 Beginning with the reign of Pietro II Candiano in 932 , Venice saw a string of inept leaders such as Pietro III Candiano , Pietro IV Candiano , and <unk> <unk> . The reputed arrogance and ambition of these Doges caused the deterioration of the relationship with the Holy Roman Empire in the west , the stagnancy of the relationship with the Byzantine Empire in the east , and discord at home in the Republic . However , in 991 , Pietro II Orseolo became the Doge and spent his reign pushing the boundaries of the Republic further east down the western coast of the Balkan Peninsula with his conquests in Dalmatia in 1000 . This strengthened the commercial bonds with the empires of the east , Sicily , Northern Africa , and the Holy Roman Empire , and put an end to the infighting among the citizens of Venice . Pietro II 's negotiations with Byzantine Emperor Basil II to decrease tariffs on Venetian @-@ produced goods helped foster a new age of prosperity in the Republic as Venetian merchants could undercut the competition in the international markets of the Byzantine Empire . Similarly , Pietro II had success developing a new relationship with Holy Roman Emperor Otto III , who displayed his friendship to him by restoring previously seized lands to Venice , opening up routes of free trade between the two states , and exempting all Venetians from taxes in the Holy Roman Empire . 
