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CREDIT RATINGS AGENCY Standard & Poor’s has downgraded Belgium’s long-term AA+ rating to AA and says the outlook for the country’s creditworthiness is “negative”.
S&P cited the lack of a permanent government among its reasons for a downgrade; Belgium has been without a government now for a record 530 days.
Efforts to respond to potential financial emergencies are “in our opinion” constrained by the country’s lack of a government and the caretaker government lacks the mandate to implement serious economic reforms, S&P said in their statement this evening.
The agency also said that wider European financial woes could take a toll on Belgium’s exports, which account for over 80 per cent of the country’s GDP: “Belgium is one of the most open economies in the eurozone and is therefore in our opinion highly susceptible to any weakening of external demand.”
“In our opinion, protracted political uncertainty remains a risk to its creditworthiness,” it added.
Belgium’s caretaker prime minister Yves Leterme said today that “we really need strong signals now” from the parties negotiating a range of issues over next year’s budget, the AP reports. Talks reached a stalemate over how to tackle the country’s high debt and reduce its deficit.
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I think that it is also the beginning of the end for the EU. The whole concept has been shown up as poisonous and undemocratic. Among the under 30, the idea of further EU integration is falling rapidly.
Time to break up the EU and go back to a collection of states working closely together for mutual benefit, but not ruled by unelected leaders in Brussels.
Time to have a return to democratic principals in Europe.
Tim, I’m not under 30, but I still agree with you!
Ah crap, this means the price of Ferrer Rocher will undoubtedly be going up. And right before the Belgian Ambassadors’ Christmas Party.
Worst news all week.
And thus it creeps…Lady Contagion..
Hedge fund founder Kyle Bass:
States Germany will not bail out PIIGS.
Euro and Japan will collapse.
Fed and ECB created $6 trillion out of thin air
Invest in guns and gold.
http://news.bbc.co.uk/2/hi/programmes/hardtalk/9639507.stm
This is the long goodbye for the euro good bye
And thus she creeps…Lady Contagion
“we really need strong signals now”
= “Ah lads, form up the aul government, you’re taking the piss now, c’mon…”
fact is that the belgian politicians are more worried about belgium breaking up than the euro, this going to be a very interesting 12 months
Those Belgian monks better get the finger out and start making more beer!!
@Kevin Smyth Duvel!?
have your say