Greece debt crisis: timeline

Greece's economy has been in the balance for months, but the seeds of the crisis were sown a decade ago

1 January 2001: Greece joins the euro

Having been left out when the single European currency began at the beginning of 1999, Greece becomes the 12th member two years later after dramatically cutting inflation and interest rates, and bringing the drachma smoothly into line with the euro. The Greek government hails the achievement, saying it promised greater stability and prosperity. But the then president of the European Central Bank, Wim Duisenberg, warns that the country must keep working hard to improve its economy, and some analysts fret that the euro could suffer from the inclusion of weaker European nations.

15 November 2004: Greece admits fudging euro entry

Close scrutiny of Greece's budget figures shows that the country has not actually met the conditions to join the eurozone. Greek government admits that its deficit has never been below 3% since 1999, as EU rules demand.

29 March 2005: Austerity measures

Having ousted the Greece's socialist government a year earlier, the right-wing New Democracy party imposes an austerity budget to try to slash Greece's deficit and get the public finances back on track after the cost of hosting the 2004 Olympics. It includes tax hikes on alcohol and tobacco, and an increase in VAT from 18% to 19%.

Spring 2006: Bouncing back?

A year after the austerity budget, Greece's economy appears to be growing strongly again, with GDP up 4.1% in the first three months of 2006.

4 October 2009: George Papandreou becomes Greece's prime minister

Papandreou's Panhellenic Socialist Movement (PASOK) party wins power after New Democracy calls a snap general election, asking the Greek people for a new mandate to tackle the looming financial crisis. The Greek economy has contracted by 0.3%, and the national debt has risen to €262bn, from €168bn in 2004. At this stage, the government expects the 2009 deficit to reach 6% of GDP.

30 November 2009: Debt fears mount

Papandreou admits that the Greek economy is in "intensive care", as European finance ministers express concern about the size of the country's debt.

8 December 2009: Fitch downgrades Greece's credit rating

The crisis escalates and shares fall around the world after ratings agency Fitch cuts Greece's long-term debt to BBB+, from A-. This is the first time in a decade that Greece does not have an A-rating, and pushes up the cost of borrowing.

14 December 2009: Papandreou unveils radical reforms

The Greek government announces an ambitious plan to cut the deficit by four percentage points, as a proportion of GDP, in 2010-2011.

17 December 2009: Strikes hit Greece as debt crisis grows

Thousands of workers take to the streets in protest at Papandreou's cutbacks, hours after Standard & Poor's follows Fitch by cutting Greece's credit rating.

28 January 2010: Greece promises to 'put house in order'

The spread between the interest charged on Greek and German debt widens to 4% as investors fret that Greece may default.

2 February 2010: Papandreou makes TV appeal for unity over financial crisis

Greece announces a wider austerity package, including a freeze on public sector pay and higher taxes for low and middle-income households.

10 February 2010: Greek public sector workers strike as spectre of bailout looms

Riot police fire tear gas on demonstrators in Athens, protesting at the austerity measures. Meanwhile European leaders consider a rescue package for Greece at an economic summit.

11 February 2010: Angela Merkel dashes Greek hopes of rescue bid

Germany opposes a quick bailout of Greece, saying the country must tackle its debt problems itself.

26 February 2010: Goldman Sachs faces Fed inquiry over Greek crisis

Investment bank is accused of helping to cause the crisis by using derivatives contracts to disguise how much Greece was borrowing.

3 March 2010: Greece unveils radical austerity package

Greek population told to accept lower bonuses and higher taxes or risk bankruptcy.

4 March 2010: Greece breathes a sigh of relief as 10-year bonds sale proves popular

... and the financial markets welcome the move by bidding for €16bn of government debt.

9 March 2010: Papandreou asks Obama for help

Greek prime minister calls for a crackdown on financial speculators during a whirlwind world tour.

29 March 2010: Greece struggles on after weak response to bond sale

Financial markets start to lose faith in Greece's ability to service its debts.

11 April 2010: EU ministers agree Greek bailout terms

Finally, after weeks of haggling the eurozone agrees a €30bn rescue package for its weakest member.

16 April 2010: Fury in Greece over IMF intervention

Greek government admits that it may need help from the International Monetary Fund, pushing its bailout up to €45bn.

19 April 2010: Greek borrowing reaches record high

The spread between the yield on Greek and German bonds shoots up to 469 basis points, as Greek workers fear the IMF's arrival.

23 April 2010: Greece activates €45bn EU/IMF loans

With €16bn of debt maturing in May, Papandreou bows to the inevitable and officially requests a bailout.

27 April 2010: Standard & Poor's downgrade Greek credit rating to junk status

S&P loses patience with Greece and slashes its credit rating to BB+, sending stock markets plunging worldwide. Analysts and politicians warn that €45bn simply won't be enough to sort out the Greek crisis, with Goldman Sachs predicting that the country may need a €150bn rescue package.

28 April 2010: All eyes are Berlin

EU and IMF officials hold crunch talks with German leaders. Rumours of a €120bn package calm the markets, as Angela Merkel admits that admitting Greece into the euro may have been a mistake.

2 May 2010: EU debt crisis: Greece granted €110bn aid to avert meltdown

After days of frantic negotiations, the IMF, the EC and the European central bank hammer out a three-year package to rescue Greece.

4 May 2010: Greek protesters storm the Acropolis as markets lose faith

As anger erupts across Athens at the scale of the cutbacks that Greece must now implement, stock markets fall sharply and gold hits a record high as investors start to doubt whether the €110bn bailout will actually solve Greece problems.