2000s European sovereign debt crisis timeline

none January 2020 Euro area crisis thumb|300px|#003399 Countries using the Euro de jure #da2031 Countries and territories using the Euro de facto From late 2009, fears of a sovereign debt crisis in some European states developed, with the situation becoming particularly tense in early 2010. https://www.reuters.com/article/markets-bonds-spreads-idUSLDE61F0W720100216 Peripheral Eurozone government bond spreads widen Reuters George Matlock 16 February 2010 28 April 2010https://www.economist.com/leaders/2010/04/29/acropolis-now Acropolis now The Economist 29 April 2010 22 June 2011 Greece was most acutely affected, but fellow Eurozone members Cyprus, Ireland, Portugal, and Spain were also significantly affected.European Debt Crisis Fast Facts, CNN Library (last updated 22 January 2017).Ricardo Reis, Looking for a Success in the Euro Crisis Adjustment Programs: The Case of Portugal, Brookings Papers on Economic Activity, Brookings Institution (Fall 2015), p. 433. In the EU, especially in countries where sovereign debt has increased sharply due to bank bailouts, a crisis of confidence has emerged with the widening of bond yield spreads and risk insurance on credit default swaps between these countries and other EU members, most importantly Germany.https://www.ft.com/content/7d25573c-1ccc-11df-8d8e-00144feab49a Gilt yields rise amid UK debt concerns Financial Times 18 February 2010 15 April 2011 This was the first Eurozone crisis since its creation in 1999. As Samuel Brittan pointed out, Who is winning in the race for recovery Samuel Brittan Samuel Brittan Financial Times 12 May 2011 http://www.ft.com/intl/cms/s/0/e4379f48-7cc5-11e0-994d-00144feabdc0.html Jason Manolopoulos "shows conclusively that the Eurozone is far from an optimum currency area".Greece's 'Odious' Debt: The Looting of the Hellenic Republic by the Euro, the Political Elite and the Investment Community. Manolopoulos, J http://greecesodiousdebt.anthempressblog.com/ London May 2011 Anthem Press 18 August 2011 dead https://web.archive.org/web/20110817115807/http://greecesodiousdebt.anthempressblog.com/ 17 August 2011 dmy-all Niall Ferguson also wrote in 2010 that "the sovereign debt crisis that is unfolding... is a fiscal crisis of the western world". A Greek crisis is coming to America Niall Ferguson Niall Ferguson Financial Times 10 February 2010 18 April 2011 https://www.ft.com/content/f90bca10-1679-11df-bf44-00144feab49a https://web.archive.org/web/20110501134456/http://www.ft.com/cms/s/0/f90bca10-1679-11df-bf44-00144feab49a.html 1 May 2011 live Axel Merk argued in a May 2011 Financial Times article that the dollar was in graver danger than the euro.https://www.google.com/search?q=site:ft.com+%22dollar+in+graver+danger+than+the+euro%22 Dollar in graver danger than the euro Merk, Axel The Financial Times 11 May 2011 This reference links to a Google search where the first result is the correct link. Following the link directly would result in the news site requiring a subscription to access the article. Going through Google allows you to access the article without paying for a subscription. Concern about rising government deficits and debt levels Britain's deficit third worst in the world, table https://www.telegraph.co.uk/finance/financetopics/financialcrisis/7269629/Britains-deficit-third-worst-in-the-world-table.html https://web.archive.org/web/20100222004849/http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7269629/Britains-deficit-third-worst-in-the-world-table.html dead 22 February 2010 The Daily Telegraph London 19 February 2010 29 April 2010http://blogs.ft.com/money-supply/files/2010/01/misery.gif Fiscal Deficit and Unemployment Rate, FT 5 May 2010 across the globe together with a wave of downgrading of European government debt Timeline: Greece's economic crisis https://www.reuters.com/article/us-greece-economy-events-idUSTRE6124EL20100203 3 February 2010 29 April 2010 Reuters created alarm in financial markets. The debt crisis is mostly centred on events in Greece, where the cost of financing government debt has risen. On 2 May 2010, the Eurozone countries and the International Monetary Fund agreed to a €110 billion loan for Greece, conditional on the implementation of harsh austerity measures.Gabi Thesing Flavia Krause-Jackson Greece Gets $146 Billion Rescue in EU, IMF Package https://www.bloomberg.com/apps/news?pid=20601087&sid=a9f8X9yDMcdI&pos=1 Bloomberg 3 May 2010 10 May 2010 On 9 May 2010, Europe's Finance Ministers approved a comprehensive rescue package worth €750 billion (then almost a trillion dollars) aimed at ensuring financial stability across Europe by creating the European Financial Stability Facility. https://news.bbc.co.uk/2/hi/business/8671632.stm EU ministers offer 750bn-euro plan to support currency 10 May 2010 BBC News 11 May 2010 https://web.archive.org/web/20100510101554/http://news.bbc.co.uk/2/hi/business/8671632.stm 10 May 2010 live The Greek bail-out was followed by an €85 billion rescue package for Ireland in November,Treanor, Jill and Elliott, Larry Ireland to get €85bn loan in deal that will nationalise its banks The Guardian, 24 November 2010, Retrieved 19 May 2011 and a €78 billion bail-out for Portugal in May 2011.https://www.telegraph.co.uk/comment/columnists/christopherhowse/7482331/Sacred-Mysteries-Taking-the-God-out-of-good.html 11 April 2011 Portugal prepares to meet EU and IMF to negotiate bail-out Sarah Butler The Daily Telegraph UK 18 April 2011https://www.bbc.co.uk/news/business-13408497 