King Philip II of Spain granted Havana the title of City in 1592 and a royal decree in 1634 recognized its importance by officially designated as the "Key to the New World and Rampart of the West Indies". Havana's coat of arms carries this inscription. The Spaniards began building fortifications, and in 1553 they transferred the governor's residence to Havana from Santiago de Cuba on the eastern end of the island, thus making Havana the de facto capital. The importance of harbour fortifications was early recognized as English, French, and Dutch sea marauders attacked the city in the 16th century. The sinking of the U.S. battleship Maine in Havana's harbor in 1898 was the immediate cause of the Spanish-American War.
Nowadays Havana is the center of the Cuban government, and various ministries and headquarters of businesses are based there.