In 1695, the Scottish Parliament granted a charter to the Company of Scotland, which established a settlement in 1698 on the isthmus of Panama. Besieged by neighbouring Spanish colonists of New Granada, and afflicted by malaria, the colony was abandoned two years later. The Darien scheme was a financial disaster for Scotland—a quarter of Scottish capital was lost in the enterprise—and ended Scottish hopes of establishing its own overseas empire. The episode also had major political consequences, persuading the governments of both England and Scotland of the merits of a union of countries, rather than just crowns. This occurred in 1707 with the Treaty of Union, establishing the Kingdom of Great Britain.