Portugal's 78bn euro bail-out is formally approved BBC Business BBC 16 May 2011 19 May 2011 https://web.archive.org/web/20110518135513/http://www.bbc.co.uk/news/business-13408497 18 May 2011 live While the sovereign debt increases have been most pronounced in only a few Eurozone countries they have become a perceived problem for the area as a whole.http://www.spiegel.de/international/europe/0,1518,769329,00.html How the Euro Became Europe's Greatest Threat Der Spiegel 20 June 2011 SPIEGEL staff 16 October 2011 In May 2011, the crisis resurfaced, concerning mostly the refinancing of Greek public debt.https://www.theguardian.com/business/2011/jun/19/greek-debt-crisis-Eurozone-ministers?intcmp=239 https://web.archive.org/web/20160313130426/http://www.theguardian.com/business/2011/jun/19/greek-debt-crisis-eurozone-ministers?intcmp=239 13 March 2016 Greek debt crisis: Eurozone ministers meet amid deepening gloom Ian Traynor The Guardian 19 June 2011 London dead The Greek people generally rejected the austerity measures and have expressed their dissatisfaction with protests.https://www.economist.com/blogs/newsbook/2011/06/greeces-political-crisis A long day in Greece K.H. The Economist 16 June 2011https://www.theguardian.com/world/2011/jun/19/athens-protests-syntagma-austerity-protests Athens protests: Syntagma Square on frontline of European austerity protests Aditya Chakrabortty The Guardian 19 June 2011 London In late June 2011, the crisis situation was again brought under control with the Greek government managing to pass a package of new austerity measures and EU leaders pledging funds to support the country.https://www.bbc.co.uk/news/world-europe-13886099 EU leaders pledge to do what is needed to help Greece BBC Business BBC 23 June 2011 16 October 2011 In May 2012 the crisis escalated to new levels following the national May 2012 Greek parliamentary election. Greek parties failed to form a coalition Government following the election and there was widespread speculation of Greece exiting the Eurozone, termed a "Grexit". Below is a brief summary of some of the main events since the Greek government debt crisis.https://www.reuters.com/article/idUSLDE6351JU20100416 Reuters Timeline of Greek Crisis Reuters 16 April 2010 5 May 2010 2009 October October – A new Greek government led by Panhellenic Socialist Movement (PASOK) was formed after the party received 43.92% of the popular vote and 160 of 300 parliamentary seats in the Greek legislative election, 2009.http://www.rfi.fr/actuen/articles/117/article_5008.asp Greeks to vote on 4 October RFI 3 September 2009 2010 January 14 January – Greece unveiled its Stability and Growth Programme which aimed to cut deficit from 12.7% in 2009 to 2.8% in 2012.http://ec.europa.eu/economy_finance/sgp/pdf/20_scps/2009-10/01_programme/el_2010-01-15_sp_en.pdf Update of the Hellenic Stability and Growth Programme European Commission 9 October 2011 15 January 2010 February 2 February – The Greek Government extended public sector wage freeze to those earning less than €2,000 a month.https://www.bloomberg.com/apps/news?pid=newsarchive&sid=aUYpFRZkb368 https://web.archive.org/web/20120412040538/http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aUYpFRZkb368 12 April 2012 EU Back to Greek Deficit Plan; Wage Freeze is pledged (Update2) Bloomberg 9 October 2011 2 February 2010 Maria Petrakis and Meera Louis dead 3 February – The EU Commission backed Greece's Stability and Growth Programme and urged it to cut its overall wage bill.http://www.euractiv.com/euro/brussels-endorses-greek-deficit-cutting-plan Brussels endorses Greek deficit cutting plan EurActiv 9 October 2011 3 February 2010 EurActiv 10 February – Thousands of Greek civil servants staged a 24-hour strike shutting schools and grounding flights as the government planned to freeze pay and pensions.http://www.channel4.com/news/articles/politics/international_politics/greek+workers+strike+over+pay+freeze/3535147.html Greek workers strike over pay freeze Channel 4 News 9 October 2011 10 February 2010 Channel 4 News 24 February – One-day general strike against the austerity measures halted public services and transport system.http://www.etuc.org/a/6986 General strike by the GSEE and massive demonstrations European Trade Union Confederation 9 October 2011 24 February 2010 European Trade Union Confederation https://web.archive.org/web/20111013014738/http://etuc.org/a/6986 13 October 2011 dead 25 February – EU mission in Athens with International Monetary Fund (IMF) experts delivered a grim assessment of the country's finances.http://www.slideshare.net/nadi143/greece-crisis-4720722 Greece Crisis Slideshare 9 October 2011 April 2010 Mohammad Naveed thumb|The first round of austerity in 2010 failed to stop Greece's rising debt, which is expected to go up by 10% in 2011.