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German response to Irish and British subprime-related losses.
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BNP Paribas press release on suspension of trade with three investment funds because of US subprime mortgage market collapse.
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September
Causing international panic -
Sporadic response to Lehman Brothers bankruptcy. Creating pressure in the UK because British people switched to Irish bank accounts for safety
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December
National Governments had to give tax cuts and expenditure increase valued at 1.5% of GDP. -
Agreed on a financial support package with Hungary, Latvia, and Romania (Non EU members)
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Guarantee bank deposits and less coordination between countries. These practices caused Ireland to almost sovereign default.
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ECB base rate falls from 3.75% to 1%. Creates 'covered bond scheme' as long term debt security
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Rush to cut expenses policies caused Ireland and Spain to post deficit in excess of 10% of there GDP and 100% for Greece
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October
Greece's budget deficit hits 12.5% after earlier saying it was only down 3.7%. -
Greece receives a 110 billion euro financial support package from the EU. To accommodate these EU nations had to cough up 80 billion euro.
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European leaders pledge 440 billion euro to create the EFSF to provide support to euro area members
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European leaders pledged 60 billion euro in the creation of the EFSM in order to combat the financial concern around public finances
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Ireland would look to the EFSF in November of 2010.
Portugal would take 78 billion euro in 2011 -
500 billion euro mechanism is put in motion for crisis relief
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Spain negotiates a loan for 100 billion euro from EU
Greece gets more money -
Cyprus is the last country to receive emergency aid from the EU
Ireland leaves the EU-IMF program -
The financial system starts to stabilize