S&P 'Picked Wrong Day' on EU Downgrades: Pirelli CEO
Standard and Poor's should've waited at least a week to announce it had put 15 European Union nations on its CreditWatch for potential downgrade, said the chairman and CEO of Italian tire maker Pirelli.
"I think it’s the wrong day to say this" ahead of Wednesday's meeting of EU leaders, Marco Tronchetti Provera told CNBC Monday.
The rating company, which downgraded the U.S. triple-A credit rating by one notch earlier this year, warned Germany and 14 other EU nations they risked downgrade because of deepening economic and political turmoil.
The EU is "making an effort in the [right] direction," particularly the proposed treaty to be offered by France and Germany, Pirelli said.
The head of the Italian tire company said Italy is making changes by imposing an austerity budget, and called Prime Minister Mario Monti "the right person in the right place."
However, the new Italian budget has been a double-edged sword, the executive said — citizens have less money in their pockets but world markets know Italy is trying to do something about its large debt.
He said it is "critical" that the European Central Bank and the European Financial Stability Fund work with the International Monetary Fund toward stabilizing Europe.