Brussels, 24/11/2011 (Agence Europe) - The European Commission refused to comment on Thursday 24 November on the downgrading of Portuguese bonds to junk bond status by Fitch. A spokesperson refused to comment but said that the European Commission had unveiled draft legislation the week before to tighten the rules governing credit rating agencies (see EUROPE 10495). EU Internal Market Commissioner Michel Barnier had, however, been forced to back down on the idea of giving the European Securities and Markets Authority (ESMA) the power to temporarily suspend the credit rating of countries under a structural adjustment programme (countries like Portugal). Fitch says the worsening economic outlook in Portugal (the European Commission's Autumn Economic Forecasts suggest the economy will shrink by 3%) is making is more difficult to cut the public deficit. “Reforms are painful but necessary to give the Portuguese people better future”, said a European Commission spokesperson in response to a question about the general strike announced the same day in protest at the austerity measures in Portugal. (MB/transl.fl)