Προβλέψεις της Ευρ. Επιτροπής http://www.tovima.gr/finance/article/?aid=400463 To Vima 3 July 2011 13 May 2011 March 5 March – New Greek public sector wage cuts and tax increases were passed to generate an estimated saving of €4.8 billion. Measures include increasing value-added tax by 2% to 21%, cutting public sector salary bonuses by 30%, increases in fuel, tobacco and alcohol consumption taxes and freezing state-funded pensions in 2010.http://www.irishtimes.com/newspaper/finance/2010/0304/1224265559039.html Greece cuts public payroll in effort to cut budget deficit 3 March 2010 1 November 2011 Irish Times 11 March – Greek public and private sector workers strike.https://www.theguardian.com/world/gallery/2010/mar/11/greece-strike-violence Greece strike protests turn violent The Guardian 11 March 2010 London 15 March – European Monetary Union (EMU) finance ministers agree on a mechanism to help Greece but reveal no details.http://www.dnaindia.com/world/analysis_greece-s-debt-crisis-timeline_1396856 Greece's debt crisis timeline DNA – Daily News & Analysis 15 June 2010 Reuters 1 November 2011 18 March – Papandreou warns Greece will not be able to cut deficit if borrowing costs remain as high as they are and may have to go to the IMF.https://www.reuters.com/article/us-Eurozone-idUSLDE62H0LL20100318 Greece ups stakes in quest for EU help Reuters 18 March 2010 Reuters 1 November 2011 Grajewski, Marcin Reuters live https://web.archive.org/web/20111101064227/https://www.reuters.com/article/2010/03/18/us-eurozone-idUSLDE62H0LL20100318 1 November 2011 19 March – European Commission President, José Manuel Barroso urges EU member states to agree a standby aid package for Greece. Barroso says the EMU countries should be on stand by to make bilateral loans.http://ec.europa.eu/commission_2010-2014/president/news/speeches-statements/2010/03/index_en.htm President José Manuel Barroso – European Commission – Speeches and statements EUROPA.EU 26 March 2011 1 November 2011 25 March – European Central Bank (ECB) President, Jean-Claude Trichet says his bank will extend softer rules on collateral (accepting BBB? instead of the standard A−) for longer (up to 2011) in order to avoid a situation where one ratings agency (Moody's) basically decides if an EMU country's bonds are eligible for use as ECB collateral.http://riskviews.wordpress.com/timeline-of-the-global-financial-crisis/gfc-2010/ GFC 2010 – Riskviews Riskviews riskviews.wordpress.com 6 August 2010 1 November 2011 riskviews March – €5 billion in 10-year Greek bonds sold – orders for three times that amount are received.http://www.cadtm.org/The-great-Greek-bond-bazaar CADTM – The great Greek bond bazaar cadtm.org Eric Toussaint 14 September 2010 1 November 2011 April thumb|upright|Former President of France, Nicolas Sarkozy 9 April – Government of Greece announces that the deficit for the first trimester was reduced by 39,2%. ToVima: Greek deficit reduction for Q1 http://www.tovima.gr/default.asp?pid=2&artid=324738&ct=3&dt=09/04/2010 To Vima News 9 April 2010 18 November 2010 https://web.archive.org/web/20100412212616/http://www.tovima.gr/default.asp?pid=2&ct=3&artid=324738&dt=09%2F04%2F2010 12 April 2010 dead dmy-all 11 April – EMU leaders agree bailout plan for Greece. Terms are announced for €30 billion of bilateral loans (roughly 5% for a three-year loan). EMU |countries will participate in the amount based on their ECB country keys. Rates for variable rate loans will be 3m-Euribor plus 300 basis points (bp) + 100 bp for over three-year loans plus a one-off 50 bp charge for operating expenses. For fixed rate loans rates will be swap rate for the loan's maturity, plus the 300 bp (as in variable) plus the 100 bp for loans over three years plus the 50 bp charge. 13 April – ECB voices its support for the rescue plan. 15 April – Olli Rehn says there is no possibility of a Greek default and no doubt that Germany will participate in the bailout plan. In the meantime there had been serious objections from parts of German society to the country's participation in the Greek bailout. 23 April – Greece officially asks for the disbursement of money from the aid package effectively activating it. 27 April: Standard and Poor's downgrades Greece's debt ratings below investment grade to junk bond status. S&P downgrades Portuguese debt two notches and issues negative outlook, warning that further downgrades to junk status are likely. Stock indices around the world drop two to six per cent on the news. 28 April – S&P downgrades Spanish bonds from AA to AA−. April – Sale of more than €1.5 billion Greek Treasury bills met with "stronger-than-expected" demand, albeit at a high interest rate. May thumb|Clash between riot police and a citizen – 29 June 2011 1 May – Protests, yearly taking place for the day, this year add "the proposed austerity measures", in Athens. 2 May – Greece announces the latest, fourth, raft of austerity measures. 3 May – The ECB announces that it will accept Greek Government bonds as collateral no matter what their rating is. This effectively means scrapping the BBB-floor in the case of Greece and increasing the likelihood of similar announcements in case other countries run the risk of being downgraded to junk status. ECB extends financial lifeline to Greece https://www.ft.com/content/1d1c4b0c-5683-11df-aa89-00144feab49a Financial Times 4 May 2010 https://web.archive.org/web/20100504204734/http://www.ft.com/cms/s/0/1d1c4b0c-5683-11df-aa89-00144feab49a.html 4 May 2010 live 4 May – First day of strikes against the austerity measures. Global stock markets react negatively to fears of contagion. World shares dive as Greeks strike over cuts The Times UK http://business.timesonline.co.uk/tol/business/economics/article7115884.ece https://archive.today/20110611205127/http://business.timesonline.co.uk/tol/business/economics/article7115884.ece dead 11 June 2011 4 May 2010 5 May 2010 Jenny Booth Robert Lindsay 5 May – General nationwide strike and demonstrations in two major cities in Greece turned violent. Three people were killed when a group of masked people threw petrol bombs in a Marfin Egnatia Bank branch on Stadiou street.BBC News Three dead as Greece protest turns violent https://news.bbc.co.uk/2/hi/8661385.stm 5 May 2010 5 May 2010 https://web.archive.org/web/20100507022425/http://news.bbc.co.uk/2/hi/8661385.stm 7 May 2010 liveBilefsky The New York Times Three Reported Killed in Greek Protests https://www.nytimes.com/2010/05/06/world/europe/06greece.html 5 May 2010 7 May 2010 Dan https://web.archive.org/web/20100508161349/http://www.nytimes.com/2010/05/06/world/europe/06greece.html 8 May 2010 live 6 May – Concerns about the ability of the Eurozone to deal with a spreading crisis effectively caused a severe market sell off, particularly in the United States where electronic trading glitches combined with a high volume sell off produced a nearly 1,000-point intra-day drop in the Dow Jones Industrial Average, before it recovered somewhat to close down 347. 