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Introduction The European Stability Mechanism (ESM) backstops the euro. Its nominal size is €705 billion but its lending capacity is lower at €500 billion, and the main condition attached to…

Ratings Agencies take notice of deteriorating finances Debt ratings agencies may not have the power they used to possess before the 2008 global financial crisis, but they still carry influence.…

Standard&Poor’s, one of the three major credit rating agencies downgraded on Friday the USA credit rating, previously noted AAA, the highest possible level. The new rating AA+ is translating the worry of experts about the sustainability of US public finances, in the context of ever increasing public spending and public debt above $14.3 trillion. The debt deal signed by the Congress is projecting savings of $1.2 trillion, which S&P estimates to be insufficient.