2010 European sovereign debt crisis timeline
Encyclopedia
From late 2009, fears of a sovereign debt crisis developed among fiscally conservative investors concerning some European states, with the situation becoming particularly tense in early 2010. This included Eurozone
members Greece
, Ireland and Portugal
and also some European Union
(EU) countries outside the area. Iceland
, the country which experienced the largest crisis in 2008 when its entire international banking system collapsed has emerged less affected by the sovereign debt crisis as the government was unable to bail the banks out. In the EU, especially in countries where sovereign debt have increased sharply due to bank bailouts, a crisis of confidence has emerged with the widening of bond
yield spread
s and risk insurance on credit default swaps between these countries and other EU members, most importantly Germany.
While the sovereign debt increases have been most pronounced in only a few Eurozone countries they have become a perceived problem for the area as a whole. In May 2011, the crisis resurfaced, concerning mostly the refinancing of Greek public debt. The Greek people generally rejected the austerity measures and have expressed their dissatisfaction with protests. In late June 2011, the crisis situation was again brought under control with the Greek government managing to pass a package of new austerity measures and EU leaders pledging funds to support the country.
Concern about rising government deficits and debt
levels across the globe together with a wave of downgrading of European government debt created alarm in financial markets. On 9 May 2010, Europe's Finance Ministers approved a comprehensive rescue package worth €750 billion (then almost a trillion dollars) aimed at ensuring financial stability across Europe by creating the European Financial Stability Facility
.
In 2010 the debt crisis was mostly centered on events in Greece, where the cost of financing government debt was rising. On 2 May 2010, the Eurozone
countries and the International Monetary Fund
agreed to a loan for Greece, conditional on the implementation of harsh austerity
measures. The Greek bail-out was followed by a €85 billion rescue package for Ireland in November, and a €78 billion bail-out for Portugal in May 2011.
This was the first Eurozone crisis since its creation in 1999. As Samuel Brittan
pointed out, Jason Manolopoulos "shows conclusively that the Eurozone is far from an optimum currency area". Niall Ferguson
also wrote in 2010 that "the sovereign debt crisis that is unfolding... is a fiscal crisis of the western world". Axel Merk (FT) argued in a May 2011 article that the dollar was in graver danger than the euro.
Below is a brief summary of some of the main events since the Greek sovereign debt crisis.
Eurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
members Greece
Economy of Greece
The economy of Greece is the 32nd largest in the world by nominal gross domestic product and the 37th largest at purchasing power parity , according to data by the World Bank for the year 2010...
, Ireland and Portugal
Economy of Portugal
The Economy of Portugal is a high income mixed economy. The Global Competitiveness Report 2008-2009 edition placed Portugal in the 43rd position out of 134 countries and territories....
and also some European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
(EU) countries outside the area. Iceland
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...
, the country which experienced the largest crisis in 2008 when its entire international banking system collapsed has emerged less affected by the sovereign debt crisis as the government was unable to bail the banks out. In the EU, especially in countries where sovereign debt have increased sharply due to bank bailouts, a crisis of confidence has emerged with the widening of bond
Bond (finance)
In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...
yield spread
Yield spread
In finance, the yield spread is the difference between the quoted rates of return on two different investments, usually of different credit quality.It is a compound of yield and spread....
s and risk insurance on credit default swaps between these countries and other EU members, most importantly Germany.
While the sovereign debt increases have been most pronounced in only a few Eurozone countries they have become a perceived problem for the area as a whole. In May 2011, the crisis resurfaced, concerning mostly the refinancing of Greek public debt. The Greek people generally rejected the austerity measures and have expressed their dissatisfaction with protests. In late June 2011, the crisis situation was again brought under control with the Greek government managing to pass a package of new austerity measures and EU leaders pledging funds to support the country.
Concern about rising government deficits and debt
Government debt
Government debt is money owed by a central government. In the US, "government debt" may also refer to the debt of a municipal or local government...
levels across the globe together with a wave of downgrading of European government debt created alarm in financial markets. On 9 May 2010, Europe's Finance Ministers approved a comprehensive rescue package worth €750 billion (then almost a trillion dollars) aimed at ensuring financial stability across Europe by creating the European Financial Stability Facility
European Financial Stability Facility
The European Financial Stability Facility is a special purpose vehicle financed by members of the eurozone to combat the European sovereign debt crisis. It was agreed by the 27 member states of the European Union on 9 May 2010, aiming at preserving financial stability in Europe by providing...
