13.1.48 to 13.1.50

1627 saw the collapse of the Castilian economy. The Spanish had been debasing their currency to pay for the war and prices exploded in Spain just as they had in previous years in Austria. Until 1631, parts of Castile operated on a barter economy as a result of the currency crisis, and the government was unable to collect any meaningful taxes from the peasantry, depending on its colonies. The Spanish armies in Germany resorted to "paying themselves" on the land. Olivares, who had backed certain tax measures in Spain pending the completion of the war, was further blamed for an embarrassing and fruitless war in Italy (see War of the Mantuan Succession) The Dutch, who during the Twelve Years' Truce had made their navy a priority, had devastated Spanish maritime trade, on which Spain was wholly dependent after the economic collapse. The Spanish, after the destruction of the Armada, were simply unable to cope with naval threats. In 1630, Gustavus Adolphus of Sweden, one of history's most noted commanders, landed in Germany and relieved the port of Stralsund that was the last stronghold on the continent held by German forces belligerent to the Emperor. Gustavus then marched south winning notable victories at Breitenfeld and Lutzen, attracting greater support for the Protestant cause the further he went. The situation for the Catholics improved with Gustavus's death at Lutzen in 1632 and a key victory at Nordlingen in 1634. From a position of strength, the Emperor approached the war-weary German states with a peace in 1635; many accepted, including the two most powerful, Brandenburg and Saxony. Then France entered. Cardinal Richelieu had been a strong supporter of the Dutch and Protestants since the beginning of the war, sending funds and equipment in an attempt to stem Habsburg strength in Europe. Richelieu decided that the recently-signed Peace of Prague was contrary to French designs and declared war on the Holy Roman Emperor and Spain within months of the peace being signed. The more experienced Spanish forces scored initial successes; Olivares ordered a lightning campaign into northern France from the Spanish Netherlands, hoping to shatter the resolve of King Louis XIII's ministers and topple Richelieu. In the "année de Corbie", 1636, Spanish forces advanced as far south as Corbie, threatening Paris and quite nearly ending the war on their terms. After 1636, however, Olivares was fearful of provoking another bankruptcy, and the Spanish army never again penetrated so far. At the Battle of the Downs in 1639 a Spanish fleet was decimated by the Dutch navy, and the Spanish found themselves unable to supply their forces in the Netherlands. The Spanish Army of Flanders, which represented the finest of Spanish soldiery and leadership, faced a French invasion led by Louis II de Bourbon, Prince de Condé in the Spanish Netherlands at Rocroi in 1643. The Spanish, led by Francisco de Melo, were devastated, with most of the Spanish infantry slaughtered or captured by French cavalry. The high reputation of the Army of Flanders was broken at Rocroi, and with it, the grandeur of Spain.