The European Central Bank then took several steps, including buying bonds, to fight the crisis, but these and its downbeat comments on growth were badly received, and a stocks fall turned into a plunge.
EU leaders then saw the urgency of this new crisis and engaged in talks during their summer holidays, while markets focused on signs that a double-dip recession may be on the horizon.
On Friday, Standard & Poor's cut the US rating from the top notch triple-A to AA+.
Here is what some key figures and various analysts had to say as the drama played out:
- EU Economic Affairs Commissioner Olli Rehn said the EU is working "night and day" to finalise details of a "milestone" plan to stem contagion but "such a ... complex agreement requires time to implement" as current problems have "global repercussions and ramifications".
- In Brussels,