.
In 2010 the debt crisis was mostly centered on events in Greece, where the cost of financing government debt was rising. On 2 May 2010, the Eurozone
Eurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
countries and the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
agreed to a loan for Greece, conditional on the implementation of harsh austerity
Austerity
In economics, austerity is a policy of deficit-cutting, lower spending, and a reduction in the amount of benefits and public services provided. Austerity policies are often used by governments to reduce their deficit spending while sometimes coupled with increases in taxes to pay back creditors to...
measures. The Greek bail-out was followed by a €85 billion rescue package for Ireland in November, and a €78 billion bail-out for Portugal in May 2011.
This was the first Eurozone crisis since its creation in 1999. As Samuel Brittan
Samuel Brittan
Sir Samuel Brittan is a British columnist for the Financial Times and an author.At Cambridge he was taught by Peter Bauer and Milton Friedman...
pointed out, Jason Manolopoulos "shows conclusively that the Eurozone is far from an optimum currency area". Niall Ferguson
Niall Ferguson
Niall Campbell Douglas Ferguson is a British historian. His specialty is financial and economic history, particularly hyperinflation and the bond markets, as well as the history of colonialism.....
also wrote in 2010 that "the sovereign debt crisis that is unfolding... is a fiscal crisis of the western world". Axel Merk (FT) argued in a May 2011 article that the dollar was in graver danger than the euro.
Below is a brief summary of some of the main events since the Greek sovereign debt crisis.
October
- October – A new Greek government led by PASOK was formed after the party received 43.92% of the popular vote and 160 of 300 parliamentary seats in the Greek legislative election, 2009Greek legislative election, 2009Parliamentary elections were held in Greece on 4 October 2009. An election was not required until September 2011.On 2 September Prime Minister Kostas Karamanlis announced he would request President Karolos Papoulias to dissolve Parliament and call an election...
.
December
- 8 December – FitchFitch RatingsThe Fitch Group is a majority-owned subsidiary of FIMALAC, headquartered in Paris. Fitch Ratings, Fitch Solutions and Algorithmics, are part of the Fitch Group....
cuts Greece's rating to BBB+ from A-, with a negative outlook. - 14 December – Greek PM Papandreou outlines the first round of policies to cut deficit and regain investor trust.
- 16 December – Standard and Poor's (S&P) cuts Greece's rating to BBB+ from A-.
- 22 December – Moody'sMoody'sMoody's Corporation is the holding company for Moody's Analytics and Moody's Investors Service, a credit rating agency which performs international financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized...
cuts Greece's rating to A2 from A1.
January
- 14 January – Greece unveiled its Stability and Growth Programme which aimed to cut deficit from 12.7% in 2009 to 2.8% in 2012.
February
- 2 February – The Greek Government extended public sector wage freeze to those earning less than €2,000 a month.
- 3 February – The EU Commission backed Greece's Stability and Growth Programme and urged it to cut its overall wage bill.
- 10 February – Thousands of Greek civil servants staged a 24-hour strike shutting schools and grounding flights as the government planned to freeze pay and pensions.
- 24 February – One-day general strike against the austerity measures halted public services and transport system.
- 25 February – EU mission in AthensAthensAthens , is the capital and largest city of Greece. Athens dominates the Attica region and is one of the world's oldest cities, as its recorded history spans around 3,400 years. Classical Athens was a powerful city-state...
with International Monetary FundInternational Monetary FundThe International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
(IMF) experts delivered a grim assessment of the country's finances.
March
- 5 March – New Greek public sector wage cuts and tax increases were passed to generate an estimated saving of €4.8 billion. Measures include increasing value-added tax by 2% to 21%, cutting public sector salary bonuses by 30%, increases in fuel, tobacco and alcohol consumption taxes and freezing state-funded pensions in 2010.
- 11 March – Greek public and private sector workers strike.
- 15 March – European Monetary Union (EMU) finance ministers agree on a mechanism to help Greece but reveal no details.
- 18 March – Papandreou warns Greece will not be able to cut deficit if borrowing costs remain as high as they are and may have to go to the IMF.
