European Debt Crisis Fast Facts


Right here’s a take a look at the European Debt Disaster, which affected Cyprus, Greece, Eire, Italy, Portugal and Spain.

July 11, 2011 – A munitions explosion at a naval base kills 13 folks and destroys the nation’s primary energy station. The ensuing blackouts severely influence the tourism and finance sectors of the financial system.

December 23, 2011 – After a sequence of credit score downgrades and publicity to the monetary disaster in Greece, Cyprus indicators an settlement with Russia for an emergency mortgage price €2.5 billion to shore up its financial system. Cyprus agrees to pay the mortgage again over 4.5 years with a 4.5% rate of interest.

June 25, 2012 – The federal government of Cyprus declares that it’s going to search a bailout from the European Union (EU) and the Worldwide Financial Fund (IMF) to prop up its banks. In response to the IMF, banks in Cyprus have roughly €152 billion in excellent loans or different cash in danger, which is eight occasions the nation’s gross home product.

January 21, 2013 – The eurozone finance minister tells the federal government of Cyprus {that a} bailout will likely be delayed over considerations that the bailout of €17 billion is just too giant. The quantity is nearly equal to the nation’s annual gross home product.

February 24, 2013 – Conservative Nicos Anastasiades is elected president by a double-digit margin.

March 16, 2013 – Cyprus reaches an settlement on a bailout with eurozone finance ministers, the IMF and the European Central Financial institution (ECB). The phrases embody a one-time tax of 9.9% on financial institution deposits of greater than €100,000. Smaller deposits would pay a tax of 6.75%. This “haircut” reduces the entire quantity of the EU bailout to roughly €10 billion. Cyprus additionally agrees to boost its company tax charge and guarantee its banks aren’t havens for cash laundering.

March 19, 2013 – Cyprus’s Parliament rejects the EU bailout, after protests from the general public.

March 19, 2013 – The UK flies a aircraft with €1 million aboard to offer money for 3,000 British troopers stationed on Cyprus.

March 20, 2013 – Cyprus’s finance minister, Michael Sarris, holds talks with high Russian officers.

March 20, 2013 – Cyprus’s cupboard holds emergency talks to work out a brand new take care of both Russia or the EU. The federal government orders banks which have been closed since March 16, to stay closed.

March 25, 2013 – Cyprus reaches a take care of the EU for a €10 billion bailout. The phrases embody: closure of the nation’s second greatest financial institution, Standard Financial institution of Cyprus; a rise of tax charges on capital features and companies; privatization of state belongings; and discount of the dimensions of the banking trade by 2018. Roughly 10,000 folks could lose their jobs.

March 25, 2013 – Cyprus’s Ministry of Finance declares that banks will stay closed till March 28, to protect towards folks dashing to withdraw their cash.

March 28, 2013 – Banks reopen.

April 30, 2013 – The parliament votes to approve the EU bailout.

March 7, 2016 – Cyprus exits the bailout program.

January 1, 2001 – Greece drops its forex, the drachma, with the intention to be part of the EU “eurozone.” Greece is the twelfth nation to undertake the euro. With a view to meet the EU’s requirements, Greece makes deep cuts in public spending.

2004 – Greece spends roughly $11 billion {dollars} (US) on the Summer time Olympics in Athens.

November 15, 2004 – Greece admits that it gave deceptive info to realize admittance to the eurozone. One of many EU’s necessities for eurozone member nations is deficits beneath 3% of GDP. Greece has not met these standards since 1999.

October 4, 2009 – George Papandreou wins election as prime minister.

November 2009 – Greece’s nationwide debt reaches €262 billion. Papandreou says that the 2009 funds deficit will likely be 12.7% of GDP, far above the EU restrict of three%.

December 17, 2009 – Hundreds of union staff go on strike to protest cuts in authorities spending.

January 13, 2010 – The European Fee condemns Greece for giving false information on its funds and says the deficit and debt could also be larger than the figures launched in November 2009.

February 2, 2010 – Papandreou makes a televised handle, interesting to Greek residents to assist austerity measures.

February 10, 2010 – Public staff in Greece strike in protest towards new austerity measures.

March 3, 2010 – Protests get away throughout the nation. The federal government declares plans to decrease the deficit by reducing public workers’ salaries and elevating taxes.

