D. Sebastiao Iberian Union

The impetus provided by the Discoveries was, however, slowed down by two factors which many historians see as the beginning of the decline of the Portuguese Empire: the establishment of the Inquisition in Portugal and the royal crisis which followed the death of the young King D. Sebastião at the battle of Alcácer Quibir in the North of Africa.

With the Inquisition, established in Portugal in 1536, the King lost the greater part of his intellectuals, scientists, physicists, cartographers and businessmen, most being Jewish or «new Christians», who were persecuted, arrested, condemned, put to death or obliged to flee for fear of being accused of heresy by the Court of the Holy Office. Land of pioneering and visionary people, the kingdom of Portugal became a hostage to fear and the Inquisition, and let itself slowly die.

To make the situation worse, Portugal was left without an heir to the throne after the death of King D. Sebastião and the King of Spain, invoking his right to succession - he was the grandson of D. Manuel I of Portugal - ascended to the throne and managed to achieve the much desired Iberian Union for the first and only time.
 
With Philip II as King, Portugal saw itself involved in a war with the traditional enemies of Spain, such as England and the Low Countries, and its active participation resulted in fact in the first world war, with military operations in Oceania, the Indias, the Americas and Europe. Portugal lost a great part of its naval fleet and countless ports and routes in what would later become Indonesia, as well as the adjacent seas - some of these communities still retain unequivocal traces of the Portuguese presence - but still managed to defeat the Dutch ambitions in Africa and South America.

In 1640 Portugal regained its independence from the crown of Spain, in a revolt against what had started as merely a royal union and had ended up as a veritable foreign occupation, and kept up a long military and diplomatic fight to ensure and limit the losses of its empire.

At the start of the 18th century, the Indian maritime empire, coping with the Dutch and English expansion and with a lack of might - moved into the defence of mainland Portugal and the Atlantic - gently sank, which started the Brazilian cycle.

Despite all its reverses, Portugal continued to be one of the six great European powers and one of the four great powers at a world level. The products coming from Africa, India and Brazil continued to fill the royal coffers and Lisbon was one of the richest, most monumental and extravagant cities in Europe. D. João V, absolute King, ordered the construction of a palace in Mafra, a basilica and a convent which, as a whole, would constitute the largest Baroque work in Portugal. In Lisbon, the enormous Aqueduct das Águas Livres was built, which brought water to the centre of the city, and at the time was considered as one of the greatest works of engineering in Europe.

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