Eurozone crisis/Timelines

Credit ratings:
Standard & Poor (S&P) and Fitch Investment grades are AAA, AA, A and BBB; speculative ("junk") grades are BB and B
Moodys Investment grades are Aaa, Aa, A and Baa; speculative ("junk") grades are Ba and B

2006

October: Italy's credit rating downgraded from A+ from AA- by S&P[1]

2008

Crash of 2008

September: The Irish government announces that it will guarantee all deposits in Irish banks - assuming a liability of €440 billion: more than twice Ireland’s gross domestic product[2].

2009

Recession of 2009

January: Anglo Irish Bank nationalised.

The Vienna Initiative[3]

April: Ireland sets up a National Asset Management Agency [4] to operate as a bad bank which acquires toxic debt from banks in return for government bonds.

March: Ireland's credit rating downgraded from AAA to AA+ by S&P

July: European Central Bank implements its covered bond purchase programme[5]

December: Greece's credit rating downgraded from A- to BBB+ by S&P

Greek budget passed - (aims to reduce the budget deficit to 9 per cent of GDP[6]).

2010

January:

Ireland's public debt rises to 65 per cent of GDP

Greece's credit rating downgraded to A- by S&P[7]

February

Germany's central bank president, Axel Weber, decides to resign from the European Central Bank[8]

March:

Greek government introduces a further austerity package[9]

Portugal's credit rating downgraded from AA to A- by Fitch[10]

April

Greece's credit rating downgraded to BB+ by S&P[11]

Spain's credit rating downgraded from AA+ to AA by S&P[12]

Portugal's credit rating downgraded from A+ to A- by S&P[13]

Greece agrees to introduce a €24 billion austerity package[14]

May

Greek riots. Violent protests in Athens[15]

First Greek bailout. After prolonged debate[16], The eurozone and the IMF make available €110 billion to Greece[17]

The eurozone launches a €600bn European Financial Stability Facility [18] [19]

European Central Bank launches its bond buying [20] authorising the purchase of qualifying eurozone government bonds.

June

73 percent of Bloomberg subscribers expect a Greek default[21]

July

Seven banks fail EU stress tests[22]

August:

Ireland's credit rating downgraded to AA- by S&P

IMF/EC review of Greek finances [23]

September:

Further support to Ireland's Anglo Irish Bank, Allied Irish Banks and Irish Nationwide banks

Moodys downgrades Spain to Aa1

October

Draft Greek budget aiming to slash its budget deficit to 7.0 per cent of gross domestic product[24]

EU agree to make changes to the Lisbon Treaty[25] to provide a legal basis for bailouts

November:

21st

The Irish government applies for assistance from the IMF and the EU [26][27]

22nd

Ireland's credit rating downgraded to A by S&P

23rd

The Irish government announces its National Recovery Plan 2011-14 [28] - an additional €15 billion package of measures intended to reduce the budget deficit to below 3% of GDP by 2014 (comprising ⅔ expenditure reductions and ⅓ revenue increases)

26th

Bond yields reach new highs: Irish 9%, Portuguese 7%, Spanish 5%[29]

28th

Agreement is reached on an Ireland rescue package An €85 billion loan facility of which €67½ billion is to come from outside Ireland. €35 billion to support the banking system; (€10 billion for the immediate recapitalisation and the remaining €25 billion will be provided on a contingency basis) and up to €50 billion to cover the financing of the Irish government's budget

30th

Italian and Belgian bond yields rise

December

1st

The European Central Bank buys Portuguese and Irish bonds[30] [31], and there is a fall in their spreads.

3rd

S&P puts Greece on downgrade watch in response to Eurozone proposals to give preferred status to government bondholders.

5th

Two Eurozone ministers propose the issue of a European bond[32] but the idea is opposed by Germany[33]

The Eurozone/IMF bailout of Ireland is conditional upon deleveraging of Ireland's banks[34]

10th

Angela Merkel, German chancellor, and Nicolas Sarkozy, France’s president, call on their eurozone partners to draw a fundamental lesson from its debt crisis and take steps towards political integration[35] .

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2011

January

25th

First bond issue by the European Commission using the European Financial Stability Facility[36]

March

7th

Greek government bonds are downgraded by Moody's to B1 from Ba1, and assigned a negative outlook to the rating.. The report cites conditions attached to eurozone support[37].

23rd

Portuguese Prime Minister José Sócrates resigns after failing to win support for austerity measures.

