Philip V of Spain was Louis XIV ´s grandson so he had a French background.When he came to Spain, he was accompanied by French counselors with the idea of implementing a centralized monarchy. Therefore he wanted to create a centralized modern state to finish with the Habsburgs´ system of council. He was inspired in Louis XIV ruling.

Philip V issued the Decretos de Nueva Planta to centralized institutions and economy. These Laws had the following consequences:

• He abolished the special laws (fueros) of the Crown of Aragón affecting Cataluña, Aragón, Valencia and Majorca.

• Castilian law was applied to the whole country.
• Madrid was the capital city of the kingdom and castilian was the official language.
• He also created intendentes who were poserful civil servants to control local authorities, to collect taxes and to implement economic reforms.