April 11, 2010 – EU finance ministers announce a €30 billion bailout package deal for Greece.

April 23, 2010 – Greece requests a €45 billion bailout from the EU and the IMF.

Might 2, 2010 – The IMF, the ECB and the European Fee announce a three-year support package deal, price €110 billion, designed to rescue Greece.

Might 11, 2011 – Clashes erupt between police and roughly 20,000 protesters in Athens.

June 4, 2011 – Protests get away in Athens after Papandreou declares giant cuts in public-sector employment.

June 15, 2011 – Protesters hit the Greek Ministry of Finance with gasoline bombs.

July 21, 2011 – European leaders conform to a second bailout package deal. European governments and the IMF will contribute a complete of €109 billion. Non-public bond holders will likely be anticipated to contribute €37 billion.

October 2, 2011 – The Greek cupboard declares that it adopted a draft funds for 2012, however will miss key deficit targets. In response to the preliminary funds, Greece’s funds deficit will likely be €18.69 billion, or 8.5% of GDP, in 2011. Greece initially agreed to a deficit of €17.1 billion, or 7.8% of GDP, with the IMF, European Fee and the ECB.

October 19-20, 2011 – Tens of hundreds of individuals protest towards new austerity measures being thought-about by Greece’s Parliament. At the very least one particular person is killed.

October 27, 2011 – EU leaders announce an settlement on debt disaster measures, together with a take care of personal sector traders to put in writing down Greek bonds by 50%, which interprets to €100 billion and can cut back the nation’s debt load to 120% from 150%.

November 6, 2011 – Papandreou declares that he’ll resign from workplace on the situation that the €130 billion deal is accepted.

November 11, 2011 – Lucas Papademos, a former professor, banker, and ECB vice-president, is sworn-in as prime minister of Greece.

February 12-13, 2012 – Lawmakers in Greece vote to approve one other spherical of austerity measures, sought in return for a brand new eurozone €130 billion ($172.6 billion) bailout deal. As lawmakers debate, police flip tear fuel and stun grenades on protesters exterior Parliament. Twenty 5 protesters and 40 officers are injured.

February 21, 2012 – Eurozone finance ministers approve a second bailout for Greece, together with €130 billion ($173 billion) in new financing.

March 9, 2012 – Collectors conform to a plan to restructure Greek authorities bonds. The deal means Greece has cleared its remaining hurdle to qualify for the €130 billion bailout program from the EU and IMF.

June 20, 2012 – New Democracy chief Antonis Samaras is sworn in as Greece’s new prime minister.

June 21, 2012 – Greece swears in a brand new cupboard, placing an elected authorities accountable for the nation for the primary time in 224 days.

November 11, 2012 – The Greek parliament approves the nation’s 2013 austerity funds that incorporates steep cuts required for Greece to obtain the subsequent installment of financial bailout funds. The ultimate tally within the parliament was 167 votes in favor, 128 opposed, with 4 abstentions.

September 12, 2013 – Unemployment in Greece reaches 27.9%. Moreover, 58% of individuals beneath 25 are unemployed as properly.

April 9, 2015 – Greece declares it has scheduled a €460 million ($497 million) fee to the IMF, dismissing rumors the federal government may not have sufficient money to pay on time.

June 18, 2015 – European officers and the IMF fail to strike a deal on Greece’s bailout program.

June 30, 2015 – The midnight deadline passes for the Greek finance ministry to pay the €1.5 billion ($1.7 billion) it owes the IMF. This implies Greece has change into the primary developed financial system to successfully default to the IMF.

July 5, 2015 – Voters overwhelmingly reject austerity measures and Europe’s bailout provide.

August 20, 2015 – Greece receives the primary chunk of its third bailout. The package deal, price as much as €86 billion ($95 billion), will assist the nation keep away from an outright monetary collapse. All the nations that use the euro forex have agreed in precept to bail out Greece, however the IMF is just monitoring the scenario up to now. Greece pays €3.2 billion ($3.5 billion) to the ECB, with the intention to keep within the eurozone. Greek Prime Minister Alexis Tsipras says in a televised handle that he’s resigning and requires early elections.

