Economic impact of Southern European member states exiting the eurozone. Policy Brief #2012/06

While Greece defaulting on its sovereign debt and leaving the European Monetary Union would in and of itself have a relatively minor effect on the world economy, such a move could, however, undermine investor confidence in the Portuguese, Spanish and Italian capital markets and thus provoke not only a sovereign default in those states as well, but also a severe worldwide recession. This would in turn reduce economic growth by a total of 17.2 trillion euros in the world’s 42 largest economies in the lead-up to 2020. Hence it is incumbent upon the community of nations to prevent Greece from a sovereign default as well as leaving the euro, and the domino effect that this event could induce.

The Portuguese Economic Crisis: Policies and Outcomes. Bertelsmann Policy Brief, 19.02.2015

The financial and economic crisis in the aftermath of 2008 is unique for several reasons: its depth, its speed and its global entanglement. Simultaneous economic decline in many economies around the globe sent out political shockwaves. In Europe, the crisis served as a wake-up call. Policymakers responded to the social and political insecurity triggered by economically unsound practices with solidarity and with EU-scepticism. The recession confronted Euro zone countries with a number of similar problems, although each was embedded in its own set of country-specific challenges. The tools with which each began to counteract the financial and sovereign debt crisis differed. This policy brief examines the Portuguese path to recovery. It outlines some of the great recession’s main impacts on the country’s labour market, as well as analyses the path it has taken to restore sustainable jobs.