3. THE SPANISGH HASBURG IN THE 17 THE CENTURY FELIPE III (1598-1621) - He was not as energetic as his father. - He left political decisions to a royal favourite or valido, who governed on his behalf. - His main favourite was the Duke of Lerma, who was more concerned with his own personal interest than ruling the country. 1. Domestic policies - The expulsion of the Moriscos and it was a disastrous decision. - The Moriscos were a hard-working minority and the econmy was damaged by their departure. 2. Foreign policies: - There was a pause in the continuos wars of the previous century. - Peace was signed with England - The Twelve Years ‘ Truce was signed with the Dutch rebels of the United Provinces. - Felipe II decided to help the Austrian branch of his dinasty and entered the Thirty Years’ War. (1618-1648)