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In Autumn 1575 Spain declared bankruptcy and couldn't afford to pay their soldiers.
Sancho d'Avilla and 6,000 troops attacked Antwerp as they were angered with Philip for not paying them. Elizabeth backed the Dutch and sent a £100,000 loan to help them.
The Pacification of Ghent was formed which meant that all Spanish troops had to leave the Netherlands.
Not long after the agreement, Philip sent troops into the Netherlands once again so Elizabeth responded by sending 6,000 mercenaries but her plan backfired as many mercenaries attacked Catholic churches and sided with the Spanish.
Spain gradually gained troops and money and on 10 July, Spain assassinated the leader of the Dutch Protestants. Elizabeth intervened and helped the Dutch.
Elizabeth established the Treaty of Nonsuch which would provide the Dutch with 7,000 troops and would also have the Earl of Leicester and Robert Dudley to help. After Elizabeth did this Philip decided to turn his attention to England and declared war on them.
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