PIGS

The term "PIGS" was an informal and often derogatory acronym used to refer to a group of European Union countries—Portugal, Ireland, Italy, and Spain—that were significantly impacted by the euro-zone debt crisis starting in 2009. Greece was also heavily affected and sometimes included, making the acronym "PIIGS".1

This crisis saw a severe economic downturn, with soaring borrowing costs and downgrades in creditworthiness for these nations. The crisis threatened the stability of the euro and the EU itself. In response, the EU and the International Monetary Fund provided bailout packages and implemented austerity measures. These economic challenges led to political instability and government collapses across several member states. The crisis highlighted weaknesses in the euro zone's economic governance, prompting reforms such as a new fiscal pact and the establishment of a permanent bailout fund.12