The document summarizes both the positives and negatives of Philip II's inheritance when he became King of Spain in 1556. On the positive side, the government was functioning well and Philip appointed loyal family members. However, Philip disliked delegating and family appointees were not always best qualified. Separate assemblies in different Spanish states complicated governance. Financially, Spain benefited from New World bullion but had large debts. The Spanish Empire was vast but maintaining and defending it strained resources. Potential religious and economic issues also threatened Spain's stability.