2000s European sovereign debt crisis timeline
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From late 2009, fears of a
sovereign debt crisis A sovereign default is the failure or refusal of the government of a sovereign state to pay back its debt in full when due. Cessation of due payments (or receivables) may either be accompanied by that government's formal declaration that it wi ...
in some European states developed, with the situation becoming particularly tense in early 2010.
Greece Greece,, or , romanized: ', officially the Hellenic Republic, is a country in Southeast Europe. It is situated on the southern tip of the Balkans, and is located at the crossroads of Europe, Asia, and Africa. Greece shares land borders with ...
was most acutely affected, but fellow Eurozone members
Cyprus Cyprus ; tr, Kıbrıs (), officially the Republic of Cyprus,, , lit: Republic of Cyprus is an island country located south of the Anatolian Peninsula in the eastern Mediterranean Sea. Its continental position is disputed; while it is geo ...
,
Ireland Ireland ( ; ga, Éire ; Ulster Scots dialect, Ulster-Scots: ) is an island in the Atlantic Ocean, North Atlantic Ocean, in Northwestern Europe, north-western Europe. It is separated from Great Britain to its east by the North Channel (Grea ...
,
Italy Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical re ...
,
Portugal Portugal, officially the Portuguese Republic ( pt, República Portuguesa, links=yes ), is a country whose mainland is located on the Iberian Peninsula of Southwestern Europe, and whose territory also includes the Atlantic archipelagos of ...
, and
Spain , image_flag = Bandera de España.svg , image_coat = Escudo de España (mazonado).svg , national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond") , national_anthem = (English: "Royal March") , i ...
were also significantly affected. 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 Bond or bonds may refer to: Common meanings * Bond (finance), a type of debt security * Bail bond, a commercial third-party guarantor of surety bonds in the United States * Chemical bond, the attraction of atoms, ions or molecules to form chemical ...
yield spread Yield may refer to: Measures of output/function Computer science * Yield (multithreading) is an action that occurs in a computer program during multithreading * See generator (computer programming) Physics/chemistry * Yield (chemistry), the am ...
s and risk insurance on
credit default swaps A credit default swap (CDS) is a financial swap agreement that the seller of the CDS will compensate the buyer in the event of a debt default (by the debtor) or other credit event. That is, the seller of the CDS insures the buyer against som ...
between these countries and other EU members, most importantly Germany. This was the first Eurozone crisis since its creation in 1999. As
Samuel Brittan Sir Samuel Brittan (29 December 1933 – 12 October 2020) was an English journalist and author. He was the first economics correspondent for the ''Financial Times'', and later a long-time columnist. He was a member of the Academic Advisory Council ...
pointed out, Jason Manolopoulos "shows conclusively that the Eurozone is far from an optimum currency area". Niall Ferguson also wrote in 2010 that "the sovereign debt crisis that is unfolding... is a fiscal crisis of the western world". Axel Merk argued in a May 2011
Financial Times The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and published digitally that focuses on business and economic current affairs. Based in London, England, the paper is owned by a Japanese holding company, Nik ...
article that the dollar was in graver danger than the euro. Concern about rising government deficits and
debt Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor. Debt is a deferred payment, or series of payments, which differentiates it from an immediate purchase. The ...
levels across the globe together with a wave of downgrading of European government debt 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 The euro area, commonly called eurozone (EZ), is a currency union of 19 member states of the European Union (EU) that have adopted the euro (€) as their primary currency and sole legal tender, and have thus fully implemented EMU policies ...
countries and the
International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster globa ...
agreed to a loan for Greece, conditional on the implementation of harsh
austerity Austerity is a set of political-economic policies that aim to reduce government budget deficits through spending cuts, tax increases, or a combination of both. There are three primary types of austerity measures: higher taxes to fund spend ...
measures. 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. The Greek bail-out was followed by an €85 billion rescue package for Ireland in November, and a €78 billion bail-out for Portugal in May 2011. 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. In May 2011, the crisis resurfaced, concerning mostly the refinancing of Greek public debt. The Greek people generally rejected the austerity measures and have expressed their dissatisfaction with protests. 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. In May 2012 the crisis escalated to new levels following the national Greek legislative election, May 2012. 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.


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 Early parliamentary elections were held in Greece on 4 October 2009. Elections were not required until September 2011, but on 2 September 2009 Prime Minister Kostas Karamanlis of New Democracy announced that he would request President Karolos Papo ...
.


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.


