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

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.

- and future interventions are to be commensurate with the malfunctioning of markets.

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.

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2011

January

25th

First bond issue by the European Financial Stability Facility[30]

March

7th

Greek government bonds 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 downgraded by Moody's to Baa3

May

9th

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

20th

Greek government bonds 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 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 to get 109 billion euro EZ loan[36] in addition to which the private sector is to make a contribution through an agreement to either swap or roll-over their 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 ruled 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 has resigned amid speculation of conflicts within the ECB over its bond-buying programme[44].

14th

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.

European banks are reported to be losing deposits[45]

Statements by President Sarkozy and Chancellor Merkel that they consider Greece to be an "integral part of the eurozone" after their telephone conversation with Greek Prime Minister Papandreou[46]

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