News / Europe

    Europe's Debt Crisis: The Key Milestones

    A statue shows the Euro symbol flipped, at the European Commission headquarters in Brussels, Belgium, March 7, 2012. A statue shows the Euro symbol flipped, at the European Commission headquarters in Brussels, Belgium, March 7, 2012.
    x
    A statue shows the Euro symbol flipped, at the European Commission headquarters in Brussels, Belgium, March 7, 2012.
    A statue shows the Euro symbol flipped, at the European Commission headquarters in Brussels, Belgium, March 7, 2012.
    Ken BredemeierJeff Seldin
    Here are some important touchpoints for the protracted governmental debt crisis in Europe's 17-nation euro currency bloc:

    February 2, 2010: Greek Prime Minister George Papandreou proposes new measures to freeze civil service salaries and raise fuel taxes and retirement ages. He urges Greek lawmakers to support the plan, saying it is needed to pull the country back from the edge of a financial cliff.  Some investors believe Athens may need a bailout from other European Union nations or the International Monetary Fund to avoid a default. EU officials dismiss the need for a Greek bailout, saying Athens is capable of solving the crisis by itself.

    February 15, 2010: European finance ministers warn Greece it may need to take drastic action and that pledges to cut government spending and raise money do not go far enough.  EU ministers give Greece until mid-March to show it can make substantial progress.  

    March 3, 2010: The Greek Cabinet approves broad new spending cuts designed to save an extra $6.5 billion.  The measures include a sales tax increase, a freeze in pensions and additional salary cuts for government workers.

    March 7, 2010: French President Nicolas Sarkozy promises eurozone nations will not let Greece fail. Sarkozy says the 16 countries then using the euro as their currency are working on specific steps to help Greece.

    March 8, 2010: Portugal announces a series of austerity measures intended to cut the nation's budget deficit by 2013.  The plan includes delaying a high-speed rail project, cutting military spending, paring social spending and raising some taxes.  It also calls for limits on public sector wage increases.

    March 11, 2010: About 30,000 people march through Athens in a new wave of protests against civil service pay cuts and a freeze on pensions.  Near Athens University, some of the clashes turn violent as protesters hurl rocks and petrol bombs.

    March 24, 2010: EU ministers fail to agree on how to help the struggling Greek economy as the value of the euro plunges to a 10-month low against the dollar. Meanwhile, the Fitch ratings agency lowers its credit rating for another eurozone nation, Portugal, because of worries that county will be unable to pay back its loans.

    April 26-27, 2010:  Ratings agency Standard and Poor's cuts Greek long-term government bonds three levels to speculative or "junk" status.  It also downgrades Portugal's sovereign debt by two notches.  S&P says it has growing concerns about the ability of the Greek and Portuguese governments to repay debts.

    May 2, 2010: EU finance ministers unveil a $146 billion EU-International Monetary Fund rescue package for Greece.  German Chancellor Angela Merkel says it is the only way to ensure the stability of the euro.  The announcement comes the day after thousands of protesters rally in Athens against the government's plan to make deep budget cuts.  

    May 7, 2010: The IMF gives final approval to a $40 billion bailout for Greece, part of the larger $146 billion rescue package that has already been approved.  IMF managing Director Dominique Strauss-Kahn says the Greek government should be commended for "well-balanced" efforts to bring the country out of its financial crisis.

    May 27, 2010: Spain's parliament approves an $18 billion package in spending cuts, including wage cuts for civil servants, by a one-vote margin. Two days later, Fitch cuts Spain's credit rating one notch, warning that a strict austerity plan intended to cut debt could also slow economic growth.

    June 14, 2010: Moody's Investors Service downgrades Greece's bond ratings to "junk" status because of concerns the country could fail to cut its deficit and pay down its debt.

    November 27, 2010: Tens of thousands of protesters mass in Dublin to protest the Irish government's plan to cut social welfare programs and raise taxes.  The cuts are needed to secure a $113 billion international bailout for the debt-plagued nation. European Union governments approve the bailout package the following day.  

    March 23, 2011: Portuguese Prime Minister Jose Socrates resigns after parliament rejects plans for more spending cuts.

    March 24, 2011: Thousands of demonstrators confront police in Brussels, where a European Union summit tries to deal with the debt crisis.  Belgian police fire tear gas and water cannons at nearly 20,000 protesters.

    May 3, 2011: Portugal becomes the third European Union nation to take a bailout, accepting a $116 billion package from the EU and the IMF.

    May, 12, 2011: The IMF warns debt problems in Greece, Ireland and Portugal could spread to other eurozone nations and to the emerging economies in eastern Europe.   

