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'''PIGS''' and '''PIIGS''' are grouping [[acronym]]s used by international bond analysts, academics, and by the international economic press that refer to the economies of [[Economy of Portugal|Portugal]], [[Economy of Italy|Italy]], [[Economy of Ireland|Ireland]], [[Economy of Greece|Greece]], and [[Economy of Spain|Spain]], especially in regards to matters relating to [[sovereign debt]] markets. When rendered as "PIGS", the "I" originally refered to Italy, but has occasionally become an interchangeable reference to Ireland. Some news and economic organisations have limited or banned their use due to criticism regarding perceived offensive connotations.
'''PIGS''', '''PIIGS''' and '''PIIGGS''' are [[acronym]]s that originally referred to the [[economy|economies]] of [[Economy of Portugal|Portugal]], [[Economy of Italy|Italy]], [[Economy of Greece|Greece]] and [[Economy of Spain|Spain]] (PIGS).<ref name=term1>{{cite web |url=http://www.lemonde.fr/cgi-bin/ACHATS/260035.html |quote="...que l'argot communautaire a affublés d'un sobriquet peu élégant dans sa signification anglaise: « pigs », pour Portugal, Italy, Greece, Spain.|title=L'Allemagne au coeur du débat français|date=24 April 1997|work=[[Le Monde]] |first=Daniel|last=Vernet}}</ref> Since the [[financial crisis of 2007–2010]], [[Economy of Ireland|Ireland]]<ref name="chorafas">{{cite|title=Globalization's limits: conflicting national interests in trade and finance|first=Dimitris|last=Chorafas|pages=19–20|publisher=Gower Publishing|location=Farnham, England}}</ref> (PIIGS) and, in some instances, the [[Economy of the United Kingdom|United Kingdom]]<ref name="stupid">{{cite|first=Mark|last=Hawthrone|title=STUPID idea|publisher=The Age|url=http://www.theage.com.au/business/web-wars-boltons-bottle-sued-for-26m-20100208-nnds.html}}</ref><ref name="loyak">{{cite|url=http://www.newropeans-magazine.org/content/view/10743/309/|title=We Europeans are all 'PIIGS'… and Anglo-Saxons are 'Usuk'|first=Masha|last=Loyak|publisher=Newropeans Magazine}}</ref><ref name="efund">{{cite web|work=Entwicklung internationaler Anleihen- und Aktienmärkte|title=Resümee 1. Quartal und Ausblick 2. Quartal 2010|publisher=e-Fund Research|url=http://at.e-fundresearch.com/newscenter.php?aID=14030}}</ref><ref name="pedro">{{cite|title=Berlusconi diz que Portugal está mais frágil do que Itália|first=Carla|last=Pedro|publisher=Negocios|url=http://www.jornaldenegocios.pt/index.php?template=SHOWNEWS&id=409589}}</ref><ref name="lim">{{cite|title=Shipbuilding going strong in Balamban|first=Cherry|last=Lim|publisher=Sun Star|url=http://www.sunstar.com.ph/cebu/shipbuilding-going-strong-balamban}}</ref><ref name="NZIBusiness">{{cite|title=Which countries are the STUPIDs?|publisher=NZI Business|url=http://tvnz.co.nz/business-news/which-countries-stupids-3502276}}</ref><ref name="toosmall">{{cite|title=Too Small is 'Too Big' to Fail|author=S. Gurumurthy|publisher=The Hindu|date=Wednesday, May 26, 2010|url=http://www.thehindubusinessline.com/2010/05/26/stories/2010052650321100.htm}}</ref> (PIIGGS) have become associated with the term.

