Germany says Europe needs its own rating agency

Germany's Foreign Minister says the European Union should create its own rating agency because of the financial crisis. Guido Westerwelle on Thursday told "WAZ" newspaper group the EU "should counter the work of rating agencies with efforts of its own."

Westerwelle said rating agencies must not develop, sell, and rate financial products all at the same time. He said such conflicts of interest must be ruled out.

Peter Bofinger, a member of the government's independent economic advisory panel, criticized Standard & Poor's move to lower the ratings for Greece and Portugal. The economist told the "Welt" newspaper that "we should not make the welfare of Europe dependent on rating agencies," pointing to their failure to spot problems ahead of the financial crisis.

AP