European sovereign-debt crisis

The European sovereign-debt crisis was a multi-year crisis in the eurozone that began at the end of 2009, when Greece revealed that its budget deficit was far larger than reported. Investors lost confidence in the government bonds of several countries, including Greece, Ireland, Portugal, Spain and Cyprus, and borrowing costs soared. The European Union, the European Central Bank and the International Monetary Fund provided bailout loans in return for austerity measures and reforms, which led to deep recessions, high unemployment and protests, particularly in Greece, which received three bailout programs. In 2012 the president of the central bank, Mario Draghi, pledged to do whatever it took to preserve the euro, and the creation of the European Stability Mechanism and reforms of banking supervision followed. The crisis eased by mid-decade but left lasting divisions.

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