Spain , Vigo Bay, October 1702 In 1700, Spain remained a great power in terms of territory control; recent research moreover shows that imports of
bullion from the Americas reached their highest level between 1670 and 1700. However, this concealed major structural weaknesses; the vast majority of these imports were used to fund debt or pay foreign merchants. When the new Bourbon administration took over in 1701, they found the empire bankrupt and effectively defenceless, with fewer than 15,000 troops in Spain itself and a navy consisting of 20 ships in total. Almost constant warfare during the 17th century made the economy subject to long periods of low productivity and depression, and largely reliant upon others for its prosperity. In many ways, the continued existence of the empire was not due to Spanish strength but to maintain a balance between the powers competing for a share of its markets. Despite fighting a series of wars against Spain from 1667 to 1697, France was also its most significant economic partner, supplying labour and controlling a large proportion of its foreign trade. This consideration was an important factor in the Charles' decision to name Philip his heir. Its dependence on others was illustrated in 1703; despite the presence of an invading Allied army, the French ambassador urged Louis to allow Dutch and English merchants to purchase wool from Spanish farmers, "otherwise the flocks cannot be maintained". Enacting political or economic reform was extremely complex, since
Habsburg Spain was a personal union between the Crowns of
Castile and
Aragon, each with very different political cultures, while links with the former Spanish strongholds in
the Netherlands and
Italy were frayed. Most of
Philip's support came from the Castilian elite, who saw
comprehensive reforms as necessary to preserve an independent Spanish Empire. As these reforms included the elimination of the privileges, or
Fueros, held by the Aragonese states,
support for the Hapsburgs was
strongest in areas that were part of the Crown of Aragon, including
Catalonia and
Valencia.
France Under
Louis XIV, France was the most powerful state in Europe, with revenue-generating capacities that far exceeded those of its rivals. Its army was the largest in Europe and France's geographical position provided enormous tactical flexibility; unlike Austria, it had
a navy, and as the campaigns of 1708–1710 proved, even under severe pressure it could defend its borders. The
Nine Years' War had shown France could not impose its objectives without support, and its new alliance with Spain and Bavaria made a successful outcome more likely. However, the previous wars had left France with severe economic problems. This was recognized by the
Marquis de Chamlay, who advised Louis to not take on a purely offensive strategy. He argued that the combined might of the Grand Alliance forces made it highly improbable for France to launch a successful attack. The Dutch and Imperial fortresses were located far from convenient Franco-Spanish bases, and the Netherlands and
Rhineland lacked easily navigable rivers for the Bourbon armies. Furthermore, besieging a major Dutch fortress demanded the commitment of two full armies. The French would thus pursue a strategy described as a "mixed war" in Europe. In this strategy, the Franco-Spanish forces would primarily assume a defensive posture to safeguard the vital fortresses they needed to retain. Offensive actions, on the other hand, were characterized by assertive posturing and strategic positioning, with an emphasis on sustaining their forces by living off enemy territory whenever feasible, while blocking enemy thrusts, and trying to engage them in battle where possible. Apart from denying an undivided Spanish monarchy to others, Louis's objectives were to secure his borders with the Holy Roman Empire, weaken his rival Austria, and increase French commercial strength through access to trade with the Americas.
Austria and the Holy Roman Empire , leader of the 1703–1711 Hungarian revolt; funded by France, this was a major distraction for Austria The Imperial Diet formally declared
Reichskrieg against France in November 1702. Despite being the dominant power within the Holy Roman Empire, Austrian and Imperial interests did not always coincide. The Habsburgs wanted to put
Archduke Charles on the throne of an undivided Spanish monarchy, while their Allies were fighting to prevent either the Bourbons or the Habsburgs from doing so. This divergence and Austria's financial collapse in 1703 meant the campaign in Spain was reliant on Anglo-Dutch naval support and after 1706, British funding.
Joseph I, the priority for the Habsburgs was to secure their southern borders from French intervention in northern Italy and suppress
Rákóczi's War of Independence in Hungary. The majority of the empire sided with the Emperor, with the exception of those states controlled by their
Wittelsbach rivals.
Bavaria,
Liège, and
Cologne allied with France, as did the Spanish-ruled Imperial states of
Milan, the
Spanish Netherlands and
Mantua. Despite these defections, the Habsburgs were largely successful at mustering the rest of the Empire for war. Of the average Imperial strength of 260,090 soldiers, 126,000 were in the
Kaiserliche Armee and 134,090 in the
Reichsarmee. However, even the larger entities within the Empire pursued their own policies. His claim to the
Polish crown meant
Augustus of Saxony focused on the
Great Northern War, while
Frederick I made his support dependent on Leopold recognising
Prussia as a kingdom and making it an equal member of the Grand Alliance. Since
George, Elector of Hanover, was also heir to the British throne, his support was more reliable, but the suspicion remained that the interests of
Hanover came first.
