176 Ch. 5 Rise of the Atlantic Economy: Spain and England
Map 5.2 Habsburg Lands at tiie Abdication of Charles V, 1558 The
division of the Habsburg lands between Philip II (who had already begun to rule
Spain in 1556) and Ferdinand I.
formally abdicated as Holy Roman emperor in 1558, dividing the Habsburg
domains between his son Philip and his brother Ferdinand (see Map 5.2).
Philip II (ruled 1556-1598) inherited Spain, the Netherlands, the Spanish
colonies in the Americas, and parts of Italy. Ferdinand I (ruled 1558-1564),
who was elected Holy Roman emperor, inherited the Habsburg ancestral
domains, including Austria. This ended the period when one ruler held all
Habsburg territories and also eliminated any possibility that a single
Catholic monarch would rule all of Europe. It did not, however, end the
cooperation and strong family ties between the two branches of the Habs
burg dynasty. Mary Tudors death in 1558 eliminated the intriguing prospect
that England might have become part of the Spanish Empire.
Philip II inherited the problem of ruling a vast empire. Like its rivals
France and England, the Spanish state developed a large, centralized bureau
cracy, including royal councils, essential to the operations of the empire. The
council of state and the council of war offered the king advice on matters of
internal and colonial policy. Royal secretaries handled correspondence and
busied themselves with the operations of the royal household. Most such
officials were commoners, for whom such positions provided financial and