The primacy of politics

Rating agencies like Standard and Poor's, which have downgraded the ratings of Greece, the US and now Italy, seem to be all-powerful. But in reality economic developments are determined by politics, writes the business paper Les Echos: "Time and again Standard & Poor's has provoked the fury of politicians, who find the decision unfounded and inopportune. Sometimes they're right, even if the economists at the IMF have shown that the agencies have acted wisely on sovereign debt. But the main issue today lies elsewhere, in the recurring message contained in Standard & Poor's reports. It can be summed up in a few words: the primacy has reverted to politics. ... We will never get out of the economic crisis without strong, innovative and visionary political decisions. In the tempest even more than in calm weather, it is necessary that politics retains its primacy."

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