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Margaret II of Flanders and the Economic …

Years: 1281 - 1281

Margaret II of Flanders and the Economic Transformation of Flanders (Mid-13th Century)

Margaret II of Flanders, like her sister and predecessor, pursued a bold economic policy aimed at strengthening international commerce in Flanders, particularly in the rapidly growing port of Bruges. Despite resistance from local merchants, she implemented measures to attract foreign traders, contributing to Flanders’ emergence as a major hub of European trade.

Economic Reforms and Commercial Expansion

  • Margaret lifted restrictions on foreign traders, allowing merchants from England, the Holy Roman Empire, and Italy to trade freely in Flemish markets.
  • She issued a new coinage, stabilizing the regional economy and facilitating international transactions.
  • Her policies helped Bruges grow into an international port, reinforcing its role in the wool and textile trade—the foundation of Flanders’ economy.

The Trade War with England (1270)

  • In 1270, Margaret confiscated the property of English merchants in Flanders, provoking a devastating trade war with England.
  • England was the primary supplier of raw wool to the Flemish weaving industry, and the disruption of trade crippled textile production in Flanders.
  • This conflict strained relations between Flemish weavers and the ruling nobility, as economic hardship fueled social unrest.

Challenges for Her Son, Guy of Dampierre (1278–1281)

  • Even after Margaret’s abdication in 1278, her son, Guy of Dampierre, struggled to control the increasingly powerful urban commoners, who resisted noble interference in economic matters.
  • To strengthen financial stability in his realm, Guy licensed Lombard merchants to open the first currency exchange in Flanders in 1281, allowing for more efficient financial transactions and reinforcing Bruges’ role as a commercial and banking center.

Legacy

Margaret II’s economic policies laid the groundwork for Flanders' dominance in medieval European trade. Though her trade war with England weakened Flemish industry in the short term, the financial institutions established under her rule—such as currency exchanges and expanded foreign trade networks—contributed to Flanders’ long-term economic success.

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