Barnier seeks to ease British fears over his appointment

Frenchman Michel Barnier (pictured) has tried to assuage fears in London that his nomination as EU internal market commissioner heralded an attempt to impose stiffer regulation of the UK's financial services industry.

Michel Barnier attempted on Monday to assuage London’s concerns regarding his new appointment to the post of EU internal market chief.

Barnier was named to the prized European Union post of overseeing banks and other financial services last week, sparking outrage across the UK financial sector, where many accuse him of being against the free market economic model.

Fears were expressed that he would be pushing French-style economic reforms, including stricter regulations that would constrain London's financial sector. UK fears were exacerbated after French President Nicolas Sarkozy said in a statement "it is very reassuring that French ideas about regulation are winning out in Europe”. Sarkozy also described the British as "the big losers" in the carve-up of EU jobs.

Barnier said Monday on the French television network Canal Plus that he understood London’s concerns.

“This is the first time in a half century that a French national has been proposed as EU commissioner for financial services,” he said. “But what is really striking is not the fact that a French national was named to the post, but rather the fact that this has not happened in 50 years. So perhaps this is stirring up some concern.

“I wish to be judged alongside my colleagues at the Commission for our actions,” he added. “I will not take orders from Paris, or from London or Berlin.”

'No crisis'

British Prime Minister Gordon Brown and French President Nicolas Sarkozy scrapped a meeting last week, prompting talk of a row over the appointment of Michel Barnier.

Eric Woerth, France's budget minister, attempted on Sunday to play down talk of a bust-up between Paris and London over banking regulations, insisting there was no "crisis" over Barnier’s appointment.

"There is no crisis between Paris and London," Woerth told French radio station RCJ.

"France was bequeathed an extremely important portfolio," he added. "Having a Frenchman in such an important post probably displeases all those who wanted the job, that's all."

As an EU commissioner, Barnier "will no longer be the representative of France and French positions," Woerth explained. "He represents all of the European (Union) countries."