JANUARY 2001: Greece joins the euro after claiming its budget deficit was below the mandatory 3% - which it later admitted was not the case. Its euro membership helps the country to get cheaper credit, and public spending explodes.
OCTOBER 2009: as the global economic crisis wreaks havoc on Greece, the new socialist government announces that the budget deficit was in reality 13%, not 7% as was being reported. credit rating agencies downgrade Greek bonds, causing the cost of borrowing – and the cost of repaying debt – to rocket.
MAY 2010: The Eu and IMF announce a €110bn package to help Greece pay its debts. Private banks agree to give up some of the debt that Greece owes them. In return, the Greek government pledges budget cuts.
NOVEMBER 2011: Prime Minister George Papandreou resigns with resistance to the austerity cuts growing. Lucas Papademos takes over. Debt rescheduling talks with Greece's private creditors falter.
FEBRUARY 2012: after long negotiations, the Greek government agrees to a 22% reduction in the minimum wage, job cuts and smaller pensions to secure a second bailout from the Eu and IMF. Parliament approves the measures amid civil unrest, but Eu leaders are now pushing for more cuts before it will give the money.
No comments:
Post a Comment