7 May – Volatility continued to accelerate with an increasing CBOE VIX index and a major widening in currency spreads, particularly dollar-yen and dollar-euro. 8 May – Leaders of the Eurozone countries resolved in Brussels to take drastic action to protect the euro from further market turmoil after approving a $100 billion bailout plan for Greece.Lauren Frayer, "Europe Tries to Calm Fears Over Greek Debt Crisis" https://web.archive.org/web/20100509111531/http://www.aolnews.com/world/article/european-leaders-try-to-calm-fears-over-greek-debt-crisis-and-protect-euro/19469674 9 May 2010 , AOL News. Retrieved 9 May 2010. 10 May: In the context of the Securities Markets Programme (SMP), ECB as well as the central banks of the Eurosystem started purchasing securities.https://www.ecb.europa.eu/mopo/implement/omt/html/index.en.html Asset purchase programmes 5 October 2022 20 May – Fourth strike in Greece against wage cuts. 24 May – Greek government is announcing deficit reduction by 41.5% for the first four months. Greek government deficit reduction for first 4 months http://www.skai.gr/news/finance/article/143977/meiosi-415-sto-elleimma-tetraminou-/ Skai News 21 May 2010 27 May – Debate rages in UK House of Commons about the prospect of Great Britain entering a similar financial crisis. These exchanges become known as The Greek Defence. 29 May – Fitch downgrades Government of Spain bonds one notch from AAA to AA+.Spain Loses AAA Rating at Fitch as Europe Battles Debt Crisis https://www.bloomberg.com/apps/news?pid=20601010&sid=a5vlmlmZJB2s Duarte, E Ross-Thomas, E 9 May 2010 29 May 2010 Bloomberg June 4 June – The Hungarian PM Viktor Orbán's spokesman said it was not an exaggeration that the prospect of a national default is very real, although Moody's still affirmed that Hungary had a good record of paying its obligations.Barak Tal https://www.bloomberg.com/apps/news?pid=20601087&sid=aSvd4abNVV2E&pos=7 Hungary 'is not Greece,' Moody's Says Following Bond Tumble – Bloomberg Bloomberg.com 4 June 2010 2 November 2011 The Euro fell to a four-year lowLevisohn Ben https://www.bloomberg.com/apps/news?pid=20601087&sid=axTTiSuX3gvc&pos=5 Euro Weakens Below $1.20 for First Time Since 2006 on Debt Crisis Concern – Bloomberg Bloomberg.com 5 June 2010 2 November 2011 and major American markets fell more than 3%. July 5 July – The central Bank of Greece announced a reduction of central government cash deficit by 41.8%, for the first half-year 2010. Greece announces deficit reduction by 41.8% http://www.bankofgreece.gr/Pages/en/Bank/News/PressReleases/DispItem.aspx?Item_ID=3359&List_ID=1af869f3-57fb-4de6-b9ae-bdfd83c66c95&Filter_by=DT Bank of Greece 5 July 2010 6 July 2010 September 5 September – Spreads on longer-term Greek government debt have surged back to crisis levels of about 800 basis points, implying a high risk of default. https://www.telegraph.co.uk/finance/economics/7980291/EU-austerity-policies-risk-civil-war-in-Greece-warns-top-German-economist-Dr-Sinn.html London The Daily Telegraph Ambrose Evans-Pritchard EU austerity policies risk civil war in Greece, warns top German economist Dr Sinn 3 September 2010 18 November 2010 https://web.archive.org/web/20101113065502/http://www.telegraph.co.uk/finance/economics/7980291/EU-austerity-policies-risk-civil-war-in-Greece-warns-top-German-economist-Dr-Sinn.html 13 November 2010 live 7 September – Finance Ministers of the EU countries approve the second of the bailout installments for Greece (€6.5 billion). 11 September – The IMF also approves the second installment of their bailout package for Greece (€2.57 billion). October thumb|Angela Merkel, Chancellor of Germany 31 October – Angela Merkel's coalition, trailing in the German polls and with lander elections due in 2011, backs proposals to make bondholders pay for any future euro-area crises.Angela Merkel consigns Ireland, Portugal and Spain to their fateJune 2017 InternetArchiveBot yes Yahoo! UK and Ireland Finance, 31 October 2010, Retrieved 17 November 2010Merkel backs plan to put burden on bondholders The Independent, 9 November 2010, Retrieved 17 November 2010 November 13 November – The potential for loss in value of government bonds or an interest holiday triggers selling of Irish debt. The 10-year Irish government bond premium surged to a record 652 basis points premium against the German bond.Global Foreign Exchange Market The Star online  13 November 2010, Retrieved 17 November 2010 16 November – Ireland started talks with the EU over a bailout. The move prompted further worry that Greece and Portugal were also in poor fiscal shape.Neuger James G. https://www.bloomberg.com/news/2010-11-16/ireland-discusses-financial-bailout-as-eu-struggles-to-defuse-debt-crisis.html Ireland Weighs Aid as EU Spars Over Debt-Crisis Remedy – Bloomberg Bloomberg.com 16 November 2010 2 November 2011 The move follows previous denials that Ireland would need external help to alleviate its debt burden. 