Eurozone crisis/Timelines

From Citizendium
< Eurozone crisis
Revision as of 01:18, 19 September 2011 by imported>Nick Gardner (→‎2010)
Jump to navigation Jump to search
This article is developed but not approved.
Main Article
Discussion
Related Articles  [?]
Bibliography  [?]
External Links  [?]
Citable Version  [?]
Catalogs [?]
Timelines [?]
Tutorials [?]
Addendum [?]
 
A timeline (or several) relating to Eurozone crisis.

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.
April: Ireland sets up a National Asset Management Agency[3] 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[4]
December: Greece's credit rating downgraded from A- to BBB+ by S&P

2010

January:
Ireland's public debt rises to 65 per cent of GDP
Greece's credit rating downgraded to A- by S&P[5]
February
Germany's central bank president, Axel Weber, decides to resign from the European Central Bank[6]
March:
Portugal's credit rating downgraded from AA to A- by Fitch[7]
April
Greece's credit rating downgraded to BB+ by S&P[8]
Spain's credit rating downgraded from AA+ to AA by S&P[9]
Portugal's credit rating downgraded from A+ to A- by S&P[10]
May
Greece. After prolonged debate[11], Eurogroup/IMF makes available €110 billion to Greece[12] and the Eurogroup launches the €600bn European Financial Stability Facility[13] [14]
European Central Bank launches its Securities Markets Programme [15] authorising the purchase of qualifying eurozone government bonds.
June
73 percent of Bloomberg subscribers expect a Greek default[16]
August:
Ireland's credit rating downgraded to AA- by S&P
IMF/EC review of Greek finances [17]
September:
Further support to Ireland's Anglo Irish Bank, Allied Irish Banks and Irish Nationwide banks
Moodys downgrades Spain to Aa1
October
EU agree to make changes to the Lisbon Treaty[18] to provide a legal basis for bailouts
November:
21st
The Irish government applies for assistance from the IMF and the EU [19][20]
22nd
Ireland's credit rating downgraded to A by S&P
23rd
The Irish government announces its National Recovery Plan 2011-14 [21] - 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%[22]
28th
Agreement is reached on the Ireland rescue package[23] 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[24] [25], 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[26] but the idea is opposed by Germany[27]
The Eurozone/IMF bailout of Ireland is conditional upon deleveraging of Ireland's banks[28]
10th
Merkel and Sarkozy call for closer union[29]
Angela Merkel, German chancellor, and Nicolas Sarkozy, France’s president, have called on their eurozone partners to draw a fundamental lesson from its debt crisis and take steps towards political integration.

return to top

2011

January
25th
First bond issue by the European Commission using the European Financial Stability Facility[30]
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[31].
April
13th
The European Central Bank raises its discount rate from 1.0 per cent to 1.25 per cent
15th
Irish government bonds are downgraded by Moody's to Baa3
May
9th
Greek government bonds are downgraded by S&P frm B to BB-
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[32].
June
2nd
Greece has agreed to 6.4 billion euros (5.6 billion pounds) additional budget cut[33]
July
5th
Portugal's government bonds are downgraded by Moody's to Ba2 from Baa1, with negative outlook[34]
13th
The European Central Bank raises its discount rate from 1.25 per cent to 1.5 per cent.
15th
Italian government adopts a €48 bn austerity package[35]
21st
Greece is to get a €109 billion loan[36] (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 Financial Stability Facility's[37] powers are amended to enable it to help countries not officially in receipt of a bailout and to recapitalise Eurozone banks.
August
7th
The ECB buys Spanish and Italian government bonds[38]
16th
President Sarkozy and Chancellor Merkel call for a "true European economic government"[39].
24th
German President questions the legality of ECB bond purchases[40].
30th
ECB bond purchases reduce the price of Spanish and Italian government bonds by 1 per cent[41]
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[42][43].
8th
European Central Bank chief economist Juergen Stark resigns amid speculation of conflicts within the ECB over its bond-buying programme[44].
14th
European President Jose Manuel Barroso announces that the Commission will soon present options for the introduction of eurozone joint bonds [45][46]
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[47].
European banks are reported to be losing deposits[48]
European Commission issues a €5 billion 10 year bond to finance a loan for Portugal[49]

return to top