Europe and the ratings agencies

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Ratings agencies are yet to decide whether the Eurozone bailout will be classed as a default. Clearly the EU think that it is a default, so they are taking some pre-emptive action against the ratings agencies. One point made in the statement released by Heads of government last night was…

15. We agree that reliance on external credit ratings in the EU regulatory framework should be reduced, taking into account the Commission’s recent proposals in that direction, and we look forward to the Commission proposals on credit ratings agencies.

In other words, if we think the referee is going to give us a red card we agree to ban referees. No wonder Sepp Blatter was able to remain the head of FIFA.

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