The original term dates from the [[1990s|mid-nineties]] when it was used to refer the southern economies of the [[European Union]]. It became fashionable during the [[financial crisis of 2007–2010]]<ref name="chorafas"/><ref name="monro"/><ref name="gullone">{{cite|title=What CIOs Think|first=Frank|last=Gullone|publisher=Investor Daily|url=http://www.investordaily.com.au/cps/rde/xchg/id/style/8857.htm?rdeCOQ=SID-0A3D9632-B8D5643B}}</ref> especially in regards to matters relating to [[sovereign debt]] and government [[deficit]]s. These economies are seen to have high [[government debt]] levels and a high government deficits relative to annual [[GDP]], despite being comparable with the [[Eurozone]] as a whole.<ref>{{cite|titleSCOREBOARD: Poor PIIGS|first=Adam|last=Carr|publisher=Business Spectator|url=http://www.businessspectator.com.au/bs.nsf/Article/SCOREBOARD-Paltry-PIIGS-pd20100423-4RTP5?opendocument&src=rss}}</ref> When rendered as "PIGS", the "I" originally referred to Italy but towards the end of 2008<ref name="chorafas"/> also came to refer to Ireland. Less frequently it has been used to refer to [[Economy of Iceland|Iceland]].<ref>{{cite|first=Benjamin|last=Diokno|title=Will the Peso Rise or Fall?|publisher=Businesss World|url=http://www.bworldonline.com/main/content.php?id=9530}}</ref> A second "G", for Great Britain, is added by some commentators.<ref name="stupid"/><ref name="loyak"/><ref name="efund"/><ref name="pedro"/><ref name="lim"/><ref name="NZIBusiness"/><ref name="toosmall"/>

The acronym is understood by many to be pejorative,<ref name="monro">{{cite|title=Spain, Italy should lose 'PIGS' tag: Alfredo Pastor Interview|first=Alex|last=Monro|publisher=Risk.net|url=http://www.risk.net/credit/news/1600907/spain-italy-lose-pigs-tag-alfredo-pastor-interview}}</ref><ref name="holloway">{{cite web |author=[[Robert Holloway]] |url=http://blogs.afp.com/?post/2008/09/15/Pigs-in-muck-and-lipstick |title=Pigs in muck and lipstick |work=[[Agence France-Presse|AFP]] |date=September 15, 2008}}</ref><ref name="zepp">{{cite|title=Germany's Future Potential: Rebuild After the Collapse|first=Helga|last=Zepp-LaRouche|publisher=Executive Intelligence Review|url=http://www.larouchepub.com/hzl/2010/3713german_future.html}}</ref><ref name="bauder ">{{cite|title=Broke Cities (including this one)|first=Don|last=Bauder|publisher=San Diego Reader|url=http://www.sandiegoreader.com/news/2010/apr/07/city-light-1/}}</ref><ref name="rowlinson ">{{cite|title=Where to Buy Property Abroad|first=Liz|last=Rowlinson|publisher=Country Life|url=http://www.countrylife.co.uk/news/article/449286/Where-to-buy-property-abroad.html}}</ref><ref name=lavanguardia1>{{cite web |author=J. Ramón González Cabezas |url=http://www.lavanguardia.es/economia/noticias/20090125/53625911592/la-recesion-acosa-al-euro.html |title=La recesión acosa al euro |work=Lavanguardia.es |date=25 January 2009}}</ref><ref name=portafolio1>{{cite web |url=http://www.portafolio.com.co/opinion/editorial/editorial-de-siglas-y-peligros_7151050-3 |title=Editorial: De siglas y peligros |work=www.portafolio.com.co}}</ref> but has been used as a [[term of art]] by some.<ref name=term1 /><ref name="advisor" /><ref name=term2 /><ref name=term3 /> Some institutions and media outlets have instructed their employees not to use the term.<ref name="Allen">{{cite|first=Katie|last=Allen|title=Acronym acrimony: The Problem with Pigs|publisher=Guardian|date=2010-02-12|url=http://www.guardian.co.uk/business/2010/feb/12/pigs-piigs-debted-eu-countries | location=London}}</ref> Some variants of the acronym have been criticised because economies with similar financial problems, often notably the [[Economy of the United Kingdom|United Kingdom]],<ref name="monro"/><ref>
{{cite|title=Britain's Borrowing Habit Puts it in the 'PIIGS'|publisher=This is Money|url=http://www.thisismoney.co.uk/news/article.html?in_article_id=499795&in_page_id=2}}</ref> are arbitrarily excluded.

