Sarkozy rattles City with EU commissioner 'victory' claim

Nicolas Sarkozy today caused uproar by claiming a "victory" over the City of London with the appointment of a Frenchman as the EU's internal market commissioner.

In a speech, the French president set out to rattle nerves in the City by claiming his ally Michel Barnier would tame Anglo-Saxon capitalism.

"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 [of London]?" he said.

"I want the world to see the victory of the European model, which has nothing to do with the excesses of financial capitalism."

Mr Sarkozy undermined an effort by Mr Barnier to soothe nerves in the Square Mile by saying fears of European interference were "very exaggerated".

The latest remarks by Mr Sarkozy went even further than comments he made in Le Monde last weekend, in which he boasted: "The English are the big losers in this business."

He also claimed that the appointment of Mr Barnier was a sign of French ideas "triumphing in Europe".