Euro Zone Solution ‘Technically and Politically Beyond Reach’: Fitch

Saying that a comprehensive solution to the euro zone debt crisis was “technically and politically beyond reach,” Fitch Ratings on Friday advocated deeper involvement by the European Central Bank (ECB), something that Germany has been fighting against.

Reuters reported that the ratings agency was not impressed by efforts of European Union leaders at the recent summit meeting, nor the agreement that came out of the summit, but instead expressed concern that an effective solution to the debt crisis could be found at all. It put Italy and five other euro zone countries on a negative watch for potential near-term downgrades, and although it reaffirmed France’s AAA rating, it too is on negative watch and could be downgraded within two years.

While Germany has been firmly opposed to the ECB buying enough government bonds to quell investor worries, Fitch is pushing in that direction. After the conclusion of the EU summit, the agency said that it had concluded that “a ‘comprehensive solution’ to the eurozone crisis is technically and politically beyond reach.”