The rating agency, Standard and Poor's (S&P) has put Germany, France and 13 other eurozone countries on credit watch due to fears over the impact of the debt crisis. S&P's move could downgrade the countries with top AAA ratings.
The agency said in a statement that Credit Watch placements are prompted by its belief that systemic stress in the eurozone has risen in recent weeks to the extent that it puts downward pressure on the credit standing of the eurozone as a whole.
The only two countries not put on credit watch were Cyprus, which is already under review and Greece whose rating has already been severely downgraded.
According to a report from Paris, Chancellor Merkel and President Sarkozy have set up a series of measures they want to implement as soon as possible. They include automatic sanctions for countries which exceed deficit limits. Angela Merkel says they want all EU member states to sign up to this new deal. But they intend to go ahead come what may.