    May 19, 2011: Thousands of protestors frustrated with Spain's high unemployment rate gather in major Spanish cities to demand that Madrid provide them with jobs.  Spain's jobless rate is more than 21 percent.

    June 29, 2011: The Greek parliament approves sweeping new austerity measures - voting for $40 billion in tax hikes and spending cuts.  The plan also calls for the sale of state-owned assets.   Lawmakers vote for the plan as thousands of rock-throwing protesters clash with police in central Athens.

    July 22, 2011: The EU and the IMF agree to give Greece another bailout worth about $155 billion. Greece will also get voluntary loans from the private sector to help cover the financial gap.

    August 12, 2011: Italy unveils sharp budget cuts - about $28 billion in 2012 and $35 billion in 2013.  The European Central Bank had demanded the cuts in exchange for supporting Italy's bonds. Interest rates on those bonds soared a week earlier, increasing investor fears that Italy also could be forced to seek a bailout.

    October 19, 2011: An estimated 70,000 people march on the Greek parliament, some clashing with police while a massive protest and general strike paralyzes Athens. Public and private sector unions slam the government's plans to slash the salaries of public workers and raise taxes.

    November 1, 2011: World stock markets plummet after Greek Prime Minister George Papandreou says he will call for a referendum on further austerity measures needed to secure additional bailout funds.  One Greek survey shows 60 percent of those questioned took a negative view of the Brussels debt-relief agreement.  Some European leaders and financial analysts say a Greek vote against the debt-relief agreement would amount to Greece's departure from the eurozone and could lead to new turmoil on world financial markets.

    November 2, 2011: French President Nicolas Sarkozy and German Chancellor Angela Merkel say Greece will receive no more European bailout aid until it fulfills its commitments to the eurozone.

    November 3, 2011: Greek Prime Minister George Papandreou scraps a possible referendum on acceptance of the European bailout package.  Meanwhile, the European Central Bank unexpectedly cuts its key interest rate by a quarter percentage point to 1.25 percent. Still later, it cuts the rate to 1 percent as the eurozone economy contracts further.

    November 6, 2011: Greek Prime Minister George Papandreou agrees to step down in favor of a short-term coalition government whose primary task will be reaching agreement on a new EU bailout deal.

    November 8, 2011: Italian Prime Minister Silvio Berlusconi says he will resign as soon as parliament passes crucial economic reforms.  He makes the announcement after he loses his parliamentary majority during a vote on a routine budget measure in the lower house. Italy is the third largest economy in the eurozone and the seventh largest in the world.  But it faces potential economic crisis caused by its ballooning public debt.

    December 9, 2011: Eurozone leaders decide to adopt new budget restraints for spending by individual governments.

    January 2012: Credit rating agency Standard & Poor's downgrades France and eight other eurozone governments, and a few days later the currency bloc's rescue fund, for their failure to resolve the debt crisis.

    January 2012: Of the 27 EU countries, all but Britain and the Czech Republic agree to the new rules tightening budget controls.

    February 10, 2012: Greece agrees to new austerity measures demanded by its international creditors.

    March 13, 2012: Eurozone officials agree to a new $162 billion bailout for Greece.

    May 6, 2012: Greeks vote for parties opposed to the bailout and the austerity demanded by the country's lenders. But within days, new elections are called for June 17 after the country's fractious political parties are unable to form a new coalition government.

    June 9, 2012: Spain says it will seek a $125 billion rescue deal from the eurozone for its ailing banks burdened with defaulted real estate loans. Meanwhile, in the ensuing days, the Spanish government's borrowing costs reach new heights, pushed to the level at which Greece, Ireland and Portugal were forced to secure international bailouts.

    June 17, 2012: In the second round of parliamentary voting, Greek voters favor the pro-bailout, conservative New Democracy party led by Antonis Samaras. A few days later, he forms a new coalition government.

    June 28-29, 2012: European Union leaders, meeting in Brussels, are scheduled to hold their 20th summit on the debt crisis.

    Jeff Seldin

    Jeff works out of VOA’s Washington headquarters and is national security correspondent. You can follow Jeff on Twitter at @jseldin or on Google Plus.

