S & P signals descent of the “rating” of the European Union – Jornal de Negócios – Portugal

Loans for Greece, Juncker plan and lack of capital base explain change in the “Outlook”

The Standard & amp.; Poor’s (S & P) lowered, on Monday night, the “rating” perspective for the European Union (EU) to negative from stable after the support block to Greece and due to the launch of Juncker investment plan, in under which Europe assumes part of the risk of the projects.

The decision means that the US rating agency might lower its rating on the quality of debt securities issued by the EU, currently AA + the next two years.

“The repeated use of its cash sheet to provide high-risk financing to the Member States of the EU (most recently in Greece) without their pay in capital” was one of the reasons by which the ‘outlook’ was revised, explained the S & P, a statement quoted in the AFP

The S & amp;. P also mentions downside risks arising from financial situation relatively less robust two of the biggest contributors of Community budgets: UK, which could leave the bloc, and France. The negative outlook on the EU also reflects “considerable responsibilities in terms of pensions” and the “absence of any paid-up capital, a fundamental difference compared to other multilateral institutions.”