December 6, 2011
Ratings agency Standard and Poor's has piled pressure on EU leaders to come up with a deal to save the euro, warning that it may downgrade 15 of 17 euro-zone countries -- including powerhouse Germany. EU politicians have criticized the move. But the agency on Tuesday added that it may downgrade the euro bailout fund as well.
European share prices and the euro fell slightly on Tuesday after ratings agency Standard & Poor's warned it may downgrade 15 of the 17 euro-zone nations, including triple-A nations like Germany, as a result of the euro crisis.
European policymakers criticized the timing of the announcement, just three days ahead of a make-or-break EU summit on Thursday and Friday, and said the agency hadn't taken into account proposals for far-reaching reforms of the euro zone's debt rules agreed by the leaders of France and Germany on Monday.
Standard & Poor's had warned late on Monday that it may carry out an unprecedented mass downgrade of euro-zone countries if EU leaders fail to reach an agreement on how to solve the debt crisis at this week's summit.
Luxembourg Prime Minister Jean-Claude Juncker said the S&P announcement was "like a knockout blow" to countries that were cutting their budget deficits.
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