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The Spanish Armada's failed attempt to invade England in 1588 significantly contributed to Spain's financial troubles, leading to its eventual bankruptcy. This military event marked a turning point, as Spain's defeat diminished its dominance and allowed England, France, and the Dutch Republic to rise in power and influence. The costly nature of the Armada and subsequent conflicts drained Spanish resources, shifting the balance of power in Europe. As a result, the decline of Spanish hegemony opened the door for other nations to assert their political and economic ambitions.

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