Britain British foreign policy was based on three general principles, which remained largely consistent from the 16th through the 20th centuries. The first, overriding all others, was to preserve a balance of power in Europe, an objective threatened by French expansion under Louis XIV. The second was to prevent the
Low Countries from being controlled by a hostile power or one stronger than Britain; this included both the Spanish Netherlands and the Dutch Republic, whose deep harbours and prevailing winds made her a natural embarkation point for an attack on England, as
demonstrated in 1688. The third was to maintain a navy strong enough to protect British trade, control her waters and launch attacks on her enemies' commercial routes and coastal areas. Alignment on reducing the power of France and securing the Protestant succession for the British throne masked differences on how to achieve them. In general, the
Tories favoured a mercantilist strategy of using the
Royal Navy to attack French and Spanish trade while protecting and expanding their own; land commitments were viewed as expensive and primarily of benefit to others. The
Whigs argued France could not be defeated by seapower alone, making a Continental strategy essential, while Britain's financial strength made it the only member of the Alliance able to operate on all fronts against France.
Dutch Republic ,
Grand Pensionary of Holland, who, together with Marlborough and Eugene, largely directed the Grand Alliance's military and political policies. The Dutch Republic had been the
cornerstone of European resistance against French expansionism since the outbreak of the
Franco-Dutch War in 1672, when it was nearly overrun. In addition to concerns over the balance of power, they viewed the Spanish Netherlands as a key strategic buffer against French aggression. Since recent experience showed the Spanish could not defend them, the 1697
Treaty of Ryswick allowed the Dutch to place garrisons in eight key cities, providing
strategic depth sufficient to protect their commercial and demographic heartlands against attack from the south. However, with the help of Maximilian of Bavaria, Governor of the Spanish Netherlands, by 1701 these garrisons had been nullified and replaced by French troops. At the request of the
Elector of Cologne and
Prince-bishop of Liège,
Joseph Clemens of Bavaria, French troops also moved into his territories in the
Rhineland and were thus directly threatening the Dutch border from both the south and the east. Dutch priorities were to secure their borders, and strengthen the Barrier fortresses, retain control of the economically vital Scheldt estuary, and gain access to trade in the Spanish Empire. At the outset of the war, the
Dutch States Army was the best prepared army of the Grand Alliance, being similar in size to that of the Austrians, but of significantly higher quality. Although
Marlborough was appointed commander of Allied forces in the
Low Countries, it were the Dutch who provided the bulk of the troops and supplies, as well as covering the expenses for the
siege train. This made strategy in this theatre subject to the approval of their
field deputies and generals. When Dutch forces operated outside the Low Countries, it was generally seen as a concession. The office of
Anthonie Heinsius, their
Grand Pensionary, in the
Binnenhof at
The Hague effectively served as the headquarters of the Grand Alliance, where he met Marlborough and Eugene between campaigns.
Savoy ,
Duke of Savoy Throughout the 17th century,
Savoy sought to replace Spain as the dominant power in
Northern Italy. Savoy consisted of two main geographic segments;
Piedmont, which contained the capital
Turin, and the
Duchy of Aosta on the Italian side of the
Alps, with the
Duchy of Savoy and
County of Nice in Transalpine France. The latter were almost impossible to defend and combined with the anti-Habsburg policy pursued by Louis XIV and his predecessors, this meant Savoy generally sided with France. However, Piedmont provided foreign powers access to the restive southern French provinces of the
Dauphiné and
Vaunage, former
Huguenot strongholds with a long history of rebellion. This provided
Victor Amadeus II with a degree of leverage, allowing him to manoeuvre between opposing parties to expand his territories. During the Nine Years' War in 1690, Savoy joined the Grand Alliance before agreeing to a
separate peace with France in 1696. The accession of Philip V in 1701 led to a reversal of long-standing strategic policy, with France now supporting the Spanish position in Lombardy, rather than seeking to weaken it, and Austria doing the opposite. While Victor Amadeus initially allied Savoy with France, his long-term goal was the acquisition of the
Duchy of Milan, which neither Bourbons nor Habsburgs would relinquish voluntarily. As discussed elsewhere in this article, securing his borders in Italy was of greater concern to Emperor Leopold than Spain itself. This meant Britain was the only power inclined to help Victor Amadeus achieve this objective and he changed sides in 1703 after the Anglo-Dutch navies won control of the Western Mediterranean.
Portugal Portugal had restored its independence in the
Portuguese Restoration War that had only finished in 1668, but the result of which the Spanish never entirely accepted. The ruling
House of Braganza wished to increase its diplomatic standing in Europe. Yet, Portuguese society was divided on which side to support:
King Pedro II's closest advisors realized that the
Royal Navy and the
Dutch navy could pose a serious threat to Portugals extensive overseas dominions. Still, Portuguese merchants and aristocracy had considerable economic or cultural ties with France. Supporting Archduke Charles could result in another land invasion when the previous war was still fresh in Portuguese memory. King Peter wished to expand the borders of
Brazil to the
River Plate and the
Oyapock and acquire the Spanish strongholds of
Badajoz, Albuquerque, Alcántara,
Tui, Baiona, Guarda de Galicia, and
Valencia de Alcántara to secure the border of Portugal in Europe. As England did not support this project and the chief of Portuguese diplomacy, the Duke of Cadaval, was pro-France, Peter II initially aligned with the Bourbons in exchange for naval support. ==Military campaigns; 1701–1708==