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Modern Spain formed from the union of Castile and Aragon and the conquest of Granada in 1492. It built a vast American and Asian empire and became Europe's leading power under the Habsburgs. Silver from the Americas funded its wars.
Spain declined in the 17th century due to costly wars and economic problems. The Bourbon dynasty centralized the state in the 18th century. Napoleon's invasion in 1808 triggered independence movements in Spanish America.