==History==
==History==
The acronyms have long been used<ref>{{cite web |url=http://www.lemonde.fr/cgi-bin/ACHATS/260035.html |quote=que l'argot communautaire a affublés d'un sobriquet peu élégant dans sa signification anglaise : « pigs », pour Portugal, Italy, Greece, Spain. |title=L'Allemagne au coeur du débat français |date=24 April 1997 |work=''[[Le Monde]]'' |author=Daniel Vernet}}</ref> by bank analysts, bond and currency traders dating back at least to the period of the [[European Exchange Rate Mechanism|ERM]] and are used by some analysts,<ref>{{cite web |quote=In general, the weakest EU economies, called PIGS (Portugal, Italy, Greece, Spain), are best avoided in the near term. In recent times [[Ireland]] has also been associated with the PIGS countries and the acronym has been modified to become PIIGS. However considering Ireland's Public debt as a % of GDP this is an unfortunate comparison. Due to the offensive nature of the acronym PIGS, synonyms with the term "pigs" or "the pigs" generally used to refer to traders or even in some cases police, some european countries have banned this derogatory remark from the public media.
''PIGS'', the original acronym, referred to in 1997 to Portugal, Italy, Greece and Spain.<ref name=term1 /> Similar terms, such as "the Olive Belt" or "[[Club Med]]",<ref>{{cite|first=Miroslav|last=Jovanović|title=The economics of European integration: limits and prospects|year=2005|publisher=Edward Elgar Publishing|location=Cheltenham, UK|page=40|isbn=1843766914}}</ref> have also been used for the same or similar groupings of countries in [[southern Europe]]. The term became popular again during the [[financial crisis of 2007–2010]]<ref name="monro"/><ref name="gullone"/> when the economies of Portugal, Ireland, Greece and Spain were seen as especially vulnerable due to high or rising [[government debt]] levels and a high government deficits relative to annual [[GDP]].

Ireland, previously known as the ''[[Celtic Tiger]]'', became associated with the acronym in 2007<ref name="advisor">{{cite web |quote=In general, the weakest EU economies, called PIGS (Portugal, Italy, Greece, Spain), are best avoided in the near term. In recent times Ireland has also been associated with the PIGS countries and the acronym has been modified to become PIIGS. However considering Ireland's Public debt as a % of GDP this is an unfortunate comparison. |url=http://www.highbeam.com/doc/1G1-163612493.html |title=Greece and Ireland show best returns |date=March 15, 2007 |work=[[Investment Adviser]]}}</ref> and in 2008 it became the first [[Eurozone]] country to enter recession as part of the global crisis. The acronym thus became ''PIIGS''<ref name="advisor"/> or remained ''PIGS'' with Ireland replacing Italy,<ref name=term2>www.ceps.be/ceps/download/2883</ref><ref name=term3>http://www.businessweek.com/news/2010-02-05/the-i-in-pigs-is-ireland-not-italy-unicredit-report-says.html</ref> but it was not until late 2009&ndash;early 2010 that the new acronym became fashionable.<ref name="monro"/><ref name="gullone"/> At the same time a second G, standing for Great Britain (the United Kingdom), began to be added by some commentators, extending the acronym to form ''PIIGGS''<ref name="stupid"/><ref name="loyak"/><ref name="efund"/><ref name="pedro"/><ref name="lim"/><ref name="toosmall"/> or ''PIGGS''<ref name="NZIBusiness"/> or the addition of ''UK'' to ''PIIG'' to form ''PIIGSUK''. The Greek government move in April 2010 to seek [[European Union]] and [[International Monetary Fund]] sponsored aid has increased focus on the grouping.

