Edward Parker of ratings agency Fitch gave a speech in Madrid yesterday and admitted that they believe

a comprehensive solution to the eurozone crisis is “technically and politically beyond reach.”

Fitch said it came to this conclusion after the EU summit on December 9, 10, as it prepares to downgrade Ireland and five other eurozone states.

As a consequence of Fitch’s views on the euro being unresolved, it plans a spate of sovereign downgrades this month which follows on from S&P who last week downgraded a number of countries. This spells further bad news for the eurozone leaders plans to bring calm to the situation.

the agency was likely to cut the ratings of six euro nations by the end of this month. Fitch, the third-largest rating agency, placed Belgium, Cyprus, Ireland, Italy, Slovenia and Spain on “negative” watch in mid-December, after the summit.

Source: Irish Independent