The Continental system was a decree order by napoleon that order a blockade to trade with Britain and other European countries. It was the called the continental system because it was supposed to make Europe more self-sufficient and was also intend to destroyed Britain economy. The blockade was prone to smuggles as it wasn't "tight enough." Britain's respond was to do the same but because their navy was stronger the blockade would actually work. The blockade damaged Napoleon and countries under his control.
the peninsular war happen when Napoleon attempted to invade Portugal through Spain. This start riots of protest through Spanish towns. The Spanish used guerrilla warfare to take out the invading army. The Spanish were scared that the french would get rid of their church as they did in France. Napoleon lost about 300000 men during the peninsular war. Like the Spanish German and Italy turned against France.