Merkel sees ‘long road’ ahead to restore investor confidence

BERLIN, Saturday

German Chancellor Angela Merkel said on Saturday that Europe still had a “long road” ahead to restore investor confidence, after a raft of credit rating downgrades of EU countries.

“The decision confirms my conviction that we in Europe still have a long road ahead of us until investor confidence is again restored,” she told reporters in the northern German city of Kiel.

“But it’s also apparent that we have pursued resolutely this road of a stable currency, solid finances and sustainable growth,” she said.

Merkel also stressed that Standard and Poor’s, which Friday decided to cut the ratings of nine eurozone nations including top-rated Austria and France but not Germany, was just one of three ratings agencies.

She said they had “taken note” of the decision. “It did not totally surprise us after discussions of recent weeks,” she said.

German Finance Minister Wolfgang Schaeuble also sought Friday to play down the ratings downgrade of France and Austria, insisting eurozone nations were on the “right path” and warning against overestimating its impact.

“In recent months, we have increasingly come to an understanding worldwide that we should not overestimate the ratings agencies in their assessments,” he told television station RTL.

Germany, Europe’s top economy, was spared by S&P, maintaining its top AAA rating.

But the eurozone economy was plunged back into crisis as France and Austria were reduced from AAA to AA and talks to agree a Greek debt write-down stalled.