Consequently, the driving forces behind the increase in perceived sovereign risk were not speculative forces on the financial markets but poor fundamentals. When the loss of confidence culminated for the first time in May, comprehensive support measures for Greece – where the situation was particularly dire – were taken to avoid risks for the stability of the euro area as a whole.
Financial support was tied to a tough, closely monitored adjustment programme aimed at restoring the sustainability of public finances in Greece. In addition, a rescue scheme financed by the IMF, the European Union and its member states was set up to deal with future intensifications of the crisis.