The term is understood by many to be [[pejorative]],<ref name="monro"/><ref name="holloway"/><ref name="bauder "/><ref name="rowlinson "/><ref name=lavanguardia1/><ref name=portafolio1/> although in some cases can be read as a [[term of art]].<ref name=term1 /><ref name="advisor" /><ref name=term2 /><ref name=term3 /> It was denounced as [[racist]] in 2008 by the then Portuguese finance minister, [[Manuel Pinho]], following a headline in the ''[[Financial Times]]'' that read, "Pigs in muck".<ref>{{cite|title=Pigs in Muck|publisher=Financial Times|url=http://www.ft.com/cms/s/5faf0b0a-778a-11dd-be24-0000779fd18c,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F3%2F5faf0b0a-778a-11dd-be24-0000779fd18c.html&_i_referer=http%3A%2F%2Fsearch.ft.com%2Fsearch%3FqueryText%3DLex%2Bpigs%2Bin%2Bmuck%26ftsearchType%3Dtype_news}}</ref> The newspaper subsequently accepted that the term was pejorative but said that it has "much truth" in it.<ref name="holloway"/> The ''[[Financial Times]]'' have since instructed their employees<ref>{{cite|title=Anything but porcine at BarCap|first=Tracy|last=Alloway|publisher=ft.com/ftalphaville|url=http://ftalphaville.ft.com/blog/2010/02/05/142451/anything-but-porcine-at-barcap/}}</ref> not to use the term as have [[Barclays Capital]], an international [[investment bank]].<ref name="Allen"/>

== Economics leading up to the financial crisis ==
{{Main|Financial crisis of 2007–2010|Late-2000s recession|2010 European sovereign debt crisis}}

[[File:Piiggs balance sheet 2009.png|thumb|upright=1.5|Government deficits, public-sector debt and economic growth for the PIIGGS economies during 2009 as a percentage of [[Gross domestic product|GDP]]. The same data for [[Economy of Germany|Germany]], the [[Economy of the European Union|European Union]] and the [[Eurozone]] is shown for reference.]]

The global economic crisis, and the government-sponsored bank bailouts which ensued, caused public fiscal balances deteriorate markedly across the globe. Within the [[Eurozone]], the deterioration in fiscal positions since the crisis has been the most marked in Ireland and Greece. In Greece, this deterioration is also, in part, the result of a correction made to inaccurate statistics<ref>http://www.miamiherald.com/2010/04/22/1592056/greek-budget-deficit-136-percent.html</ref> which had previously been provided.

Portugal, Spain<ref>{{cite news| url=http://krugman.blogs.nytimes.com/2010/02/05/the-spanish-tragedy/ | work=The New York Times | title=The Spanish Tragedy | first=Paul | last=Krugman | date=2010-02-05 | accessdate=2010-05-22}}</ref> and Greece have reported high levels of foreign investment since the inception of the Euro which spurred domestic demand and inflation and helped create speculative asset-price bubbles, the Spanish property market bubble being a case in point. As a result of the economic boom which the PIGS experienced since the introduction of the Euro, fueled by sustained foreign investment, some PIGS saw significant increases in employment compared to countries such as Germany, Japan, or the United States. Employment growth was particularly strong in Spain and Ireland.

Portugal, Greece, the United Kingdom (along with the European Union as a whole) have high current-account deficits relative to their annual GDP, which resulted in large accumulated [[List of countries by external debt|external debts]] relative to annual GDP. The [[Net international investment position]] of these countries is below zero.

