The Mortagage Crisis that took place in the USA in 2008 has become a global one in a short time and has affected other developed countries. Due to the global crisis, unemployment, inflation, public debt increased and the current balance was negatively affected in the euro area. The crisis was felt more in Portugal, Italy, Ireland, Greece and Spain, which is referred to as the "PIIGS" abbreviation, compared to other member countries. The purpose of this study; the macroeconomic imbalances of the "PIIGS" countries occurring in the euro area before and after the crisis and their effects in the "PIIGS" countries are included. Conditional aid packages were provided for "PIIGS" countries, which have difficulties in paying their debts, in partnership with IMF-ECB. Countries have been asked to apply austerity policy in exchange for conditional aid packages. The measures were taken after the 2008 crisis increased the crisis to reduce its negative economic effects. Savings measures narrowed the economies more and deepened the crisis. Therefore, it is important to study the dynamics of the crises.
Global Crisis, Euro Crisis, Austerity Policy, PIIGS,