By: Barbara Zigah

Standard & Poor’s rating agency has said that they might embark on the credit downgrade of the Eurozone members en masse, unless the Eurozone leaderships find a definitive solution to solving the debt crisis which has plagued the region for the better part of two years. The warning was unprecedented in scope, and would mean that 15 of the Eurozone’s member states, including France and Germany, would be directly in the line of fire. Analysts believe that the E.U.’s policymakers are attempting to get their collective act together, but that the S&P warning volley will essentially hold their feet to the fire.

As reported at 12:41 p.m. (JST) in Tokyo, the Euro was trading at $1.3371, down from Monday’s peak of $1.3487. Investors are shrugging off any economic data, positive or otherwise, and looking toward the various meetings which will be held this week, including the ECB on Thursday and culminating with the E.U. Summit on Friday.

The European Central Bank is likely to provide more easing by lowering its benchmark interest rates, but investors would prefer that they take a more proactive and aggressive role in the region’s rescue to calm a turbulent bond market. Should the E.U. members take up the tighter fiscal integration proposal as a critical first step, it is possible that the ECB will rise to the call.