Greece, Portugal and Ireland are undergoing [[austerity]] measures in an attempt to reduce existing government deficits.<ref>{{Cite web |url=http://www.canadianeuropean.com/yahoo_site_admin/assets/docs/Greece__the_EU_Debt_Crisis_VN__Al-Nahar_Feb-March_2010.7383827.pdf |accessdate=2010-03-15 |title=see M. Nicolas Firzli, 'Greece and the EU Debt Crisis'}}</ref>

<gallery widths="240px" heights="160px" perrow="3">

File:Piiggs surplus 2002-2009.png|<small>'''Government surplus/deficit, 2002&ndash;2010:''' Ireland and Spain can be seen at the top of the graph recording surpluses. Since 2008, Ireland has recorded high deficits. Greece, Italy, Portugal and the United Kingdom can be seen recording consistent deficits along with the European Union and Eurozone as a whole. Greece can be seen recording consistent heavy deficits.</small>

File:Piigs debt 2002-2009.png|<small>'''Government debt, 2002&ndash;2010:''' Italy and Greece can be seen high at the top of the graph separated from the other economies. Ireland, Spain and the United Kingdom can be seen initially well below the European Union and Eurozone as a whole but rising suddenly towards them since 2008.</small>

File:Piigs growth 2005-2009.png|<small>'''Year-on-year Q3 economic growth, 2005&ndash;2010:''' The effect of recession on Ireland can be seen here to be particularly dramatic. In 2005&ndash;2006 Ireland's economy grew by 7.7%. In 2008&ndash;2009 its economy reduced by almost the same amount. The effect of recession on the other economics can be seen also and to follow the trend for the European Union and the Eurozone as a whole.</small>

File:NetInvPosPigs.PNG|<small>'''[[Net international investment position]] 2008, percentage of GDP''', financial assets towards foreign countries minus extermal financial liabilities. Countries with persistent current account deficits accumulate on balance [[external debt]]s.</small>

</gallery>


|url=http://www.highbeam.com/doc/1G1-163612493.html |title=Greece and Ireland show best returns |date=March 15, 2007 |work=''[[Investment Adviser]]''}}</ref> academics<ref>[https://estudogeral.sib.uc.pt/dspace/handle/10316/11722 A Portugese university]</ref> and commentators<ref>{{cite book|url=http://books.google.com/books?id=0PRQXJb5I8cC&pg=PA36&dq=%22pigs%22+portugal+italy+greece+spain&lr=&cd=18#v=onepage&q=%22pigs%22%20portugal%20italy%20greece%20spain&f=false|title=The European Union: from Jean Monnet to the Euro|author= Dean J. Kotlowski|edition=|publisher=[[Ohio University Press]]|year=2000|ISBN=0821413317|page=}}</ref><ref>{{cite book|url=http://books.google.com/books?id=qy38NH70qAYC&pg=PA185&dq=%22pigs%22+portugal+italy+greece+spain&lr=&cd=23#v=onepage&q=%22pigs%22%20portugal%20italy%20greece%20spain&f=false|title=Growth and economic development: essays in honour of A.P. Thirlwall|author= Philip Arestis, J. S. L. McCombie, Roger William Vickerman, A. P. Thirlwall|edition=|publisher=[[Edward Elgar Publishing]]|year=2007|ISBN=184376878X|page=}}</ref> as a concise way to refer to the [[Eurozone]] countries of [[southern Europe]] noted for similar economic environments.<ref>[http://books.google.de/books?id=itGoAAAAIAAJ&q=pigs+portugal+italy+greece+spain&dq=pigs+portugal+italy+greece+spain&cd=3 German Google books]</ref><ref>[http://www.goldseiten.de/content/diverses/artikel.php?storyid=2576 Goldseiten]</ref><ref>
===Credit rating downgrades===
{{cite news
On the 27th of April 2010, the Greek debt rating was lowered from BBB+ to BB+ by rating-agency [[Standard and Poor's]], reducing it to [[Junk Bond|"junk" status]] (less than BBB-) amidst fears of default by the [[Greek Government]].<ref name=nyt04282010>[http://www.nytimes.com/2010/04/28/business/global/28drachma.html Greek Debt Rating cut to Junk Status, ''[[The New York Times]]'', April 27, 2010</ref>. Greece had previously its A+ rating reduced to A in 2009<ref>http://www.xpatathens.com/news/19360</ref> before later being reduce further to BBB+. This triggered a loss of market confidence in the European bonds market.{{Citation needed|date=April 2010}} The following day, the agency also cut Portugal's [[credit rating]]s by two notches from A+ to A- over concerns about [[Portugal]]'s [[state debt]] and [[public finance]]s.<ref>http://www.macauhub.com.mo/en/news.php?ID=9337</ref>. Portugal had an AA- rating in 2009.<ref>http://www.bloomberg.com/apps/news?pid=20601087&sid=aklfQ2FM.8Zg&refer=home</ref> A day later again, the agency again reduced their rating of Spain to AA<ref>http://www.independent.ie/breaking-news/world-news/spain-next-to-get-credit-rating-cut-2156559.html</ref> having reduced from a AAA to AA+ in January 2009.<ref>{{cite|title=S&P strips Spain of its AAA credit rating|publisher=The Telegraph|first=Ambrose|last=Evans-Pritchard|url=http://www.telegraph.co.uk/finance/financetopics/financialcrisis/4292055/SandP-strips-Spain-of-its-AAA-credit-rating.html | location=London | date=2009-01-19 | accessdate=2010-05-22}}</ref>
| last= Von Reppert-Bismarck
| first= Juliane
| url= http://www.newsweek.com/id/143665
| title= Why Pigs Can’t Fly
| publisher= [[Newsweek]]
| date= July 7–14, 2008
}}</ref><ref>{{cite news
| url= http://www.economist.com/opinion/displaystory.cfm?story_id=11496844
| title= Ten years on, beware a porcine plot
| publisher= [[The Economist]]
| date= June 5, 2008
}}</ref><ref>[http://forexblog.oanda.com/20100204/euro-struggles-on-growing-piigs-debt-concern/]</ref><ref>[http://news.bbc.co.uk/1/hi/business/8510603.stm]</ref>


