Continental System of Napoleon
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The Continental System was an attempt of the French emperor Napoleon Bonaparte to economically damage Britain during the Napoleonic Wars. Through the Continental blockade, he had planned to destroy the democracy, trade, and economy of Britain. When the British and its allies stopped trade ships from exporting to France, the Continental System of Napoleon was initiated as an attempt to revive and reshape the French economy and its export market.
Continental System Definition and History
The Berlin Decree of November 1806 and the Decree of Milan in December 1807 ordered all French allies and countries who wanted to be considered neutral, to stop all trade with the British. This trade embargo was given the name ‘Continental Blockade’ because of Napoleon’s objective to cut Britain off from the entire continent of mainland Europe. This trade embargo was countered by Britain with the Orders in Council which led to the War of 1812 with the USA. After these declarations both Britain and France kept trying to block each other.
The Continental System was declared by Napoleon at a time when a third of British exports were going to Europe. He believed that Britain was on the brink of a collapse and a damaged trade would cause drastic effects like draining its bullion, causing inflation, crippling the economy, and leading to both a revolution as well as a political collapse. Napoleon's Continental System was designed to put an end to British subsidies going to his enemies.
Why Did the Continental System Fail?
The system was not a success because for it to work, it needed to be applied for a longer duration over the continent. Due to the fluctuating wars, the system was truly effective in mid-1807-08, and mid-1810-12. During the gap years, British goods flooded out of the country.
The British exports stayed competitive because South America was also opened to Britain as it had helped Spain and Portugal. In 1810-12 although Britain suffered depression, it didn’t affect the war effort. Napoleon licensed limited sales to Britain hoping to ease the gluts in French production and sent grain to Britain during their worst harvest war years. Thus, the Continental System failed to cripple Britain.
Napoleon had hoped that the ‘Continental System’ will prove beneficial to France as it would limit where countries could export and import to. He believed that this would turn France into a rich production hub and would make the rest of Europe dependent on others economically. However, this system helped a few regions but also damaged some regions like Italy where the silk manufacturing industry was almost finished as all silk was sent to France for production. Most of the ports and their hinterlands in Italy also suffered damage.
The system has been recorded in history as one of Napoleon’s first great judgment errors. He alienated several regions of his conquered territory through the system. France and other allies of Napoleon who depended on trade with Britain were economically damaged for only a meager production increase in some areas of France. With its dominant navy, Britain was far more effective in blockading France and thwarted its attempts to cripple the country.
With time, Napoleon’s blockade enforcement efforts led to more war, one of the prominent ones being the attempt to stop Portugal from trading with Britain. This caused the French invasion, the Peninsular War, the catastrophic Continental System French revolution, and the French attack on Russia. The system could have been successful in harming Britain if it was fully and properly implemented. Since there were lacunas in its implementation, it caused more harm to Napoleon himself than to his enemy, Britain.
Was the Continental System Successful?
No, it was not successful as it was not implemented properly by Napoleon. The Continental System of Napoleon caused more harm to him than he had intended to cause to Britain. He wanted to weaken Britain’s economy through trade curbs between Britain and French allied states. However, this strategy proved ineffective and this is why the system is also considered one of Napoleon’s great miscalculations.
Continental System Facts and After-Effects
One of the reasons behind the failure of the system was that the trade embargo was effective intermittently only for about half the time and it failed to cause any economic damage to Great Britain. In fact, it encouraged British merchants to indulge in smuggling with continental Europe and to look out for new markets. The custom enforcers of Napoleon were exclusively land-based and could not stop British smugglers, most of whom were working with Napoleon’s chosen rulers of Westphalia, Spain, and other German states.
The effects of the system on the British trade were a mix of good and bad. A prominent Continental System significance was that although British exports to the Continent fell between 25% to 55% in comparison to pre-1806 levels, their trade with the rest of the world increased sharply. This more than made up for their trade deficit. The British counter-attack on the system was their threat to sink any ship that chose to be allied with France or did not come to a British port. This double threat proved difficult for nations like the United States who were neutral. The system formally ended in 1814, after the first abdication of Napoleon.
FAQs on The Continental System
1. What was the Berlin Decree?
Napoleon issued the Berlin Decree in 1806. This decree restricted the import of British goods into European countries that were French allies or were dependent upon France. This decree initiated the system in Europe. All connections including the mail were severed and any ships that were discovered trading with Great Britain were subject to French maritime attacks and seizures. The objective of the decree was to weaken the British economy by closing its trade with French-controlled territory.
2. What was the Milan decree?
Napoleon issued the Milan decree in 1807. The objective of this decree was to enforce the Berlin Decree of 1806, which paved the way for the Continental System. This decree allowed the French privateers and warships to capture neutral ships that sailed from any British port or a country under the siege of British forces. As per the decree, any ships that were submitted to search by the Royal Navy on the high seas were treated as lawful prizes for the French.
