European Debt Crisis
About European Debt Crisis
A multi year crisis that threatened the eurozone. After Greece revealed its massive deficit, attention turned to Ireland, Portugal, Spain, and Italy. These countries, nicknamed the PIIGS, faced soaring borrowing costs. Ireland nationalized its banks, costing 64 billion euros. Portugal requested a bailout in 2011. Cyprus imposed capital controls and confiscated bank deposits. ECB President Mario Draghis whatever it takes speech in July 2012 calmed markets. The crisis exposed structural weaknesses in the euro: shared monetary policy without shared fiscal policy. The EU created banking union and rescue mechanisms in response.
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