Portugal: November 19, 2009 - Portugal forecasts that its deficit in 2009 will be 8% of GDP.
January 15, 2010 - Portugal's treasury issues a statement to reassure investors of the government's commitment to deficit reduction.
January 20, 2010 - The government announces that it is freezing government wages and reducing the number of government workers through attrition.
January 26, 2010 - The government announces that the budget deficit is actually 9.4%.
March 8, 2010 - The government announces new austerity measures, including more privatization, caps on wages and tax increases. Tens of thousands of public workers strike.
May 13, 2010 - Portugal implements tax increases and salary reductions for public workers, including politicians.
March 8, 2010 - Portugal announces an austerity program.
May 12, 2010 - Portugal announces another round of austerity measures.
May 29, 2010 - Large demonstrations break out in Lisbon, to protest against austerity plans.
March 23, 2011 - Prime Minister Jose Socrates resigns. He continues in the position as a caretaker until June.
April 6, 2011 - Portugal requests a bailout from the European Union.
May 3, 2011 - Portugal agrees to a €78 billion bailout from the European Union and the IMF.
June 2011 - The conservative Social Democratic Party forms a coalition government with the Popular Party. Pedro Passos Coelho becomes the new prime minister.
Spain: January 2009 - Spain enters its first recession in 15 years.
January 29, 2010 - The government announces a plan to cut government spending and save €50 billion.
January 29, 2010 - Spain announces that its budget deficit in 2009 was 11.4% of GDP.
February 3, 2010 - Spain forecasts that its budget deficit in 2010 will be 9.8%.
February 5, 2010 - Large protests erupt when the government announces plans to raise the retirement age.
May 27, 2010 - The government wins approval of its €15 billion austerity plan. The plan includes cutting public employees' wages and cutting welfare benefits.
June 8, 2010 - Spanish unions protest the austerity plan with a one-day strike.
September 2010 - Parliament passes a law that makes it easier for companies to fire workers.
September 2010 - General strike called by unions to oppose the spending cuts.
January 2011 - The government and unions reach an agreement over pension reform. The retirement age is raised from 65 to 67.
May 5, 2011 - Young people protest unemployment in Madrid, Barcelona and Valencia. The unemployment rate among young people has reached 50% in some areas.
June 2011 - The European Banking authority carries out "stress tests" on Spanish banks. Five fail the test and seven others barely pass.