January 22, 2018 – EU and Greek officers announce Greece is getting into the ultimate section of its bailout and that it’s going to get 6.7 billion extra beginning in February.

August 20, 2018 – Greece exits the ultimate bailout program.

September 2008 – Eire is the primary eurozone nation to fall into recession.

September 30, 2008 – Throughout the worldwide monetary disaster, Eire declares a bailout plan price €400 to stabilize the nation’s six primary banks.

December 18, 2008 – Chairman of Anglo Irish Financial institution Sean Fitzpatrick resigns, admitting that he hid €80 million in secret loans from shareholders.

December 21, 2008 – The Irish authorities pumps €5.5 billion in three of the nation’s largest banks.

January 15, 2009 – The Irish authorities is pressured to nationalize Anglo Irish Financial institution to maintain it from collapsing.

February 4, 2009 – Prime Minister Brian Cowen declares €2 billion in public spending cuts.

February 10, 2009 – Insurance coverage firm Irish Life & Everlasting confirms that it made a mortgage to Anglo Irish of €7 billion in 2008.

February 11, 2009 – Eire declares that it’s going to prop up Financial institution of Eire and Allied Irish Financial institution with 7 billion. The federal government takes a 25% oblique stake within the banks.

February 20, 2009 – A report is launched displaying that Anglo Irish Financial institution lent €451 million to 10 prospects so they may purchase shares within the financial institution. There are 15 prospects who every owe the financial institution €500 million.

February 21, 2009 – Tens of hundreds of protesters rally in Dublin.

Might 29, 2009 – The federal government props up Anglo Irish financial institution with one other €4 billion.

February 19, 2010 – The federal government takes a 16% direct stake in Financial institution of Eire, when the financial institution can’t make a fee.

March 30, 2010 – Eire props up Anglo Irish Financial institution with one other €8.3 billion.

March 31, 2010 – Anglo Irish Financial institution stories a lack of €12.7 billion, the most important company loss in Irish historical past.

Might 13, 2010 – The Irish authorities takes a 18% stake in Anglo Irish financial institution.

June 9, 2010 – The federal government’s stake in Financial institution of Eire rises to 36%.

September 30, 2010 – The Central Financial institution of Eire declares that the bailout of Anglo Irish financial institution may find yourself costing taxpayers €34 billion.

September 30, 2010 – Eire’s deficit is revised to 32% of GDP, the most important deficit for a eurozone member since 1999.

September 30, 2010 – Eire props up Irish Nationwide Financial institution with €2.7 billion.

October 26, 2010 – The Irish authorities declares it should make funds cuts of €15 billion with the intention to cut back the funds deficit to three% of GDP by 2014.

November 21, 2010 – Cowen declares that Eire has utilized for support from the EU and IMF.

November 24, 2010 – Eire outlines €15 billion in spending cuts and tax will increase. It refuses to boost its low tax on firms. This plan is meant to cut back the funds deficit to 9.1% of GDP in 2011.

November 27, 2010 – Hundreds rally in Dublin, protesting the bailout and funds cuts.

November 28, 2010 – Eire accepts a €67.5 billion bailout package deal.

December 23, 2010 – The federal government injects one other €3.7 billion into Anglo Irish financial institution, taking its stake to 93%.

March 31, 2011 – An examination of the books of Irish banks reveals a €24 billion shortfall. The Central Financial institution of Eire says that it expects that the federal government will take management of the nation’s six largest banks.

June 1, 2012 – Eire’s voters approve a European treaty that goals to implement stricter fiscal self-discipline.

July 5, 2012 – Eire completes its first bond sale since its bailout in 2010. The Irish authorities raises €500 million, or $626 million, by promoting 3-month Treasury payments at a yield of 1.8%.

December 13, 2013 – Eire exits the bailout program. It’s the first eurozone nation to take action. Though Eire is now not reliant on the IMF and EU for funding, it would proceed to repay its emergency loans.

Might 25, 2010 – Italy approves a €24 billion austerity plan, designed to chop the deficit to 2.7% of GDP by 2012.

Might 2011 – Italy’s debt is €1,900 billion, 3 times the debt of Greece, Portugal and Eire mixed. That determine is 120% of GDP.

July 2011 – The IMF tells Italy to cut back its debt.

