The Phoenicians were the first (1000 BC) to build a town along the Tejo estuary, which they named Alis Ubbo (tranquil shore). Greek and Roman occupants were followed by Moorish settlers in 714, who called it Lissabona. In 1147 they were ousted by an army led by Portugal’s first king Dom Afonso Henriques, assisted by English crusaders. He proclaimed Lisbon as his capital in 1256.

Portugal’s age of glory was the era of the discoveries, in the late 15th and early 16th centuries, based on trade with the Orient after Vasco da Gama found the sea route to India. During this period, impressive monuments such as the Sao Jerónimos Monastery and the Belém Tower were built.

On 1st November 1755, the city was hit by a devastating earthquake and tidal wave, which killed at least 80,000 people and destroyed a large part of the capital. What arose from the ashes is the planned, grid-like layout we still see today.

On 25th April 1974, a nearly bloodless revolution put an end to almost 50 years of dictatorship. The city began breathing again and gained new life. The Belém Cultural Centre was built as the venue for Portugal’s first and successful tenure of the EU presidency (1992). A series of prestigious events followed: Lisbon European Capital of Culture (1994), Expo98, another EU presidency (2000), the European Football Championships and Rock in Rio/Lisbon (2004), and the MTV Music Awards (2005).

In the mid-90s, a first batch of abandoned warehouses in the Tejo docks was converted into fashionable bars, restaurants and nightclubs with esplanades. It restored the city’s contact with the river and made Lisbon, both literally and figuratively, a much cooler place to be. Especially the Expo98 world exhibition, which lasted four months, gave the city a boost of new confidence and enthusiasm. It has also given Lisbon an exciting new quarter along the Tejo riverbank, now called Parque das Nações, which has become a centre for both leisure and business and a fast-growing residential area.

POLITICS

The incumbent Lisbon mayor is António Carmona Rodrigues, an independent, supported by the Social Democrat Party (PSD). He was deputy mayor under Social Democrat Pedro Santana Lopes, whom he replaced when the latter became prime minister in 2004. Last year, Carmona Rodrigues was elected in his own right. On election posters, the 50-year-old engineer appeared with rolled up sleeves and the slogan: “Let’s do it, Lisbon!” Measures taken by the mayor and his team during their first six months in power included modernising municipal regulations, presenting a strategic plan for municipal finances, hiring more police and re-introducing night guards, improving the efficiency of maintenance work and creating several car parks for commuters on the outskirts of town. Major and controversial projects that will be completed this year include the new tunnel under the Marquês do Pombal roundabout, aimed at improving the flow of traffic coming into Lisbon, and the new Lisbon Casino in the Parque das Nações. Both projects were initiated under Santana Lopes.

RELIGION

As in the whole of Portugal, religion in Lisbon is predominantly Roman-Catholic, although many believers here will tell you that they’re 'not practising’. Other denominations, such as Evangelical and Pentecostal Christians, are increasing in numbers, however, mainly because of an influx of Brazilian believers and missionaries. Several East-European Orthodox churches have also been founded over the past decade, a result of growing immigrant communities of Ukrainians, Rumanians, Russians and others. Lisbon has had a synagogue for many years and, some years ago, the city’s first modern mosque was inaugurated. The Roman Catholic church is still quite powerful here, although certain tax benefits have been withdrawn and the country’s present Socialist government is planning to remove crucifixes and other religious symbols from public schools.

ECONOMY

Relative prosperity came in 1986 after Portugal joined the EU (then still EEC), but it is still one of Europe’s poorest countries. Average annual GDP growth between 1986 and 1990 was 4.6% and, after a slowdown, reached an annual average growth rate of 3.6% between 1996 and 2000— better than the performance of most other EU countries at the time. However, in 2003 the Portuguese economy entered into a recession from which it has not yet been able to recover. In the third trimester of 2005, the unemployment rate reached
7.7%, the highest since 1998.

Analysts agree that Portugal’s socioeconomic system needs to be freed from a number of 'rigidities’ that are impeding structural growth. These include over-protective labour laws, obstructive bureaucracy with regard to setting up a business and a public sector that is too slow and money-consuming. And then there is tax fraud and evasion. In its 2005-2009 Growth and Stability Programme, the government has proposed a number of measures to tackle these problems. However, incumbent Socialist prime minister José Socrates has been under attack for not going far enough with the necessary reforms.

POPULATION

There are about 565,000 people living in the city of Lisbon and some 2,680,000 in the Greater Lisbon Area. In 1981, the number for Lisbon was about 808,000. A trend among Lisboetas over the past two decades has been to move out of the city to nearby council areas offering modern apartments and more living space. The number of commuters has increased accordingly. Once a country of emigrants (5 million Portuguese are living abroad), Portugal has increasingly become a country of immigrants. The main foreign communities in Lisbon are African, Brazilian and East European (from Russia, Ukraine, Rumania, Bulgaria).