21 November – Ireland controversiallyhttp://www.irishtimes.com/newspaper/opinion/2010/1118/1224283626246.html Was it for this? – The Irish Times – Thu, 18 November 2010 Irishtimes.com 18 November 2010 2 November 2011 21 November 2010 https://web.archive.org/web/20101121220628/http://www.irishtimes.com/newspaper/opinion/2010/1118/1224283626246.html dead accept an EU-IMF multibillion-euro package to help alleviate its debt burden.http://english.aljazeera.net/news/europe/2010/11/20101121202222361462.html Ireland confirms EU bailout deal – Europe – Al Jazeera English English.aljazeera.net 2 November 2011 22 November – Following the withdrawal of the Irish Green Party from the governing coalition, a new election is called.Doyle Dara https://www.bloomberg.com/news/2010-11-22/ireland-s-bid-for-financial-aid-prompts-moody-s-warning-election-threat.html Irish Aid Bid Prompts Moody's Warning, Threat of Elections – Bloomberg Bloomberg.com 22 November 2010 2 November 2011 2011 January thumb|Demonstrators in front of the Greek parliament, 29 May January 2011 – Fitch becomes the third rating agency to cut Greek debt to "junk" status after S&P and Moody's. May 2 May – Finance Minister George Papaconstantinou again rules out a debt restructuring, adding that he has just "expressed the hope" that the EU and IMF will agree to extend bailout loan repayments. 21 May – Mr Papandreou and senior ECB officials say Greece must avoid debt restructuring and push on with budget cuts and privatisations to overcome its debt crisis. 23 May – Greece unveils a series of privatisations, part of a goal to raise €50 billion by 2015 to pay down its debt mountain. June thumb|Indignants cleaning the streets around Syntagma Square on their 22nd day of protest on 15 June. 1 June – The Greek government criticised Moody's decision to cut its credit rating to Caa1, which brought it seven notches into junk territory, saying the move did not take into account the country's effort to tidy up the country's finances.https://www.reuters.com/article/markets-forex-idUSN0119864320110601 FOREX-Euro off 4-week high; Moody's cuts Greece rating Nick Olivari Reuters 1 June 2011 15 October 2011 4 June – Greece hit by further protests in central Athens, as PM Papandreou agreed to make "significant" cuts in public sector employment.https://www.telegraph.co.uk/finance/financialcrisis/8556501/Greeks-protest-after-nation-pledges-significant-cuts-to-secure-12bn-IMF-bail-out.html Greeks protest after nation pledges 'significant cuts' to secure €12bn IMF bail-out Rowena Mason The Daily Telegraph 4 June 2011 London 9 June – In an open letter to European and international authorities, German finance minister Wolfgang Schäuble said that "Any additional financial support for Greece has to involve a fair burden sharing between taxpayers and private investors."http://articles.boston.com/2011-06-09/business/29639161_1_greek-debt-ecb-greece German plan for Greek bailout would enlist private investors Matthew Saltmarsh Boston.com 9 June 2011 15 October 2011 dead https://web.archive.org/web/20111103072913/http://articles.boston.com/2011-06-09/business/29639161_1_greek-debt-ecb-greece 3 November 2011 11 June – Jean-Claude Juncker, head of the Eurozone finance ministers, backed Germany's proposal for a "soft restructuring" of Greek debt, but said any contribution from private sector creditors should be "voluntary".https://www.telegraph.co.uk/finance/economics/gilts/8571166/Juncker-backs-a-soft-Greek-debt-restructuring.html Juncker backs a 'soft' Greek debt restructuring Garry White The Telegraph 12 June 2011 London 15 June – Waiting from both markets and the Greek population turned violent. The failure of European leaders to resolve their disagreements over the Greek debt crisis combined to rattle credit markets.Economics https://www.telegraph.co.uk/finance/economics/8580720/Timeline-of-a-crisis-how-Greeces-tragedy-unfolded.html Timeline of European sovereign debt crisis – Greece The Daily Telegraph 16 June 2011 2 November 2011 London 17 June – The French President, Nicolas Sarkozy and the German Chancellor, Angela Merkel agreed to a voluntary Greece bondholder role, backing down from earlier demands that bondholders be forced to shoulder a "substantial" share of a Greek rescue.Czuczka Tony https://www.bloomberg.com/news/2011-06-17/merkel-says-she-s-prepared-to-work-with-ecb-on-investor-role-in-greece.html "Merkel Agrees to Voluntary Greece Bondholder Role." Bloomberg, 17 June 2011 Bloomberg.com 17 June 2011 2 November 2011 18 June – Angela Merkel changes her position and confirms she will work with the European Central Bank to resolve the Mediterranean nation's sovereign debt crisis.http://www.irishtimes.com/newspaper/finance/2011/0618/1224299153136.html "Hopes for 'Greek miracle' as Merkel changes position." The Irish Times Irishtimes.com 18 June 2011 2 November 2011 Caroline Madden July thumb|upright|George Papandreou, the previous Prime Minister of Greece 21 July – The Council of the European Union reached an agreement on measures aimed at solving the Greek debt crisis.http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/123978.pdf "Statement by the Heads of State Or Government of the Eurozone And Eu Institutions." Brussels. 