Eurozone crisis/Timelines: Difference between revisions
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: May | : May | ||
:: Greek riots. Violent protests in Athens[http://www.ft.com/cms/s/0/fa96b574-5838-11df-9eaf-00144feab49a.html#axzz1ZLfqta5i] | :: Greek riots. Violent protests in Athens[http://www.ft.com/cms/s/0/fa96b574-5838-11df-9eaf-00144feab49a.html#axzz1ZLfqta5i] | ||
:: Greek bailout. After prolonged debate[http://www.economist.com/blogs/charlemagne/2010/05/euro_crisis_2], The eurozone and the [[IMF]] make available €110 billion to Greece[http://www.consilium.europa.eu//uedocs/cms_data/docs/pressdata/en/misc/114130.pdf] | :: '''First Greek bailout'''. After prolonged debate[http://www.economist.com/blogs/charlemagne/2010/05/euro_crisis_2], The eurozone and the [[IMF]] make available €110 billion to Greece[http://www.consilium.europa.eu//uedocs/cms_data/docs/pressdata/en/misc/114130.pdf] | ||
::The eurozone launches a €600bn [[Eurozone crisis#The Financial Stability Facility|European Financial Stability Facility]] [http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/114324.pdf] [http://www.efsf.europa.eu/about/index.htm] | ::The eurozone launches a €600bn [[Eurozone crisis#The Financial Stability Facility|'''European Financial Stability Facility''']] [http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/114324.pdf] [http://www.efsf.europa.eu/about/index.htm] | ||
:: [[European Central Bank]] launches its [[Securities Markets Programme]] [http://www.ecb.int/press/pr/date/2010/html/pr100510.en.html] authorising the purchase of qualifying eurozone government bonds. | :: '''[[European Central Bank]]''' launches its [[Securities Markets Programme|'''bond buying''']] [http://www.ecb.int/press/pr/date/2010/html/pr100510.en.html] authorising the purchase of qualifying eurozone government bonds. | ||
:June | :June | ||
:: 73 percent of Bloomberg subscribers expect a Greek default[http://www.bloomberg.com/news/2010-06-08/greek-default-seen-by-almost-75-in-poll-of-investors-doubtful-on-trichet.html] | :: 73 percent of Bloomberg subscribers expect a Greek default[http://www.bloomberg.com/news/2010-06-08/greek-default-seen-by-almost-75-in-poll-of-investors-doubtful-on-trichet.html] | ||
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::: Bond yields reach new highs: Irish 9%, Portuguese 7%, Spanish 5%[http://www.ft.com/cms/s/0/d0976a74-f8ca-11df-b550-00144feab49a.html#axzz16N3lipf2] | ::: Bond yields reach new highs: Irish 9%, Portuguese 7%, Spanish 5%[http://www.ft.com/cms/s/0/d0976a74-f8ca-11df-b550-00144feab49a.html#axzz16N3lipf2] | ||
:: 28th | :: 28th | ||
::: Agreement is reached on | ::: Agreement is reached on an [http://www.merrionstreet.ie/wp-content/uploads/2010/11/Government-Statement-on-EU_IMF-programme.pdf '''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 | :: 30th | ||
::: Italian and Belgian bond yields rise | ::: Italian and Belgian bond yields rise | ||
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: December | : December | ||
:: 1st | :: 1st | ||
::: The European Central Bank buys Portuguese and Irish bonds[http://www.ft.com/cms/s/0/dce391d4-fe08-11df-853b-00144feab49a.html#axzz172bIo7vY] [http://www.ft.com/cms/s/0/dce391d4-fe08-11df-853b-00144feab49a.html#axzz1AZtddOu0], and there is a fall in their spreads. | ::: The European Central '''Bank buys Portuguese and Irish bonds'''[http://www.ft.com/cms/s/0/dce391d4-fe08-11df-853b-00144feab49a.html#axzz172bIo7vY] [http://www.ft.com/cms/s/0/dce391d4-fe08-11df-853b-00144feab49a.html#axzz1AZtddOu0], and there is a fall in their spreads. | ||
:: 3rd | :: 3rd | ||
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::23rd | ::23rd | ||
:::Portuguese Prime Minister | :::Portuguese Prime Minister [[Eurozone crisis/Catalogs#José Sócrates|José Sócrates]] resigns after failing to win support for austerity measures. | ||
