“What’s
important isn
’t the judgment
of a single
day, but (longer)
trajectory of
structured policy
and budgetary
rigor,” said
French Prime
Minister Fran?ois
Fillon during
a trip in
Brazil Thursday
, referring to
the austerity
measures France
and its euro
partners have
all agreed
to—and in
many cases
applied—without
convincing agencies
or markets
such moves
represent the
“structured policy
” capable of
tackling the
debit crisis
. That echoed
the even
more dismissive
reaction of
German Chancellor Angela
Merkel after S&P
issued negative
alert, when she
sniffed, “What
a rating agency
does is
the responsibility
of the
rating agency
”.Perhaps, but
such comments
mark a
dramatic change
of tune
from the
ditty European
leaders sang
while applying
austerity programs
and rushing
out bail-out funds
designed to
appease S&P’
s concerns over
sovereign debt. And
no nation
has been more vocal in
modifying that
melody than France, where advisers to President Nicolas Sarkozy had until very recently been calling the triple-A rating “a national treasure” in French efforts to escape a downgrade, and avoid potentially fatal increases in borrowing costs. Indeed, Sarkozy himself considered preservation of France’s AAA rating so crucial to French finances—and in validating the austerity responses he and Fillon unveiled to avoid downgrade—that he was recently quoted describing his re-election hopes with the simple but dramatic formula, “if we lose our triple-A, I’m dead”.
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“The government wants to
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engineering at Kyushu University. |
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