The proposal to deprive private rating agencies of their power to rate countries and to transfer this power to the ECB, at least for Europe. – It is highly doubtful whether this would serve the cause of budgetary transparency. After all, the ECB’s Governing Council is made up of the central bank governors of countries that usually also have budget problems (imbalanced budgets), and in some cases even considerable ones. Accordingly, the markets would hardly trust such a credit rating. Moreover, no investor is forced to follow the judgment of the privately run rating agencies in general and with regard to government bonds in particular. – Downrating, speculation, destructive, Stability and Growth Pact, Southern Front.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/