===April=== | ===April=== | ||
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::13th | ::13th | ||
::: The [[European Central Bank]] raises its [[discount rate]] from 1.0 per cent to 1.25 per cent | ::: The [[European Central Bank]] raises its [[discount rate]] from 1.0 per cent to 1.25 per cent[http://www.ecb.int/press/pr/date/2011/html/pr110407.en.html] | ||
::15th | |||
:::Irish government bonds are downgraded by Moody's to Baa3 | :::Irish government bonds are downgraded by Moody's to Baa3 | ||
===May=== | ===May=== | ||
::9th | ::9th | ||
:::Eurozone Finance Ministers discuss "soft [[restructure (debt)|restructuring]]" of Greek debt[http://uk.reuters.com/article/2011/05/17/uk-eurozone-idUKTRE74G2WF20110517] | |||
:::Greek government bonds are downgraded by S&P frm B to BB- | :::Greek government bonds are downgraded by S&P frm B to BB- | ||
::20th | ::20th | ||
:::'''Portugal bailout''' Portugal is to get a 3-year IMF/EU 78 billion euro ($110 billion) bailout package[http://www.imf.org/external/np/sec/pr/2011/pr11190.htm] | |||
:::Greek government bonds are downgraded by Fitch from BB+ to B+ | :::Greek government bonds are downgraded by Fitch from BB+ to B+ | ||
===June=== | ===June=== | ||
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===July=== | ===July=== | ||
::5th | ::5th | ||
:::Portugal's government bonds are downgraded by Moody's to Ba2 from Baa1, with negative outlook[http://ftalphaville.ft.com/blog/2011/07/05/613516/moodys-downgrades-portugal-on-greece-fears/] | :::Portugal's government bonds are downgraded by Moody's to Ba2 from Baa1, with negative outlook[http://ftalphaville.ft.com/blog/2011/07/05/613516/moodys-downgrades-portugal-on-greece-fears/] | ||
::9th. | |||
::: Eurogroup Statement on the follow-up of the 29 June Euro Summit [http://eurozone.europa.eu/media/773180/eg_statement_9_july_2012_final.pdf]. | |||
::13th | ::13th | ||
Line 143: | Line 143: | ||
::21st | ::21st | ||
:::Greece | :::'''Second Greek bailout '''. It is proposes that Greece should get a €109 billion loan[http://www.consilium.europa.eu//uedocs/cms_data/docs/pressdata/en/ec/123978.pdf] (subject to the agreement of national parliaments), in addition to which the private sector is to make a contribution and agree to either [[swap contract|swap]] or [[roll-over]] some Greek government debt. | ||
:::The [[Eurozone crisis#The Financiall Stability Facility|European Financial Stability Facility]]'s [http://www.efsf.europa.eu/about/index.htm] powers are amended to enable it to help countries not officially in receipt of a bailout and to recapitalise Eurozone banks. | :::The [[Eurozone crisis#The Financiall Stability Facility|European Financial Stability Facility]]'s [http://www.efsf.europa.eu/about/index.htm] powers are amended to enable it to help countries not officially in receipt of a bailout and to recapitalise Eurozone banks. | ||
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::29th | ::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[http://www.thelocal.de/national/20110929-37905.html]. | :::Germany's Bundestag parliament votes 523 to 85 to approve the July 21 proposal to increase the scope of the European Financial Stability Facility[http://www.thelocal.de/national/20110929-37905.html]. | ||
[[Eurozone crisis/Timelines#2006|return to top]] | |||
===October=== | ===October=== | ||
::6th | ::6th | ||
::: The [[European Central Bank]] decides to launch a €40 billion | ::: The [[European Central Bank]] decides to launch a €40 billion [http://www.ecb.int/press/pr/date/2011/html/pr111006_3.en.html '''covered bond purchase programme''']. | ||
::10th | ::10th | ||
Line 218: | Line 220: | ||
::26th | ::26th | ||
