During the plenary session (14-17 June 2010) of the European Parliament in Strasbourg, MEPs debate on credit rating agencies.

Strasbourg

debate

plenary session

PITTELLA, Gianni (S&D, IT)

BARNIER, Michel (FR)

credit rating agency (T)

GOULARD, Sylvie (ALDE, FR)

GAUZÈS, Jean-Paul (EPP, FR)

Credit rating agencies: extracts of the debate

https://api.multimedia.europarl.europa.eu/documents/20125/13999987/ebs70943Chapters%5BSD-EN%5D.srt

SOUNDBITE (Greek), Nikolaos CHOUNTIS (GUE/NGL, EL), rapporteur, And yesterday Mr President , Moody's tried once again to create a negative climate for the Greek economy and the &euro; itself. And there is no reason for this, there actually down graded by 4 points. So Moody's is one of the 3 American private agencies which the EU officially recognises as credit rating agencies for the economy of our EU member states.

SOUNDBITE (Italian), Gianni PITTELLA (S&amp;D, IT), rapporteur, I think we have to acknowledge that the Credit agencies have succeeded in a practical impossible mission, they have been decisive protagonist both in the first phases of the financial crisis in 2008, after the collapse of Lehmann Brother and also they have been protagonist in the 2nd stage, with the crisis in public funds in Greece.

SOUNDBITE (French), Jean-Paul GAUZ&#200;S (EPP, FR), rapporteur, I don't think that a European Credit Agency, even a public one is going to be the answer to the problem. More generous, kinder, gentler credit agencies wouldn't help us. It is the way the ratings are published, that is a problem.

SOUNDBITE (French), Jean-Paul GAUZ&#200;S (EPP, FR), rapporteur, So you need pre-emptive measures enabling the credit agencies to work, but under certain limitations in terms of the time in which they publish their ratings and in the way that sovereign debt should not see its rating changed in a way that would jeopardize its value.

SOUNDBITE (French), Sylvie GOULARD (ALDE, FR), So we are calling on Member states not to put obstacles in the way of the creation of ESMA and to remove the supervision package of its content, because with one foot after the other, we may be not being able at all to monitor to control what we want and that is closer supervision of capital.

SOUNDBITE (French), Michel BARNIER, EU Commissioner for Internal market and Services, Now all agencies have a registration requirement and have to meet a number of strict demands in order to prevent as far as possible any conflict of interest and to improve the quality of ratings and the methodology of credit ratings and to ensure that CA's act in a more transparent manner.

SOUNDBITE (French), Michel BARNIER, EU Commissioner for Internal market and Services, (speaking about the problem that today the information hold CA's is not shared with other credit agencies) - Saying that it is simply not enough, there is a need that elaborated information for a rating decision is shared. "Other agencies will be granted access to information given to one and to anyone, in Europe and elsewhere in the world. 

SOUNDBITE (French), Michel BARNIER, EU Commissioner for Internal market and Services, Sovereign debt, that's what the Greek case is all about, requires special attention so that we can be sure that the methods being used are the right ones and the appropriate ones, a lack of proper diligences on the part of the bank and other financial institutions, a lack of alternatives when it comes to assessing the quality an investment product is and remains a problem and requires deeper consideration.