Barroso wants EU to tackle credit rating agencies

European Commission President Jose Manuel Barroso told the European Parliament in Brussels on Wednesday that it’s time for the European Union to act against what he considers as irresponsible behaviour by international credit rating agencies such as Fitch and Standard & Poor’s over the Greek government’s debt crisis. Barroso said he will see to it that the EU will make these agencies subject to supervision by European regulators.

“The crisis has once again brought the role of credit agencies to the fore,” said Barroso during a plenary debate at the EU parliament in Brussels. “These agencies play a pivotal role in the functioning of financial markets, but ratings appear to be too cyclical, to rely on the general market mood rather than on fundamentals regardless whether market mood is too optimistic or too pessimistic.”