- 19 March – European CommissionEuropean CommissionThe European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
President, José Manuel Barroso urges EU member states to agree a standby aid package for Greece. José Manuel Barroso says the EMU countries should be on stand by to make bilateral loanLoanA loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....
s. - 25 March – European Central BankEuropean Central BankThe European Central Bank is the institution of the European Union that administers the monetary policy of the 17 EU Eurozone member states. It is thus one of the world's most important central banks. The bank was established by the Treaty of Amsterdam in 1998, and is headquartered in Frankfurt,...
(ECB) President, Jean-Claude TrichetJean-Claude TrichetJean-Claude Trichet is a French civil servant who was the president of the European Central Bank, a position he held from 2003 to 2011. He is also a member of the Board of Directors of the Bank for International Settlements...
says his bank will extend softer rules on collateralCollateral (finance)In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan.The collateral serves as protection for a lender against a borrower's default - that is, any borrower failing to pay the principal and interest under the terms of a loan obligation...
(accepting BBB? instead of the standard A-) for longer (up to 2011) in order to avoid a situation where one ratings agency (Moody's) basically decides if an EMU country's bonds are eligible for use as ECB collateral. - March – €5 billion in 10-year Greek bonds sold – orders for three times that amount are received.
April
- 9 April – Government of Greece announces that the deficit for the first trimesterAcademic termAn academic term is a division of an academic year, the time during which a school, college or university holds classes. These divisions may be called terms...
was reduced by 39,2%. - 11 April – EMU leaders agree bailout plan for Greece. Terms are announced for €30 billion of bilateral loans (roughly 5% for a three-year loan). EMU |countries will participate in the amount based on their ECB country keys. Rates for variable rate loans will be 3m-EuriborEuriborThe Euro Interbank Offered Rate is a daily reference rate based on the averaged interest rates at which Eurozone banks offer to lend unsecured funds to other banks in the euro wholesale money market .-Scope:...
plus 300 basis points (bp) + 100 bp for over three-year loans plus a one-off 50 bp charge for operating expenses. For fixed rate loans rates will be swap rate for the loan's maturity, plus the 300 bp (as in variable) plus the 100 bp for loans over three years plus the 50 bp charge. - 13 April – ECB voices its support for the rescue plan.
- 15 April – Olli RehnOlli RehnOlli Ilmari Rehn is a Finnish politician, currently serving as European Commissioner for Economic and Financial Affairs. He had previously served as Commissioner for Enlargement...
says there is no possibility of a Greek default and no doubt that Germany will participate in the bailout plan. In the meantime there had been serious objections from parts of German society to the country's participation in the Greek bailout. - 23 April – Greece officially asks for the disbursement of money from the aid package effectively activating it.
- 27 April:
- Standard and Poor's downgrades Greece's debt ratings below investment grade to junk bond status.
- S&P downgrades PortuguesePortugalPortugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...
debt two notches and issues negative outlook, warning that further downgrades to junk status are likely. Stock indices around the world drop two to six percent on the news.
- 28 April – S&P downgrades SpanishSpainSpain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
bonds from AAA to AA-. - April – Sale of more than €1.5 billion Greek Treasury bills met with "stronger-than-expected" demand, albeit at a high interest rate.
May
- 1 May – Protests, yearly taking place for the day, this year add "the proposed austerity measures", in Athens.
- 2 May – Greece announces the latest, fourth, raft of austerity measures.
- 3 May – The ECB announces that it will accept Greek Government bonds as collateral no matter what their rating is. This effectively means scrapping the BBB-floor in the case of Greece and increasing the likelihood of similar announcements in case other countries run the risk of being downgraded to junk status.
- 4 May – First day of strikes against the austerity measures. Global stock markets react negatively to fears of contagion.
- 5 May – General nationwide strike and demonstrations in two major cities in Greece turned violent. Three people were killed when a group of masked people threw petrol bombs in a Marfin Bank branch on Stadiou street.
- 6 May – Concerns about the ability of the EurozoneEurozoneThe eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
to deal with a spreading crisis effectively caused a severe market sell off, particularly in the United States where electronic trading glitches combined with a high volume sell off produced a nearly 1,000 point intra-day drop in the Dow Jones Industrial AverageDow Jones Industrial AverageThe Dow Jones Industrial Average , also called the Industrial Average, the Dow Jones, the Dow 30, or simply the Dow, is a stock market index, and one of several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow...
