Page "History of Spain" Paragraph 72

Despite these problems, the growing inflow of American silver from mid-16th century, the justified military reputation of the Spanish infantry and even the navy quickly recovering from its Armada disaster, made Spain the leading European power, a novel situation of which its citizens were only just becoming aware.

The Iberian Union with Portugal in 1580 not only unified the peninsula, but added that country's worldwide resources to the Spanish crown.