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]

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 Securities Markets Programme [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 the Ireland rescue package[30] 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[31] [32], 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[33] but the idea is opposed by Germany[34]

The Eurozone/IMF bailout of Ireland is conditional upon deleveraging of Ireland's banks[35]

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[36] .

return to top

2011

January

25th

First bond issue by the European Commission using the European Financial Stability Facility[37]

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[38].

23rd

Portuguese Prime Minister Jose Socrates 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[39]

13th

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

15th[40]

Irish government bonds are downgraded by Moody's to Baa3

May

9th

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

Eurozone Finance Ministers discuss "soft restructuring" of Greek debt[41]

20th

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

Portugal to get an IMF/EU 78 billion euro ($110 billion) bailout package[42].

June

2nd

Greece has agreed to €6.4 billion additional budget cut[43]

5th

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

return to top

July

1st

Morroco votes on a referendum on constitutional reforms proposed by King Mohammed VI[44]

5th

Portugal's government bonds are downgraded by Moody's to Ba2 from Baa1, with negative outlook[45]

13th

The European Central Bank raises its discount rate from 1.25 per cent to 1.5 per cent[46].

15th

Italian government adopts a €48 bn austerity package[47]

The European Banking Authority annnounces that eight banks have failed their stress tests and 16 are in the danger zone[48].

21st

Greece is to get a €109 billion loan[49] (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 [50] 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[51].

August

7th

The ECB buys Spanish and Italian government bonds[52]

16th

President Sarkozy and Chancellor Merkel call for a "true European economic government"[53].

23rd

Spain. Government and opposition parties agree to introduce a constitutional cap on public debt before elections in November[54].

24th

German President questions the legality of ECB bond purchases[55].

30th

ECB bond purchases reduce the price of Spanish and Italian government bonds by 1 per cent[56]

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[57][58].

8th

European Central Bank chief economist Juergen Stark resigns amid speculation of conflicts within the ECB over its bond-buying programme[59].

14th

European President Jose Manuel Barroso announces that the Commission will soon present options for the introduction of eurozone joint bonds [60][61]

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[62].

European banks are reported to be losing deposits[63]

European Commission issues a €5 billion 10 year bond to finance a loan for Portugal[64]

15th

Five central banks have announced a co-ordinated move to try to help the financial system[65]

19th

Italian government bonds are downgraded from A+ to A by S&P[66].

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[67]

24th

The IMF and the World Bank undertake to "act collectively to restore confidence and financial stability, and rekindle global growth[68].

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[69].

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 [70].

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[71].

October

6th

The European Central Bank decides to launch a €40 billion covered bond purchase programme[72].

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%[73].

13th

Slovakia is the last of the eurozone countries to give parliamentary approval to the July 21 proposal to expand the EFSF[74].

18th

Spain's bond rating cut to A1, from Aa2 by Moody's[75] , 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[76].

20th

France and Germany disagree about increasing the amount of the EFSF [77]

26th

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 [78]

November

1st

Mario Draghi, former Governor of the Banca d’Italia, takes up his duties as President of the European Central Bank[79]

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

Papandreeou 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[80].

5th

Leaders of Greece's political parties agree to form a coalition government under a new Prime Minister [81]

7th

EU finance commisioner calls for signatures to a written acceptance of the terms of the Greek rescue package[82]

8th

Sylvio Berlusconi agrees to resign after parliament approves a budget law that includes reforms demanded by the EU [83], 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[84].

14th

Mario Monti is appointed Prime Minister of Italy[85].

return to top