April

2nd

Spain's Prime Minister Zapatero announces his resignation as leader of the Socialist Party and his intention not to stand at the forthcoming general election[38]

13th

The European Central Bank raises its discount rate from 1.0 per cent to 1.25 per cent[39]

15th

Irish government bonds are downgraded by Moody's to Baa3

May

9th

Eurozone Finance Ministers discuss "soft restructuring" of Greek debt[40]

Greek government bonds are downgraded by S&P frm B to BB-

20th

Portugal bailout Portugal is to get a 3-year IMF/EU 78 billion euro ($110 billion) bailout package[41]

Greek government bonds are downgraded by Fitch from BB+ to B+

June

2nd

Greece has agreed to €6.4 billion additional budget cut[42]

5th

Portugal holds a general election. The ruling Socialist Party is defeated by the Social Democratic Party under Pedro Passos Coelho .

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July

5th

Portugal's government bonds are downgraded by Moody's to Ba2 from Baa1, with negative outlook[43]

9th.

Eurogroup Statement on the follow-up of the 29 June Euro Summit [44].

13th

The European Central Bank raises its discount rate from 1.25 per cent to 1.5 per cent[45].

15th

Italian government adopts a €48 bn austerity package[46]

The European Banking Authority annnounces that eight banks have failed their stress tests and 16 are in the danger zone[47].

21st

Second Greek bailout . It is proposes that Greece should get a €109 billion loan[48] (subject to the agreement of national parliaments), in addition to which the private sector is to make a contribution and agree to either swap or roll-over some Greek government debt.

The European Financial Stability Facility's [49] powers are amended to enable it to help countries not officially in receipt of a bailout and to recapitalise Eurozone banks.

29th

Spain. Prime Minister Zapatero calls a general election for 20th November[50].

August

7th

The ECB buys Spanish and Italian government bonds[51]

16th

President Sarkozy and Chancellor Merkel call for a "true European economic government"[52].

23rd

Spain. Government and opposition parties agree to introduce a constitutional cap on public debt before elections in November[53].

24th

German President questions the legality of ECB bond purchases[54].

30th

ECB bond purchases reduce the price of Spanish and Italian government bonds by 1 per cent[55]

September

7th

Germany's Federal Constitutional Court rule that the 2010 bailout for Greece, and subsequent aid granted through the Financial Stability Facility fund is legal, but that future bailouts would need approval from the German parliament's budget committee[56][57].

8th

European Central Bank chief economist Juergen Stark resigns amid speculation of conflicts within the ECB over its bond-buying programme[58].

14th

European President Jose Manuel Barroso announces that the Commission will soon present options for the introduction of eurozone joint bonds [59][60]

French banks Credit Agricole SA and Societe Generale are downgraded by credit rating agency Moody's from Aa1 to Aa2 and Aa2 to Aa3 respectively because of their exposure to Greek debt[61].

European banks are reported to be losing deposits[62]

European Commission issues a €5 billion 10 year bond to finance a loan for Portugal[63]

15th

Five central banks have announced a co-ordinated move to try to help the financial system[64]

19th

Italian government bonds are downgraded from A+ to A by S&P[65].

20th

The Greek government and the EU/IMF/ECB review team fail to reach an agreement which would allow for the release of the next tranche of bailout funds.

23rd

Reuters reports that, according to the Greek press, Greek Finance Minister Evangelos Venizelos told the Greek parliament yesterday that he sees three scenarios for Greece, including a debt restructuring with 50% write downs for Greek bondholders. The government quickly moved to deny the reports.

European Central Bank Governing Council member Klaas Knot is quoted as saying that the possibility of a Greek government default can no longer be excluded[66]

24th

The IMF and the World Bank undertake to "act collectively to restore confidence and financial stability, and rekindle global growth[67].

A G20 Finance Ministers meeting in Washington is reported to have started to draw up a €3 trillion rescue plan to save Greece and the eurozone from collapse[68].

26th

Germany's Finance Minister Wolfgang Schaeuble is reported to have said that the euro region has no intention to increase the size of the European Financial Stability Facility ( from the current €440 billion [69].

29th

Germany's Bundestag parliament votes 523 to 85 to approve the July 21 proposal to increase the scope of the European Financial Stability Facility[70].

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October

6th

The European Central Bank decides to launch a €40 billion covered bond purchase programme.

