At the same time, on account of the growing profitability of mainland Italian markets, Venice was trying to remain on good terms with the Western Emperor, Frederick Barbarossa.
In August 1159, the towns of Milan, Crema, Brescia and Piacenza founded the Lombard League with backing from Pope Adrian and the Kingdom of Sicily.
On 1 September 1159 Pope Adrian died, and during the enthronement of his elected successor, Alexander III, the papacy was usurped by a supporter of Frederick, Victor IV.
But eventually the Imperial forces broke in and left the marble pavement of the nave strewn with dead and dying, and the high altar itself stained with blood.
Subsequently, Frederick's army was virtually destroyed by pestilence, which most of Europe considered divine retribution for the desecration of St. Peter's.
Manuel began to reduce the privileges of Venice, and to improve the position of her rivals: Pisa, Genoa and Amalfi.
In May 1172, Doge Vitale Michiel faced a General Assembly at the Ducal Palace to defend his actions.
Venice had not lost a Doge by murder at home for more than 200 years, a fact that caused much soul-searching by the citizens, and led to constitutional reform.
Today there is no monument in Venice to Doge Vitale Michiel II, but until relatively recently there was at least evidence of his downfall.
Right up to 1948 the decree was followed: pictures and photographs prior to that year show only small and simple wooden buildings on one of the most strategic sites in all Venice.