:::EU summit agrees a new [[Eurozone crisis/Addendum#The Greek rescue package of 26 October 2011|rescue package]] | :::'''Second Greek bailout terms''' A EU summit agrees a new [[Eurozone crisis/Addendum#The Greek rescue package of 26 October 2011|rescue package]], including a '''50 percent write-off''' of the Greek government's debt, a further €130 billion loan, the [[recapitalisation (banking)|recapitalisation]] of eurozone banks, and an increase in the capacity of the [[Eurozone crisis#The European Financial Stability Facility|European Financial Stability Facility]], ([http://www.consilium.europa.eu/uedocs/cms_Data/docs/pressdata/en/ec/125644.pdf EU Summit Statement]) | ||
::31st | ::31st | ||
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::3rd | ::3rd | ||
::: Papandreou abandons the plan to hold a referendum. | |||
::: [[European Central Bank]] President [[Eurozone crisis/Catalogs#Mario Draghi|Draghi]] announces a reduction in the bank's [[discount rate]] by 25 [[basis point]]s[http://www.ecb.int/press/pressconf/2011/html/is111103.en.html]. | ::: [[European Central Bank]] President [[Eurozone crisis/Catalogs#Mario Draghi|Draghi]] announces a reduction in the bank's [[discount rate]] by 25 [[basis point]]s[http://www.ecb.int/press/pressconf/2011/html/is111103.en.html]. | ||
::5th | |||
::: Leaders of Greece's political parties agree to form a coalition government under a new Prime Minister [http://www1.mfa.gr/en/current-affairs/top-story/announcement-of-the-presidency-of-the-republic-following-the-presidents-meeting-with-the-prime-minister-and-the-head-of-the-main-opposition-party.html] | |||
::7th | |||
:::EU finance commisioner calls for signatures to a written acceptance of the terms of the Greek rescue package[http://www.reuters.com/article/2011/11/07/us-greece-idUSL6E7M601O20111107?feedType=RSS&feedName=topNews&rpc=71] | |||
::8th | |||
:::[[eurozone crisis/Catalogs#Sylvio Berlusconi|Sylvio Berlusconi]] agrees to resign after parliament approves a budget law that includes reforms demanded by the EU [http://uk.reuters.com/article/2011/11/09/uk-eurozone-idUKTRE7A72R120111109?feedType=nl&feedName=ukmorningdigest], being unable to command a parliamentary majority. | |||
::10th | |||
::: [[Eurozone crisis/Catalogs#Lucas Papademos|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[http://www.bbc.co.uk/news/]. | |||
::14th | |||
::: [[Eurozone crisis/Catalogs#Mario Monti|Mario Monti]] is appointed Prime Minister of Italy[http://www.bbc.co.uk/news/world-europe-15716011]. | |||
::16th | |||
::: Mario Monti announces the formation of a government[http://translate.google.com/translate?hl=en&sl=it&u=http://www.governo.it/&ei=cSC1TsaBFsKm8gPg1IHqBA&sa=X&oi=translate&ct=result&resnum=1&ved=0CDAQ7gEwAA&prev=/search%3Fq%3Ditaly%2Bgovernment%2Bwebsite%26hl%3Den%26prmd%3Dimvns] that does not include any elected politicians[http://www.bbc.co.uk/news/world-europe-15775071] | |||
::23rd | |||
::: Letter to EU Presidents by Greek New Democracy Party leader [[Arab Spring/Catalogs#Antonis Samaras|Antonis Samaras]] confirms his party's acceptance of agreed fiscal adjustment targets[http://www.athensnews.gr/portal/8/50736] | |||
::29th | |||
::: Finance Ministers agree on the terms of the leverage extension of the EFSF’s capacity [http://www.efsf.europa.eu/mediacentre/news/2011/2011-015-maximising-efsfs-capacity-approved.htm] | |||
===December=== | |||
::1st | |||
::: Ireland renews its Bank Guarantee Scheme [http://www.rte.ie/news/2011/1201/banks-business.html] | |||
::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 [http://www.standardandpoors.com/ratings/articles/en/us/?articleType=HTML&assetID=1245325249443]. | |||
::6th | |||
:::Belgium swears in a new government, ending 541 days of political deadlock[http://www.bbc.co.uk/news/world-europe-16042750]. | |||
::8th | |||
