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S&P: 'A reform process based on a pillar of fiscal austerity alone risks becoming self-defeating' (Photo: Wikipedia)

US agency drops bombshell on EU anti-crisis plan

US-based ratings agency Standard & Poor's (S&P) has cut France's triple-A rating and trashed the EU's new fiscal treaty.

It said in a statement out Friday (13 January) the EU draft fiscal compact "does not supply sufficient additional resources or operational flexibility to bolster European rescue operations."

It noted that: "a reform process based on a pillar of fiscal austerity alone risks becoming self-defeating, as domestic demand falls in line with consumers' rising concerns ...

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