Early Modern Europe

Portugal, due to the efforts of Prince Henry the Navigator, had a jump start on Europe in the race for colonies. The Pope, during the fifteenth century, further aided Portugal by repeatedly renewing its monopoly on African trade. The Spanish, who had finally unified their nation, were eager to join the race and asked the Pope where they should go. As a result, the Pope drew the Papal Line of Demarcation dividing the world between Spain and Portugal in 1493. Spain was able to make better use of its colonial efforts and soon became the most powerful nation in Europe. In 1580, Spain absorbed Portugal and all her colonial possessions. Spain's zeal for colonies and the inflationary spirals produced by the continuous influx of gold and silver from the New World soon led the superpower into decline.

The first signs of Spanish decline resulted from bad luck...