July 14, 2011 – Italy raises €3 billion from promoting bonds, however is pressured to pay report rates of interest of 5.9%.

July 14, 2011 – The Italian Senate passes a funds with cuts of €48 billion over three years.

August 2, 2011 – The European Fee declares that no debt rescue plan is within the works for Italy.

August 5, 2011 – Prime Minister Silvio Berlusconi and Finance Minister Giulio Tremonti maintain emergency talks, and agree to hurry up the implementation of austerity measures.

August 12, 2011 – The European Securities and Markets Authority imposes a ban on quick promoting inventory in Italy.

September 7, 2011 – The Italian Senate votes to approves an austerity package deal designed to convey down the nation’s hovering funds deficit. The plan would improve the worth added tax from 20% to 21% and herald a further €4.2 billion per yr.

November 8, 2011 – The workplace of Italian President Giorgio Napolitano declares that Berlusconi will resign when the nation’s funds is confirmed by the senate.

December 22, 2011- Prime Minister Mario Monti’s $40 billion austerity package deal is accepted by Italy’s Senate. Measures embody promoting state belongings and elevating the retirement age.

November 19, 2009 – Portugal forecasts that its deficit in 2009 will likely be 8% of GDP.

January 15, 2010 – The treasury points a press release to reassure traders of the federal government’s dedication to deficit discount.

January 20, 2010 – The federal government declares that it’s freezing authorities wages and decreasing the variety of authorities staff by attrition.

January 26, 2010 – The federal government declares that the funds deficit is definitely 9.4%.

March 8, 2010 – The federal government declares new austerity measures, together with extra privatization, caps on wages and tax will increase. Tens of hundreds of public staff strike.

Might 13, 2010 – Portugal implements tax will increase and wage reductions for public staff, together with politicians.

March 8, 2010 – Portugal declares an austerity program.

Might 12, 2010 – Portugal declares one other spherical of austerity measures.

Might 29, 2010 – Massive demonstrations get away in Lisbon, to protest towards austerity plans.

March 23, 2011 – Prime Minister Jose Socrates resigns. He continues within the place as a caretaker till June.

April 6, 2011 – Portugal requests a bailout from the EU.

Might 3, 2011 – Portugal agrees to a €78 billion bailout from the EU and the IMF.

June 2011 – The conservative Social Democratic Celebration types a coalition authorities with the Standard Celebration. Pedro Passos Coelho turns into the brand new prime minister.

Might 4, 2014 – Portugal declares it’s exiting the bailout program.

January 2009 – Spain enters its first recession in 15 years.

January 29, 2010 – The federal government declares a plan to chop authorities spending and save €50 billion.

January 29, 2010 – Spain declares that its funds deficit in 2009 was 11.4% of GDP.

February 3, 2010 – Spain forecasts that its funds deficit in 2010 will likely be 9.8%.

February 5, 2010 – Massive protests erupt when the federal government declares plans to boost the retirement age.

Might 27, 2010 – The federal government wins approval of its €15 billion austerity plan. The plan contains reducing public workers’ wages and reducing welfare advantages.

June 8, 2010 – Spanish unions protest the austerity plan with a one-day strike.

September 2010 – Parliament passes a regulation that makes it simpler for firms to fireside staff.

September 2010 – Basic strike referred to as by unions to oppose the spending cuts.

January 2011 – The federal government and unions attain an settlement over pension reform. The retirement age is raised from 65 to 67.

Might 5, 2011 – Younger folks protest unemployment in Madrid, Barcelona and Valencia. The unemployment charge amongst younger folks has reached 50% in some areas.

June 2011 – The European Banking authority carries out “stress assessments” on Spanish banks. 5 fail the take a look at and 7 others barely go.

August 12, 2011 – The European Securities and Markets Authority imposes a ban on quick promoting inventory in Spain for 15 days.

November 20, 2011 – Spanish voters oust the Socialist Celebration in favor of the conservative Standard Celebration lead by Mariano Rajoy.

April 30, 2012 – The federal government declares the nation has entered its second recession since 2009.

June 2012 – Spain asks the EU for as much as $125 billion to offer a capital buffer for the nation’s ailing banks.

January 23, 2014 – Spain exits the bailout program.