::: The European Central Bank reduces its discount rates by 0.25 percent[http://www.ecb.int/press/pressconf/2011/html/is111208.en.html]. | |||
::: 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 [http://www.ecb.int/press/pr/date/2011/html/pr111208_1.en.html]. | |||
::: Ratings On 15 Spanish Banks Placed On CreditWatch Negative Following Similar Rating Action On Spain - by Standard & Poors[http://www.standardandpoors.com/ratings/articles/en/us/?articleType=HTML&assetID=1245325543639] | |||
::9th | |||
::: A European Union Summit agrees a [[Eurozone crisis/Addendum#The new fiscal compact|'''fiscal compact''']][[http://european-council.europa.eu/media/639235/st00tscg26_en12.pdf]. | |||
::16th | |||
::: Belgium. Moody's downgrades Belgium's credit ratings from Aa1 to Aa3, negative outlook[http://www.moodys.com/research/Moodys-downgrades-Belgiums-credit-ratings-to-Aa3-negative-outlook--PR_233667]. | |||
[[Eurozone crisis/Timelines#2006|return to top]] | |||
==2012== | |||
===January=== | |||
:12th | |||
::Spain and Italy successfully sell about €22bn of government debt at sharply lower costs than at previous auctions[http://www.ft.com/cms/s/0/e22c4e28-3d05-11e1-ae07-00144feabdc0.html#axzz1iwztu95W] | |||
:13th | |||
::Standard and Poor's downgrade Cyprus, Italy, Portugal, and Spain by two notches, and Austria, France, Malta, Slovakia, and Slovenia, by one notch[http://www.standardandpoors.com/ratings/articles/en/us/?articleType=HTML&assetID=1245327294763] | |||
::Greece. Talks on the proposed debt [[swap contract|swap]] by private creditors, seen as crucial to avoid an unruly Greek [[default (finance)|default]], broke up without agreement[http://www.iif.com/press/press+224.php]. | |||
:16th | |||
::Standard and Poor's downgrade the [[Eurozone crisis#The European Financial Stability Facility|European Financial Stability Facility]][http://www.ft.com/cms/s/0/66647cd2-4068-11e1-8fcd-00144feab49a.html#axzz1jhwxISFs] | |||
: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[http://www.thetimes.co.uk/tto/business/economics/article3296277.ece?CMP=EMCeb6]. | |||
===February=== | |||
:2nd | |||
:: Survey results show that the eurozone [[credit crunch]] intensified in the 4th quarter of 2011[http://www.ecb.int/stats/pdf/blssurvey_201201.pdf?02531253857b455b79031155ea7e3878] | |||
:13th | |||
:: Moody's reduces sovereign debt ratings of selected EU countries including Italy, Spain and Portugal[http://www.moodys.com/page/viewresearchdoc.aspx?docid=PR_237716&WT.mc_id=MDCAlerts_realtime]. "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 [http://consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/128075.pdf] | |||
:27th | |||
:: Greece ratings lowered to 'SD’ (Selective Default)[http://www.standardandpoors.com/ratings/articles/en/us/?articleType=HTML&assetID=1245329471786] 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)[http://euobserver.com/843/115460] , Britain and the Czech Republic abstaining. | |||
::Moody's downgrades Greece to C from Ca [http://www.moodys.com/page/viewresearchdoc.aspx?docid=PR_239375&WT.mc_id=MDCAlerts_realtime] | |||
: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[http://www.consilium.europa.eu/homepage/highlights/eurozone-deal-to-boost-firewall?lang=en]. | |||
===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[http://www.standardandpoors.com/ratings/articles/en/us/?articleType=HTML&assetID=1245332673209]. | |||
===May=== | |||
:6th | |||
::France: [[Eurozone crisis/Catalogs#François Hollande|François Hollande]] becomes President | |||
::Greece: elections produce a hung parliament that fails to agree on a government | |||
===June=== | |||
:11th | |||
::Spain €100bn [http://www.bbc.co.uk/news/business-18392802 '''bailout of Spanish banks''']. | |||
:13th | |||
