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Deficit under EU Ceiling
Government post deficit figures of 2%, 1.4%, 1.4% in 2000, 2001 and 2012 respectively, despite massive spendings for the 2004 Olympics. -
Deficit Numbers Cooked
Newly elected Karamanlis government finds out the deficit numbers from 2 previous budget years are cooked (due to cross-currency swaps with Goldman Sachs which hid 2.8 billion Euros of debt from debt statistics) but chooses to hide the information ahead of the Athens 2004 Olympics. -
EC accuses Greece
European Commision formally accuses Greece of imprudent fiscal policies. With 3.2% deficit, it is one of the six countries in breach of the deficit ceilings of 3% of GDP despite having robust GDP growth the last 3 years. -
2004 Olympics
Greece hosts the 2004 summer Olympic Games, which costs the state in excess of 9 billion euros ($11.6 billion), the most expensive Olympic dates to date. The resultant public borrowing contributes to a rising deficit (6.1 percent) and debt-to-GDP ratio (110.6 percent) for 2004 -
Underreporting Acknowledged
After a deep financial audit, Greece government admits underreporting of GDP and deficit figures from 2000 to 2003. The borrowing costs raise for Greece.
The new data revised the Greek 2000 deficit to 4.1 per cent from a prior estimate of 2 per cent. The 2001 and 2002 deficits now stand at 3.7 per cent compared with 1.4 per cent previously. The 2003 deficit, which had already been revised up in May to 3.2 per cent from 1.7 per cent, is now shown to be even higher - at 4.6% -
Fiscal Monitoring
Greece becomes to first EU country to be placed under fiscal policy monitoring of the European Commission. -
Austerity Measures
Greece Parliament passes austerity measures to balance the budget despite country-wide protests. (pension cuts, retirement age raise and end public-sector jobs for life) -
Growth
Greece GDP grows by 4% in the first three quarters and ends the year with an annual growth rate of %5.8, almost doubling the annual EU growth rate. -
Onset of Crisis
Onset of the Global Financial Crisis starts and by August 2007, the lending sources dry up, borrowing costs rise. -
Re-election - Reform
Karamanlis government wins re-election, pledges to reform the failing pension system and privatization of failing state-owned companies. -
Pension Reform Bill
Greek Parliament narrowly passes Pension Reform Bill despite massive protests. -
Widest Spread
Students and young people take to city streets in nationwide protests and riots over the police killing of a 15-year-old boy in Athens. Major public-sector strikes coincide to increase pressure on the government over its economic policies. Due to massive demonstrations, protests, an unrealistic 2009 budget, political turmoil and the 2008 economic crisis, Greek 10 year Government bonds see the widest spread in 9 years at 230 basis points against the German Government bonds. -
Snap Elections
Greek PM Karamanlis requests the President for dissolve of the parliament and new elections -
New Government
Opposition party PASOK wins the general elections and Papandreou takes over as new PM. -
Papandreou Revelations
Finance Minister of Papandreou’s new government reveals that the public debt is much larger than reported by previous governments and the budget deficit could reach 12.7% of the GDP, nearly twice of what it was thought to be and four times the Eurozone limit. -
Crisis Onset
The debt crisis is beginning. Greece's credit rating is downgraded by Fitch (from A- to BBB+), Standard & Poor's (from A- to BBB+)and Moody's (from A1 to A2). In response to the looming fears of default, Prime Minister Papandreou announces new spending cuts. -
Troubles
The problems remain hidden as the statistical reporting reveal in April 2010 that the debt and GDP numbers in 2008 and 2009 were much worse than originally reported. The 2009 deficit was 13.6% compared to a previous estimate of 6%. The debt to GDP ratio was 130%, revised from 113%. -
Debt Crisis is here
Despite two austerity packages the government passed in February and March 2010, in April 2010, with the revealing of the state of the economy after the financial crisis of 2009, the Greek economy comes to junk status, and the yield rates on Greek bonds soar. Private capital lending becomes completely inaccessible for Greece, which nears the country to sovereign default. The debt crisis arrives. A bailout becomes inevitable. -
Junk Status
S&P's downgrades Greek debt rating to BB+ from BBB+, which is junk status for bonds. -
First Bailout Package
Greece accepts an international aid package worth 110 billion euros over three years, with 80 billion euros coming from eurozone peers and the remainder from IMF. But the bailout came with strict conditions -- among them that the government had to improve its tax collection and save money in an effort to bring its budget into balance. -
Crisis Deepens
EU agrees to a second bailout for Greece by channelling 110bn euros through the European Financial Stability Facility with further austerity measures. All three main credit ratings agencies cut Greece's rating to a level associated with a substantial risk of default. -
Debt Write-off
Eurozone leaders agree a 50% debt write-off for Greece in return for further austerity measures. Eurozone leaders fear that failure to solve the Greek debt crisis could risk it spreading to other economies, particularly Italy. 1) a freeze in the salaries of all government employees, a 10% cut in bonuses, and cuts in overtime workers, 2) rises in taxes on fuel, cigarettes, and alcohol; rises in taxes on luxury goods; and cuts in public sector pay, 4) new taxes and new cuts of workers' wages. -
Papandreou resigns
PM Papandreou resigns 2 days after gaining a vote of confidence. -
Second Bailout Finalized
Second Bailout Plan gets finalized and comes with more austerity measures. The largest debt restructing in history commences. -
60% Youth Unemp. Rate
All time high. -
Unempl. Rate of 27.88%
Highest ever recorded -
Budget Surplus
Greece posts a primary budget surplus of 1.5% of GDP for 2013 fiscal year. -
Return to Bond Markets
After a 4 year hiatus, Greece issues bonds, worth 3 billion euros, as an important signal on the way to recovery. -
Anti-austerity Syriza
Syriza, a far-left, and anti-austerity party wins the general elections. Alexis Tspiras leads the country as PM after forming a coalition with Independent Greeks. -
Bailout Extension
Greece strikes a 4 month bailout extension that was to expire at the end of the month. -
Bailout Referandum
Tsipras announces a referandum to accept or reject the latest bailout plan. -
Missed IMF payment
Greece misses on a $1.7 million IMF payment and falling into arrears. -
Referandum yields No
61% of the voters say no to the new austerity measures and the bailout. -
Third Bailout Plan
Greek parliamant accepts the third bailout plan to run through August 2018, despite the No from the referandum.