Economic Effects of Terrorism in Italy, Spain, and the United Kingdom

Abstract

Terrorism has become a reality in many parts of the world. Although it goes back millennia and has been present over the centuries, it became more prominent in the world with events such as the campaigns against Israel, including the 1972 Munich Olympics attacks, the actions of Al Qaeda including the 9/11 attacks, and the attacks by ISIS in the Middle East, Europe, and elsewhere. There was also a major wave of attacks by extreme leftist groups in West Europe beginning in the late 1960s and in other places, as well as violence by ethnic nationalist movements. As terrorism continues to be a threat to governments and populations, it has been suggested that one consequence of terrorist violence has been negative economic impacts. The analyses to follow will concentrate on the economic effects of terrorist campaigns by Basque nationalist groups in Spain, Irish republican groups operating in Northern Ireland, and Italian extremist groups such as the Brigate Rosse (BR).

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