Moody's: EU credit in the balance

The credit rating of the EU is in danger of being lowered.

The rating agency Moody's said that it has changed its outlook for the current assessment of the EU in a negative direction. It is usually a warning that creditworthiness will soon be downgraded.

Moody's warns that if it decides to lower the outlook of the four countries that provide the greatest economic contribution to the EU budget, this can influence the EU's credit rating.

The countries are Germany, France, Netherlands and the UK.

The message may increase pressure on the European Central Bank (ECB) to unveil what the bank will do to dim the financial crisis in the euro zone.

Thursday the ECB holds its next monetary policy meeting, and the bank has said it is working on a new plan for purchases of government bonds from those countries that are most indebted.

The ECB has not yet provided the public with details of how and under what conditions the new support acquisitions are to be made.

Since the ECB's last meeting there has been some expectations in the financial markets that the head of the Bank, Mario Draghi, at the monetary policy meeting on 6 September will inform about the new initiatives.