Local view for "http://purl.org/linkedpolitics/eu/plenary/2010-06-15-Speech-2-461"
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"en.20100615.28.2-461"2
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"Mr President, Commissioner, today’s debate on the framework for the supervision and operational control of credit rating agencies is, unfortunately, even more topical following yesterday’s decision by Moody’s to downgrade Greece’s credit rating by a full 4 points. Of course, this is not the first time over recent months that Greece’s credit rating has been seriously downgraded. However, yesterday’s downgrading is obviously provocative and unwarranted, given that it takes no account either of the progress made in applying the financial restructuring programme, which was welcomed by the representatives of the troika who have been in Athens since yesterday, or the creation of the Financial Stability Fund, or the fact that EUR 110 billion have been earmarked to finance the needs of the Greek economy.
Does it make sense, at a time when the President of the European Central Bank, the head of the Deutsche Bank and the representative of the European Commission are congratulating the Greek Government on the implementation of the memorandum, thus helping the euro to recover against the dollar and the European money markets to recover, for Moody’s to downgrade Greece even further by making exactly the opposite assessment? I think this move clearly proves that there is a conflict of interests, given that it is not simply undermining Greece’s efforts at financial restructuring; it is also fuelling continuing speculative attacks by the markets on the Greek economy and on the euro area as a whole.
This again confirms that these agencies issue ratings without ensuring that they are reliable and without any controls on the incentives for and results of their ratings, which raises serious issues of democracy and national and European sovereignty, given that we are talking about the evaluation of economies in the euro area.
One could cite numerous other examples. However, what we need to know is what we are doing to protect the European economies from the speculation caused by these dubious and non-transparent ratings. Immediate action is needed on two levels: the first is to take action to create a competitive European rating agency and the second is to set up a strict and reliable operating framework for these agencies, an operating framework that lays down transparent and uniform standards for rating criteria, for the time at which ratings are published, in conjunction with the resulting market reaction and, finally, for the evaluation of ratings over time in terms of their accuracy and reliability."@en1
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