2011-2014 Portuguese financial crisis

Between 2011 and 2014, Portugal faced a severe financial crisis marked by high debt, rising unemployment, and economic recession. The country had borrowed extensively, but faced difficulties repaying its debts, leading to a loss of investor confidence. Consequently, Portugal sought international aid from the European Union and International Monetary Fund, agreeing to strict austerity measures—like spending cuts and tax increases—to stabilize its economy. These policies aimed to reduce debt but also led to social hardship, including unemployment and decreased public services, highlighting the challenges of balancing fiscal responsibility with economic growth during a financial crisis.