EU market commissioner 'surprised' by S&P downgrade timing

(BRUSSELS) - The European Union's internal market commissioner said Saturday he was "surprised" by the timing of Standard & Poor's downgrades of nine eurozone nations when the bloc is toughening budget rules.

"I am surprised at the moment chosen by the Standard and Poor's agency, and fundamentally of its evaluation which does not take into account recent progress," Michel Barnier said in a statement sent to AFP.

EU governments and institutions are working to reinforce budget discipline, Barnier said one day after S&P slashed the coveted AAA ratings of France and Austria and downgraded seven other lower-rated countries.

"Beyond this rating, which is only one opinion among others, what is more important to me is the objective economic assessment that we are conducting on the current situation," the French commissioner said.

"In every country, unprecedented efforts are taking place to control public spending," he said, adding that common rules are being introduced to deepen economic integration while the European Central Bank is committed to support the eurozone.

European Economic Affairs Commissioner Olli Rehn late Friday had criticised Standard and Poor's decision to downgrade nine eurozone nations as "inconsistent".

European governments reinforced the eurozone's Stability and Growth Pact last month with more automatic sanctions to punish states that violate deficit and debt limits.

EU leaders decided to tighten the rules even more, with 26 of 27 EU governments negotiating a new fiscal treaty that would require governments to enshrine balanced budgets in their constitutions.