Greece’s 2010 bailout request first brought the European sovereign-debt crisis to a formal international rescue.
Greece requested financial assistance from euro-area governments and the International Monetary Fund on April 23, 2010. Its borrowing costs had surged after markets learned that previous budget figures had understated the country’s deficits and debt burden.
A €110 billion rescue package was agreed in May 2010, tied to spending cuts, tax increases, and structural reforms. Investors then scrutinized other heavily indebted countries, including Ireland, Portugal, Spain, and Italy, causing severe volatility in European banks and stock indexes.
Ireland and Portugal later received assistance, but Greece was first. The crisis involved sovereign bonds, banks, and the institutional limits of a currency union whose members shared the euro but not a single fiscal government.