Constantinople’s new dynasty has been founded in an atmosphere of dissension, but its founder is determined that it shall succeed.

Michael VIII takes measures for the rehabilitation, repopulation, and defense of the reclaimed capital; orders the restoration of damaged churches, monasteries, and public buildings; and stimulates a revival of trade by granting privileges to Italian merchants.

The Genoese, who have agreed to lend him ships for the recovery of the city from their Venetian rivals, are especially favored; and soon they have built their own commercial colony at Galata opposite Constantinople, and cornered most of what has long been a Venetian monopoly.

Inevitably, this leads to a conflict between Genoa and Venice, of which the Greeks are the main victims, and hostilities are to continue against Charles of Anjou in a war stemming from earlier Nicaean actions against Epirus.

Some territory has been taken back from the Latins, notably in the Morea and the Greek islands, but little is added to the imperial revenue; and Michael VIII's campaigns there and against Epirus and Thessaly consume the resources that had been accumulated by the emperors at Nicaea.