Misguided ventures: a quasi-public European Union credit rating agency (in Forum: Credit rating agencies: part of the solution or part of the problem?)

As speculative attacks against Member States persist, the European Union (EU) is desperately attempting to allay fears concerning the disintegration of Economic and Monetary Union (EMU). Much of the fi repower for this onslaught is provided by those very financial intermediaries charged with assessing and communicating the health of euro area economies, namely credit rating agencies (CRAs). Thus, in 2008, the European Commission proposed a series of oversight initiatives which would centralise CRA supervision at the EU level. Endorsed by the High Level Group on Financial Supervision1 chaired by Jacques de Larosière, Regulation (EC) No 1060/2009 (CRA Regulation v1) came into effect on 7 December 2010. Shortly thereafter, the corresponding amendment (EU) No 513/2011 (CRA Regulation v2) was deemed necessary in order to compensate for outstanding issues.