In response to the Commission's consultation on a future regulation of Credit Rating Agencies (CRAs), expected this autumn, the European Parliament adopted today a set of recommendations prepared by Wolf Klinz (FDP, Germany).

The current oligopolistic structure, lack of accountability and transparency of CRAs have contributed to the worsening of the financial and public debt crisis in the Euro zone Member States. That's why according to the rapporteur, Klinz: "in order to break with the oligopolistic structure of the market, to intensify competition and to reduce dependency from the issuer pays model, we need new payment systems and a clear definition of liability of CRAs. We should also consider establishing an independent and autonomous European Credit Rating Agency as a foundation to foster competition."

"A firm cut must also be made to the CRAs inherent conflict of interest, currently able to issue ratings while acting as consultancy firms - a cut that should go hand in hand with a Commission's assessment of the need to increase disclosure of information for all products in the field of financial instruments."

"More transparency, accountability and less reliance on external credit ratings should inspire the forthcoming regulation whose ultimate goal is to restore confidence in the financial market."