The exhaustion of Spain, the rebellious opposition to the King's request for money, the mutinies of the troops in the Netherlands, and the fear of a renewal of a new war with France over the Duchy of Saluzzo all combined to emphasise the hopelessness of inflicting a vital blow on England.

[4] In April 1600, Archduke Albert, the governor of the Spanish Netherlands, opened secret negotiations with England for a settlement but did not inform Madrid.

[7] Philip wanted to preserve the hegemony of the Spanish empire, whilst the Archduke and Isabella sought peace and friendly relations.

[9] James was an idealistic practitioner of Christian peace and unity and also the son and successor to Mary, Queen of Scots, whose execution had been a proximate cause of the conflict.

The concern of the government in Madrid was to improve their dire military situation in the Netherlands by reducing or stopping English help to the Dutch rebels.

[10] Meanwhile, Johan van Oldenbarnevelt, heading the delegation of the States of Holland, tried to attract the complicity of the new English monarch in the conflict in Flanders, of which the focus was the Siege of Ostend.

[12] The first moves towards peace were taken in June 1603, when Juan de Tassis headed a Spanish–Flemish Commission which visited London, seeking truces and mutual good faith.

With England out of the way, the Spanish hoped for a knock-out blow that would force the Dutch into a peace by launching a huge campaign led by Ambrogio Spinola in 1606.

[25] Conversely, Spanish warships and privateers were allowed to use English ports as naval bases to attack Dutch shipping[27] or to transport reinforcements to Flanders.

[39] Some voices from the Catholic Church, however, expressed its concern to Philip III over his settlement with a "heretical power", especially Juan de Ribera, then bishop of Valencia who protested.

[45] Once the agreement was concluded, Philip III appointed Don Pedro de Zuñiga as first Spanish resident ambassador to England.

[47] Protestant fears that a peace with Spain would ultimately mean an invasion by Jesuits and Catholic sympathisers over the coming years also failed to materialise as the Elizabethan Recusancy laws were rigidly enforced by Parliament.