Credit rating agency Standard & Poor’s (S & P) downgraded bonds in one of the major European economies, France. Not only that, debentures eight other European countries, who are also fellow users euro currency (euro zone) came down the rankings, there’s even coming into the category of “trash.”

Credit downgrades illustrates that the debt crisis in the eurozone in the past two years has become more severe. This crisis raises doubts among financial market participants for the future of regional currencies in Europe.

According to news agency Reuters, bond downgrades number of European countries was announced at the S & P on Friday, January 13, 2012 New York time. France, which has become one economic power in Europe with Germany, has decreased one level, from AAA to AA +. The same fate also experienced by Austria.

Malta, Slovakia, and Slovania also decreased one level. Their colleagues, Italy, Spain, Portugal, and Cyprus suffered a decrease of two ranking. In fact, as reported by the BBC, the credit status of the latter two countries that fall into the category of “junk” (junk).

Germany, for the S & P, still survive. Treasury bond remains AAA and economic status is considered stable.

S & P also claimed to fear that a number of initiatives that have been rolled out of European leaders in the face of the debt crisis “could be not enough to fully respond to systemic pressure that goes on within the euro zone.”

A number of countries are already implementing unpopular measures in tackling the crisis, namely by implementing austerity budgets and raise taxes. That policy led to a wave of layoffs among civil servants and triggering a series of protests.

The fall in credit ratings in a number of European countries could trigger a series of similar downgrades on some major banks and large corporations and government agencies of Europe. It can happen to the European Financial stabilization facility (EFSF), which formed to save the euro zone countries affected by financial crisis.

S & P’s announcement triggered the stock price decline on the New York and the euro exchange rate on the transaction on Friday.

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admin    Business     Civil Servants, Countrie, Currency Euro, Debt Crisis, Downgrades, Efsf, Euro Zone, European Economies, European Leaders, Eurozone, Fellow Users, Financial Market Participants, Financial Stabilization, Large Corporations, New York Time, Regional Currencies, Slovania, Spain Portugal, Time France, Treasury Bond

TOKYO/SEOUL, Global policymakers held an emergency conference call on Sunday to discuss the twin debt crises in Europe and the United States that are causing market turmoil and stoking fears of the rich world sliding back into recession.

After a week that saw $2.5 trillion wiped off global stock markets, political leaders are under mounting pressure to reassure investors that Western governments have both the will and ability to reduce their huge and growing public debt loads.

South Korea said finance deputies from the Group of 20 major economies discussed the European debt crisis and U.S. sovereign rating downgrade on Sunday morning in Asian time zones.

A Japanese government source said finance leaders from the Group of Seven big developed economies would also discuss the crisis and may issue a statement afterwards, although the timing of such a call was unclear.

The European Central Bank was scheduled to hold a rare Sunday afternoon conference call. Investors are anxiously looking for the central bank to start buying Italian and Spanish debt on Monday to stabilize prices, a move that has split the ECB governing council. read more

admin    Business     David Cameron, Debt Crisis, Debt Loads, Ecb Governing Council, Economic Advisor, Emergency Conference, Finance Leaders, French President Nicolas, French President Nicolas Sarkozy, Global Stock Markets, Government Source, Japanese Government, Market Turmoil, Minister David, Nicolas Sarkozy, President Nicolas Sarkozy, Public Debt, Saw 2, Standard And Poor, Western Governments