The European Union may seek the power to prohibit the publication of credit ratings of countries that are under a rescue programme, an EU official familiar with the proposal said today.
The proposal from Michel Barnier, the EU official in charge of regulation, may yet get shot down because it needs the blessing of EU countries as well as the region's parliament in order to take effect.
The move would be controversial and experts have previously warned that tough restrictions on rating agencies can undermine efforts to rebuild investor confidence in the euro zone.
The plan, outlined in a draft EU law, is part of a shake-up of EU rules governing the credit rating agencies, whose downgrades have exacerbated a crisis that leaders are battling to contain.
"That is one of the options for programme countries," said the official, speaking on condition of anonymity.
Under the draft law, which is due to be unveiled in the coming weeks, ratings agencies could be stopped from publishing their views on countries such as Ireland or Greece, which are receiving emergency aid from the EU and International Monetary Fund.
Reuters
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