10th

Belgium, France and Luxembourg have reached an agreement to rescue the Dexia bank. The Belgian government will buy the bank’s division in Belgium for €4bn. Dexia is also to get state guarantees of up to €90bn in order to secure borrowing over the next ten years, with Belgium providing 60.5% of these guarantees, France 36.5% and Luxembourg 3%[71].

13th

Slovakia is the last of the eurozone countries to give parliamentary approval to the July 21 proposal to expand the EFSF[72].

18th

Spain's bond rating cut to A1, from Aa2 by Moody's[73] , the third of the major agencies to act in recent weeks and taking it a notch below the ratings of Standard & Poor's and Fitch[74].

20th

France and Germany disagree about increasing the amount of the EFSF [75]

26th

Second Greek bailout terms A EU summit agrees a new rescue package, including a 50 percent write-off of the Greek government's debt, a further €130 billion loan, the recapitalisation of eurozone banks, and an increase in the capacity of the European Financial Stability Facility, (EU Summit Statement)

31st

Prime Minister Papandreou announces that Greece is to hold a referendum to decide whether to accept new bailout terms [76]

November

1st

Mario Draghi, former Governor of the Banca d’Italia, takes up his duties as President of the European Central Bank[77]

2nd

Emergency summit. Greek Prime Minister Papandreou agrees that the subject of the referendum should be whether Greece should remain within the eurozone, rather than his proposed question concerning the rescue package.

3rd

Papandreou abandons the plan to hold a referendum.

European Central Bank President Draghi announces a reduction in the bank's discount rate by 25 basis points[78].

5th

Leaders of Greece's political parties agree to form a coalition government under a new Prime Minister [79]

7th

EU finance commisioner calls for signatures to a written acceptance of the terms of the Greek rescue package[80]

8th

Sylvio Berlusconi agrees to resign after parliament approves a budget law that includes reforms demanded by the EU [81], being unable to command a parliamentary majority.

10th

Lucas Papademos becomes Prime Minister of Greece, and is expected to accept the terms of the EU rescue.

12th

Italian parliament votes to approve the Financial Stability Law, signifying acceptance of the requirements recorded in Berlusconi's letter of intent[82].

14th

Mario Monti is appointed Prime Minister of Italy[83].

16th

Mario Monti announces the formation of a government[84] that does not include any elected politicians[85]

23rd

Letter to EU Presidents by Greek New Democracy Party leader Antonis Samaras confirms his party's acceptance of agreed fiscal adjustment targets[86]

29th

Finance Ministers agree on the terms of the leverage extension of the EFSF’s capacity [87]

December

1st

Ireland renews its Bank Guarantee Scheme [88]

5th

Merkel and Sarkozy propose new European Union treaty.

Standard & Poor's credit rating agency places its long-term sovereign ratings on 15 members of the eurozone on "CreditWatch with negative implications", citing continuing disagreements among European policy makers on how to tackle the immediate market confidence crisis [89].

6th

Belgium swears in a new government, ending 541 days of political deadlock[90].

8th

The European Central Bank reduces its discount rates by 0.25 percent[91].

The European Central Bank offers to lend unlimited amounts to eurozone banks for a period of three years at an interest rate of 1 per cent [92].

Ratings On 15 Spanish Banks Placed On CreditWatch Negative Following Similar Rating Action On Spain - by Standard & Poors[93]

9th

A European Union Summit agrees a fiscal compact[[94].

16th

Belgium. Moody's downgrades Belgium's credit ratings from Aa1 to Aa3, negative outlook[95].

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2012

January

12th

Spain and Italy successfully sell about €22bn of government debt at sharply lower costs than at previous auctions[96]

13th

Standard and Poor's downgrade Cyprus, Italy, Portugal, and Spain by two notches, and Austria, France, Malta, Slovakia, and Slovenia, by one notch[97]

Greece. Talks on the proposed debt swap by private creditors, seen as crucial to avoid an unruly Greek default, broke up without agreement[98].

16th

Standard and Poor's downgrade the European Financial Stability Facility[99]

23rd

Euro zone finance ministers reject an offer by private creditors to write down the nominal value of their Greek debt by 50 percent in return for new longer-term bonds paying an interest rate of 4 percent[100].

February

2nd

Survey results show that the eurozone credit crunch intensified in the 4th quarter of 2011[101]

13th

Moody's reduces sovereign debt ratings of selected EU countries including Italy, Spain and Portugal[102]. "in order to reflect their susceptibility to the growing financial and macroeconomic risks emanating from the euro area crisis" and assigns negative prospects to Austria, France and the UK.

