The european economy

1. THE EUROPEAN ECONOMY WAS THERE A CRISIS IN THE 17 TH- CENTURY EUROPE?

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In the 17 h century, agricultural production fell in many areas and there was little economic and demographic growth.

But the situation was not the same in all parts of Europe: 1.

Population: - Agriculture was not very productive.

- There was not enough food because of bad harvest.

- There were famines and epidemics.

- As a consequence, population grew slowly or declined in some regions.

- But there was a demographic growth in north-west Europe.

2. The economy: - In Mediterranean regions the economy was weak.

- There was economic growth in north-west Europe. Especially in France, the United Provinces and England.

3. Society: - There was great inequality in society: - In Mediterranean Europe, which was Catholic, the nobility and clergy maintained their dominat position.

- In north-west Europe, which was Protestant, the bourgeoisie became rich through trade and acquired a key role in society.

1. THE EUROPEAN ECONOMY THE RISE OF NORTHERN EUROPE

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Before the 17 th century, the Mediterranean was the great influence in Europe.

But Northern European countries, such as France, The United Provinces and England, now became more important than before.

England and The United Provinces: - They became leading trading nations - They created trading corporations that were supported by the state: - The most famous, the Dutch East India Company, which had a monopoly of Dutch colonial trade with Asia.

Merchant capitalism: - There was a growth of banking and financial activity and the circulation of money increased.

According to the mercantilism: - Government control of foreign trade was essencial to guarantee the accumulation of gold and silver.

- Consequently, several wars were fought over trade between the English and the Dutch.

North European countries developed manufacturing industries: - These made textiles, weapons, and luxury items.

- In France, state manufacturing companies were creaed.

There were changes in the society of northern Europe, especially in Protestan countries.: - Trade and industry made the bourgeoisie richer.

- Wealth became a key factor in determining a person’s social position.