Michael’s son Andronicus II (reigned 1282–1328) unwisely attempted to economize by cutting down the size of the army and disbanding the navy. Unemployed Byzantine sailors sold their services to the new Turkish emirs, who were already raiding the Aegean islands. The Genoese became the suppliers and defenders of Constantinople by sea, which excited the jealousy of the Venetians to the pitch of war and led to the first of a series of naval battles off Constantinople in 1296. In reaction against his father’s policy, Andronicus II pursued a line of almost total isolation from the papacy and the West. The union of Lyon was solemnly repudiated and Orthodoxy restored, to the deep satisfaction of most Byzantines. But there were still divisive conflicts in society.
The Arsenite schism in the church was not healed until 1310; the rulers of Epirus and Thessaly remained defiant and kept contact with the successors of Charles I in Italy; and the people of Anatolia aired their grievances in rebellion. As the Turks encroached on their land, refugees in growing numbers fled to the coast or to Constantinople, bringing new problems for the government. In 1302 a band of Turkish warriors defeated the Byzantine army near Nicomedia in northwestern Anatolia. Its leader, Osman I, was the founder of the Osmanli, or Ottoman, people, who were soon to overrun the Byzantine Empire in Europe.
In 1303 Andronicus hired a professional army of mercenaries, the Grand Catalan Company. The Catalans made one successful counterattack against the Turks in Anatolia. But they were unruly and unpopular, and when their leader was murdered they turned against their employers. For some years they used the Gallipoli Peninsula as a base from which to ravage Thrace, inviting thousands of Turks to come over and help them.
The Catalans finally moved west; in 1311 they conquered Athens from the French and established the Catalan Duchy of Athens and Thebes. The Turks whom they left behind were not ejected from Gallipoli until 1312. The cost of hiring the Catalans, and then of repairing the damage that they had done, had to be met by desperate measures. The face value of the Byzantine gold coin, the hyperpyron, was lowered when its gold content was reduced to a mere 50 percent; and the people had to bear still greater burdens of taxation—some payable in kind by farmers. Inflation and rising prices led to near famine in Constantinople, the population of which was swollen by vast numbers of refugees.