Philip IV of Spain - Domestic Policy and The Crisis of The Monarchy

Domestic Policy and The Crisis of The Monarchy

Philip had inherited a huge empire from his father, spanning the known world, but many of his most difficult challenges as king would stem from domestic problems in Spain itself. Spain in the early 17th century was a collection of possessions — the kingdoms of Castile, Aragon, Valencia and Portugal, the autonomous provinces of Catalonia and Andalusia, complete with the wider provinces of Naples, the Netherlands, Milan etc. — all loosely joined together through the institution of the Castile monarchy and the person of Philip IV. Each part had different taxation, privileges and military arrangements; in practice, the level of taxation in many of the more peripheral provinces was less than that in Castile, but the privileged position of the Castilian nobility at all senior levels of royal appointment was a contentious issue for the less favoured provinces. This loose system had successfully resisted reform and higher taxation before, ironically resulting in Spain's having had historically, up until the 1640s at least, fewer than the usual number of fiscal revolts for an early modern European state.

In the first years of his reign, heavily influenced by his royal favourite Olivares, Philip focused on efforts to reform the most chaotic aspects of this system. Frustrated by the notorious slowness of the system of royal councils, Philip supported Olivares' establishment of juntas — small committees designed to circumvent the more formal system and to enact policies quickly. Although successful, these juntas excluded many of the traditional grandees and caused resentment. Olivares put forward the idea of a Unión de Armas, or 'Union of Arms'. This would have involved establishing a force of 140,000 paid soldiers, supported by equitable taxes from across the Empire, and has been termed 'the most far-sighted proposal of any statesman of the age'; in practice, however, it met fierce opposition from the various regional assemblies and the plan was withdrawn. During the 1620s, again influenced by a desire to reform Spanish life for the better, Philip also passed considerable legislation with puritanical overtones. In 1623, he closed all the legal brothels in Spain, extended the dormant sumptuary laws on luxury goods and supported Papal efforts to regulate priests' sexual behaviour more tightly.

Philip had clear intentions to try to control the Spanish currency, which had become increasingly unstable during the reign of his father and grandfather, but in practice, inflation soared. Partly this was because in 1627 Olivares had attempted to deal with the problem of Philip's Genoese bankers — who had proved uncooperative in recent years — by declaring a state bankruptcy. With the Genoese debt now removed, Olivares hoped to turn to indigenous bankers for renewed funds. In practice, the plan was a disaster. The Spanish treasure fleet of 1628 was captured by the Dutch, and Spain's ability to borrow and transfer money across Europe declined sharply.

By the 1630s, Philip's domestic policies were being increasingly impacted by the financial pressures of the Thirty Years' War, and in particular the growing war with France. The costs of the war were huge, and whilst they had largely fallen upon Castile, the ability of the crown to raise more funds and men from this source was increasingly limited. Philip and his government were desperately trying to reduce the responsibilities of central government in response to the overstretch of the war, and various reform ideas that might have been pursued during the 1620s were rejected on this basis. Financial restraints and higher taxes were put in place, but Philip was increasingly selling off regalian and feudal rights, along with much of the royal estate to fund the conflict. It has been argued that the fiscal stringencies of the 1630s, combined with the strength and role of Olivares and the juntas, effectively cut Philip off from the three traditional pillars of support for the monarchy: the grandees, the Church and the Council of Castile.

Crisis came in 1640. An attempt by Olivares to intervene in Catalonia to deal with the French invasion threat resulted in revolt. An alliance of Catalan rebels and French royal forces proved challenging to suppress, and in trying to mobilise Portuguese noble support for the war, Olivares triggered a second uprising. Lisbon's nobles expelled Philip, and gave the throne to the Braganzas, marking the end of sixty years of the Iberian Union and the beginning of the Portuguese Restoration War. The next year, the Duke of Medina Sidonia attempted another rebellion against Philip from, possibly attempting to reproduce the Braganzas success in Portugal. Although Philip and Olivares were able to repress the ducal revolt, Philip had found himself increasingly isolated. On his return from Zaragoza, where he had been commanding the army, he found only one of the Castilian nobility arrived at court on Easter Day 1641. The threat of Philip's being deposed by the grandees of Castile seemed increasingly real.

Much shaken by events, Philip's solution was to remove his royal favourite Olivares from office in 1643 in an attempt to compromise with the Spanish elite. He announced he would rule alone, rejecting both the concept of a royal favourite as first minister and the system of junta government, which he began to dismantle in favour of the older system of royal councils. Clemency was shown to the Duke of Medina Sidonia. The situation began to stabilise, and before long Philip felt secure enough to revert to his preferred method of government. Luis de Haro, Olivares' nephew, took over as favourite and minister and the counter-reform of the juntas halted. The spark of reform from Philip's earlier years never returned, however. The Catalonian rebellion dragged on for several years. In 1652, the Spanish army retook Barcelona and Philip issued an amnesty for the rebels, promising to respect traditional customs and rights in the future.