The Venetian government, in the face of economic competition from other European states, decided that its pre-eminent duty was to maintain standards of production; costs, therefore, remained high. In the face of challenge and competition the city reverted to its innate traditionalism. It retained all the institutional rigour of its existing guilds; the work practices of the manufacturers were unchanged. Laws were passed that gave priority to Venetian shipping in Venetian ports; goods destined for Venice could only be carried in Venetian-owned ships. Its conservatism and its new protectionism meant that it could not effectively confront the quickly changing mercantile world of the 1630s and 1640s. Cheaper manufactures undercut the Venetian markets in such areas as dyeing and printing. Venice retained its hold in the trade of luxury goods; in all other items, it fell behind. The annals are dominated by the melancholy, long, withdrawing roar of a once great economic and imperial power.

In the first decade of the seventeenth century Venice was placed under solemn interdict by the pope, thus effectively being excommunicated. The interdict failed of its effect, largely as a result of the indifference of the Venetian people to papal disapproval. When a member of the government told a prominent ecclesiastic that no papal bull was to be opened or read in the territories of the republic he replied, “I shall proceed as the Holy Spirit inspires me.” The Venetian official told him that “the Holy Spirit has already inspired the council of ten to hang all disobedient subjects.” When a priest conformed to the papal edict and closed down his church, a gallows was erected outside the porch on the following morning. “These leaders of your senate,” one pope had told a Venetian ambassador fifty years before, “are tough fellows and need a lot of cooking.” The successful rebuff to the pope materially hindered papal ambitions in the rest of Italy, but the threat of excommunication added to the impression that the independence of the city could never be taken for granted.

The sense of threat was given dramatic expression in the discovery of, and almost hysterical reaction to, what became known as “the Spanish plot.” It is said that in 1618 a mercenary from Normandy approached the Spanish government, and its representatives in Italy, with a plan to destroy the city of the lagoon. On a certain day his agents would set fire to the Arsenal, the Mint and the ducal palace; at the same time all of the Venetian nobles would be massacred, and the Spanish fleet would take charge of all the passages into the city. Venice would fall to Spain. Such was the plan. According to report, it was enthusiastically received by the Spanish ambassador in Venice, the marquis of Bedmar, and by the French authorities. The duke of Osuna, the Spanish viceroy of Naples, was deeply complicit.

Yet, as so often happened in Venice, the conspirators were betrayed by secret informants. The scheme was revealed to the council of ten, who took prompt measures on 17 May 1618. By chance it happened to be the day when a new doge was to be elected. So the city was filled with travellers and interested observers.

On the morning of 18 May the people of Venice woke to find the bodies of two men suspended from a gibbet between the two columns of the piazzetta. The celebrations for the election of the new doge took place, over the next three days, with the bodies of the condemned in full view. Nothing was said about them by the authorities. It became known that they were Frenchmen. Some of the inns, populated by Frenchmen, suddenly found that they had vacant rooms. It was said that five hundred other conspirators had been drowned on that night in the canals. Bedmar was forced to flee. The French ambassador, also under suspicion, took the opportunity to make a pilgrimage to Loreto.

The silence of the authorities might be construed as embarrassment. It seems very likely that there was no real conspiracy at all, and that the council of ten acted in panic on the basis of false information. Their reaction suggests, however, that the leaders of the city considered Venice to be in imminent danger of destruction.

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