ChronoFive
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Setting the scene
The Continental System was Napoleon's economic warfare against Britain, decreed by the Berlin Decree on November 21, 1806, after his victory at Jena-Auerstedt. Unable to invade Britain after Trafalgar (1805), Napoleon sought to destroy Britain's economy by closing European markets to British goods. The decree declared the British Isles under blockade and prohibited trade with Britain, ordering seizure of British goods and ships in French-controlled territory. It was later extended by the Milan Decree (1807).
What happened
The system aimed to ruin Britain, which depended on exports to Europe, while promoting French industry. Napoleon enforced it through his empire and allied states, occupying ports and imposing customs controls. However, the system was riddled with problems: smuggling flourished, especially through Heligoland and Spain; it hurt continental economies more than Britain's, which found new markets in the Americas and Asia; and it alienated allies, particularly Russia, whose economy depended on British trade.
Why it still matters
The Continental System ultimately failed and contributed to Napoleon's downfall. It led to the Peninsular War (1808-1814) when Portugal refused to comply and Spain wavered, tying down 300,000 French troops. Russia's withdrawal from the system in 1810 prompted Napoleon's disastrous 1812 invasion. The system demonstrated the limits of economic warfare without naval supremacy and showed how blockades could backfire, harming the blockader as much as the target—a lesson relevant to modern sanctions.
Background
The Continental System or Continental Blockade was a large-scale embargo by French emperor Napoleon I against the British Empire from 21 November 1806 until 11 April 1814, during the Napoleonic Wars. Napoleon issued the Berlin Decree on 21 November 1806 in response to the naval blockade of the French coasts enacted by the British government on 16 May 1806. The embargo was applied intermittently, ending on 11 April 1814 after Napoleon's first abdication. Smuggling and resentment undermined the policy.