There as been a Phoenician influence in the area which is modern day Lisbon since 1200 B.C, and it is believed that they used the location as a trading post. The Greeks knew the city as "Olissipo" and "Olissipona," and according to Greek myth the city was founded by the hero Ulysses after he left Troy travelling to the Atlantic to escape the Greeks. During Roman times Carthage ruled the Iberian peninsular and the Romans sought to deprive them of it, defeating them in war in the eastern part of the peninsular, before seeking alliances in the west, including Olissipo to help bring the region under Roman rule. Men from Olissipo were sent to the north to fight against the Celts. Consequently it was granted self rule within the Empire and its citizens given the same rights as Roman citizens.
The city became very prosperous, exporting garum (a fish sauce), suppressing piracy and making big technological advances which facilitated trade with fresh Roman conquests in Britain. It was towards the end of Roman rule that Christianity was spread to the city but as the Empire fell, Germanic tribes invading and took control over parts of the region. This included the Germanic Visigothic kingdom of Toledo, which recording the city as Ulishbona.
At the beginning of the eighth century, Lisbon was bought under Moorish rule. This was part of a golden age for the city; many Mosques, houses and a new city wall was built. Arabic became the official langue and Islam the official religion although other religions were allowed to practice if with somewhat curtailed freedoms. Many of the place names in modern day Lisbon have Arabic origins from this time. The Moors stayed until they were ousted by Afonso I of Portugal and his knights in 1147. This conquest led to the reestablishment of Christianity and the conversion of Mosques into churches, many of which remain until this day.
Lisbon soon became the capital of Portugal (1255) and started to expand considerably, as its importance as a trading post grew. It was also the starting point for many of the expeditions of ‘discovery’ including Vasco da Gama's departure to India in 1497. The city began exporting all over the world, with goods such as spices, slaves, sugar and textiles which made the city a centre of European wealth.
Soon after the period however in 1580, Spain ended Portugal’s independence, though it was restored in 1640 after a revolt in Lisbon. The gold coming back from Brazil increased the city’s wealth even further and led to the building of many stylish Baroque churches and theatres in the town. However disaster soon struck the town, in 1755 as an earthquake destroyed over eighty-five percent of the city, including the Royal Ribeira Palace and the Royal Hospital of All Saints. Around 70,000 people lost their lives in the earthquake. The city was largely rebuilt along modern urban plans drawn up by Sebastião José de Carvalho e Melo, the Marquess of Pombal, which is why the city has lost much of its medieval character.
Lisbon was at the centre of the Republican coup of October 5, 1910, which replaced the monarchy. During World War Two Lisbon kept its port open and thus served as a gateway for refugees and spies to get in and out of Europe. After the war however Portugal as a whole remained under the Corporative Regime the right wing dictatorship. This lasted for many years until it was overthrown during the Carnation Revolution manoeuvres in 1974. Since then, Portugal has sought to integrate itself closely into European affairs, which including joining the European Union and the signing of the Treaty of Lisbon in December 2007, which is set to become a defining moment in the history of the European Union.