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Sarkozy's attack is best way to boost City, tweets Boris
Nicholas Cecil and Nick Goodway3 Dec 2009
Nicolas Sarkozy's gloating about a Frenchman gaining powers over the City will stiffen the Government's resolve to defend it, Boris Johnson declared today.
While bankers in the Square Mile were livid at the French president's comments, the Mayor took the unusual step of welcoming them. "Yippee! The best way to boost the City of London is for top French politicians to attack us," Mr Johnson posted on Twitter.
The French president was due to have talks in the capital tomorrow, but No10 today said Mr Sarkozy would now not be meeting Gordon Brown for discussions on financial issues and Afghanistan because of "diary constraints".
City chiefs fear the appointment of former French foreign minister Michel Barnier as EU commissioner for the internal market, including financial services, will lead to damaging regulations. Mr Sarkozy had hailed his appointment as a victory over Britain.
David Buik, senior strategist at broker BGC Partners, said: "We in the City are very disappointed by [Mr Sarkozy's] insulting behaviour. But we are equally upset that neither the Prime Minister nor the Chancellor did enough to prevent Monsieur Barnier's appointment. I expect the City to lose 30 per cent of its power during the next five years."
Mr Sarkozy was accused of "nationalist grandstanding" as polls show his popularity falling in France. He was criticised for throwing into doubt the impartiality of EU commissioners and for threatening to spark an exodus of financiers from the City.
Nick Anstee, Lord Mayor of the City of London, sought to reassure businesses in the Standard today: "[Mr Sarkozy's] comments this week about the downfall of the 'free-wheeling Anglo-Saxon' model are aimed to appeal to a disgruntled French electorate," he writes.
However, bankers fear Mr Barnier will seek to undermine London's position as Europe's top financial centre. Stuart Fraser, policy chairman for the City of London, said: "The UK financial services industry has a crucial role in providing the capital and expertise needed to drive Europe's economic recovery. Commissioner Barnier, however, must resist being influenced by individual member states."
Reader views (1)
This is England, not France and we happen to love our country. Do we honestly want to be tied into Europe with the likes of Nicolas Sarkozy? He's already stuck his feet smack into the whole question of how we run things in our own country. Quite frankly, most Brits want to be governed here by our own MPs, not by a gravy train of European MPs who dislike the UK and want power over us. If the Conservatives think we will tolerate this, they will be flattened at the ballot box, which is rubbish for those of us who work so hard for the Party. They need to show some backbone and some opposition! If the Conservatives fail to do this, I would imagine the guys at the top would only be interested in power for power's sake. They've got to stop making out that it's just a few conservatives who want a referendum. It's many them - and most of the country! If it's like this now, just imagine what we will face in a few years. The Conservatives must show leadership on this or they won't get elected. Am thinking of quitting and moving over to UKIP. I think the Conservatives at the top are beginning to look like socialists.
- Conservative Agent, UK, 04/12/2009 15:33
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