==Controversy==
Between March and June 2009 Standard and Poor's lowered Ireland's credit rating from AAA to AA.<ref>{{cite|title=Rebounding Celtic tiger offers UK harsh lessons in demolishing debt|publisher=The Telegraph|first=Liam|last=Halligan|url=http://www.telegraph.co.uk/finance/comment/liamhalligan/7549877/Rebounding-Celtic-tiger-offers-UK-harsh-lessons-in-demolishing-debt.html | location=London | date=2010-04-03 | accessdate=2010-05-22}}</ref> The agency called for "new faces" in the [[Irish Government]], which was seen as interfering in the democratic process. In a subsequent statement they said they were "misunderstood."<ref>''[http://www.independent.ie/national-news/cowen-attacks-call-for-new-faces-in-cabinet-1693290.html Irish Independent]'' 1 April 2009</ref> At the same time, the United Kingdom's AAA rating was placed on a negative outlook<ref>{{cite|
title=Humiliation for UK as our credit rating is threatened
first=Sam|last=Flemming|publisher=Daily Main|url=http://www.dailymail.co.uk/news/article-1184688/Humiliation-UK-credit-rating-threatened.html#ixzz0mOG8niRq}}</ref> and the agency repeated the possibility of downgrading the UK's rating a year later explaining that, in the context of a UK [[general election]], "A sustained increase in the general government debt burden toward 100% of GDP over the medium term would ... be incompatible with an AAA rating."<ref>{{cite|title=UK's triple-A credit rating under threat|publisher=This is Money|url=UK's triple-A credit rating under threat}}</ref>


