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Key dates in Spain's financial crisis

28 September 2012, 22:18 CET
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(MADRID) - Below are key dates in the financial crisis in Spain, the eurozone's fourth biggest economy, which entered into recession in the second half of 2008, hit by the international financial crisis and the bursting of a property bubble:

--2009--

- March: The Bank of Spain takes control of regional savings bank Caja Castilla-La Mancha (CCM), in what is its first bank rescue since 1993.

- April: In the first quarter, Spain passes the mark of four million unemployed, which at 17.36 percent is the highest jobless rate in Europe.

- June: Madrid announces a nine-billion-euro ($11.3 billion) fund to help revive the financial sector.

--2010--

- January 29: The Spanish government adopts a three-year austerity plan aimed at saving 50 billion euros and bringing the public deficit from 11.2 percent of GDP in 2009 to 3.0 percent in 2013. In the first quarter, Spain comes out of recession.

- May 12: The head of the socialist government, Jose Luis Rodriguez Zapatero, decides to implement extra austerity measures, under pressure from the markets, the EU and the United States. The measures include a cut in civil servants' salaries.

- September: Moody's rating agency slices Spain's credit rating, a sharp blow to the government as it presented a belt-tightening budget the day after a general strike. The agency cuts Spain's top-ranked "Aaa" rating for long-term government bonds by a notch to "Aa1.

--2011--

- January: The retirement age passes from 65 to 67.

- May: Birth of a protest movement by demonstrators, who call themselves the "indignant", against unemployment and economic woes in Madrid's Puerta del Sol square.

- June 19: At least 200,000 demonstrate throughout Spain.

- August 3: Market pressure on Spain rises with borrowing costs soaring to record heights.

- August 15: The European Central Bank says it has spent a record amount of 22 billion euros to purchase eurozone government bonds over the past week to support Spain and Italy.

- September 7: Spain becomes the second eurozone member after Germany to adopt a constitutional reform that will put a cap on future deficits.

- December 30: After the defeat of the Socialist government, the government of Mariano Rajoy announces a 15.1-billion-euro austerity plan.

--2012--

- February: The government slashes employees' maximum severance pay in a sweeping labour reform aimed at confronting a near 23-percent unemployment rate.

- March 2: Spain initials the EU's new fiscal pact but warns it will not be able to respect the commitment to reduce its public deficit.

- March 30: The government unveils 27 billion euros worth of spending cuts and tax hikes.

- June 9: Spain goes for help to the eurozone, which promises to lend it up to 100 billion euros to recapitalise its banking sector. Spain becomes the fourth European country to seek external assistance after Greece, Ireland and Portugal.

- July 11: Spain announces a 65-billion-euro austerity package.

- July 20: Eurozone finance ministers announce an aid package for Spanish banks of up to 100 billion euros.

- Aug 3: Spain plans savings of 102 billion euros by 2014, according to a draft budget prepared for the country's eurozone partners.

- September 25: Thousands rally near parliament in Madrid in anger at the economic crisis, with clashes leaving more than 60 people injured.

September 28: Spain's government says banks are likely to tap the eurozone loan for 'about' 40 billion euros after an audit shows they need 59 billion to fix their balance sheets.


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