Greece Financial Crisis: A Summary

We are featuring a comprehensive report by David Cutler, London Editorial Reference Unit and Renee Maltezou of the Athens Beaureu for a summary of the Greek Financial Crisis 2010.

Jan. 2010

-Jan. 14: Greece unveiled a stability programon that aims to cut its budget gap to 2.8 percent of GDP in 2012 from 12.7 percent in 2009. Unions anounced their defiance with intentions of having a strike in February.

Feb. 2010

Papandreou says on Feb. 2 the government will extend a public sector wage freeze to those making below 2,000 euros a month for 2010, excluding seniority pay hikes.

-Feb. 3: The EU Commission says it backs Greece’s plan to reduce its budget deficit below 3 percent of GDP by 2012 and urges Greece to cut its overall wage bill.

-Feb 24: A one-day general strike that crippled Greece’s transport and public services.

-Feb 25: The nation’s economy was revealed to be in such a bad state after an EU mission along with IMF experts was sent to Athens

March 2010

EU Economic Affairs Commissioner Olli Rehn asks Greece to announce further measures to tackle its budget crisis.

-March 5: New package of public sector pay cuts and tax increases is passed by the government to save an extra 4.8 billion euros.

-March 11: Public and private sector workers had a strike.

-March 19: European Commission President Jose Manuel Barroso urged EU member states to agree a standby aid package for Greece.

April 2010

-April 11: Euro zone finance ministers approved a giant 30-billion-euro ($40 billion) emergency aid mechanism for Greece.

-April 13: ECB policy makers give the thumbs-up to Euro zone finance ministers’ plan

-April 15: EU monetary chief Olli Rehn says there is no possibility that Greece will default on its debts and no reason to doubt Germany’s commitment to an EU pledge to help.

-April 21: Greece starts talks to hammer out details of a potential aid deal but investors dump Greek assets on a lack of clarity over whether the funds would come in time. Germany’s opposition Social Democrats say they oppose “fast-track” approval for the deal in parliament. The yield on the Greek 10-year bond rises to 8.4 percent.

-April 22:Moody’s Investors Service downgrades Greece’s sovereign placing it four notches above speculative, or “junk” status. Greece posted a budget deficit of 32.34 billion euros or 13.6 percent of GDP in 2009.

-April 23: Prime Minister Papandreou asked for the activation of an EU/IMF aid package aimed at pulling the euro zone member out of a debt crisis in what could be the largest state bailout ever attempted.

-April 25: Papaconstantinou said bailout talks with the IMF and European partners in Washington go well and he is confident Greece will secure help in May to finance its debt.

-April 26:Striking dockers and protesters at Greece’s largest ports.

-April 27 : Standard & Poor’s downgraded the credit rating of Greece to junk status.

-April 28: Bank stocks jumped as much as 6.2 percent after securities regulator says it has banned short-selling in Greek shares on the Athens bourse until June 28.

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