The economic acronym ‘PIIGS’ first gained notoriety in the late 1970s, as a reference to five countries in the EU (Portugal, Italy, Ireland, Greece, and Spain) deemed to be causing an economic impact on the region. It was often used in a derogatory manner, particularly in the media, and reflects a view that the economic situations of these five countries were the driving force behind stymied growth in the EU.

In the wake of the global financial crisis of 2008, the use of the acronym reemerged to refer to the lingering effects that the crisis had on the PIIGS countries. These countries were blamed for having high levels of unemployment, increased debt, and for having lower GDP growth compared to the other EU countries. As a result of their alleged mismanagement of the crisis, the other EU countries felt put-upon and let down by the PIIGS countries.

Today, the term ‘PIIGS’ is largely considered offensive. This is due to its often accusatory tone, which implies that these countries are solely at fault for the EU’s economic woes. Additionally, this term can also be viewed as unfairly assigning blame to a handful of countries without recognizing the role of larger economic forces.

In response to its negative connotations, the European Commission (EC) has officially discouraged its use. The EC has felt that it does not accurately represent the situation in the region and instead discourages dialogue about possible solutions for the PIIGS countries. In a sense, this term attempts to oversimplify a complex problem by using a derogatory label rather than highlighting the many different underlying factors that contribute to the region’s economic woes.

At the same time, acknowledging the current state of the PIIGS economies is an important part of creating effective policy solutions. Though the term has been abandoned by the EC, economic discussions often focus on the economic issues in these countries. For example, these countries are the source of the EU’s debt crisis and discussions of possible solutions to this problem often focus on the actions of the PIIGS countries.

In summary, the use of the term ‘PIIGS’ is on the decline due to its offensive connotations. While it was initially used to refer to a handful of countries deemed responsible for the slower EU economic recovery in the wake of the 2008 financial crisis, this terminology has fallen out of fashion with the EC. However, discussion of the underlying economic issues in these countries remains an important part of formulating policy solutions in the EU.