What was spain focused on during the habsburg reign

The Habsburg House ruled Austria and Spain, they were very powerful in 16th-17th century Europe.

In the 16th century, the "discovery" of America was a recent event for Europe. The Habsburg crown had two focuses. One was the colonization of the new continent, source of more gold and riches for their treasury and for their wars. The second was the quest for European supremacy that led to long and frequent wars with France, in the Netherlands, with England and with Protestants in Northern Europe (the Protestant Reformation started in 1517 and spread quickly in Germany and in the north of Europe).