Moody’s has hit out at the European Union over a “continued absence of decisive policy measures” to deal with the sovereign debt crisis.
Despite last week’s summit, the ratings agency said that the EU has offered few measures to tackle the problem, while also confirming its intention to review the ratings of all EU countries in the first quarter of next year.
The agency said: “The absence of measures to stabilise the credit market over the short term means that the euro area, and the wider EU, remain prone to further shocks and the cohesion of the euro area under continued threat.”
Last week, Standard & Poor’s announced that it was considering downgrading the debt of 15 of the 17 eurozone countries.
Markets in Europe fell this morning. The FTSE is down 0.5 per cent to stand at 5497.74, while the French Cac and the German Dax are both down by around 1 per cent.