The fate of European integration in the aftermath of the 2008-2013 Financial Crisis: The Case of Portugal

Abstract

The following study focuses on the Portuguese historical period from 2008 to 2013 characterized by a major financial crisis, that is an extremely varied picture that offers numerous insights. As a matter of facts, although Portugal falls within the category of "PIIGS" states, i.e., EU states which are characterized by harsh economic fragility, it is evident that its recovery has been quite unique; as it has emerged in the past years, from the economic crisis of 2008 to the debt crisis of 2011, Portugal has been under strain because of its excessive deficit, which then resulted in a request in 2011 by the executive for a large loan from both European institutions and the International Monetary Fund (IMF), which was granted only in exchange for severe austerity policies. Not surprisingly, then, the country found itself on the eye of the crosshairs by other EU countries, conceived to be considerably at risk of bailout. In 2015, moreover, the Prime Minister of the country António Costa, despite the lack of a clear-cut majority, was able not to be thwarted by opposition parties but, on the contrary, thanks to his firm economic policies and cooperation, he made Portugal achieve a growth rate far higher than the best European economies. The strength of the Portuguese experience certainly highlights how its democratic government can take pride in success and can even be recognized as a model for other social democracies in Europe. The objective of this dissertation is to provide an accurate analysis of the data collected, highlighting the most important phases, and conducting a historical survey first to better frame the nation and then delving into the critical economic situation suffered in the 2008/2013-time frame and discovering its causes and eventual remedy.