Today´s news from Brussels is that EU has declared war on credit ratings agencies. The charge of the EU heavy brigade was led by a number of top eurocrats:
Commissioner Michel Barnier:
The commissioner in charge of the EU's single market, French politician Michel Barnier, alternately sneered and threatened the three big agencies who dominate 90% of the ratings industry: Standard & Poor's, Moody's and Fitch.
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Barnier said he would announce "stiff measures" in November aimed at taming the power of the agencies.
Commissioner Viviane Reading:
His remarks followed a broadside on Monday from fellow commissioner Viviane Reding, who said the ratings agencies' "cartel" should be "smashed up" as they were seeking to determine the fate of Europe and its single currency.
Read the entire article here
The President of the Commission José Manuel Barroso:
European Commission President Jose Manuel Barroso has said the bloc was looking at getting away from its reliance on the mainly U.S.-based ratings companies and weighing possibilities for legal redress.
The European Union is now considering to ban rating agencies from doing what they are supposed to do:
On Monday, EU market regulation commissioner Michel Barnier suggested banning credit rating agencies from assessing countries under EU-IMF bailout programmes.
In addition, the EU commission is working on regulation to increase transparency and competition between the credit rating agencies' market, which is dominated by just three players.
It also suggested that a rival European agency could be created.
Read the entire article here
PS
This blog has obtained a top secret copy of the soon to be announced official EU credit ratings agency´s first test ratings for Greece, Ireland and Portugal. For comparison, we have added the ratings of the three American (anti-European) ratings agencies.
Official EU credit rating agency:
Greece AAA-
Ireland AAA
Portugal AAAMoody´s, Standard & Poor´s, Fitch (compilation):
| Greece | CCC | (Junk) |
| Ireland | Ba1(Junk) |
| Portugal | Ba2- | (Junk) |
As can be seen, according to the objective and trustworthy new official EU ratings agency, there is absolutely nothing wrong with the credit worthiness of euro group members Greece, Ireland and Portugal. All recent problems have been caused by speculators relying on the totally false ratings provided by foreign agencies.The euro is still the most stable currency in the world. President Barroso and Commissioner Barnier are said to be extremely pleased with the new test ratings.
It is likely that the new agency will be located in Athens, although Barroso is known to have favoured Lissabon.
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| The Greek government already has a site for the new EU ratings agency |
When the official truth has descended on the financial world, the European Union will again be able to fully concentrate on fighting (imaginary) human caused global warming and American-led shale gas exploration in Europe, a source in the Commission told this blog today.
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