Ten years ago, Spain was hit by a severe economic crisis. -- Rajoy faces his first general strike against his austerity steps on Thursday, and says he will still present a tough 2012 budget on March 30. Published. May 2010: - After initially denying Spain was in trouble, Zapatero announces a slew of austerity measures worth around 1.5 percent of GDP, including wage cuts for civil servants, the end of the “Baby Cheque” and freezing pension increases. The international financial crisis initiated in the summer of 2007 marked the abrupt end of a long high growth cycle for Spain (started around 1996). A lengthy property bubble burst, the public account surplus became a deficit, and growth contracted 0.9pc. June 9, 2012 Spain bows to bailout of struggling bank sector. It is worth an estimated 5 percent of GDP, including 8 billion euros of infrastructure products and a 2,500-euro ‘Baby Cheque’ for each newborn child. It is the first major bank to acknowledge the risk of exposure to sub-prime mortgage markets. Share. Spain + Financial crisis . March 2012 - The centre-right People’s Party win the Socialist stronghold of Andalucia in a regional election but did not secure the outright majority that was expected and that would have reinforced Rajoy’s mandate to make savings. During the evolution of civilization in the Iberian Peninsula, cities sprang up along the coastlines with little interaction. ... Latin American countries that had broken free from Spain. The growth cycle was accompanied by a construction and real estate boom. When does a Brexit deal need to be done by? Government says 2011 public deficit 8.9pc of GDP. A lengthy property bubble burst, the public account … -- Treasury Minister Cristobal Montoro announces tax hikes to focus on the wealthy, raising around 6 billion euros ($7.97 billion). December 2010: - The central government forces the country’s 17 autonomous regions, considered the weak link in spending cuts, to publish more details of their accounts. Standard & Poor's is the first credit rating agency to downgrade Spain, cutting its treasured AAA rating by one notch to AA+. - The Bank of Spain bails out regional lender Caja Castilla-La Mancha, the country’s first bank rescue in recent years. December 2011: - In his first comments since his election victory, Rajoy calls on all Spaniards to work together to overcome the debt crisis and promises a new economic policy. Bankia asked for a €19bn state rescue on May 25, McLaren sells off a third of its Formula 1 team. Brexit Day 2020: When is the UK due to leave the EU and how will it happen. March 2008: - Prime Minister Jose Luis Rodriguez Zapatero wins a second term in office but fails to secure an outright majority in parliament. Bankia asks for a €19bn state rescue on May 25. November 2011: - Mariano Rajoy’s centre-right People’s Party wins an absolute majority in November 20 elections as voters punish the outgoing Socialist government for the economic crisis. September 2011: - Parliament passes a constitutional amendment which forces future governments to balance budgets during times of normal economic growth. National currencies began to be ph… All quotes delayed a minimum of 15 minutes. The central government forces the country's 17 autonomous regions, considered the weak link in spending cuts, to publish more details of their accounts. By Reuters Staff. The euro was introduced and adopted by 11 countries in 1999. New government says on December 30 that the public deficit for 2011 would come in at 8pc of GDP, well above a target of 6pc. -- Spain’s new government says on December 30 the public deficit for 2011 would come in at 8 percent of GDP, well above a target of 6 percent. A timeline of the debt crisis of the eurozone, from the creation of the currency in 1999 to the current Greek woes. As talks intensify on granting Greece an economic bailout, attention turns to Spain amid worries over its public deficit - 11.2pc of GDP in 2009. The bill is passed through parliament in September. Timeline: Spain's economic crisis. Spain will aim to save more than €27bn in its 2012 budget through corporate taxes, freezing civil servant wages and ministerial spending cuts. Spain adopts an economic stimulus plan worth an estimated 5pc of GDP, including €8bn (£6.5bn) euros of infrastructure projects. ... Economic crisis. In return for the financial assistance, Spain modernised the sector, a process that had already started before the programme. And contrary to popular belief, it was a banking crisis, not a fiscal crisis. Leaders Jul 26th 2018 edition. Spain found itself trapped in a ‘doom loop’ in which the financial crisis and the fiscal crisis became intertwined. However, this rapidly increased post-2007. June 2011: - Zapatero decides to bring forward national elections to November, before his four-year term was due to expire in March 2012. The economic situation in Spain reflects the European sovereign debt crisis, which followed the international crisis starting from 2007. The Bank of Spain bails out regional lender Caja Castilla-La Mancha, the country's first bank rescue in recent years. The government also announces new austerity measures on December 30 with a cut in public spending by 8.9 billion euros ($11.49 billion) in 2012 for all ministries. Third Quarter 2008: - Economy officially enters recession as a decade-long property and credit bubble bursts. January 2011: - Spain passes pension reform that will gradually raise the retirement age to 67 from a previous 65. Early 2009: - Standard & Poor’s is the first credit rating agency to downgrade Spain in January 2009, cutting its treasured AAA rating by one notch to AA+. -- Spain is aiming to cut its budget deficit from around 8 percent of GDP to 4.4 percent by the end of 2012, but that target looks ambitious given the sharp contraction in growth, with output falling 0.3 percent in Q4 of 2011. 14 October 2019. Finally, when addressing financial crisis it is important to consider both financial and macroeconomic factors. This was due to: Recession causing fall in tax revenues and higher spending on unemployment benefits. Austerity measures passed over the following six months, including a two percentage point rise in VAT, are worth an estimated total of 5pc of GDP. TIMELINE-Spain's banking crisis. LinkedIn with Background Spain's economic crisis: a timeline In 2008, a long period of expansion in Spain came to an end. Taking the pain out of Spain Lessons from Spain’s recovery after the euro crisis. 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