February

* 2 February – The Greek Government extended public sector
wage freeze Incomes policies in economics are economy-wide wage and price controls, most commonly instituted as a response to inflation, and usually seeking to establish wages and prices below free market level. Incomes policies have often been resorted t ...
to those earning less than €2,000 a month. * 3 February – The
EU Commission The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body o ...
backed Greece's Stability and Growth Programme and urged it to cut its overall wage bill. * 10 February – Thousands of Greek
civil servant The civil service is a collective term for a sector of government composed mainly of career civil servants hired on professional merit rather than appointed or elected, whose institutional tenure typically survives transitions of political leaders ...
s staged a 24-hour strike shutting schools and grounding flights as the government planned to freeze pay and pensions. * 24 February – One-day general strike against the austerity measures halted public services and transport system. * 25 February – EU mission in
Athens Athens ( ; el, Αθήνα, Athína ; grc, Ἀθῆναι, Athênai (pl.) ) is both the capital and largest city of Greece. With a population close to four million, it is also the seventh largest city in the European Union. Athens dominates ...
with
International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster globa ...
(IMF) experts delivered a grim assessment of the country's finances. The first round of austerity in 2010 failed to stop Greece's rising debt, which is expected to go up by 10% in 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. * 11 March – Greek public and private sector workers strike. * 15 March – European Monetary Union (EMU) finance ministers agree on a mechanism to help Greece but reveal no details. * 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. * 19 March –
European Commission The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body o ...
President,
José Manuel Barroso José Manuel Durão Barroso (; born 23 March 1956) is a Portuguese politician and university teacher, currently serving as non-executive chairman of Goldman Sachs International. He previously served as the 11th president of the European Commi ...
urges
EU member states The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
to agree a standby aid package for Greece. Barroso says the EMU countries should be on stand by to make bilateral
loan In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations, etc. The recipient (i.e., the borrower) incurs a debt and is usually liable to pay interest on that d ...
s. * 25 March –
European Central Bank The European Central Bank (ECB) is the prime component of the monetary Eurosystem and the European System of Central Banks (ESCB) as well as one of seven institutions of the European Union. It is one of the world's Big Four (banking)#Intern ...
(ECB) President, Jean-Claude Trichet says his bank will extend softer rules on
collateral Collateral may refer to: Business and finance * Collateral (finance), a borrower's pledge of specific property to a lender, to secure repayment of a loan * Marketing collateral, in marketing and sales Arts, entertainment, and media * ''Collate ...
(accepting BBB? instead of the standard A−) for longer (up to 2011) in order to avoid a situation where one
ratings agency A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor's ability to pay back debt by making timely principal and interest payments and the likelihood of default. An agency may ra ...
(Moody's) basically decides if an EMU country's bonds are eligible for use as ECB collateral. * March – €5 billion in 10-year Greek bonds sold – orders for three times that amount are received.


April

* 9 April –
Government of Greece Government of Greece (officially: Government of the Hellenic Republic; also Greek Government or Hellenic Government)
announces that the deficit for the first trimester was reduced by 39,2%. * 11 April – EMU leaders agree
bailout A bailout is the provision of financial help to a corporation or country which otherwise would be on the brink of bankruptcy. A bailout differs from the term ''bail-in'' (coined in 2010) under which the bondholders or depositors of global sys ...
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 The Euro Interbank Offered Rate (Euribor) is a daily reference rate, published by the European Money Markets Institute, based on the averaged interest rates at which Eurozone banks offer to lend unsecured funds to other banks in the euro whole ...
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 Olli Ilmari Rehn (; born 31 March 1962) is a Finnish economist and public official who has been serving as governor of the Bank of Finland since 2018. A member of the Centre Party, he previously served as the European Commissioner for Enlargem ...
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 rating In investment, the bond credit rating represents the credit worthiness of corporate or government bonds. It is not the same as an individual's credit score. The ratings are published by credit rating agencies and used by investment professionals ...
s below
investment grade In investment, the bond credit rating represents the credit worthiness of corporate or government bonds. It is not the same as an individual's credit score. The ratings are published by credit rating agencies and used by investment professionals ...
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 An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, th ...
.