2 November 2011 August ?? – significant purchases of Eurozone sovereign bonds restart under ECB's SMP programme. Spanish and Italian yields breach 6%. 18 August – The European stock markets suffered further heavy falls due to persistent fears about the world economic outlook.http://www.rte.ie/news/2011/0818/euro-business.html New slump fears rock stock markets 18 August 2011 RTÉ RTÉ 18 August 2011 24 August – The French government unveiled a €12 billion deficit cutting package that raised taxes on the rich and closed some tax loopholes.http://www.rte.ie/news/2011/0824/france-business.html France unveils austerity plan as growth slows 24 August 2011 RTÉ RTÉ 24 August 2011 September 13 September – An international alarm over a Eurozone crisis grows.Barkin Noah https://news.yahoo.com/geithner-heads-europe-debt-fears-mount-030230967.html International alarm over Eurozone crisis grows News.yahoo.com 13 September 2011 2 November 2011 21 September – S&P have downgraded seven Italian banks after they've dropped Italy's sovereign rating two days ago.http://www.rte.ie/news/2011/0921/italy-business.html S&P's cuts ratings of seven italian banks Rte.ie 21 September 2011 2 November 2011 22 September – Greeks reacted with anger and disbelief at a new wave of austerity cuts enacted to keep the country in the Eurozone.http://www.rte.ie/news/2011/0922/greece.html Greece protests over fresh cuts RTÉ 22 September 2011 RTÉ 22 September 2011 24 September – The IMF urged EU leaders to act decisively on Greece to stem the debt crisis.https://www.bbc.co.uk/news/business-15049780 IMF promises decisive action for Eurozone debt crisis BBC 10 October 2011 BBC 24 September 2011 26 September – The US president, Barack Obama, says the debt crisis in Europe is "scaring the world" and that leaders in the Eurozone are not dealing with the issue quickly enough.http://www.irishtimes.com/newspaper/breaking/2011/0926/breaking1.html Euro crisis 'scaring the world' Irish Times 26 September 2011 29 September – The Bundestag approved expanded EU bailout fund, reducing market concerns.https://www.bbc.co.uk/news/world-europe-15107538 German parliament approves expanded EU bailout fund BBC 10 October 2011 BBC 30 September 2011 October thumb|upright|Silvio Berlusconi, a former Prime Minister of Italy 4 October – European shares declined for a second day on fears that Franco-Belgian bank Dexia may need to be rescued due to its exposure to Greek debt. Concern increased that the Eurozone sovereign debt crisis is spreading to the banking sector.https://www.cnbc.com/id/44766967 European Shares Close Lower on Contagion Fears CNBC 10 October 2011 CNBC 4 October 2011 dead https://web.archive.org/web/20111107162836/http://www.cnbc.com/id/44766967 7 November 2011 7 October – Credit ratings agency Fitch cut Italy's credit rating by one notch to A+ from AA− and cut Spain's rating to AA− from AA+.http://www.rte.ie/news/2011/1007/euro2-business.html Fitch cuts Italian, Spanish ratings RTÉ 9 October 2011 RTÉ 7 October 2011 9 October – British PM David Cameron exhorted EU leaders to act more quickly ashttp://www.ft.com/intl/cms/s/0/bd7d2ed0-f26e-11e0-824e-00144feab49a.html#axzz1aJynBbai 'Time short' for Eurozone, says Cameron 9 October 2011 FT 9 October 2011 French and German leaders promised new crisis plan as pressure builds.https://www.reuters.com/article/us-Eurozone-idUSTRE7953D520111009 Berlin, Paris vow new crisis plan as global pressure builds Reuters 9 October 2011 Reuters 9 October 2011 live https://web.archive.org/web/20111010015856/https://www.reuters.com/article/2011/10/09/us-eurozone-idUSTRE7953D520111009 10 October 2011 10 October – Belgium nationalised Dexia Bank Belgium, stricken with Greek debt.http://www.ft.com/intl/cms/s/0/d5a81e4c-f35a-11e0-b98c-00144feab49a.html?ftcamp=rss#axzz1aJynBbai 'Bad bank' key to new Dexia structure 10 October 2011 FT 10 October 2011 13 October – S&P cut Spain's long-term credit rating by one notch from AA to AA− with a negative outlook.http://www.rte.ie/news/2011/1014/spain-business.html S&P lowers Spain's debt rating a notch to AA- RTÉ News RTÉ News 14 October 2011 15 October 2011 28 October: The German government found itself €55 billion richer after a discovery of an accounting error at Hypo Real Estate, the troubled bank it nationalised in 2009.https://www.bbc.co.uk/news/business-15503097 Germany finds extra 55bn euros after accounting error BBC Business 28 October 2011 30 October 2011 BBC The head of the Eurozone's bailout fund has begun attempts to persuade the People's Republic of China to invest in a scheme to help rescue member countries facing debt crises.https://www.bbc.co.uk/news/world-europe-15489202 Eurozone seeks bailout funds from China BBC Business 28 October 2011 30 October 2011 BBC November 1 November – The Greek PM Papandreou has announced a referendum on the new Eurozone debt deal which shocked European markets and had thrown the future of the euro back into disarray.https://edition.cnn.com/2011/11/01/business/greece-referendum-explainer/index.html?hpt=hp_c1 Greek referendum: What happens next? CNN Nick Thompson 1 November 2011 1 November 2011 3 November – Prime Minister Papandreouthe withdraws from promised Greek referendum on the bailout package amid heavy pressure from Germany and France. 