Draft EU rules on credit rating agencies and plans to recapitalise banks were took centre stage in an Economic and Monetary Affairs Committee debate with Commissioners Joaquin Almunia (competition) and Michel Barnier (internal market) on Tuesday.
Credit rating agencies
The many problems created by credit rating agencies include conflicts of interest, opaque methodology and possible market abuse, but there is no anti-trust issue with them, said Commissioner Almunia in reply to a question by Antolin Sànchez Presedo (S&D, ES).
Jean Paul Gauzès (EPP, FR), welcomed the fact that credit rating agencies are finally going to be supervised. Rapporteur on the future CRA Directive Leonardo Domenici (S&D, IT), noted that the measures originally proposed had been weakened, and said that Parliament would seek to restore their bite.
Commissioner Barnier stressed that rating agencies are needed to measure risks, but accepted that their evaluations should be exact, transparent and credible, and that they should be able to explain their ratings. Clear rules will reduce the risk of them causing serious problems, he added.
Recapitalising banks
Banks must recapitalise without harming the real economy and resume lending to businesses, said Commissioner Barnier, adding that financial markets must accept the new rules, but will also benefit from having a stable framework to work in, he added.
This press release will be updated tomorrow.
