The European Commission on Wednesday proposed tough rules designed to improve the functioning of credit rating agencies, which have been partly blamed for the global financial crisis, according to Deutsche Presse Agentur dpa. The proposals, put together by European Internal Market Commissioner Charlie McCreevy, are designed to "restore market confidence" by imposing strict conditions on rating agencies wishing to operate in the European Union. If approved by member states and the European Parliament, the proposals will place rating agencies under the control of European supervisors. Potential conflicts of interest deriving from the fact that agencies are paid by the banks whose debts they rate will be tackled by forbidding them to act as consultants.
