The Decline of the Spanish Empire (1600-1643)

John Elliott describes in his paper on the decline of Spain that Spain by the year 1640 had become a shadow of its former self. An economy in decline, regional revolts (Catalonia, Portugal, the Low Countries etc), a bankrupt treasury, a decline in trade and overtaken on land by France as a the new continental superpower and by England and the Dutch Republic at sea.

So what were the main causes for Spain's decline? Was it imperial overstretch with the Spanish Habsburgs controlling territory in the Low Countries, the whole of the Iberian Peninsula, the Italian Peninsula, France, Germany, the New World etc? Did Spain's ambitious grow to wild by fighting religious wars in Germany, wars against the Turks in the mediteranian, trying to quell rebellions in the peripherie, trying to restore Catholicism in England etc? Was it an inefficient bureaucracy that could not deal with the overflow of gold and silver from the Americas? Were it newer and more innovative rising European players? It seems that not even Olivares could prevent Spain's decline in his attempt to restore the glory of Spain back to the days of Charles V and Philip II.

Or are you of the opinion that Spain did not decline? I can see an argument for that as well Website Promo Video . It remained along with the other European powers one of the most dominating nations in European diplomacy, held on to most of South and Middle America until the 1800's and was able to maintain a relativel large fleet and army.

So the question is: Did Spain go in decline in your view after the dawn of the 17th century, and what were some of the most determining factors in that proces or do you claim that Spain's decline only really set in a century later?