The economic crisis

This chapter is dedicated to the economic crisis as such, and not to spatial and urban planning. Developments are presented for all the CGIIPS countries studied in this book, i.e., Cyprus, Greece, Ireland, Italy, Portugal and Spain. Extensive comments by the European Stability Mechanism, the European Commission, the Bank of Greece and various officials and commentators are included. One clear conclusion is that the extent and duration of the effects differed, with Portugal and especially Greece taking more time to find their way out of the crisis. However, the effects were serious, particularly because of austerity measures imposed during the crisis. In Greece, a national social and political schism resurfaced, similar to those of the past, but along different dividing lines. The chapter offers material which enables the reader to comprehend the reasons behind the demands of the creditors for a more efficient and investment-friendly spatial planning system. As such, the chapter is an introduction to the following chapter which deals with attempts to modify the planning systems of the countries discussed in this book. Short summaries are placed in recess at the end of all sections to assist the reader.