The Portuguese Restoration War began in 1640 as a result of opposition to Spanish policies and attempts to reconquer Portugal. By 1665, the war had reached a stalemate, and both Spain and Portugal were seeking a resolution. The treaty was negotiated against the backdrop of shifting alliances and conflicts, including the Second Anglo-Dutch War.

The Treaty of Lisbon aimed to solidify an alliance between Portugal and France against Spain. Louis XIV, who was preparing to seize the Spanish Netherlands, sought to ensure that Spain could not send reinforcements by diverting its resources to the Portuguese front. The key provisions of the treaty included:

  1. Defensive and Offensive Alliance: Portugal and France agreed to a ten-year defensive and offensive alliance, pledging to support each other militarily in case of aggression.
  2. Consolidation of French Expansion: The treaty facilitated the French occupation of the Spanish Netherlands, allowing France to expand its territorial influence in Europe.
  3. Anglo-Portuguese-Spanish Coalition: The treaty aimed to prevent the formation of an alliance between England, Portugal, and Spain against the Dutch Republic, which could interfere with Louis XIV's invasion plans.

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The Treaty of Lisbon successfully achieved its objectives for France and Portugal. It enabled France to occupy most of the Spanish Netherlands with minimal interference, marking a significant expansion of French territory. However, other European powers, recognizing the threat posed by French expansion, formed alliances to counterbalance France's influence.

Spain and England, alarmed by French aggression, signed the Treaty of Madrid in May 1667 and the Treaty of Breda in July, respectively, ending the Anglo-Dutch War. These alliances set the stage for the Triple Alliance of 1668, comprising England, the Dutch Republic, and Sweden, which forced France to return most of its conquests in the Treaty of Aix-la-Chapelle.

In Portugal, the treaty paved the way for the end of the Portuguese Restoration War. Count Castelo Melhor, who had been a pro-French chief minister, was removed from office in September 1667. Subsequently, Spain and Portugal made peace in the February 1668 Treaty of Lisbon, bringing an end to hostilities between the two nations.

The Treaty of Lisbon in 1667 represented a crucial diplomatic agreement that reshaped the balance of power in Europe and brought an end to the Portuguese Restoration War. The alliance between Portugal and France, driven by Louis XIV's ambitions, had profound consequences for European politics and set the stage for further conflicts and alliances in the years to come.