::Spain: Moody's downgrades Spain's government bond rating to Baa3 from A3, on review for further downgrade[http://www.moodys.com/research/Moodys-downgrades-Spains-government-bond-rating-to-Baa3-from-A3--PR_248236] 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 [http://www.bbc.co.uk/news/world-europe-18482415]. | |||
:20th | |||
::Greece: [[Eurozone crisis/Catalogs#Antonis Samaras|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''' [http://ec.europa.eu/news/eu_explained/120626_en.htm] | |||
:29th. | |||
:: Eurozone summit ([http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/131359.pdf 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]] [http://ec.europa.eu/economy_finance/economic_governance/sgp/pdf/30_edps/126-07_council/2012-07-10_es_126-7_council_en.pdf]. [http://euobserver.com/19/116948] | |||
:20th | |||
::Spain: Eurogroup grants financial assistance to Spain's banking sector in the form of a loan to the Spanish government[http://www.consilium.europa.eu/homepage/highlights/eurogroup-grants-financial-assistance-to-spains-banking-sector?lang=en]. | |||
: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.[http://euobserver.com/19/117036] | |||
===September=== | |||
:6th | |||
::The European Central Bank announces programme of '''''Outright Monetary Transactions''''' [http://www.ecb.int/press/pr/date/2012/html/pr120906_1.en.html] 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[http://www.imf.org/external/np/sec/pr/2012/pr12310.htm]. | |||
[[ | :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[http://ec.europa.eu/internal_market/finances/docs/committees/reform/20120912-com-2012-510_en.pdf]. 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[http://www.bbc.co.uk/news/business-19837739] | |||
===November=== | |||
:14th | |||
::Spain is relieved of the obligation to take further [[austerity (fiscal)|austerity]] measures despite being unable to meet EU deficit-reduction targets[http://europa.eu/rapid/press-release_MEMO-12-864_en.htm?locale=en] | |||
:19th | |||
:: France's government bond rating downgraded by Moody's to Aa1 from Aaa [http://www.moodys.com/page/viewresearchdoc.aspx?docid=PR_260071&WT.mc_id=MDCAlerts_realtime], 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 [http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/133857.pdf][http://www.openeurope.org.uk/Article?id=9629#] | |||
===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[http://uk.reuters.com/article/2012/12/03/uk-greece-buyback-idUKBRE8B200020121203]. | |||
:6th | |||
:: Greece downgraded by Standard & Poor's to SD (selective default)[http://www.standardandpoors.com/prot/ratings/articles/en/eu/?articleType=HTML&assetID=1245344437651] "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[http://www.ft.com/cms/s/0/e97eb780-43b5-11e2-844c-00144feabdc0.html#axzz2EdbkEnV8] 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 [http://www.standardandpoors.com/ratings/articles/en/eu/?articleType=HTML&assetID=1245345165314] | |||
==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. |
Latest revision as of 11:33, 26 February 2013
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]
2007
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
- 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:
- April
- 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
- November:
- 21st
- 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
- 3rd
- S&P puts Greece on downgrade watch in response to Eurozone proposals to give preferred status to government bondholders.
- 3rd
- 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] .
- 5th
2011
January
- 25th
- First bond issue by the European Commission using the European Financial Stability Facility[36]
- 25th
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].
- 7th
- 23rd
- Portuguese Prime Minister José Sócrates resigns after failing to win support for austerity measures.
