The Twelve Years' Truce with the Dutch followed in 1609, which enabled the Southern Netherlands to recover, but it was a de facto recognition of the independence of the Dutch Republic, and many European powers established diplomatic relations with the Dutch. The truce did not stop the commercial and colonial expansion of the Dutch into the Caribbean and the East-Indies, although Spain had tried to impose the liquidation of the Dutch East India Company as a treaty condition. Minor concessions of the Dutch Republic were the scrapping of the plan to create a Dutch West India Company and to stop the harassment of the Portuguese in Asia. Both concessions were temporary as the Dutch soon recommenced preying upon Portuguese interests, which had already led to the Dutch–Portuguese War in 1602 and would continue till 1654. At least with peace in Europe, the Twelve Year's truce gave Philip's regime an opportunity to begin to recover its financial position.
