We hypothesized that supply from macroalgal propagule banks may influence t
he relative abundance of annual and perennial algae and that this may alter
the effects of grazers and nutrients on species composition. In a factoria
l field experiment in the Baltic Sea littoral system we tested the effects
of manipulating propagule banks, the abundance of crustacean and gastropod
grazers, and nutrient supply on recruitment and growth of macroalgae over a
year. Moreover, we determined seasonal patterns of macroalgal propagule di
spersal at the experimental site and quantified algal abundance and recruit
ment at 25 locations throughout the Baltic Sea. Experimental manipulations
had minor effects on adults of the dominating perennial alga, Fucus vesicul
osus. Instead, we found that species composition was determined by processe
s operating at early life stages. Propagule supply from a propagule bank st
rongly favored the fast-growing annual alga Enteromorpha spp. which then bl
ocked settlement and recruitment of Fucus. Grazers reduced the abundance of
annual algae and indirectly favored Fucus recruitment. There was an appare
nt tradeoff between gains from the propagule bank and losses to herbivory i
n five of seven colonizing species. Nutrient enrichment overrode grazer con
trol of annual algae and accelerated the decline of Fucus only when annual
algae had already achieved high densities through the propagule bank. Corro
borating the experimental findings, field surveys across the Baltic showed
that Fucus recruit densities can be predicted from the cover of annual alga
e during the period of Fucus reproduction and settlement, Recruitment inhib
ition by annual algae, which is driven by the abundance of annuals in the p
ropagule bank, increasing nutrient levels, and declining consumer control,
is suggested as a mechanistic explanation of the current decline of perenni
al algae in the Baltic Sea.