In 1665 Charles II. succeeded to the regal authority. At his death, which occurred in 1700, he made Philip of Anjou, grandson of his sister, consort of Louis XIV., the sole heir of his dominion, in order to prevent the division of the empire, which had been resolved upon by France, England and Holland. This will led to the war of the Spanish succession, notwithstanding which the Bourbon, Philip V., maintained himself on the Spanish throne.
In 1759 Charles III. succeeded to the throne of the Spanish monarchy. The decaying embers of liberalism which had began to scintillate amid the gloom of despotism, now shone forth with renewed brilliancy. Genius and intelligence, which alone are capable of grappling with the astute principles of government, and of developing the latent greatness of a people, were fortunately exhibited in the favorite publicists and statesmen of the monarch. Profound and elevated views of political economy began to characterize the administration; and the true principles of commerce, the national importance of agriculture, arts and manufacture, and the best means for their development, became more generally understood by the government and the people. With Count Florida Blanca, a man of extraordinary ability and activity, as ambassador at Rome, holding the pope in check; with Aranda, a man of penetrating genius, occupying the most influential position of the state; with Olavides enjoying the confidence of the monarch, and elaborating laws for public improvement; and with Campomanes, a scholar of varied and profound erudition, as fiscal giant of the royal council of Castile, defending the enlightened policy of the government against the attacks of bishops; equalizing taxation; and reducing the number of mendicants, the nation could not but increase in splendor and prosperity, notwithstanding it had became involved in a formidable war which raged between France and England. By the co-operation of these patriotic statesmen, whose lofty spirit scowled on despotism and religious bigotry, a pragmatic sanction was obtained from the government which restricted the inquisition, banished the Jesuists from the Spanish dominions, and confiscated their property.