1. Chapter 16 Part 2
Absolutism

2. Jean Baptiste Colbert (1661-1683)
French Finance minister under Louis XIV
Was Mr. Mercantilism
Continued construction of roads and canals
Granted government-supported monopolies in certain industries
Cracked down on guilds
Reduced internal tariffs that hindered internal trade

3. Colbert
Organized French trading companies to encourage overseas trade:
French East India Co.
French West India Co.
French mercantilism reached its height under the direction of Colbert

4. By 1683 France was Europe’s leading industrial country!
Silk, tapestries, mirrors, lace-making, foundaries for firearms
Colbert’s most impressive contribution: created the French merchant marine

5. Problems with French Mercantilism
The terrible conditions of the peasants (being taxed to death) caused many to leave the country
Too much $ spent on a huge army and not enough $ spent on the navy
So…France will lose naval wars to England
So many wars during Louis XIV’s reign drained the treasury

6. Louis XIV’s Wars 1667-68 The War f the Dutch Devolution
Second Dutch War
War of the League of Augsburg
War of the Spanish Succession

7. Wars will be initially successful
BUT will be ruinous to the French economy
France will develop the modern professional army
A Balance of Power system emerged in Europe: no single country will be allowed to dominate Europe.
A coalition of other countries will form to prevent one country from dominating

8. NOTE
William of Orange (the Dutch Stadtholder and later William III of England…William and Mary fame) was the most important person in stopping Louis XIV’s ambitions

9. War of the Dutch Devolution
1667 Louis XIV invaded the Spanish Netherlands (Belgium) without declaring war
France gained 12 fortified towns on the border of the Spanish Netherlands but gave up Burgundy

10. The Second Dutch War
Louis invaded the southern Netherlands (as revenge for the Dutch interfering in previous war on Belgium)
The Peace of Nijmegan: France took Burgundy back from Spain as well as some Flemish towns

11. 1688-97 War of the League of Augsburg
1686 The League of Augsburg was formed by the HRE, Spain, the Dutch Republic, Sweden, Bavaria, Saxony
This was in response to yet another French invasion in 1683
The Coalition is proof of the emergence of a Balance of Power philosophy in Europe

12. After the start of the war
William of Orange became King of England and brought England into the war against France
Began the Second 100 Years’ War
England and France will fight against each other from with few years of peace in the mix
The war ended with the status quo as it was before the war

13. The War of the Spanish Succession
Charles II (the Spanish Hapsburg King) left the Spanish throne to Louis XIV’s grandson and heir!
Other European powers will form a coalition: the Grand Alliance to thwart a mega power emerging in Europe

15. The Grand Alliance v Spain and France
The Grand Alliance: England, the Dutch Republic, the HRE, Brandenburg, Portugal, Savoy
1704 Battle of Blenheim: a turning point signaling one French defeat after another
John Churchill (ancestor of Winston) aka the Duke of Marlborough, defeated French forces with the English army and the help of Savoy

16. The Treaty of Utrecht 1713 Maintained the balance of power in Europe
Ended the expansionism of Louis XIV
The Brits were the big winners
Spain lost territory and the Asiento to the Brits
Spain gave up Gibraltar and Minorca to the Brits
AND the Brits won the right to send one ship a year to trade in Spain’s New World territories

17. The Treaty of Utrecht
The Spanish Netherlands (Belgium) was given to Austria (the HRE)
The Netherlands gained some land on the French border as a buffer
Recognition of the kings of Savoy (Sardinia) and Brandenburg (Prussia)
Louis XIV’s grandson WAS able to take the Spanish throne BUT could not rule France too.
The Spanish and French thrones would NOT be combined

18. Results of Louis XIV’s wars:
Destroyed the French economy (bankrupted France)
The debt was shouldered by the Bourgeoisie
20% of French subjects died
Big time social and financial tensions

19. Spain Experienced its Golden Age in the 16th Century
Ferdinand and Isabella began to centralize after their marriage in 1469
The basis for absolutism was formed by Charles V and his son, Philip II
Philip II ( ) ruled Spain at its height of power

20. Madrid was the Capital
Philip built the Escorial to demonstrate his awesome power (Baroque)
Philip fostered numerous court rituals to reinforce his power
Developed a command economy
Continued the inquisition

21. Spanish Decline in the 17th Century
Shrinking population:
1550: 7.5 million
1660: 5.5 million
The Spanish economy was hurt by the loss of its middle class (Jews and Moors)

22. The Decline of the Spanish Economy
Between 1594 and 1680 Spain had to repudiate its debts several times
Treasury was bankrupt
Spanish trade with its colonies fell by 60% between 1610 and 1660 (largely due to interference by English and Dutch)
National taxes hit peasants hard
Many left the country side for the city
Resulted in decreased food production and rising prices

23. Spain’s Decline
Inflation (from the price Revolution) hurt domestic industries that were not able to export goods
A poor work ethic did not help:
Noble titles sometimes purchased and provided tax exemptions for the wealthy
Capitalism was not prevalent

24. Political and Military Decline
Although the defeat in the War of the Spanish Armada seemed to be the beginning of the end, Spain was still the most powerful nation into the 17th century
Poor leadership of the three kings following Philip II
Philip III, Philip IV, Charles II all worse than the one before

25. Spain’s Defeat in the War of the Spanish Succession
Was disastrous
Spain lost the Spanish Netherlands to the Austrian Hapsburgs
By 1640 Portugal (ruled for a time by Spain) established its independence

26. The Treaty of the Pyrenees 1659
Meant the end of Spain as a great power
War between Spain and France continued for 11 years after the end of the Thirty Years’ War
By Spain had only 8 ships in its navy
Its army was mostly mercenary
Spain lost most of its European possessions in the Treaty of Utrecht