20th

Further Greek second bailout terms proposed [103]

27th

Greece ratings lowered to 'SD’ (Selective Default)[104] by Standard & Poors.

March

2nd

25 out of the 27 EU governments sign the "Fiscal Compact" (Treaty on Stability, Coordination and Governance in the Economic and Monetary Union)[105] , Britain and the Czech Republic abstaining.

Moody's downgrades Greece to C from Ca [106]

14th

Greece: second bailout is approved in principle by eurogroup finance ministers.

30th

Finance Ministers agree to raise the combined lending ceiling of the temporary European Financial Stability Facility (EFSF) and the permanent European Stability Mechanism (ESM) will be raised from €500 billion to €700 billion[107].

April

26th

Spain's long-term government bonds are downgraded to BBB+ from A by Standard & Poors, citing an expected worsening deficit and a need to give financial support to its banks[108].

May

6th

France: François Hollande becomes President

Greece: elections produce a hung parliament that fails to agree on a government

June

11th

Spain €100bn bailout of Spanish banks.

13th

Spain: Moody's downgrades Spain's government bond rating to Baa3 from A3, on review for further downgrade[109] citing the its increase in indebtedness as a result of the bailout, its limited access to the bond market, and the continued weakness of its economy

17th

Greece: narrow election victory of the broadly pro-bailout New Democracy Party [110].

20th

Greece: Antonis Samaras is prime minister, heading a coalition of the conservative New Democracy and socialist PASOK parties.

26th

The European Commission outlines possibilities for the creation of a banking union [111]

29th.

Eurozone summit (Statement) decides "as a matter of urgency", to consider Commission proposals for the establishment of a banking union.

July

12th

Spain:announces spending cuts and tax increases (amounting to around 5¼ per cent of GDP in 2012 and to 2¼ per cent in 2013) in response to a European Council "recommendation" under its excessive deficit procedure [112]. [113]

20th

Spain: Eurogroup grants financial assistance to Spain's banking sector in the form of a loan to the Spanish government[114].

24th

Greece: officials from the troika of international lenders are back in Athens as the three-party government struggles to meet the spending cuts demanded in return for the bailout money.[115]

September

6th

The European Central Bank announces programme of Outright Monetary Transactions [116] involving unlimited purchases on the secondary market of the bonds of those governments that seek "bail-out" assistance from the EU's European Financial Stability Facility/European Stability Mechanism (EFSF/ESM) programmes.

11th

Portugal. An EU/IMF review mission reports that the deficit reduction programme was bradly on track, the recapitalisation of the banking sector is well advanced[117].

12th

The European Commission publishes proposals for a banking union for the eurozone, which would hand new supervisory powers to the European Central Bank, such as the ability to close poorly performing banks[118]. A further development would be to allow distressed banks to draw directly upon the European resources instead calling upon government resources

October

6th

Spain's government denies rumours that it is considering asking for a bailout[119]

November

14th

Spain is relieved of the obligation to take further austerity measures despite being unable to meet EU deficit-reduction targets[120]

19th

France's government bond rating downgraded by Moody's to Aa1 from Aaa [121], citing market rigidities and fiscal uncertainty.

27th

The terms and conditions for further assistance to Greece have been agreed by the IMF/ECB/EU troika [122][123]

December

3rd

Greece's government announces that it is prepared to spend €10 billion on a buyback of its bonds at a premium above the market price[124].

6th

Greece downgraded by Standard & Poor's to SD (selective default)[125] "The offer, in our view, implies the investor will receive less value than the promise of the original securities; and we believe the offer is distressed, rather than purely opportunistic".

11th

Greece completes a €32bn buyback[126] at higher than planned price of 33.5 per cent of nominal.

19th

Greece's ratings raised to 'B-/B' from Selective Default on completion of debt buyback by Standard & Poor's [127]

2013

March

25th

Italy's general election failed to deliver a clear majority in the Senate. The centre-left coalition led by Pier Luigi Bersani won a narrow majority in the Lower House, beating Silvio Berlusconi’s coalition by less than 0.4%. In a major upset, the Five-Star Movement – led by anti-euro comedian Beppe Grillo – emerged as the largest single party in the lower house, with over 25% of support, and the second-largest party in the Senate, where he won 23.8% of votes. Outgoing PM Mario Monti was the biggest loser, with his party getting less than 10% of votes in both houses.