Staatsschuldenkrise im Euroraum

The country outlines its first wave of spending cuts. Another $5 billion in reductions comes later in the year.

The new prime minister, George Papandreou, had pledged on the campaign trail to spend billions to help jumpstart a lagging economy and create jobs

A rapidly ballooning deficit forces Greece's new government to launch an austerity plan. The unpopular measures include a freeze in public sector hiring and a 10-per-cent cut to social security and government operating expenditures.

the EU promises to act over Greek debts and tells Greece to make further spending cuts. The austerity plans spark strikes and riots in the streets

The eurozone and IMF agree a safety net of 22bn euros to help Greece - but no loans.

eurozone countries agree to provide up to 30bn euros in emergency loans.

3 killed in protests in Greece - Protests in Athens against the government's austerity plans turn violent. Three people are killed when they become trapped in a bank set ablaze by demonstrators. Parliament passes the austerity package demanded under the EU-IMF deal

The EU agrees to set up a temporary $938-billion bailout fund, the European Financial Stability Facility, as fears mount about the economies of Portugal, Spain and even Italy.

(20 Januar) Amid a cabinet revolt and voter unrest over a new $20-billion austerity plan, Prime Minister Brian Cowen calls an election. He resigns two days later.

Enda Kenny becomes new PM

The ruling Socialists are bounced from office in Portugal's parliamentary elections. The Social Democratic Party, under new Prime Minister Pedro Passos Coelho, leads a centre-right coalition.

A second bailout for Greece is agreed. The eurozone agrees a comprehensive 109bn-euro ($155bn; £96.3bn) package designed to resolve the Greek crisis and prevent contagion among other European economies.

Amid uproar over a $62.6-billion austerity package unveiled in April, Greek Prime Minister George Papandreou schedules a confidence vote, which he survives a week later.

Greek lawmakers approve the April spending cuts, after two days of violent protests outside parliament. This clears the way for negotiations to begin on a new bailout package, which will be completed in October 2011.

European Central Bank says it will buy Italian and Spanish government bonds to try to bring down their borrowing costs, as concern grows that the debt crisis may spread to the larger economies of Italy and Spain.

the Bank of England injects a further £75bn into the UK economy through quantitative easing, while the European Central Bank unveils emergency loans measures to help banks.

Franco-Belgian bank

European leaders reach a "three-pronged" agreement described as vital to solve the region's huge debt crisis.

EU leaders agree to force private investors to accept a 50 per cent "haircut" on Greek bonds and extend a new aid package to Greece worth $162.7 billion.

Italian PM Silvio Berlusconi fails to secure a majority in a parliamentary vote and must resign.
Former EU commissioner Mario Monti agrees to form a government of technocrats.

(31 Oktober) Greek PM calls referendum, later quits - Prime Minister George Papandreou calls a surprise referendum on the Oct. 27, 2011 bailout agreement. He backs down a week later and resigns. A national unity government is created to steer Greece through the crisis.

Attempts to get all 27 EU countries to agree to treaty changes fail due to the objections of the UK and Hungary. The new accord is to be agreed by March 2012, Mr Sarkozy says.

The "fiscal pact" agreed by the EU in December is signed at the end of January. The UK abstains, as does the Czech Republic, but the other 25 members sign up to new rules that make it harder to break budget deficits.

Weeks of negotiations ensue between Greece, private lenders and the "troika" of the European Commission, the European Central Bank and the IMF, as Greece tries to get a debt write-off and make even more spending cuts to get its second bailout.

Twenty-five European leaders reach a deal to force the nations to keep their budget deficits in check. Britain and the Czech Republic say no to the treaty, which takes effect once 12 governments ratify it.

the eurozone finally backs a second Greek bailout of 130bn euros. IMF backing was also required and was later given.

a majority of Greeks vote in a general election for parties that reject the country's bailout agreement with the EU and International Monetary Fund.

signaling a change in direction for France's economic party

Greece holds elections on May 6. Anti-bailout party Syriza finishes a surprise second to the centre-right New Democracy, who cannot form a coalition. By May 15, other parties have failed as well and new elections are called.

pro-bailout center-right New Democracy party wins Greece vote, allaying fears the country was about to leave the eurozone. Antonis Samaras becomes PM

Cyprus requests financial aid from its eurozone partners as it struggles to shore up its banks, which took heavy losses on Greek debt.

Germany's high court rejects calls to block Europe's permanent rescue fund, the ESM, paving the way for its ratification by the country's president. Investors breathe a sigh of relief, since German participation is critical to the fund's chances.

Hundreds of thousands snarl the streets of several European capitals, at times clashing with riot police, as they demand that governments stop cutting benefits and create more jobs.

International creditors agree to give Greece the $56.5 billion in aid it urgently needs.

Cyprus clinches a bailout deal with international creditors to prevent it becoming the first country to ditch the euro. In return for a $13-billion bailout from its European partners and the IMF, Cyprus agrees to drastically shrink its outsized banking sector, cut its budget, implement economic reforms and privatize state assets.