May

* 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. * 4 May – First day of
strikes Strike may refer to: People *Strike (surname) Physical confrontation or removal *Strike (attack), attack with an inanimate object or a part of the human body intended to cause harm *Airstrike, military strike by air forces on either a suspected ...
against the austerity measures. Global stock markets react negatively to fears of contagion. * 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 bomb A Molotov cocktail (among several other names – ''see other names'') is a hand thrown incendiary weapon constructed from a frangible container filled with flammable substances equipped with a fuse (typically a glass bottle filled with flammab ...
s in a
Marfin Egnatia Bank CPB Bank was the Greek branch of Cyprus Popular Bank. The bank was founded under the name Marfin Egnatia Bank. It was formed by the consolidation of Marfin Investment Group's Egnatia, Laiki and Marfin Banks and was a 95%-owned subsidiary of Marfin ...
branch on Stadiou street. * 6 May – Concerns about the ability of the
Eurozone The euro area, commonly called eurozone (EZ), is a currency union of 19 member states of the European Union (EU) that have adopted the euro (€) as their primary currency and sole legal tender, and have thus fully implemented EMU policies ...
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 The Dow Jones Industrial Average (DJIA), Dow Jones, or simply the Dow (), is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The DJIA is one of the oldest and most commonly followed equity inde ...
, before it recovered somewhat to close down 347. * 7 May – Volatility continued to accelerate with an increasing CBOE
VIX VIX is the ticker symbol and the popular name for the Chicago Board Options Exchange's CBOE Volatility Index, a popular measure of the stock market's expectation of volatility based on S&P 500 index options. It is calculated and disseminated on ...
index and a major widening in currency spreads, particularly dollar-
yen The is the official currency of Japan. It is the third-most traded currency in the foreign exchange market, after the United States dollar (US$) and the euro. It is also widely used as a third reserve currency after the US dollar and the e ...
and dollar-euro. * 8 May – Leaders of the Eurozone countries resolved in
Brussels Brussels (french: Bruxelles or ; nl, Brussel ), officially the Brussels-Capital Region (All text and all but one graphic show the English name as Brussels-Capital Region.) (french: link=no, Région de Bruxelles-Capitale; nl, link=no, Bruss ...
to take drastic action to protect the euro from further market turmoil after approving a bailout plan for Greece. * 10 May: In the context of the Securities Markets Programme (SMP), ECB as well as the central banks of the Eurosystem started purchasing securities. * 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. * 27 May – Debate rages in UK House of Commons about the prospect of
Great Britain Great Britain is an island in the North Atlantic Ocean off the northwest coast of continental Europe. With an area of , it is the largest of the British Isles, the largest European island and the ninth-largest island in the world. It is ...
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+.


June

* 4 June – The Hungarian PM
Viktor Orbán Viktor Mihály Orbán (; born 31 May 1963) is a Hungarian politician who has served as prime minister of Hungary since 2010, previously holding the office from 1998 to 2002. He has presided over Fidesz since 1993, with a brief break between 20 ...
'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. The Euro fell to a four-year low and major American markets fell more than 3%.


July

* 5 July – The central
Bank of Greece The Bank of Greece ( el, Τράπεζα της Ελλάδος , ΤτΕ) is the central bank of Greece. Its headquarters is located in Athens on Panepistimiou Street, but it also has several branches across the country. It was founded in 192 ...
announced a reduction of central government cash deficit by 41.8%, for the first half-year 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. * 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

* 31 October – Angela Merkel's coalition, trailing in the German polls and with
lander Lander may refer to: Media and entertainment * Lander (computer game), ''Lander'' (computer game), computer game published by Psygnosis in 1999 * Lander (game demo), ''Lander'' (game demo), the 3D game demo provided with the Acorn Archimedes co ...
elections due in 2011, backs proposals to make bondholders pay for any future euro-area crises.


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 The Government of Ireland ( ga, Rialtas na hÉireann) is the cabinet that exercises executive authority in Ireland. The Constitution of Ireland vests executive authority in a government which is headed by the , the head of government. The governm ...
bond premium surged to a record 652 basis points premium against the German bond. * 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. The move follows previous denials that Ireland would need external help to alleviate its debt burden. * 21 November – Ireland controversially accept an EU-IMF multibillion-euro package to help alleviate its debt burden. * 22 November – Following the withdrawal of the Irish
Green Party A green party is a formally organized political party based on the principles of green politics, such as social justice, environmentalism and nonviolence. Greens believe that these issues are inherently related to one another as a foundation ...
from the governing coalition, a new
election An election is a formal group decision-making process by which a population chooses an individual or multiple individuals to hold public office. Elections have been the usual mechanism by which modern representative democracy has opera ...
is called.


2011


January

* January 2011 – Fitch becomes the third
rating agency A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor's ability to pay back debt by making timely principal and interest payments and the likelihood of default. An agency may ra ...
to cut Greek debt to "junk" status after S&P and Moody's.


