The Standard & Poor’s rating agency has issued a statement warning that it may downgrade the rating of European countries where Eurosceptic parties may assume power.
According to the rating agency, the most “credit negative” parties are SYRIZA (which is tipped to win the Sunday elections in Greece) and the Spanish Podemos party. Both parties favor increasing public spending and restructuring their debts.
The rating agency stresses that the “Eurosceptics are advocating a major macroeconomic policy shift” and that “a decision by any government to default on debts or devalue the currency would, without question, represent a new policy direction”.