, before it recovered somewhat to close down 347. - 7 May – VolatilityVolatility (finance)In finance, volatility is a measure for variation of price of a financial instrument over time. Historic volatility is derived from time series of past market prices...
continued to accelerate with an increasing CBOE VIXVIXVIX is the ticker symbol for the Chicago Board Options Exchange Market Volatility Index, a popular measure of the implied volatility of S&P 500 index options. Often referred to as the fear index or the fear gauge, it represents one measure of the market's expectation of stock market volatility over...
index and a major widening in currency spreads, particularly dollar-yenJapanese yenThe is the official currency of Japan. It is the third most traded currency in the foreign exchange market after the United States dollar and the euro. It is also widely used as a reserve currency after the U.S. dollar, the euro and the pound sterling...
and dollar-euro. - 8 May – Leaders of the Eurozone countries resolved in BrusselsBrusselsBrussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...
to take drastic action to protect the euro from further market turmoil after approving a bailout plan for Greece. - 20 May – Fourth strike in Greece against wage cuts.
- 24 May – Greek government is announcing deficit reduction by 41.5% for the first four months,.
- 27 May – Debate rages in UK House of Commons about the prospect of Great BritainGreat BritainGreat Britain or Britain is an island situated to the northwest of Continental Europe. It is the ninth largest island in the world, and the largest European island, as well as the largest of the British Isles...
entering a similar financial crisis. These exchanges become known as The Greek DefenceThe Greek Defence"The Greek Defence" refers to a justification used by the United Kingdom political party the Liberal Democrats after they changed the direction of their economic policy after the 2010 General Election...
. - 29 May – FitchFitch RatingsThe Fitch Group is a majority-owned subsidiary of FIMALAC, headquartered in Paris. Fitch Ratings, Fitch Solutions and Algorithmics, are part of the Fitch Group....
downgrades Government of Spain bonds one notch from AAA to AA+.
June
- 4 June – The HungarianHungaryHungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...
PM Viktor OrbanViktor OrbánViktor Orbán is a Hungarian populist and conservative politician and current Prime Minister of Hungary...
's spokesman said it was not an exaggeration that the prospect of a national default is very real, although Moody's still affirmed that Hungary had a good record of paying its obligations. The Euro fell to a four-year low and major American markets fell more than 3%.
July
- 5 July – The central Bank of GreeceBank of GreeceThe Bank of Greece is the nationalcentral bank of Greece, located in Athens on Panepistimiou Street, with several branches across the country. Founded in 1927...
announced a reduction of central government cash deficit by 41.8%, for the first half-year 2010.
September
- 5 September – Spreads on longer-term Greek government debt have surged back to crisis levels of about 800 basis points, implying a high risk of default.
- 7 September – Finance Ministers of the EU countries approve the second of the bailout installments for Greece (€6.5 billion).
- 11 September – The IMF also approves the second installment of their bailout package for Greece (€2.57 billion).
October
- 31 October – Angela MerkelAngela MerkelAngela Dorothea Merkel is the current Chancellor of Germany . Merkel, elected to the Bundestag from Mecklenburg-Vorpommern, has been the chairwoman of the Christian Democratic Union since 2000, and chairwoman of the CDU-CSU parliamentary coalition from 2002 to 2005.From 2005 to 2009 she led a...
's coalition, trailing in the German polls and with landerStates of GermanyGermany is made up of sixteen which are partly sovereign constituent states of the Federal Republic of Germany. Land literally translates as "country", and constitutionally speaking, they are constituent countries...
elections due in 2011, backs proposals to make bondholders pay for any future euro-area crises.
November
- 13 November – The potential for loss in value of government bonds or an interest holiday triggers selling of IrishIrelandIreland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
debt. The 10-year Irish government bond premium surged to a record 652 basis points premium against the German bond. - 16 November – Ireland started talks with the EU over a bailout. The move prompted further worry that Greece and Portugal were also in poor fiscal shape. The move follows previous denials that Ireland would need external help to alleviate its debt burden.
- 21 November – Ireland controversially accept an EU-IMF multi-billion euro package to help alleviate its debt burden.
- 22 November – Following the withdrawal of the Irish Green PartyGreen Party (Ireland)The Green Party is a green political party in Ireland. It was founded as the Ecology Party of Ireland in 1981 by Dublin teacher Christopher Fettes. The party became the Green Alliance in 1983 and in 1987 was renamed to its current title in English...
from the governing coalition, a new election is called.
