EU attacked for plan to gag rating agencies
Wednesday 13 July 2011
European politicians have cast doubt on a proposal that would protect bailed-out countries from debt downgrades by credit-rating agencies.
Michel Barnier, the European Union's commissioner in charge of financial services, on Monday called for rating agencies to be barred from ranking countries that have been rescued in internationally agreed deals.
Moody's enraged the EU this month by downgrading Portugal's debt after the country had secured an EU bailout.
But Syed Kamall, Conservative MEP for London and a member of the European Parliament's Economic Affairs Committee, said: "I have no objection in principle to governments being able to check the data used by the agencies.
"However, governments should not use this as an excuse to delay any downgrades of their sovereign ratings. Unfortunately, governments whose ratings are downgraded are often too ready to shoot the messenger rather than tackle their debt problems."
Sharon Bowles, the Lib Dem chairwoman of the European Parliament's Economic Affairs Committee said: "They [the rating agencies] are being shot as the bringer of bad news during the sovereign debt crisis. I am not entirely convinced that the system is broken."
Look beyond the usual shows for the best festive telly
Geoffrey Macnab does not like the comedian's big screen debut
The battle for control of Stieg Larsson's £30m legacy
French pub fined €9,000 after customers returned empties to bar - because it's 'undeclared labour'
Ten best places to live in the UK: Hart in Hampshire takes top spot
Winter Solstice marks shortest day of the year
Burglar steals video tapes of child abuse, hands them into police
Paul Walker's daughter Meadow attends Justin Bieber Believe premiere
- 1 Tim Sherwood challenges Daniel Levy to set out vision for Tottenham Hotspur’s future
- 2 French pub fined €9,000 after customers returned empties to bar - because it's 'undeclared labour'
- 3 Sun will 'flip upside down' within weeks, says Nasa
- 4 #Teamnigella: It’s the only side to be on
- 5 Christmas comes early: Justin Bieber is 'retiring from music'
- < Previous
- Next >
iJobs Money & Business
£59999 - £80001 per annum + Benefits: Pro-Recruitment Group: A Top 10 firm in ...
£50000 - £75000 per annum + benefits + bonus: Harrington Starr: Project Manage...
£60000 - £90000 per annum + benefits + bonus: Harrington Starr: Business Analy...
£Negotiable: Citifocus: High calibre individual with institutional client serv...