The term has been actively denounced as an [[pejorative]] by the Portuguese Finance Minister,<ref name=portafolio1>{{cite web |author=[[Robert Holloway]] |url=http://blogs.afp.com/?post/2008/09/15/Pigs-in-muck-and-lipstick |title=Pigs in muck and lipstick |work=[[AFP]] |date=September 15, 2008}}</ref> and some members of the Portuguese and Spanish speaking press.<ref name=lavanguardia1>{{cite web |author=J. Ramón González Cabezas |url=http://www.lavanguardia.es/economia/noticias/20090125/53625911592/la-recesion-acosa-al-euro.html |title=La recesión acosa al euro |work=Lavanguardia.es |date=25 January 2009}}</ref><ref name=elmundo.es1>{{cite web |author=Federico Jimenez Losantos |url=http://www.elmundo.es/2008/09/16/opinion/2496377.html |title=Financial pigs |work=Elmundo.es |date=16 September 2008}}</ref><ref name=portafolio1>{{cite web |url=http://www.portafolio.com.co/opinion/editorial/editorial-de-siglas-y-peligros_7151050-3 |title=Editorial: De siglas y peligros |work=www.portafolio.com.co}}</ref> Members of the Spanish and other international economic press continue to use the [[term of art]] in its narrow and restricted economic sense as a grouping acronym like the related [[BRIC]].<ref>{{cite web |url=http://www.capitalmadrid.info/news_links/364#googtrans/auto/en |title=La web de Roubini propone la solución para los PIIGS: euro fuerte y euro débil}}</ref><ref>{{cite web |url=http://www.libertaddigital.com/economia/los-paises-mas-vulnerables-japon-francia-reino-unido-eeuu-y-piigs-1276384385/#googtrans/auto/en |title=Japón, Francia, Reino Unido, EEUU y PIIGS, los más vulnerables}}</ref><ref>{{cite web |url=http://www.abc.es/agencias/noticia.asp?noticia=263810 |title=Krugman atribuye problemas de España a falta de unión fiscal y laboral en UE}}</ref> Others however, notably the ''[[Financial Times]]'' and ''[[Barclays Capital]]'' have restricted or banned[http://ftalphaville.ft.com/blog/2010/02/05/142451/anything-but-porcine-at-barcap/] the term.<ref name=ft1>{{cite web |author=James Mackintosh {{cite web |url=http://blogs.ft.com/ft-dot-comment/2010/02/05/stupid-investors-in-pigs/ |title=STUPID investors in PIGS |work=ft.com |date=5 February 2010}}</ref>
The agency had cut Italy's debt rating to A+ from AA- in October 2006,<ref>{{cite news| url=http://news.bbc.co.uk/2/hi/business/6069104.stm | work=BBC News | title=Italy's debt rating is downgraded | date=2006-10-20 | accessdate=2010-05-22}}</ref> where it has remained since.


As the phrase gained prominence some commentators have used numerous variations such as PIIGGS which includes [[Great Britain]] for various political, economic or social arguments.
Criticism is being made against the role played by rating agencies in the creation of a sense of crisis with respect to the PIGS.<ref name="sixone">{{cite|work=IMF warns Greek crisis could spread|title=Dan O'Brien, Economist Intelligence Unit, says the unpopular bailing out of Greece is in Germany's interests|publisher=RTÉ|url=http://www.rte.ie/news/2010/0428/6news.html}}</ref><ref>http://www.theatlantic.com/business/archive/2010/04/rating-agencies-strike-again/39633/</ref> Commentators, including editors for the ''[[Economist Intelligence Unit]]'', have suggested a conflict of interest within rating agencies and have said that regulation of the industry should happen in future.<ref name="sixone" />


==See also==
==See also==
* [[BRICS]]
* [[Credit crunch]]
* [[Credit crunch]]
* [[2010 European sovereign debt crisis]]
* [[2010 European sovereign debt crisis]]

Revision as of 05:21, 29 May 2010

  Portugal, Italy, Greece and Spain: PIGS
Since the financial crisis of 2007–2010:
  Ireland: included to form PIIGS
  The United Kingdom (Great Britain): included to form PIIGGS

PIGS and PIIGS are grouping acronyms used by international bond analysts, academics, and by the international economic press that refer to the economies of Portugal, Italy, Ireland, Greece, and Spain, especially in regards to matters relating to sovereign debt markets. When rendered as "PIGS", the "I" originally refered to Italy, but has occasionally become an interchangeable reference to Ireland. Some news and economic organisations have limited or banned their use due to criticism regarding perceived offensive connotations.

