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    Impact of 9/11 On European Economies

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    Samad Raza Khan
    The 9/11 attacks had significant negative economic impacts on European economies. Stock markets in Europe fell sharply immediately after the attacks. Ongoing military operations against terrorism have required heavy spending by European NATO members. Tourism industries in Europe suffered for a long period after 9/11 due to fears about vulnerability to terrorist attacks. European countries also increased security spending and adopted stricter security policies that increased costs and slightly reduced economic productivity and growth.

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    Impact of 9/11 On European Economies

    Uploaded by

    Samad Raza Khan
    24 views2 pages
    The 9/11 attacks had significant negative economic impacts on European economies. Stock markets in Europe fell sharply immediately after the attacks. Ongoing military operations against terrorism have required heavy spending by European NATO members. Tourism industries in Europe suffered for a long period after 9/11 due to fears about vulnerability to terrorist attacks. European countries also increased security spending and adopted stricter security policies that increased costs and slightly reduced economic productivity and growth.

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    9-11 ZAHEER

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    The 9/11 attacks had significant negative economic impacts on European economies. Stock markets in Europe fell sharply immediately after the attacks. Ongoing military operations against terrorism have required heavy spending by European NATO members. Tourism industries in Europe suffered for a long period after 9/11 due to fears about vulnerability to terrorist attacks. European countries also increased security spending and adopted stricter security policies that increased costs and slightly reduced economic productivity and growth.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    24 views2 pages

    Impact of 9/11 On European Economies

    Uploaded by

    Samad Raza Khan
    The 9/11 attacks had significant negative economic impacts on European economies. Stock markets in Europe fell sharply immediately after the attacks. Ongoing military operations against terrorism have required heavy spending by European NATO members. Tourism industries in Europe suffered for a long period after 9/11 due to fears about vulnerability to terrorist attacks. European countries also increased security spending and adopted stricter security policies that increased costs and slightly reduced economic productivity and growth.

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    IMPACT OF 9/11 ON EUROPEAN ECONOMIES

    The 9/11 attacks had far-reaching consequences on European economies besides the economy of
    United States itself. The 9/11 attacks were part of Al Qaeda’s strategy to disrupt Western
    economies and impose both direct and indirect costs on the United States and other nations. The
    twin attacks not only crippled the US economy but the economies throughout the world and
    especially the European economies faced a jerk. With THE WORLD TRADE CENTRE, the hub
    of trading activities coming under attacks the trading throughout world stock markets came to a
    sudden halt. This slowed the economic activities throughout the world economies and the
    European Union economies being the major ones out of it. Global stock markets fell sharply
    immediately after the attacks. The attacks themselves caused approximately $40 billion in
    insurance losses, making it one of the largest insured events ever. Right after the attacks
    European stock markets fell sharply, including declines of 4.6% in Spain, 8.5% in Germany, and
    5.7% on the London Stock Exchange. Thus the direct effects of 9/11 on the European economies
    involve:
     Slower world economic growth and
     Capital losses on stock markets.
    The attacks imposed a big question mark upon the security of the western world in the hands of
    Al-Qaeda. America and its allies soon indulged in the war against terrorism. The NATO
    countries most of them being European nations had to and are still spending heavy budgets on
    this war against terrorism along with the deployment of their forces in the region of war that is
    Afghanistan.
    In a broader sense, the 9/11 attacks led to the invasions and occupations of Afghanistan and Iraq
    (and the Global War on Terrorism) and perhaps emboldened terrorists to attack in Bali, Spain,
    Morocco, and Saudi Arabia. It is believed that the strategy of Al Qaeda is to hurt the Western
    world by attacking economic nodes and avenues of commerce.

    Right after the attacks the European nations realized the need for security within their territories.
    Hence the European countries revised their migration policies as with the raise of this security
    issue they were provided with an opportunity to control the migrations into their nations. Thus
    immigrants were categorized as posing threats to European societies.

    For a very long period following the 9/11 attacks the European nations faced a downward trend
    in tourism and travelling industry. It was believed that due to their vulnerability at the hands of
    Al-Qaeda people refrained from visiting these states. Hence their tourism industries faced
    financial loss.

    The European states like Germany, France, Spain, and Italy increased their spending upon
    internal security. Thus increased expenditures had adverse impacts upon their GDP as now their
    cost of production rose but productivity not seeing any improvement.

    These countries also adopted strict security policies and the import items like petroleum goods
    and certain other commodities were carefully scrutinized due to the threat of terrorism.
    These

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