Hopes of the Eurozone coming to a clear solution that can appease one and all for a joyous holiday season have faded again after the latest Summit on the weekend of 9 December 2011.

All three major credit rating agencies have delivered a vote of no confidence on the “Continent’s” latest plan.   The Continent that is, being Europe without Britain, following David Cameron’s refusal to take part in the plan.

A summary of each of the ratings agencies comments are below:

Fitch Ratings: “A ‘comprehensive solution’ to the current crisis is not on offer … Hopes that the European Central Bank (ECB) would step up its actions … appear to have been misplaced … We still believe the ECB, … is the only truly credible ‘firewall’ against liquidity and solvency crises in Europe.”

Moody’s Investor Services: “In substance, ‘the agreement’ offers few new measures, and does not change our view that risks to the cohesion of the euro area continue to rise.”

Standard & Poor’s Chief Economist Jean-Michel Six: “Let’s not raise expectations too high, there will be more summits… Time is running out and action is needed on both sides of the equation, on the fiscal and monetary side… “There is probably yet another shock required before everyone in Europe reads from the same page.

The major European economies stubbornly holding on to their own economic positions, continues to leave the Eurozone hanging precariously on the edge of a precipice, while the rest of us watch on hoping they don’t create another credit crisis like the Global Financial Crisis (GFC) did in 2008/9.  It appears that the Eurozone leaders can’t see the continental woods for the trees.

Grant

Tags: Fitch, Moody's, Standard & Poors