On December 25, the Andalusian earthquake of 1884 shook large parts of the Axarquía region and parts of the province of Granada. The earthquake claimed a total of 900 lives, one of them in Nerja. Many houses in Nerja were destroyed. As a result of the earthquake, Alfonso XII visited the town on January 20, 1885, and gave a speech in the square where the former fortress stood, which was already known at that time as the "Balcón de Europa" (Balcony of Europe). The square subsequently became very famous. Today, a life-size statue of Alfonso XII stands in the square.

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