October 2009: George Papandreou leads PASOK to an electoral victory by a 44% popular vote. The new government revises upward the estimate for the 2009 budget deficit. It is revised several times until it reaches -15.6% of GDP.
May 2010: The Greek parliament approves a Stand-By Arrangement agreement worth €110 billion financed by 3/11 by the International Monetary Fund and 8/11 by bilateral loans with members of the Eurozone.
February 2011: Greece first announces a target to raise €50 billion through a privatization program.
April 2011: Eurostat revises (again) Greece’s deficit for 2010, putting it at 10.5% of GDP.
June 2011: A government crisis ends with a cabinet reshuffle and the appointment of Evangelos Venizelos as finance minister. The Greek parliament passes a “Medium Term Strategy” plan to further cut its deficit.
July 2011: European leaders first announce the details of a second loan package for Greece. The plan includes: (a) an additional €109 billion (on top of initial €110 billion); (b) an extension to the existing and future loans, together with a reduction in the interest rate charged; and (c) a participation of the private sector to the tune of €50 billion for the period 2011 to 2014.
October 2011: Greece finalizes the terms to receive a second loan package worth €130 billion that also includes a provision for a restructuring of private sector debt. Prime Minister George Papandreou announces a referendum for Greece’s second bailout package.
November 2011: George Papandreou is forced to resign as internal opposition grows to his proposed referendum. A coalition of three parties rallies behind Lucas Papademos as Greece’s new prime minster.
December 2011: The Greek parliament approves the 2012 state budget.
March 2012: The Greek government announces a second bailout package and releases details about its composition.
April 2012: Greece officially announces national elections for May 6, 2012.