Tags: Juncker | French | Downgrade | Credit-Rating

Juncker: French Downgrade Would Endanger EFSF Credit-Rating

Monday, 21 Nov 2011 10:27 AM

Luxembourg Prime Minister Jean-Claude Juncker said downgrading French bonds would endanger the creditworthiness of Europe’s rescue fund.

“I don’t want that to happen,” Juncker, who also heads the group of euro-zone finance ministers, told journalists at an event in Mainz, Germany, today. He also urged “quick action” in tackling the sovereign debt crisis.

French government bonds tumbled after Moody’s Investors Service said today that higher financing costs are increasing fiscal challenges as the region’s debt crisis infects the so-called core AAA-rated nations. France’s AAA credit rating is at risk of being downgraded newspaper, Le Figaro reported today.

Spain’s new government must take “believable” steps to reduce expenditure in order to calm fears, according to Juncker. Spanish bonds still dropped after Mariano Rajoy’s People’s Party won the biggest majority in a Spanish election in almost 30 years.

Juncker also said that while a “limited treaty change” would advance the region’s economic and monetary union in the euro area, this is “not of complete urgency” in tackling the sovereign debt crisis.

“Now the time has come for quick action,” he said at the event in Mainz. “Treaty changes have to come, but that is not a matter of priority, not of complete urgency.”

Juncker added that he expects a decision on boosting the region’s rescue fund, known as the European Financial Stability Facility, by Nov. 29.


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Luxembourg Prime Minister Jean-Claude Juncker said downgrading French bonds would endanger the creditworthiness of Europe s rescue fund. I don t want that to happen, Juncker, who also heads the group of euro-zone finance ministers, told journalists at an event in Mainz,...
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2011-27-21
 

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