8 November – Italian Prime Minister Silvio Berlusconi said that he will resign of his office after budget reforms were passed, while Italy's cost of borrowing had hit record levels on bond markets.https://www.bbc.co.uk/news/business-15652708 Italy borrowing costs hit record 7% BBC News 9 November 2011 BBC 9 November 2011 BBC 11 November – Italian 10-year borrowing costs fall sharply from 7.5 to 6.7% after Italian legislature approves further austerity measures and the formation of an emergency government to replace that of Prime Minister Silvio Berlusconi.https://www.reuters.com/article/eurozone-idUSL5E7MB0VY20111111 Italy pushes through austerity, US applies pressure Reuters 11 November 2011 11 November 2011 Barry Moody 13 November – Silvio Berlusconi resigns as Prime Minister of Italy as a result of the country's debt crisis.https://www.bbc.co.uk/news/world-europe-15710790 Italy crisis: President holds talks to find new leader BBC Business News 13 November 2011 BBC 13 November 2011 BBC 15 November – The Lisbon Council publishes the Euro Plus Monitor 2011, which attests the most critical eurozone member countries Greece, Ireland and Spain to be in the process of rapid reforms.http://www.lisboncouncil.net//index.php?option=com_downloads&id=557 Euro Plus Monitor 2011 The Lisbon Council 15 November 2011 17 November 2011 https://web.archive.org/web/20120422205617/http://www.lisboncouncil.net//index.php?option=com_downloads&id=557 22 April 2012 live 21 November – The European Commission suggests "stability bonds" (eurobonds) issued jointly by the 17 euro nations would be an effective way to tackle the financial crisis.Europe Agrees to Basics of Plan to Resolve Euro Crisis https://www.google.com/hostednews/ap/article/ALeqM5jA1xCfq5lszH-UcHpWH9vWh57Thg?docId=24c47c7dd54b46388c7ed6d9f7224717 21 November 2011 Associated Press 21 November 2011June 2024 medicmedicEU's Barroso: Will present options on euro bonds https://www.reuters.com/article/us-eurozone-barroso-eurobonds-idUSTRE78D1GT20110914 21 November 2011 Associated Press 14 September 2011 25 November – Standard and Poor's downgrades Belgium's long-term sovereign credit rating from AA+ to AA,Gill, Frank (25 November 2011) Ratings On Belgium Lowered To 'AA' On Financial Sector Risks To Public Finances; Outlook Negative Standard and Poors Rating Service, Retrieved 1 December 2011. Archived 23 February 2012. and 10-year bond yields reach 5.66%.Bowen, Andrew and Connor, Richard (28 November 2011) Belgian budget breakthrough builds hopes for new government Deutsche Welle, DW-World.DE, Retrieved 1 December 2011 30 November – The European Central Bank, the U.S. Federal Reserve Federal Reserve, the central banks of Canada, Japan, Britain and the Swiss National Bank provide global financial markets with additional liquidity to ward off the debt crisis and to support the real economy. The central banks agree to provide each other with abundant liquidity to make sure that commercial banks stay liquid in other currencies.„Grosse Notenbanken versorgen Banken mit Liquidität – Kursfeuerwerk an den Börsen – auch SNB beteiligt“ NZZ Online December 2 December – Belgian negotiating parties reach an agreement to form a new government. The deal includes spending cuts and tax rises worth about €11 billion, which should bring the budget deficit down to 2.8% of GDP by 2012, and to balance the books in 2015.An end to waffle? https://www.economist.com/europe/2011/12/03/an-end-to-waffle Economist magazine 2 December 2011 2 December 2011 https://web.archive.org/web/20120126122904/http://www.economist.com/node/21541074 26 January 2012 live Following the announcement Belgium 10-year bond yields fell sharply to 4.6%.Belgium Govt Bonds 10 YR Note Belgium BB https://www.bloomberg.com/apps/quote?ticker=GBGB10YR:IND Bloomberg 2 December 2011 2 December 2011 5 December – The central banks agree to lower the cost of dollar currency swaps by 50 basis points. 7 December – The new interim national union government led by Lucas Papademos submits its plans for the 2012 budget, promising to cut its deficit from 9% of GDP 2011 to 5.4% in 2012, mostly due to the write-off of debt held by banks.https://www.bbc.co.uk/news/business-15791008 Greek budget will 'cut deficit' by 2012 BBC News 7 December 2012 7 December 2012 8 December – Fitch cuts Greece's rating to BBB+ from A−, with a negative outlook.https://www.theguardian.com/world/2009/dec/08/greece-credit-rating-lowest-Eurozone Financial markets tumble after Fitch downgrades Greece's credit rating Smith Helena The Guardian 9 October 2011 8 December 2011 London dead https://web.archive.org/web/20120312032311/http://www.guardian.co.uk/world/2009/dec/08/greece-credit-rating-lowest-eurozone 12 March 2012 9 December – All 17 members of the eurozone and six countries that aspire to join agree at the European Council meeting on a new intergovernmental treaty to put strict caps on government spending and borrowing, with penalties for those countries who violate the limits. Baker Luke https://www.reuters.com/article/eurozone-idUSL5E7N900120111209 WRAPUP 5-Europe moves ahead with fiscal union, UK isolated Reuters 9 December 2011 9 December 2011 All other non-eurozone countries except Great Britain are also prepared to join in, subject to parliamentary vote.http://consilium.europa.eu/press/press-releases/latest-press-releases/newsroomrelated?bid=76&grp=20199&lang=en&cmsId=339 European Council Press releases European Council 9 December 2011 9 December 2011 14 December – Greek PM Papandreou outlines the first round of policies to cut deficit and regain investor trust.https://news.bbc.co.uk/2/hi/europe/8413391.stm Greece PM Papandreou sets out anti-corruption plan BBC BBC News 9 October 2011 15 December 2011 22 December – Portugal reports its estimated budget deficit of 4.5% in 2011 will be substantially lower than