January
- January 2011 – FitchFitch RatingsThe Fitch Group is a majority-owned subsidiary of FIMALAC, headquartered in Paris. Fitch Ratings, Fitch Solutions and Algorithmics, are part of the Fitch Group....
becomes the third rating agency to cut Greek debt to "junk" status after S&P and Moody'sMoody'sMoody's Corporation is the holding company for Moody's Analytics and Moody's Investors Service, a credit rating agency which performs international financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized...
.
May
- 2 May – Finance Minister George Papaconstantinou again rules out a debt restructuring, adding that he has just "expressed the hope" that the EU and IMF will agree to extend bailout loan repayments.
- 21 May – Mr Papandreou and senior ECB officials say Greece must avoid debt restructuring and push on with budget cuts and privatisations to overcome its debt crisis.
- 23 May – Greece unveils a series of privatisations, part of a goal to raise €50 billion by 2015 to pay down its debt mountain.
June
- 1 June – The Greek government criticised Moody's decision to cut its credit rating to Caa1, which brought it seven notches into junk territory, saying the move did not take into account the country's effort to tidy up the country's finances.
- 4 June – Greece hit by further protests in central Athens, as PM Papandreou agreed to make "significant" cuts in public sector employment.
- 9 June – In an open letter to European and international authorities, German finance minister Wolfgang SchäubleWolfgang SchäubleWolfgang Schäuble is a German politician of the Christian Democratic Union , currently serving as the Federal Minister of Finance in the Second Cabinet Merkel....
said that "Any additional financial support for Greece has to involve a fair burden sharing between taxpayers and private investors." - 11 June – Jean-Claude JunckerJean-Claude JunckerJean-Claude Juncker is a Luxembourg politician, 23rd and current Prime Minister of Luxembourg, since 20 January 1995. He is the longest standing head of government of any European Union state...
, head of the Eurozone finance ministers, backed Germany's proposal for a "soft restructuring" of Greek debt, but said any contribution from private sector creditors should be "voluntary". - 15 June – Waiting from both markets and the Greek population turned violent. The failure of European leaders to resolve their disagreements over the Greek debt crisis combined to rattle credit markets.
- 17 June – The French President, Nicolas SarkozyNicolas SarkozyNicolas Sarkozy is the 23rd and current President of the French Republic and ex officio Co-Prince of Andorra. He assumed the office on 16 May 2007 after defeating the Socialist Party candidate Ségolène Royal 10 days earlier....
and the German ChancellorChancellor of GermanyThe Chancellor of Germany is, under the German 1949 constitution, the head of government of Germany...
, Angela MerkelAngela MerkelAngela Dorothea Merkel is the current Chancellor of Germany . Merkel, elected to the Bundestag from Mecklenburg-Vorpommern, has been the chairwoman of the Christian Democratic Union since 2000, and chairwoman of the CDU-CSU parliamentary coalition from 2002 to 2005.From 2005 to 2009 she led a...
agreed to a voluntary Greece bondholder role, backing down from earlier demands that bondholders be forced to shoulder a "substantial" share of a Greek rescue. - 18 June – Angela MerkelAngela MerkelAngela Dorothea Merkel is the current Chancellor of Germany . Merkel, elected to the Bundestag from Mecklenburg-Vorpommern, has been the chairwoman of the Christian Democratic Union since 2000, and chairwoman of the CDU-CSU parliamentary coalition from 2002 to 2005.From 2005 to 2009 she led a...
changes her position and confirms she will work with the European Central Bank to resolve the Mediterranean nation’s sovereign debt crisis.
July
- 21 July – The Council of the European UnionCouncil of the European UnionThe Council of the European Union is the institution in the legislature of the European Union representing the executives of member states, the other legislative body being the European Parliament. The Council is composed of twenty-seven national ministers...
reached an agreement on measures aimed at solving the Greek debt crisis.
August
- 18 August – The European stock markets suffered further heavy falls due to persistent fears about the world economic outlook.
- 24 August – The French government unveiled a €12 billion deficit cutting package that raised taxes on the rich and closed some tax loopholes.
September
- 13 September – An international alarm over a Eurozone crisis grows.