May

* 2 May – Finance Minister
George Papaconstantinou Giórgos Papakonstantínou ( el, Γιώργος Παπακωνσταντίνου; born 30 October 1961) in Athens, Greece, is a Greek economist and politician and former Minister for the Environment, Energy and Climate Change of Greece and former ...
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

* 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. * 4 June – Greece hit by further protests in central Athens, as PM Papandreou agreed to make "significant" cuts in public sector employment. * 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." * 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". * 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. * 17 June – The French President,
Nicolas Sarkozy Nicolas Paul Stéphane Sarközy de Nagy-Bocsa (; ; born 28 January 1955) is a French politician who served as President of France from 2007 to 2012. Born in Paris, he is of Hungarian, Greek Jewish, and French origin. Mayor of Neuilly-sur-Se ...
and the
German Chancellor The chancellor of Germany, officially the federal chancellor of the Federal Republic of Germany,; often shortened to ''Bundeskanzler''/''Bundeskanzlerin'', / is the head of the federal government of Germany and the commander in chief of the Ger ...
, 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. * 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.


July

* 21 July – The
Council of the European Union The Council of the European Union, often referred to in the treaties and other official documents simply as the Council, and informally known as the Council of Ministers, is the third of the seven Institutions of the European Union (EU) as ...
reached an agreement on measures aimed at solving the Greek debt crisis.


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. * 24 August – The French government unveiled a €12 billion deficit cutting package that raised taxes on the rich and closed some tax loopholes.


September

* 13 September – An international alarm over a Eurozone crisis grows. * 21 September – S&P have downgraded seven Italian banks after they've dropped Italy's sovereign rating two days ago. * 22 September – Greeks reacted with anger and disbelief at a new wave of austerity cuts enacted to keep the country in the Eurozone. * 24 September – The IMF urged EU leaders to act decisively on Greece to stem the debt crisis. * 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. * 29 September – The
Bundestag The Bundestag (, "Federal Diet") is the German federal parliament. It is the only federal representative body that is directly elected by the German people. It is comparable to the United States House of Representatives or the House of Commons ...
approved expanded EU bailout fund, reducing market concerns.


October

* 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. * 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+. * 9 October – British PM David Cameron exhorted EU leaders to act more quickly as French and German leaders promised new crisis plan as pressure builds. * 10 October – Belgium nationalised Dexia Bank Belgium, stricken with Greek debt. * 13 October – S&P cut Spain's long-term credit rating by one notch from AA to AA− with a negative outlook. * 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. ** The head of the Eurozone's bailout fund has begun attempts to persuade the
People's Republic of China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
to invest in a scheme to help rescue member countries facing debt crises.


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. * 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 The Prime Minister of Italy, officially the President of the Council of Ministers ( it, link=no, Presidente del Consiglio dei Ministri), is the head of government of the Italian Republic. The office of president of the Council of Ministers is ...
Silvio Berlusconi Silvio Berlusconi ( ; ; born 29 September 1936) is an Italian media tycoon and politician who served as Prime Minister of Italy in four governments from 1994 to 1995, 2001 to 2006 and 2008 to 2011. He was a member of the Chamber of Deputies ...
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. * 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 Silvio Berlusconi ( ; ; born 29 September 1936) is an Italian media tycoon and politician who served as Prime Minister of Italy in four governments from 1994 to 1995, 2001 to 2006 and 2008 to 2011. He was a member of the Chamber of Deputies ...
. * 13 November – Silvio Berlusconi resigns as Prime Minister of Italy as a result of the country's debt crisis. * 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. * 21 November – The European Commission suggests "stability bonds" (
eurobonds Eurobond may refer to: * Eurobond (external bond), a bond issued that is denominated in a currency not native to the country where it is issued * Eurobond (eurozone) Eurobonds or stability bonds were proposed government bonds to be issued in ...
) issued jointly by the 17 euro nations would be an effective way to tackle the financial crisis. * 25 November – Standard and Poor's downgrades Belgium's long-term sovereign credit rating from AA+ to AA, 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 European Central Bank (ECB) is the prime component of the monetary Eurosystem and the European System of Central Banks (ESCB) as well as one of seven institutions of the European Union. It is one of the world's Big Four (banking)#Intern ...
, the U.S. Federal Reserve
Federal Reserve The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a ...
, 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
/ref>


