What are the PIIGS?

What are the PIIGS?

The ‘PIIGS’ acronym had a clear negative impact on the response of financial markets to the ‘PIIGS countries’ during the crisis. During the Eurozone crisis the term ‘PIIGS’, denoting Portugal, Ireland, Italy, Greece and Spain, gained traction as a shorthand for referring to the countries worst hit by the crisis.

What happened to the PIIGS?

PIIGS is a derogatory moniker for Portugal, Italy, Ireland, Greece, and Spain, that began to be used in the late 1970s to highlight the economic impact of these countries on the EU. The use of this term has largely been discontinued due to its offensive nature.

When was the PIIGS crisis?

2008
Ireland then became associated with the term, replacing Italy or changing the acronym to PIIGS, with Italy also indicated as the second “I”. After the crisis started in 2008, Karim Abadir used the term GIPSI to reflect the sequencing he believed would take place.

Who came up with the term PIIGS?

However, there’s no known inventor of the term. Originally, it was just PIGS, without Ireland. That changed in 2008, with Ireland’s financial crisis, when the country fell into recession.

How did Greece get out of debt?

Second Economic Adjustment Programme On 27 October 2011, Eurozone leaders and the IMF settled an agreement with banks whereby they accepted a 50% write-off of (part of) Greek debt. Greece brought down its primary deficit from €25bn (11% of GDP) in 2009 to €5bn (2.4% of GDP) in 2011.

Why does Greece owe so much money?

The Greek debt crisis is due to the government’s fiscal policies that included too much spending. Greece’s financial situation was sound when it entered the EU in the early 1980s, but deteriorated substantially over the next thirty years.

Which countries does Greece owe money to?

Historical debt