- 23rd
April
- 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
- 13th
May
- 9th
- Eurozone Finance Ministers discuss "soft restructuring" of Greek debt[40]
- Greek government bonds are downgraded by S&P frm B to BB-
- 9th
- 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+
- 20th
June
- 2nd
- Greece has agreed to €6.4 billion additional budget cut[42]
- 2nd
- 5th
- Portugal holds a general election. The ruling Socialist Party is defeated by the Social Democratic Party under Pedro Passos Coelho .
- 5th
July
- 5th
- Portugal's government bonds are downgraded by Moody's to Ba2 from Baa1, with negative outlook[43]
- 5th
- 9th.
- Eurogroup Statement on the follow-up of the 29 June Euro Summit [44].
- 9th.
- 13th
- The European Central Bank raises its discount rate from 1.25 per cent to 1.5 per cent[45].
- 13th
- 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].
- 15th
- 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.
- 21st
August
- 23rd
- Spain. Government and opposition parties agree to introduce a constitutional cap on public debt before elections in November[53].
- 23rd
- 24th
- German President questions the legality of ECB bond purchases[54].
- 24th
September
- 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]
- 8th
- 15th
- Five central banks have announced a co-ordinated move to try to help the financial system[64]
- 15th
- 19th
- Italian government bonds are downgraded from A+ to A by S&P[65].
- 19th
- 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.
- 20th
- 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]
- 23rd
- 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].
- 24th
- 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].
- 26th
- 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].
- 29th
October
- 6th
- The European Central Bank decides to launch a €40 billion covered bond purchase programme.
- 6th
- 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].
- 10th
- 13th
- Slovakia is the last of the eurozone countries to give parliamentary approval to the July 21 proposal to expand the EFSF[72].
- 13th
- 20th
- France and Germany disagree about increasing the amount of the EFSF [75]
- 20th
- 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)
- 26th
- 31st
- Prime Minister Papandreou announces that Greece is to hold a referendum to decide whether to accept new bailout terms [76]
- 31st
November
- 1st
- Mario Draghi, former Governor of the Banca d’Italia, takes up his duties as President of the European Central Bank[77]
- 1st
- 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.
- 2nd
- 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].
- 3rd
- 5th
- Leaders of Greece's political parties agree to form a coalition government under a new Prime Minister [79]
- 5th
- 7th
- EU finance commisioner calls for signatures to a written acceptance of the terms of the Greek rescue package[80]
- 7th
- 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.
- 8th
- 10th
- Lucas Papademos becomes Prime Minister of Greece, and is expected to accept the terms of the EU rescue.
- 10th
- 12th
- Italian parliament votes to approve the Financial Stability Law, signifying acceptance of the requirements recorded in Berlusconi's letter of intent[82].
- 12th
- 14th
- Mario Monti is appointed Prime Minister of Italy[83].
- 14th
- 23rd
- Letter to EU Presidents by Greek New Democracy Party leader Antonis Samaras confirms his party's acceptance of agreed fiscal adjustment targets[86]
- 23rd
- 29th
- Finance Ministers agree on the terms of the leverage extension of the EFSF’s capacity [87]
- 29th
December
- 1st
- Ireland renews its Bank Guarantee Scheme [88]
- 1st
- 5th
- Merkel and Sarkozy propose new European Union treaty.
- 5th
- 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].
- 6th
- 8th
- The European Central Bank reduces its discount rates by 0.25 percent[91].
- 8th
- 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].
- 9th
- 16th
- Belgium. Moody's downgrades Belgium's credit ratings from Aa1 to Aa3, negative outlook[95].
- 16th
2012
January
- 12th
- Spain and Italy successfully sell about €22bn of government debt at sharply lower costs than at previous auctions[96]
- 13th
- 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
- 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
- 19th
- France's government bond rating downgraded by Moody's to Aa1 from Aaa [121], citing market rigidities and fiscal uncertainty.
- 27th
December
- 3rd
- 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.