While Europe's attention has this week focused on Greece and the possibility that it might need to borrow more funds to avoid defaulting on its debts, another struggling eurozone economy has indicated its unwillingness to accept austerity-flavoured medicine without a fight – writes Daniel Mason.

Reports have surfaced that Portuguese authorities are conducting an investigation to determine whether there is any evidence that could lead to criminal charges being brought against the credit rating agencies Moody's, Fitch and Standard & Poor's. The attorney general's office is acting on a complaint made by four academics who contend that the big three CRAs have caused Portugal severe financial damage and are too dominant in the credit ratings market.

Perhaps this is merely an expression of bitterness and frustration from within a country that has just negotiated a €78bn bailout from the European Union and International Monetary Fund – and has suffered downgrade after downgrade while the cost of government borrowing has soared.

The Greek government has also reacted angrily to recent downgrades. When S&P cut Greece's rating to BB- in March, Prime Minister George Papandreou said the agencies were "seeking to shape our destiny and determine the future of our children". But it is not only in periphery EU countries that questions are being raised about the role CRAs have played in the financial...Read more HERE