ANALYTIC REPORT ON THE IMPACT OF THE GLOBAL FINANCIAL CRISIS ON SOCIETAL SECURITY

The report examines how the global financial crisis impacted European societal security through three dimensions: material financial security, the perceived social value of the financial sector, and broader societal resilience. It finds that while some countries recovered, peripheral euro area nations experienced depression-level unemployment, severe material deprivation, and significant political polarization. The document also explores the rise of alternative finance and cryptocurrencies as responses to a crisis of legitimacy in traditional banking, while noting that austerity measures may have undermined social cohesion and increased domestic violence and suicide rates in severely affected regions.

• The global financial crisis had a more severe impact on employment in Europe than in other developed economies; unemployment in the euro area rose by 3.4% between Q1 2007 and Q1 2015, compared to a 1.1% increase in the US and a 0.5% decrease in Japan.
• Certain peripheral euro area countries experienced 'depression-level' unemployment, with Greece seeing an increase of 17%, Spain 15.1%, and Cyprus 12% between 2007 and 2015.
• Private pension funds in OECD countries lost 23% of their real investment value in 2008, totaling USD 5.4 trillion, with Ireland suffering the most significant loss at 38%.
• Severe material deprivation increased significantly in the peripheral euro area between 2007 and 2013, rising from 8.170 million to 14.412 million people.
• The financial sector's growth since the 1980s is characterized by a 'crisis of legitimacy' due to the contrast between government bank rescues and subsequent cuts to public expenditures.
• High earners in the European Economic Area (those receiving over 1 million euros annually) received nearly 19 milliard euros in compensation between 2010 and 2012, with over 75% of this paid by the City of London.
• Alternative finance, including P2P lending and crowdfunding, grew rapidly as a response to financial exclusion; the online European market volume rose from EUR 1.21bn in 2013 to EUR 2.96 billion in 2014.
• Blockchain technology and virtual currencies like Bitcoin are viewed as potentially increasing societal security by providing a 'trustless' proof mechanism and a more resilient, transparent financial infrastructure.
• The financial crisis contributed to political polarization and the rise of extremist parties in Europe, specifically the radical populist right and left, particularly in the hardest-hit countries.
• Economic strain from the crisis is linked to increased social instability, including a 72% increase in reported domestic violence cases in Greece between 2010 and 2012 and an estimated 8,000 additional suicides in Europe between 2007 and 2010.

APA

Boy, N., Hayes, B., Mork, J. C., & Larreina, M. (2015). ANALYTIC REPORT ON THE IMPACT OF THE GLOBAL FINANCIAL CRISIS ON SOCIETAL SECURITY. Peace Research Institute Oslo. https://cdn.cloud.prio.org/files/c608ac89-eb37-4d59-8564-d3e74fff0736/SOURCE deliverable 53 Analytic report on the impact of the financial crisis on societal security.pdf?inline=true

Chicago

Boy, Nina, Ben Hayes, Jonas Clausen Mork, and Mikel Larreina. ANALYTIC REPORT ON THE IMPACT OF THE GLOBAL FINANCIAL CRISIS ON SOCIETAL SECURITY. Peace Research Institute Oslo, 2015. https://cdn.cloud.prio.org/files/c608ac89-eb37-4d59-8564-d3e74fff0736/SOURCE deliverable 53 Analytic report on the impact of the financial crisis on societal security.pdf?inline=true.

Wikipedia

{{cite report |last1=Boy |first1=Nina |last2=Hayes |first2=Ben |last3=Mork |first3=Jonas Clausen |last4=Larreina |first4=Mikel |title=ANALYTIC REPORT ON THE IMPACT OF THE GLOBAL FINANCIAL CRISIS ON SOCIETAL SECURITY |publisher=Peace Research Institute Oslo |date=30 December 2015 |url=https://cdn.cloud.prio.org/files/c608ac89-eb37-4d59-8564-d3e74fff0736/SOURCE deliverable 53 Analytic report on the impact of the financial crisis on societal security.pdf?inline=true |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{boy2015analytic, author = {Boy, Nina and Hayes, Ben and Mork, Jonas Clausen and Larreina, Mikel}, title = {{ANALYTIC REPORT ON THE IMPACT OF THE GLOBAL FINANCIAL CRISIS ON SOCIETAL SECURITY}}, institution = {Peace Research Institute Oslo}, year = {2015}, month = dec, url = {https://cdn.cloud.prio.org/files/c608ac89-eb37-4d59-8564-d3e74fff0736/SOURCE deliverable 53 Analytic report on the impact of the financial crisis on societal security.pdf?inline=true}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }