The European Sovereign Debt Crisis: A Case Study of the Portuguese Economy

The Eurozone debt crisis, which began in 2009, had a significant impact on several Member States, particularly regarding their public finances. Portugal was among the countries that suffered severe consequences from the crisis, with increased interest rate spreads and a lowered sovereign bond rating. In this dissertation, I aim to provide a comprehensive analysis of the origins, characteristics, and impact of the debt crisis on Portugal. To achieve this goal, I have conducted an in-depth review of relevant literature and data sources on the topic. Drawing on a range of academic and policy sources, I examine the specific factors that contributed to the crisis in Portugal, including the country's public debt, banking sector vulnerabilities, and macroeconomic imbalances. In addition to identifying the causes of the crisis, I also analyze the measures that have been implemented to mitigate its negative impacts. These measures include fiscal consolidation programs, structural reforms, and international financial assistance packages. I evaluate the effectiveness of these measures, taking into account their short and long-term implications for Portugal's economy and society. Overall, this dissertation provides a detailed and critical assessment of the Eurozone debt crisis in Portugal. By examining the causes of the crisis and the measures taken to address it, this research contributes to a better understanding of the challenges faced by countries within the Eurozone and the implications of the crisis for the future of European economic integration.