History

The acronyms have long been used[1] by bank analysts, bond and currency traders dating back at least to the period of the ERM and are used by some analysts,[2] academics[3] and commentators[4][5] as a concise way to refer to the Eurozone countries of southern Europe noted for similar economic environments.[6][7][8][9][10][11]

Controversy

The term has been actively denounced as an pejorative by the Portuguese Finance Minister,[12] and some members of the Portuguese and Spanish speaking press.[13][14][12] Members of the Spanish and other international economic press continue to use the term of art in its narrow and restricted economic sense as a grouping acronym like the related BRIC.[15][16][17] Others however, notably the Financial Times and Barclays Capital have restricted or banned[3] the term.[18]

As the phrase gained prominence some commentators have used numerous variations such as PIIGGS which includes Great Britain for various political, economic or social arguments.

See also

Websites

Wikimedia Commons has media related to PIIGS.

References

  1. ^ Daniel Vernet (24 April 1997). "L'Allemagne au coeur du débat français". Le Monde. que l'argot communautaire a affublés d'un sobriquet peu élégant dans sa signification anglaise : « pigs », pour Portugal, Italy, Greece, Spain. {{cite web}}: Italic or bold markup not allowed in: |work= (help)
  2. ^ "Greece and Ireland show best returns". Investment Adviser. March 15, 2007. In general, the weakest EU economies, called PIGS (Portugal, Italy, Greece, Spain), are best avoided in the near term. In recent times Ireland has also been associated with the PIGS countries and the acronym has been modified to become PIIGS. However considering Ireland's Public debt as a % of GDP this is an unfortunate comparison. Due to the offensive nature of the acronym PIGS, synonyms with the term "pigs" or "the pigs" generally used to refer to traders or even in some cases police, some european countries have banned this derogatory remark from the public media. {{cite web}}: Italic or bold markup not allowed in: |work= (help)
  3. ^ A Portugese university
  4. ^ Dean J. Kotlowski (2000). The European Union: from Jean Monnet to the Euro. Ohio University Press. ISBN 0821413317.
  5. ^ Philip Arestis, J. S. L. McCombie, Roger William Vickerman, A. P. Thirlwall (2007). Growth and economic development: essays in honour of A.P. Thirlwall. Edward Elgar Publishing. ISBN 184376878X.{{cite book}}: CS1 maint: multiple names: authors list (link)
  6. ^ German Google books
  7. ^ Goldseiten
  8. ^ Von Reppert-Bismarck, Juliane (July 7–14, 2008). "Why Pigs Can't Fly". Newsweek.
  9. ^ "Ten years on, beware a porcine plot". The Economist. June 5, 2008.
  10. ^ [1]
  11. ^ [2]
  12. ^ a b Robert Holloway (September 15, 2008). "Pigs in muck and lipstick". AFP. Cite error: The named reference "portafolio1" was defined multiple times with different content (see the help page).
  13. ^ J. Ramón González Cabezas (25 January 2009). "La recesión acosa al euro". Lavanguardia.es.
  14. ^ Federico Jimenez Losantos (16 September 2008). "Financial pigs". Elmundo.es.
  15. ^ "La web de Roubini propone la solución para los PIIGS: euro fuerte y euro débil".
  16. ^ "Japón, Francia, Reino Unido, EEUU y PIIGS, los más vulnerables".
  17. ^ "Krugman atribuye problemas de España a falta de unión fiscal y laboral en UE".
  18. ^ {{cite web |author=James Mackintosh "STUPID investors in PIGS". ft.com. 5 February 2010.
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