In 1601, Spain, now under King Philip III with his favourite the Duke of Lerma, despite maintaining its hegemony in the world, was economically weakened with war and bankruptcy. Starting with the bankruptcy of the Royal Treasury in 1575; operations against the Ottomans in the Mediterranean, thirty years of war in Flanders against the rebel forces of the United Provinces and a war with England which had waged from 1585. Spain had also only just finished a costly and unsuccessful war with France. The wars were a great burden for the Spanish Empire and meant that financially Spain depended entirely on the treasure fleet brought from the colonies. Nevertheless, Philip pursued a highly aggressive set of policies, aiming to deliver a 'great victory' against both Holland and England. The situation of the United Provinces was similar; more than thirty years of war, and foreign trade blocked by Spain had caused a financial drain. The Dutch tried to relieve their precarious finances by commercially expanding into the East Indies with the birth of the Dutch East India Company (VOC). England was in the same position and was fighting now in Ireland. Like the Dutch they too had just set up their own East India Company.