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EU criticises credit rating cuts
The EU's top economic official criticises the decision by Standard and Poor's to downgrade the credit ratings of nine eurozone countries.
Standard and Poor's cut the credit ratings of nine European countries on Friday.
The European Union's Economic affairs commissioner Olli Rehn said the move to downgrade nine eurozone countries was "inconsistent" as the EU was taking "decisive action" to end the debt crisis.
Yesterday, Standard and Poor's cut Malta's credit rating by one notch to A-. Standard and Poor's said the decision has been taken in light of "deepening political, financial, and monetary problems within the eurozone, into which Malta is closely integrated".
The downgrade also cut France's top AAA rating. Italy, Spain, Cyprus and Portugal were cut two notches, with the latter two given "junk" ratings. Germany kept its AAA rating.
Austria, Slovakia and Slovenia were the other countries downgraded. Standard and Poor's criticised the bloc's response to the crisis, saying austerity and budget discipline alone were not sufficient to fight it, and risked becoming self-defeating.
Rehn said he "regrets'" the decision taken by Standard and Poor's, saying the euro area has taken "decisive action in all fronts of its crisis response'' and was making progress in calming financial markets.
He said it is now important to finalise the "features and practicalities of the European Stability Mechanism" and advance its implementation to July."
Malta's Finance Ministry said the decision highlights the worsening of the international crisis. The Ministry said "The lack of stability and the bleak outlook of the international markets and in our major trading partners threaten investment and job creation."
French Finance Minister Francois Baroin said the loss of the triple-A rating was "not a catastrophe'' and stressed that France still had a solid AA rating.
Eurogroup President Jean-Claude Juncker said the eurozone countries are determined to do "whatever it takes'' to return to growth.
Meanwhile, talks aimed at negotiating a restructuring of Greece's debts broke down on Friday, raising fears once again of a possible default.
Stocks fell on Friday as downgrade rumours reached trading floors in Europe and the US.
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OUT OF THE EU IS THE ONLY WAY TO SAVE OURSELVES, OUR CHILDREN AND MALTA. ** TIME TO REVOLT AGAINST THE EU AND CLAIM BACK OUR INDEPENDENCE AND FREEDOM.
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When Malta joined the Eurozone I thought I heard someone telling us that joining the euro will bring us stability!
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AS LONG AS THE EU KEEPS DRAGGING THE WORLD ECONOMY DOWN THEY WILL KEEP GETTING WHAT THEY DESERVE...TILL, WHEN THE PEOPLE REALLY HAVE ENOUGH AND THEN WHO KNOWS WHAT COULD HAPPEN...
