-
Landesbank Sachsen bought by Landesbank Baden-Würtenberg
German response to Irish and British subprime-related losses. -
Global Financial crisis strike the EU
BNP Paribas press release on suspension of trade with three investment funds because of US subprime mortgage market collapse. -
Lehman Brothers forced into bankruptcy
September
Causing international panic -
Ireland guarantees Irish banks
Sporadic response to Lehman Brothers bankruptcy. Creating pressure in the UK because British people switched to Irish bank accounts for safety -
Fiscal Stimulus Package
December
National Governments had to give tax cuts and expenditure increase valued at 1.5% of GDP. -
Period: to
EU-IMF Support Package
Agreed on a financial support package with Hungary, Latvia, and Romania (Non EU members) -
Period: to
Beggar are they Neighbor, Policies
Guarantee bank deposits and less coordination between countries. These practices caused Ireland to almost sovereign default. -
Period: to
ECB is hesitant
ECB base rate falls from 3.75% to 1%. Creates 'covered bond scheme' as long term debt security -
Q3 Ireland and Spain in rapid decline
Rush to cut expenses policies caused Ireland and Spain to post deficit in excess of 10% of there GDP and 100% for Greece -
Greece in Trouble - Extreme Government Borrowing
October
Greece's budget deficit hits 12.5% after earlier saying it was only down 3.7%. -
EU and IMF support package and policy for Greece
Greece receives a 110 billion euro financial support package from the EU. To accommodate these EU nations had to cough up 80 billion euro. -
European Financial Stability Facility
European leaders pledge 440 billion euro to create the EFSF to provide support to euro area members -
European Financial Stabilization Machinist
European leaders pledged 60 billion euro in the creation of the EFSM in order to combat the financial concern around public finances -
Period: to
EFSF fund tapping
Ireland would look to the EFSF in November of 2010.
Portugal would take 78 billion euro in 2011 -
EFSM + EFSF + EFSM
500 billion euro mechanism is put in motion for crisis relief -
Period: to
Financial Assistance
Spain negotiates a loan for 100 billion euro from EU
Greece gets more money -
Cyprus + Ireland
Cyprus is the last country to receive emergency aid from the EU
Ireland leaves the EU-IMF program -
Banking Union is implemented
The financial system starts to stabilize