The effect of the Euro crisis on the economic growth of PIGIG countries

The European Debt and Banking Crisis is a crisis that severely affected the countries shortly known as PIIGS, i.e, Portugal, Italy, Ireland, Greece and Spain. It has arisen from the global financial crisis spread to Europe, as well as the macroeconomic inherited vulnerabilities of joining to monetary union or afterward. Briefly, it is described as the combination of the financial and macroeconomic problems of the PIIGS countries. The crisis originated from the public sector in Greece, Italy and Portugal, and the banking sector in Ireland and Spain. Although PIIGS countries have different financial and macroeconomic problems, the common problem of these countries is high public debt levels. This study examines the impact of the Euro Crisis on the economic growth of PIIGS countries and the financial measures taken.