The holidays are over and Moody’s looks negatively to Europe

Credit rating agency Moody’s has lowered the European Union’s long-term issuer rating outlook from stable to negative, reflecting the weakening outlooks of the bloc’s strongest key member states.

The move will add pressure on the European Central Bank to provide details of a new debt-buying scheme to help deeply indebted euro zone states at its policy meeting on Thursday.

ECB President Mario Draghi has already told
officials he would be comfortable buying three-year government bonds to bring down borrowing costs for nations in financial distress.

Now Eurozone leaders are back from their summer holidays they are all facing what Germany’s Chancellor called a “very ambitious agenda” this month to try to quell what has been a three-year sovereign debt crisis.

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