M Barnier and the ratings agencies

At the end of October I wrote about a report that one Michel Barnier, EU internal market commissioner, had proposed - idiotically in my view - that "Credit rating agencies could be banned from downgrading countries in the eurozone's bailout scheme ..." The Grauniad's piece continued, "Presenting his proposals to reform trading in financial derivatives on Thursday, Barnier suggested the ban could be extended to downgrades of countries negotiating to join the bailout."

So far, so financially illiterate. The ratings agencies are merely the messengers. It isn't their fault that so many countries have borrowed too much money.

Now what's this in the Torygraph this morning? " ....the outspoken commissioner [Barnier] was forced to concede on his controversial proposals to introduce a temporary ban on sovereign debt ratings under bailout circumstances. Until the last moment, Mr Barnier had insisted the new proposals would include some form of a ban. But after meeting fellow commissioners, Mr Barnier acknowledged no final agreement had been reached, adding a proposal could be reintroduced later."

Commonsense breaks out in EU. I need to sit down and rest a while.