Excerpt from the Website 'Ask an Historian.'
"Q: Why did the Spanish lose the Dutch Revolt?
A: Money. Philip II's financial woes are worth dwelling on. He kept building up huge amounts of debt trying to fund a larger military than he could afford, going bankrupt, not paying his debts and then doing the same thing again.
In his defence with Malta lost and the Turks raiding the Spanish coast, he certainly needed to be active in the Mediterranean, and with the Dutch up in arms and smashing statues, he probably needed a large army in that area too. But when just that one army in the low countries sometimes cost more to support than his entire empire was earning[1], he simply couldn't afford a third front. And when he provoked the Moriscos into rebelling he had one. And then after that he invaded Portugal which gave him another one. And then he invaded Morocco, France, Ireland and tried to invade England.
When you are trying to fight a war on five fronts and you can't afford to fight on even one, something had to give and what gave was Holland.
The revolt probably could have been stopped early on if Philip had been more reasonable and not put Alva in charge but when he tried to withdraw Alva his bankruptcy caused Alva's troops to mutiny due to not being paid and rampage through Antwerp. At that point all of the Netherlands were anti Spanish and the Dutch Rebels had essentially won."
Excerpt from "Alexander Farnese, Duke of Parma"
By Javier Stabile @ Lammergeier Publishing, 1983
"The Union of Brussels had united all of the low countries under William of Orange, Farnese would spend the next twenty years using a mixture of diplomacy and force to try and undo it and reconquer the Low Countries for Spain.
Farnese realised that Alva had failed by turning any potential allies against him and he was determined not to repeat the same mistakes. His war strategy was simple, he marched upon a town, laid siege to it, took it and then was generous in the terms given to the defenders. As such the south was reasonably loyal to him, with most of their grievances with Spain addressed and no hint of the barbarity with which Alba had conducted himself. And with the rebels deeply divided, Farnese seemed in a good position to win the war. But in 1580 Spain invaded Portugal and part of his army was called back to Iberia.[2]"
Excerpt from "Elizabeth and Religion"
By Sarah Lister @ Carolinian Press, 2001.
"How serious Elizabeth was in her attempt to marry the Catholic Duke of Anjou is a subject for debate. Certainly they were ongoing talks, and the fact that a Catholic French Prince was willing to both discuss being wed to an Anglican and also declare himself protector of the Calvinist Dutch, shows how much the fear of Spanish power crossed religious lines. Something Elizabeth would exploit a great deal in the coming decade.
Anjou's death of Malaria in 1581[3] prevented any deal being made and so no French troops were to fight in Portugal or Holland at that point. But as much as Elizabeth had no desire to take Anjou's role as official protector, his death meant she would fulfill that roll unofficially. The following year, Robert Dudley arrived in Holland.[4]
The States General had revolted with the goal of replacing a King they didn't like with a King they did, not with changing the structure of the country at all. To them therefore Elizabeth taking the place of Philip seemed a perfectly reasonable result. To Elizabeth it was a burden she had no desire for."
Excerpt from "Alexander Farnese, Duke of Parma"
By Javier Stabile @ Lammergeier Publishing, 1983
"Alva earned Spain 22 million florins in his five year campaign, Parma in his first five years only earned 12 million from tax and trade in the low countries[5]. If he was to be able to fund a long campaign he needed to hold Antwerp, likewise if the Rebels were to their fund their army they needed it. Antwerp was set to be the decisive battleground, for not only the dutch revolt, but also the wider war against the English and Turks. Without Antwerp the money to finance any military campaign simply didn't exist.
The problem was, the long Spanish road around France that took troops from Spain to the low countries meant the English could bring their troops across the Channel before Parma had his whole army back."
[1] That's something too unbelievable not to have happened in OTL.
[2] Everything up to here is OTL but this isn't.
[3] As mentioned earlier Anjou died three years earlier in TTL,
[4] Again three years earlier due to the fact England and Spain were already at war in 1582 in TTL.
[5] Alva's figure is OTl. Parma's is slightly lower.