Domestic Policy
After living in the Netherlands in the early years of his reign, Philip II decided to return to Spain. Although sometimes described as an absolute monarch, Philip faced many constitutional constraints on his authority. This was largely influenced by the growing strength of the bureaucracy during Philip's reign.
The "Spanish" Empire was not a single monarchy with one legal system but a federation of separate realms, each jealously guarding its own rights against those of the House of Habsburg. In practice, Philip often found his authority overruled by local assemblies, and his word less effective than that of local lords. The Crown of Aragon, where Philip was obliged to put down a rebellion in 1591–92, was particularly unruly.
He also grappled with the problem of the large Morisco population in Spain, who were sometimes forcibly converted to Christianity by his predecessors. In 1569, the Morisco Revolt broke out in the southern province of Granada in defiance of attempts to suppress Moorish customs; and Philip ordered the expulsion of the Moriscos from Granada and their dispersal to other provinces.
Despite its immense dominions, Spain was a country with a sparse population that yielded a limited income to the crown (in contrast to France, for example, which was much more heavily populated). Philip faced major difficulties in raising taxes, the collection of which was largely farmed out to local lords. He was able to finance his military campaigns only by taxing and exploiting the local resources of his empire. The flow of income from the New World proved vital to his militant foreign policy, but nonetheless his exchequer several times faced bankruptcy.
Philip's reign saw a flourishing of cultural excellence in Spain, the beginning of what is called the Golden Age, creating a lasting legacy in literature, music, and the visual arts.
Read more about this topic: Philip II Of Spain
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