- 21 September – S&P have downgraded seven Italian banks after they've dropped Italy's sovereign rating two days ago.
- 22 September – Greeks reacted with anger and disbelief at a new wave of austerity cuts enacted to keep the country in the Eurozone.
- 24 September - The IMF urged EU leaders to act decisively on Greece to stem the debt crisis.
- 26 September - The US president, Barack Obama, says the debt crisis in Europe is "scaring the world" and that leaders in the Eurozone are not dealing with the issue quickly enough.
- 29 September - The BundestagBundestagThe Bundestag is a federal legislative body in Germany. In practice Germany is governed by a bicameral legislature, of which the Bundestag serves as the lower house and the Bundesrat the upper house. The Bundestag is established by the German Basic Law of 1949, as the successor to the earlier...
approved expanded EU bailout fund, reducing market concerns.
October
- 4 October - European shares declined for a second day on fears that Franco-Belgian bank Dexia may need to be rescued due to its exposure to Greek debt. Concern increased that the Eurozone sovereign debt crisis is spreading to the banking sector.
- 7 October - Credit ratings agency Fitch cut Italy's credit rating by one notch to A+ from AA- and cut Spain's rating to AA- from AA+.
- 9 October - British PM David Cameron exhorted EU leaders to act more quickly as French and German leaders promised new crisis plan as pressure builds.
- 10 October - Belgium nationalised Dexia Bank Belgium, stricken with Greek debt.
- 13 October - S&P cut Spain's long-term credit rating by one notch from AA to AA- with a negative outlook.
- 28 October:
- The German government found itself €55 billion richer after a discovery of an accounting error at Hypo Real EstateHypo Real EstateThe Hypo Real Estate Holding AG is a holding company based in Munich, Germany which comprises a number of real estate financing banks. The company's activities span three sectors of the real estate market: commercial property, infrastructure and public finance, and capital markets and asset...
, the troubled bank it nationalised in 2009. - The head of the Eurozone's bailout fund has begun attempts to persuade the People's Republic of ChinaPeople's Republic of ChinaChina , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
to invest in a scheme to help rescue member countries facing debt crises.
- The German government found itself €55 billion richer after a discovery of an accounting error at Hypo Real Estate
November
- 1 November - The Greek PM Papandreou has announced a referendum on the new Eurozone debt deal which shocked European markets and had thrown the future of the euro back into disarray.
- 8 November - Italian Prime Minister Silvio BerlusconiSilvio BerlusconiSilvio Berlusconi , also known as Il Cavaliere – from knighthood to the Order of Merit for Labour which he received in 1977 – is an Italian politician and businessman who served three terms as Prime Minister of Italy, from 1994 to 1995, 2001 to 2006, and 2008 to 2011. Berlusconi is also the...
said that he will resign of his office after budget reforms were passed, while Italy's cost of borrowing had hit record levels on bond markets. - 13 November - Silvio Berlusconi resigns as Prime Minister of Italy as a result of the country's debt crisis.
See also
- European sovereign debt crisis
- 2008–2011 Irish financial crisis2008–2011 Irish financial crisisThe 2008–2011 Irish financial crisis, which had stemmed from the financial crisis of 2008, is a major political and economic crisis in Ireland that is partly responsible for the country falling into recession for the first time since the 1980s...
- 2008–2011 Spanish financial crisis
- 2008–2011 Icelandic financial crisis
- 2008–2009 Belgian financial crisis2008–2009 Belgian financial crisisThe 2008–2009 Belgian financial crisis is a major financial crisis that hit Belgium from mid-2008 onwards. Two of the country's largest banks - Fortis and Dexia - started to face severe problems, exacerbated by the financial problems hitting other banks in the world. The value of their stocks, as...
- European Financial Stability FacilityEuropean Financial Stability FacilityThe European Financial Stability Facility is a special purpose vehicle financed by members of the eurozone to combat the European sovereign debt crisis. It was agreed by the 27 member states of the European Union on 9 May 2010, aiming at preserving financial stability in Europe by providing...
- European Financial Stabilisation MechanismEuropean Financial Stabilisation MechanismThe European Financial Stabilisation Mechanism is an emergency funding programme reliant upon funds raised on the financial markets and guaranteed by the European Commission using the budget of the European Union as collateral...
- Late-2000s recession in Europe
- May 2010 Greek protests