Status: 10/30/2012 3:08 p.m..
The ESM can start: The Board of Governors is now giving the official go-ahead. At the same time, the fight against the Greek financial problems continues. The euro finance ministers are increasing the pressure and giving the government in Athens, assisted by IMF boss Lagarde, an ultimatum.
October 01, 2012: The debt crisis in the euro zone is having a full impact on the labor market. In August, 18.2 million people in the 17 euro countries were unemployed – more than ever since the introduction of the common currency. Greece is heading for the sixth consecutive year of recession.
October 2nd, 2012: In order to reform the banking sector, an EU group of experts proposes that investment banking be strictly separated from the lending and deposit business. The prosecutor in New York is filing a lawsuit against the US bank JPMorgan Chase. She accuses the JPMorgan acquired investment bank Bear Stearns of massive fraud in the sale of mortgage securities.
October 03, 2012: German financial institutions pass a new stress test. The Portuguese government presents an amended austerity package.
October 04, 2012: The European Central Bank sees itself in a position to buy unlimited government bonds from over-indebted euro countries if necessary. Spain is the first candidate, although the ECB sees progress there. Protesting shipyard workers storm the premises of the Greek Ministry of Defense in Athens.
October 05, 2012: The US unemployment rate reaches 7.8 percent, the lowest level since President Obama took office. More and more employees in Germany have to do another job in addition to their main occupation.
October 07, 2012: British Prime Minister Cameron threatens to veto the EU budget. In Spain tens of thousands are protesting again against the government’s austerity measures.
October 8, 2012: German exports increased surprisingly in August despite the crisis: Companies sold goods worth 90.1 billion euros abroad – 5.8 percent more than a year earlier. Chancellor Merkel is traveling to Greece for the first time since the outbreak of the crisis – as a guest without gifts. The permanent euro rescue package ESM has now officially started.
October 9, 2012: The IMF lowers its growth forecasts for Germany and does not believe that Greece can keep to the restructuring schedule. The euro finance ministers are increasing the pressure and giving Greece an ultimatum to implement the promised reforms. The EU finance ministers are clearing the way for the introduction of a financial transaction tax in some countries.
During her visit to Athens, the Chancellor praised Greece’s progress and announced new German aid.
October 10, 2012: The International Monetary Fund warns of the risk of a credit crunch in Europe. The rating agency Standard and Poor’s has lowered Spain’s creditworthiness by a further two notches to BBB-.
October 11, 2012: IMF boss Lagarde speaks out in favor of giving Greece more time to deal with its crisis. The leading research institutes are halving their economic forecast for the coming year: the economy is expected to grow by one percent in 2013, and for this year the researchers are anticipating an increase in gross domestic product of 0.8 percent.
October 12, 2012: The director of the International Monetary Fund warns against sacrificing growth to austerity policies – at the same time, Lagarde criticizes the states’ high debt levels. During a panel discussion with Finance Minister Schäuble, she argues about the question of whether Greece should be allowed to postpone its reforms.
October 14, 2012: Finance Minister Schäuble remains: Greece will not leave the euro zone, nor will the country go bankrupt.
October 15, 2012: US homeowners file class action lawsuit over manipulation of Libor interbank rate. The Portuguese finance minister Gaspar has announced significant tax increases and savings for 2013.
October 16, 2012: Finance Minister Wolfgang Schäuble wants to give the EU currency commissioner more powers and reorganize the EU parliament in order to permanently resolve the euro debt crisis. His proposals are met with little understanding in Brussels.
October 17, 2012: In its autumn forecast on economic development, the federal government corrects its expectations for 2013 downwards. The cabinet initiates an extension of the SoFFin bank rescue fund.
October 18, 2012: China’s economic growth drops to its lowest level in three years. A general strike paralyzes Greece. In the EU, the dispute over banking supervision continues.
October 19, 2012: At their summit, the EU heads of state and government agree on the introduction of European banking supervision, the legal framework of which should be in place by January 1, 2013.
October 22, 2012: The EU statistical office corrects the deficit figures of the EU countries for 2011 – especially the euro countries Spain, Greece and Ireland had bigger budget gaps than previously known. In response to pressure from the Court of Auditors, the Bundesbank announced that it would bring parts of its gold reserves stored abroad to Germany for inspection.
October 23, 2012: The Spanish central bank estimates the country’s economic slump in the third quarter at 0.4 percent. The French National Assembly adopts tax increases to reduce the budget deficit.
October 24, 2012: The Greek Finance Minister Stournaras announces that the international donors have granted a delay in the implementation of the austerity requirements – however, the EU Commission, ECB and German government deny that there is a decision. During an appearance in the Bundestag, ECB President Draghi defends the program to buy government bonds from the euro crisis countries. The US government is suing Bank of America for more than $ 1 billion in mortgage fraud.
October 26, 2012: The GfK consumer confidence index climbs to a five-year high despite the crisis.
October 27, 2012: In Italy tens of thousands protest against the austerity measures of the Monti government.
October 28, 2012: According to a media report, the Troika is considering another haircut for Greece – this time, public creditors in particular are to waive claims.
October 30, 2012: The number of unemployed in Germany rose in October for the first time since 2010 above the level of the same month last year. The major Swiss bank UBS has announced that it will cut up to 10,000 jobs and severely curtail its investment banking sector.