City Desk

The City of London is preparing for an assault on it position as a global financial hub, following the appointment of Michel Barnier to the post of Commissioner for the internal market and financial regulation in the EU.

President Sarkozy is quoted as saying that this appointment singularly is a "major victory" for the French and will be at the cost to London's position as the leading financial centre in Europe.

Leading the concerns is the MEP for London Syed Kamall who said:

"Many firms in the City of London are seriously concerned about some of the EU legislation currently under consideration in Brussels, particularly regarding financial services. They will be disheartened that Britain was not able to secure an important economic post."

On what measures need to be adopted to protect the "national interest" Syed Kamall said:

"It is important that that the British Government and British MEPs of all parties engage intensively with the Commission and international partners to tackle excessive risk and debt in the financial system."

"We must ensure that that the Commission’s proposals do not drive financial services firms out of the European Union."

"We must make sure that London remains a thriving global financial centre that benefits savers and investors across the European Union."

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