Economics
The Political Economy of Fiscal Austerity in the Eurozone
Quick fact
During the Eurozone debt crisis (2010-2015), countries like Greece, Spain, Portugal, Ireland, and Cyprus adopted severe austerity measures. In 2014, the European Commission reported that the GDP of the euro area was 3.6% lower than before the crisis, illustrating how austerity may have deepened recessions rather than quickly restoring growth.
Why this is interesting
Imagine a currency union where one member can't just print money to pay its bills. What happens when that country faces a debt crisis? The answer in Europe was a painful medicine called austerity – but is it actually a cure?