December

* 2 December – Belgian negotiating parties reach an agreement to form a new government. The deal includes spending cuts and tax rises worth about , which should bring the budget deficit down to 2.8% of GDP by 2012, and to balance the books in 2015. Following the announcement Belgium 10-year bond yields fell sharply to 4.6%. * 5 December – The central banks agree to lower the cost of dollar
currency swap In finance, a currency swap (more typically termed a cross-currency swap, XCS) is an interest rate derivative (IRD). In particular it is a linear IRD, and one of the most liquid benchmark products spanning multiple currencies simultaneously. I ...
s by 50 basis points. * 7 December – The new interim national union government led by
Lucas Papademos Lucas Demetrios Papademos ( el, Λουκάς Παπαδήμος; born 11 October 1947) is a Greek economist and academic who served as 12th Prime Minister of Greece from November 2011 to May 2012, leading a national unity government in the wake ...
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. * 8 December – Fitch cuts Greece's rating to BBB+ from A−, with a negative outlook. * 9 December – All 17 members of the eurozone and six countries that aspire to join agree at the
European Council The European Council (informally EUCO) is a collegiate body that defines the overall political direction and priorities of the European Union. It is composed of the heads of state or government of the EU member states, the President of the E ...
meeting on a new intergovernmental treaty to put strict caps on government spending and borrowing, with penalties for those countries who violate the limits. All other non-eurozone countries except Great Britain are also prepared to join in, subject to parliamentary vote. * 14 December – Greek PM
Papandreou Papandreou () is a Greek surname. It is the surname of: * Andreas Papandreou (1919–1996), Greek economist and politician and Prime Minister of Greece. * Dimitrios Papandreou (1891–1949), Archbishop Damaskinos of Athens. * George Papandreou (bo ...
outlines the first round of policies to cut deficit and regain investor trust. * 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.
Moody's cuts Greece's rating to A2 from A1.
The ECB starts the biggest infusion of credit into the European banking system in the euro's 13-year history, loaning to 523 banks for an exceptionally long period of three years at a rate of just one per cent.


2012


January

* 13 January –
Standard & Poor's S&P Global Ratings (previously Standard & Poor's and informally known as S&P) is an American credit rating agency (CRA) and a division of S&P Global that publishes financial research and analysis on stocks, bonds, and commodities. S&P is con ...
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 * 30 January – German consulting company
Roland Berger Roland Berger (born 22 November 1937) is a German entrepreneur, consultant and philanthropist. Life Roland Berger was born in Berlin in 1937 as Robert Altmann; his family name changed later, after his father, Georg L. Berger, married his mot ...
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.


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. * 29 February 2012 – The ECB holds a second auction, providing 800 Eurozone banks with further in cheap loans.


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 The European Central Bank (ECB) is the prime component of the monetary Eurosystem and the European System of Central Banks (ESCB) as well as one of seven institutions of the European Union. It is one of the world's Big Four (banking)#Intern ...
cuts its
bank rate Bank rate, also known as discount rate in American English, is the rate of interest which a central bank charges on its loans and advances to a commercial bank. The bank rate is known by a number of different terms depending on the country, and ...
to 0.50% to aid recovery. 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 An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, th ...
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

* Post-2008 Irish economic downturn * 2008–15 Spanish financial crisis * 2008–11 Icelandic financial crisis * 2008–09 Belgian financial crisis *
2010–12 Greek protests The anti-austerity movement in Greece involved a series of demonstrations and general strikes that took place across the country. The events, which began on 5 May 2010, were provoked by plans to cut public spending and raise taxes as auster ...
*
European Financial Stabilisation Mechanism The European Financial Stabilisation Mechanism (EFSM) is an emergency funding programme reliant upon funds raised on the financial markets and guaranteed by the European Commission using the budget of the European Union as collateral. It runs un ...
*
Late-2000s recession in Europe The European recession is part of the Great Recession that began in mid-2007. The crisis spread rapidly and affected much of the region with several countries already in recession as of February 2009, and most others suffering marked economic s ...
*
1980s austerity policy in Romania In the 1980s, severe austerity measures were imposed in the Socialist Republic of Romania by President Nicolae Ceaușescu in order to pay out the external debt incurred by the state in the 1970s. Beginning in 1981, the austerity led to economic s ...
*
Latin American debt crisis The Latin American debt crisis ( es, Crisis de la deuda latinoamericana; pt, Crise da dívida latino-americana) was a financial crisis that originated in the early 1980s (and for some countries starting in the 1970s), often known as ''La Décad ...


References

{{DEFAULTSORT:2000s European Sovereign Debt Crisis Timeline 2009 in economics 2010 in economics 2011 in economics