Credit ratings agency Standard and Poor’s has warned that 15 of the 17 eurozone countries, including France and Germany, could see their ratings downgraded if efforts to resolve the sovereign debt crisis do not take effect soon.
The eurozone’s six AAA members, which include Germany, France, Austria, Finland, the Netherlands and Luxembourg, have been put on negative creditwatch and may be downgraded to AA+.
The Financial Times says France and Germany have agreed “comprehensive” new fiscal rules for the eurozone to help save the single currency, although details of the proposals are scarce.
But the FT says they include a commitment not to force private sector bondholders to take losses on any future eurozone bailouts.
It says along with strict budgetary measures announced by Italian prime minister Mario Monti, the proposals are designed to form part of the “fiscal compact” demanded by the European Central Bank to enforce budgetary discipline in the EU.