Abstract
The least studied aspect of Ibero-American Independence is the impact on Spain and Portugal. Many complex issues were involved, including the nature of the economic impact, the degree of political readjustment, and the international position of the former metropoles. The 1820s exposed the contradictions in Iberian responses to the loss of continental American territories. Spanish merchants turned towards the domestic and Caribbean markets, and Portuguese policy shifted away from Brazil to the southern-African territories. Although the monarchy survived in both Spain and Portugal, each experienced dynastic convulsions of differing dimensions. The survival of empire beyond continental America complicated the development of European identities and of specifically Spanish and Portuguese national sentiment.
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