expected and it will meet its 2012 target already a year earlier due to a one-off transfer of pension funds.http://uk.reuters.com/article/portugal-deficit-idUKL6E7ND4O320111213 https://web.archive.org/web/20160101100219/http://uk.reuters.com/article/portugal-deficit-idUKL6E7ND4O320111213 dead 1 January 2016 Portugal 2011 deficit to beat goal on one-off revs-PM Reuters UK 13 December 2011 30 December 2011 Moody's cuts Greece's rating to A2 from A1.https://news.bbc.co.uk/2/hi/8426085.stm Greece debt rating downgraded by third agency. BBC BBC News 9 October 2011 22 December 2011 The ECB starts the biggest infusion of credit into the European banking system in the euro's 13-year history, loaning €489 billion to 523 banks for an exceptionally long period of three years at a rate of just one per cent.http://news.businessweek.com/article.asp?documentKey=1377-aWQyiw0H4GIM-497EEB4BELPRIE7TIUO0INS6SD ECB Lends 489 Billion Euros for 3 Years, Exceeding Forecast Business Week 21 December 2011 27 January 2012 dead https://web.archive.org/web/20130502112655/http://news.businessweek.com/article.asp?documentKey=1377-aWQyiw0H4GIM-497EEB4BELPRIE7TIUO0INS6SD 2 May 2013 2012 January 13 January – Standard & Poor's downgrades France and Austria from AAA rating, lowers Spain, Italy and five other euro members further, and maintains the top credit rating for Finland, Germany, Luxembourg, and the Netherlands.Gibson, Kate, "S&P takes Europe's rescue fund down a notch", MarketWatch, 16 January 2012 2:37 pm EST. Retrieved 16 January 2012. Archived 23 February 2012. 16 January – S&P downgrades the EFSF from AAA to AA+.Standard & Poor's Ratings Services quoted at S&P cuts EFSF bail-out fund rating: statement in full 16 January 2012 BBC Standard & Poor's Ratings Services today lowered the 'AAA' long-term issuer credit rating on the European Financial Stability Facility (EFSF) to 'AA+' from 'AAA' . . . We lowered to 'AA+' the long-term ratings on two of the EFSF's previously 'AAA' rated guarantor members, France and Austria. The outlook on the long-term ratings on France and Austria is negative, indicating that we believe that there is at least a one-in-three chance that we will lower the ratings again in 2012 or 2013. We affirmed the ratings on the other 'AAA' rated EFSF members: Finland, Germany, Luxembourg, and The Netherlands. 30 January – German consulting company Roland Berger says it has started collecting funds from financial institutions and business intelligence agencies to set up an independent non-profit ratings agency by Mid-2012, which could provide its first country ratings by the end of the year.Florian Eder Bonitätswächter wehren sich gegen Staatseinmischung Die Welt https://www.welt.de/wirtschaft/article13825083/Bonitaetswaechter-wehren-sich-gegen-Staatseinmischung.html 20 January 2012 20 January 2012 February 21 February – The Eurogroup finalises the Second bailout package with the private holders of Greek governmental bonds accepting a slightly bigger haircut of 53.5%. EU Member States agree to an additional retroactive lowering of the bailout interest rates and pass on all central bank profits related to Greece until 2020. Altogether this should bring down Greece's debt to 120.5% by 2020.http://consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/128075.pdf Eurogroup statement 21 February 2012 Eurogroup 21 February 2012 29 February 2012 – The ECB holds a second auction, providing 800 Eurozone banks with further €529.5 billion in cheap loans. Wearden Graeme https://www.theguardian.com/business/2012/feb/29/eurozone-debt-crisis-ecb-loans-ltro#block-16 Eurozone crisis live: ECB to launch massive cash injection The Guardian 29 February 2012 29 February 2012 London May 6 May – In Greek legislative election, May 2012 no party gains an overall majority, this worsens market falls. 13 May – Greece's President tries to form a coalition government. 18 May – German Chancellor Angela Merkel allegedly tells the Greek president to hold a referendum on euro memberships. The Bundestag denies this. 2013 May 8 May – European Central Bank cuts its bank rate to 0.50% to aid recovery.https://www.bbc.co.uk/news/business-24851483 ECB cuts interest rates to record low 7 November 2013 BBC News 7 November 2013 Marginal lending rate (including Emergency Liquidity Assistance rate) to 1.00% November 7 November – European Central Bank cuts its bank rate to 0.25% to aid recovery. Deposit rate stays at 0.00%. 2014 June First foray into a negative interest rate territory. Deposit rate cut to −0.10%, main refi rate to +0.15%, marginal lending rate to 0.40% September Deposit rate cut to −0.20%, main refi rate to +0.05%, marginal lending rate to 0.30% October Discussions over insufficiency of ECB ABSPP and CBPP3, potential for Sov Purchases. ECB in ECJ over legality of OMT could prevent further sovereign purchases. Greece yields hit by 75bp intraday, and largest rates move in G3 markets since 2011. Greek government coalition weakens in opinion polls, left Syriza strengthens with knock-on effect to debt restructuring and own currency plans. See also Greek government-debt crisis Post-2008 Irish economic downturn 2008–15 Spanish financial crisis 2008–11 Icelandic financial crisis 2008–09 Belgian financial crisis 2010–12 Greek protests European Financial Stabilisation Mechanism Late-2000s recession in Europe 1980s austerity policy in Romania Latin American debt crisis References 30em Category:2009 in economic history Category:2010 in economic history Category:2011 in economic history