All 17 Eurozone Countries Face Losing AAA Credit Status

Financial markets rose after the meeting as traders calculated that the plan would protect indebted countries such as Italy and Greece Photo: Sean Gallup/Getty Images

Debt Crisis: All 17 Eurozone Countries Face Losing AAA Credit Status -- The Telegraph

European leaders have been threatened with a downgrade in their credit ratings if a Franco-German plan to resolve the eurozone debt crisis does not soon show progress.

Standard and Poor’s, a credit-rating agency, said all 17 eurozone members, including France and even Germany, could lose their AAA ratings without speedy action to resolve the crisis.

A downgrade would effectively scupper the euro rescue because the EU bail-out fund would no longer be able to raise money on bond markets.

S+P has told eurozone countries including Germany, France, the Netherlands, Austria, Finland, and Luxembourg that they could be downgraded because of the failure of leaders to resolve the debt crisis.

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My Comment: As long as the culture among the political class is to spend and spend and spend .... our debt/financial crisis with all of its consequences will just continue.