Sarkozy: EU is in charge of Canada
FRENCH President Nicolas Sarkozy yesterday gloated over the nomination of a French EU Internal Market Commissioner, saying it would help European economic ideals prevail over Britain’s current system.
Hailing the appointment of Michel Barnier, a former agriculture minister in his government, Sarkozy blamed the Anglo-Saxon model for the global economic downturn and crowed: “Do you know what it means for me to see for the first time in 50 years a French European commissioner in charge of the internal market, including financial services, including the City?”
“I want the world to see the victory of the European model, which has nothing to do with the excesses of financial capitalism,” he added.
Sarkozy’s comments will add to concerns that European Union plans to overhaul financial regulation will go too far. The plans could leave the British taxpayer at serious risk, a senior MP warned last night.
Michael Fallon, the Conservative deputy chairman of the Treasury Select Committee, said proposals to hand powers to a new Europe-wide regulator were “legally questionable” and needed to be “drastically scaled down”.
The EU’s 27 finance ministers are due to meet today at Ecofin to talk over measures to reform the financial system. Key issues are the creation of a European Systemic Risk Board, which would be given a wide scope to monitor stability, and three smaller regulators.
There are worries London could be forced to pump public funds into a European institution in an emergency scenario.
Fallon told City A.M: “These proposals need to be drastically scaled down to give much tougher protection for the British taxpayer. Otherwise a European authority could at some point take a decision that ends up being very costly indeed.”