An Unexpected Transformation
Years ago, southern European countries were seen as the ‘cicadas’ of the European Union, with an acronym that associated them with economic mismanagement. However, the picture has changed drastically and now, the former PIGS (Portugal, Italy, Greece and Spain) are admired for their resilience in the face of the difficulties faced by northern nations.
The ‘Revenge of the South’ Phenomenon
Following a revealing article in The Economist, which was amplified by Spanish President Pedro Sánchez, a new media discourse has been generated that celebrates the successes of southern countries, which now seem to surpass their northern neighbors in several aspects.
Key Factors of the New Rise
Several factors have contributed to this change in perception, including:
– The reduction in borrowing costs, with Greece showing signs of recovery similar to those of France.
– Economic reforms that have borne fruit, with countries such as Portugal and Greece demonstrating an improvement in their public accounts.
– GDP growth that exceeds that of northern countries, with Portugal standing out as a notable example.
– The new image of southern countries as investment destinations, with cities like Madrid and Lisbon emerging as attractive hubs.
– Their strategic geographical location, which positions them as the first recipients of migration crises and global conflicts.
The Persistent Challenges
Despite the advances, PIGS are not without problems that threaten their future stability:
– Their high level of debt remains a worrying issue, with the PIGS being among the most indebted countries in Europe.
– The implemented reforms do not effectively address structural issues such as low birth rates and population aging.
– Economic growth has been largely based on tourism, which can be volatile and does not always generate sustainable jobs.
– Dependence on mass tourism has led to growing social tensions, with protests against tourism in cities such as Greece and Spain.
– Vulnerability to external crises, especially those from the Middle East and Africa, which can destabilize the region.
An Uncertain Future
The narrative of the ‘revenge of the South’ is attractive and provokes debate, but the reality is that southern Europe still has significant obstacles to overcome to ensure a sustainable and balanced future. The possibilities are promising, but the path to full recovery is fraught with challenges.
