In a resolution voted at the Parliament's Plenary Session, MEPs called for new rules for credit rating agencies in order for them to clarify their working methods, boost competition and reduce reliance on their ratings. This resolution also suggests the creation of a European Credit Rating Foundation, completely independent and whose funding would come from finance sector.

 The non-legislative resolution adopted by MEPs by a show of hands, proposes the creation of a European Credit Rating Foundation which would be “fully-independent”. In order to put it in place, MEPs requested the Commission to conduct a feasibility study about the costs, benefits and the possible structure of this institution whose analysis would apply to all three sectors concerned. According to the Parliament this new institution, which would complement the legislation for pan-European supervision of credit-rating agencies, should be funded with fees paid by the private financial sector.

In this resolution, MEPs also called on the credit rating agencies (CRAs) to clarify the methodology and criteria used to arrive at their sovereign ratings. They should also explain why their ratings deviate from the forecasts of the main international financial institutions. It also demands that the effects of ratings on increased spreads be analysed. According to the International Monetary Fund (IMF), the ratings could account for up to almost 70% of the spreads on credit default swaps.

Furthermore, in order to increase competition, the document asks the Commission to evaluate the possibility of establishing a network of European credit rating agencies, so that the agencies operating at national level can broaden their scope and compete with the three largest. It also points out, however, that increased competition should not lead to the search of more favourable ratings, a phenomenon known as rating shopping.

MEPs also stressed that credit rating agencies should be responsible for the methodologies they apply, and therefore recommends that mechanisms should be established so that credit rating agencies can be liable in civil law for their ratings. It also highlights the need to establish a system of annual review for all registered CRAs in order to assess the accuracy of their past credit ratings. This assessments should be available to supervisors and the European Markets and Securities Authority (ESMA) should be empowered to conduct unannounced checks on them.