Ávila, Pedro Calderón de la Barca, Miguel de Cervantes, El Greco, Domingo de Soto, Francisco Suárez, Diego Velázquez, and Francisco de Vitoria.
context_section_description: Spain was not yet at peace, as the aggressive Henry II of France came to the throne in 1547 and renewed the conflict with Spain. Charles' successor, Philip II, aggressively conducted the war against France, crushing a French army at the Battle of St. Quentin in Picardy in 1557 and defeating Henry again at the Battle of Gravelines the following year. The Peace of Cateau-Cambrésis, signed in 1559, permanently recognized Spanish claims in Italy. In the celebrations that followed the treaty, Henry was killed by a stray splinter from a lance. France was stricken for the next thirty years by civil war and unrest (see French Wars of Religion) and was unable to effectively compete with Spain and the Habsburgs in the European power struggle. Freed from any serious French opposition, Spain saw the height of its might and territorial reach in the period 1559–1643.
  The Spanish Empire had grown substantially since the days of Ferdinand and Isabella. The Aztec and Inca Empires were conquered during Charles' reign, from 1519 to 1521 and 1540 to 1558, respectively. Spanish settlements were established in the New World: Mexico City, the most important colonial city established in 1524 to be the primary center of administration in the New World; Florida, colonized in the 1560s; Buenos Aires, established in 1536; and New Granada (modern Colombia), colonized in the 1530s. The Spanish Empire abroad became the source of Spanish wealth and power in Europe. But as precious metal shipments rapidly expanded late in the century it contributed to the general inflation that was affecting the whole of Europe. Instead of fueling the Spanish economy, American silver made the country increasingly dependent on foreign sources of raw materials and manufactured goods. In 1557, Spain met with bankruptcy and was forced to partially repudiate its debt through debt consolidation and conversion.
  The Peace of Cateau-Cambresis in 1559 concluded the war with France, leaving Spain at a considerable advantage. However, the government was in enormous debt and declared bankruptcy that year. Most of the government's revenues came from taxes and excise duties, not imported silver and other goods. The Ottoman Empire had long menaced the fringes of the Habsburg dominions in Austria and northwest Africa, and in response Ferdinand and Isabella had sent expeditions to North Africa, capturing Melilla in 1497 and Oran in 1509. Charles had preferred to combat the Ottomans through a considerably more maritime strategy, hampering Ottoman landings on the Venetian territories in the Eastern Mediterranean. Only in response to raids on the eastern coast of Spain did Charles personally lead attacks against holdings in North Africa (1545). In 1560, the Ottomans battled the Spanish navy off the coast of Tunisia, but in 1565 Ottoman troops landing on the strategically vital island of Malta, defended by the Knights of St. John, were defeated. The death of Suleiman the Magnificent the following year and his succession by Selim the Sot emboldened Philip, who resolved to carry the war to the Ottoman homelands. In 1571, a mixed naval expedition of Spanish, Venetian, and papal ships led by Charles' illegitimate son Don John of Austria annihilated the Ottoman fleet at the Battle of Lepanto, in the largest naval battle fought in European waters since Actium in 31 BC. The fleet included Miguel de Cervantes, future author of the historic Spanish novel Don Quixote. The victory curbed the Ottoman naval threat against European territory, particularly in the western Mediterranean, and the loss of experienced sailors was to be a major handicap in facing Christian fleets. Yet the Turks succeeded in rebuilding their navy in a year, using it handily to consolidate Ottoman dominance over most of the Mediterranean's African coast and eastern islands. Philip lacked the resources to fight both the Netherlands and the Ottoman Empire at the same time, and the stalemate in the Mediterranean continued until Spain agreed to a truce in 1580.
  The time for rejoicing in Madrid was short-lived. In 1566, Calvinist-led r
caption: The Iberian Union in 1598, during the reign of Philip II of Spain
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