The British right wing press jumped on Sarkozy’s words when he said ‘the English’ were ‘the big losers’ in the allocation of Commission portfolios. They could not believe their luck.
Sarko could not be more wrong. Labour won perhaps the biggest portfolio when Cathy Ashton took up the new post of high representative. More importantly, the appointment of a French commissioner in economic matters will probably be good for Britain too.
The European Parliament hearing for Michel Barnier as the new Internal Market commissioner takes place today. He will appear before two committees: the economic and monetary affairs committee, and its internal market counterpart.
Sarko’s unwise comments, and the reaction in the British press, means that Barnier will be keen to show his independence from the French government. He could in fact do sterling work for the City – which is itself a key part of the EU.
The appointment of a Frenchman to the post should accelerate the creation of a single market in financial services, which will benefit London, given our strength in capital markets and insurance.
The commission works as a college and almost always with unanimous consent by commissioners for proposals in any area. As first vice president of the commission, Catherine Ashton has significant influence within the college and has stated that she will act as a brake on any unreasonable ‘anti-City of London’ proposals – which she does not believe will be put forward in any case.
As a trade-off for the appointment of Barnier, the UK required that the director general for the internal market be British. The much-respected Jonathan Faull was appointed to head the internal market directorate-general.
In any event, I know Barnier and I am relaxed about the future of the City of London with him as commissioner. His approach will not be any more ambitious than what is already occurring in the UK. Indeed, FSA supremo Adair Turner and the Bank of England’s Mervyn King are developing ideas to regulate the financial services sector which are even more radical than those of Barnier.
As the European parliament will see today the probable appointment of Michel Barnier is no disaster for the UK; in fact, it is good news.