Introduction: The Spanish Empire

The Spanish Empire was one of the first empires of global extent. Charles V’s only legitimate son, Philip II of Spain parted the Austrian possessions with his uncle Ferdinand. Philip treated Castile as the foundation of his empire, but the population of Castile was never great enough to provide the soldiers needed to support the Empire. When he married Mary Tudor, England was allied to Spain.

Spain was not yet at peace, as Henry II of France came to the throne in 1547 and immediately renewed conflict with Spain. Charles’s success; Philip II, aggressively prosecuted the war against France, crushing a French army at the Battle of St. Quentin in Picardy in 1558 and defeating Henry again at the Battle of Gravelines.

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 chronic civil war and unrest, and during this period removed from effectively competing with Spain and the Habsburg family in European power games.

Freed from effective French opposition, Spain; saw the apogee of its might and territorial reach in the period 1559-1643.  The opening for the Genoese banking consortium was state bankruptcy of Philip II in 1557, which threw the German banking houses into chaos and ended the reign of the Fugger as Spanish financiers. The Genoese bankers provided the unwieldy tabs burg system with fluid credit and a dependably regular income. In return the less dependable shipments of American silver were rapidly transferred from Seville to Genoa, to provide capital for further ventures.