    You May Like

    Republicans Struggle With Reality of Trump Nomination

    Despite calls for unity by presumptive presidential nominee, analysts see inevitable fragmentation of party ahead of November election and beyond

    Spanish Warrants Point to Russian Govt. Links to Organized Crime

    Links to several Russians, some of them reputedly close Putin associates, backed by ‘very strong evidence,’ Spanish judge says

    Video US Worried Political Chaos in Iraq Will Hurt IS Fight

    Iraq needs stable, central government to push back against Islamic State, US says, but others warn that Baghdad may not have unified front any time soon

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Press Freedom in Myanmar Fragile, Limitedi
    X
    Katie Arnold
    May 04, 2016 12:31 PM
    As Myanmar begins a new era with a democratically elected government, many issues of the past confront the new leadership. Among them is press freedom in a country where journalists have been routinely harassed or jailed.
    Video

    Video Press Freedom in Myanmar Fragile, Limited

    As Myanmar begins a new era with a democratically elected government, many issues of the past confront the new leadership. Among them is press freedom in a country where journalists have been routinely harassed or jailed.
    Video

    Video Taliban Threats Force Messi Fan to Leave Afghanistan

    A young Afghan boy, who recently received autographed shirts and a football from his soccer hero Lionel Messi, has fled his country due to safety concerns. He and his family are now taking refuge in neighboring Pakistan. VOA's Ayaz Gul reports from Islamabad.
    Video

    Video Major Rubbish Burning Experiment Captures Destructive Greenhouse Gases

    The world’s first test to capture environmentally harmful carbon dioxide gases from the fumes of burning rubbish took place recently in Oslo, Norway. The successful experiment at the city's main incinerator plant, showcased a method for capturing most of the carbon dioxide. VOA’s Deborah Block has more.
    Video

    Video EU Visa Block Threatens To Derail EU-Turkey Migrant Deal

    Turkish citizens could soon benefit from visa-free travel to Europe as part of the recent deal between the EU and Ankara to stem the flow of refugees. In return, Turkey has pledged to keep the migrants on Turkish soil and crack down on those who are smuggling them. Brussels is set to publish its latest progress report Wednesday — but as Henry Ridgwell reports from London, many EU lawmakers are threatening to veto the deal over human rights concerns.
    Video

    Video Tensions Rising Ahead of South China Sea Ruling

    As the Philippines awaits an international arbitration ruling on a challenge to China's claims to nearly all of the South China Sea, it is already becoming clear that regardless of which way the decision goes, the dispute is intensifying. VOA’s Bill Ide has more from Beijing.
    Video

    Video Painting Captures President Lincoln Assassination Aftermath

    A newly restored painting captures the moments following President Abraham Lincoln’s assassination in 1865. It was recently unveiled at Ford’s Theatre in Washington, where America’s 16th president was shot. It is the only known painting by an eyewitness that captures the horror of that fateful night. VOA’s Julie Taboh tells us more about the painting and what it took to restore it to its original condition.
    Video

    Video Elephant Summit Results in $5M in Pledges, Presidential Support

    Attended and supported by three African presidents, a three-day anti-poaching summit has concluded in Kenya, resulting in $5 million in pledges and a united message to the world that elephants are worth more alive than dead. The summit culminated at the Nairobi National Park with the largest ivory burn in history. VOA’s Jill Craig attended the summit and has this report about the outcomes.
    Video

    Video Displaced By War, Syrian Artist Finds Inspiration Abroad

    Saudi-born Syrian painter Mohammad Zaza is among the millions who fled their home for an uncertain future after Syria's civil war broke out. Since fleeing Syria, Zaza has lived in Lebanon, Egypt, Jordan and now Turkey where his latest exhibition, “Earth is Blue like an Orange,” opened in Istanbul. He spoke with VOA about how being displaced by the Syrian civil war has affected the country's artists.
    Video

    Video Ethiopia’s Drought Takes Toll on Children

    Ethiopia is dealing with its worst drought in decades, thanks to El Nino weather patterns. An estimated 10 million people urgently need food aid. Six million of them are children, whose development may be compromised without sufficient help, Marthe van der Wolf reports for VOA from the Metahara district.
    Video

    Video Little Havana - a Slice of Cuban Culture in Florida

    Hispanic culture permeates everything in Miami’s Little Havana area: elderly men playing dominoes as they discuss politics, cigar rollers deep at work, or Cuban exiles talking with presidential candidates at a Cuban coffee window. With the recent rapprochement between Cuba and United States, one can only expect stronger ties between South Florida and Cuba.
    Video

    Video California Republicans Weigh Presidential Choices Amid Protests

    Republican presidential candidates have been wooing local party leaders in California, a state that could be decisive in selecting the party's nominee for U.S. president. VOA's Mike O’Sullivan reports delegates to the California party convention have been evaluating choices, while front-runner Donald Trump drew hundreds of raucous protesters Friday.
    Video

    Video ‘The Lights of Africa’ - Through the Eyes of 54 Artists

    An exhibition bringing together the work of 54 African artists, one from each country, is touring the continent after debuting at COP21 in Paris. Called "Lumières d'Afrique," the show centers on access to electricity and, more figuratively, ideas that enlighten. Emilie Iob reports from Abidjan, the exhibition's first stop.

    Special Report

    Adrift The Invisible African Diaspora