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S&P: 'A reform process based on a pillar of fiscal austerity alone risks becoming self-defeating' (Photo: Wikipedia)

US agency drops bombshell on EU anti-crisis plan

US-based ratings agency Standard & Poor's (S&P) has cut France's triple-A rating and trashed the EU's new fiscal treaty.

It said in a statement out Friday (13 January) the EU draft fiscal compact "does not supply sufficient additional resources or operational flexibility to bolster European rescue operations."

It noted that: "a reform process based on a pillar of fiscal austerity alone risks becoming self-defeating, as domestic demand falls in line with consumers' rising concerns ...

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Author Bio

Andrew Rettman is EUobserver's foreign editor, writing about foreign and security issues since 2005. He is Polish, but grew up in the UK, and lives in Brussels. He has also written for The Guardian, The Times of London, and Intelligence Online.

S&P: 'A reform process based on a pillar of fiscal austerity alone risks becoming self-defeating' (Photo: Wikipedia)

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Author Bio

Andrew Rettman is EUobserver's foreign editor, writing about foreign and security issues since 2005. He is Polish, but grew up in the UK, and lives in Brussels. He has also written for The Guardian, The Times of London, and Intelligence Online.

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