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**VodsNittats** · 12-03-2009, 01:23 AM

http://business.timesonline.co.uk/to...cle6939892.ece

From The Times December 2, 2009

It’s déjà vu all over again as Sarkozy takes aim at City of London

By Suzy Jagger, Martin Waller and Francis Elliott

Napoleon Bonaparte scorned England as “a nation of shopkeepers”, but he knew it was the vitality of the City of London that made Britain such a threat to his imperial ambitions.

The feeling was mutual. The City, fearful of a European ruler who would cut off their trade, readily funded the war effort that culminated in Napoleon’s downfall. Last night the City was again going on the offensive as one of its most successful bankers predicted that the French President’s criticism of Britain’s financial sector would encourage firms to quit Britain for markets more supportive of business.

Terry Smith, chief executive of the bonds broker Tullett Prebon, told The Times: “I’ve never seen so much work going on by companies, individuals and teams of people to evaluate relocation out of the UK. Switzerland isn’t in the EU, but there are other destinations being considered as well.”
President Sarkozy expressed glee yesterday at the appointment of Michel Barnier as finance chief in Brussels. Last month the Frenchman was appointed European Commissioner for the internal market and financial services. Mr Barnier now has influence over the reform of hedge fund, banking, insurance and banking regulation.

At a meeting of European finance ministers in Brussels today, the powers of three new EU-wide economic watchdogs are to be agreed. The French are leading a drive for the bodies to be given power directly to interfere in the workings of individual companies, a move resisted by Britain.

A proposed EU directive covering the workings of Britain’s private equity industry is also entering a key phase in negotiations.

Yesterday Mr Sarkozy said that the nomination of a French commissioner in charge of EU markets would help continental economic ideals to prevail over the discredited Anglo-Saxon model. In a speech in France the President blamed the reputedly free-wheeling Anglo-Saxon model for the global economic downturn. The Group of 20 rich and emerging nations had made remarkable strides during the crisis to regulate bonuses and eliminate tax havens, but the battle was not over, Mr Sarkozy said.

“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 of Mr Barnier’s nomination. “I want the world to see the victory of the European model, which has nothing to do with the excesses of financial capitalism.”

His comments met with alarm and dismay in the City. One senior banker said: “Surrendering control of the City of London to the French in return for some nonentity getting a non-job [Baroness Ashton of Upholland’s appointment as EU foreign affairs chief] is one of the biggest fiascos of British diplomacy since Suez. The fact that Sarkozy is now being gleeful makes it worse. The Prime Minister must explain how he will protect the City from EU meddling or lose what remaining credibility he has in the City.”

Sir Victor Blank, the banker and company chairman whose work forms the basis of Britain’s takeover code, told The Times that the “inherent strength” of Europe meant that any changes to financial regulation would take years to implement and that such measures would need the approval of 27 member nations of the EU.

“This is not something that will shift and change overnight. It will be subject to debate. The City of London has an innate strength. People want to be here.”

Richard Lambert, Director-General of the CBI, said: “Mr Sarkozy needs to be very careful with his rhetoric because he is making the job of Mr Barnier much more difficult. Mr Barnier has made clear — very sensibly — that he sees the City of London as one of Europe’s most valued assets.”

Lord Levene of Portsoken, the head of the Lloyd’s insurance market, the biggest in the world, said of Mr Sarkozy’s words: “That’s today’s quotation. There will be another one tomorrow. I can’t get too excited about it. I think what we should do is to get our highest representative to intervene on our behalf. You know what politicians are like — good for a quote.”

Simon Walker, head of the British Venture Capital Association, whose members are facing onerous proposed regulations from Brussels, said: “This is not a war against capitalism. But there is a need for a much greater degree of subsidiarity which respects the models of different countries.”

He added: “President Sarkozy’s rhetoric is over the top and he is clearly playing to his domestic audience. The free market is deeply entrenched in the British psyche.”

Another senior City source, who declined to be named, said: “Sarkozy’s language is very alarming. If it is a true reflection of Barnier’s approach, that is very bad news for London indeed. Besides, Sarkozy’s analysis is completely wrong. European companies also imploded during the crisis. There is very little evidence that excessive bonuses, however distasteful, caused the crisis themselves.”

Last century, another Frenchman, Charles de Gaulle, had a similar antipathy for the Square Mile, which he made clear in the 1960s when he withdrew his country from the Gold Pool, the London-based reserve designed to stabilise currencies by tying them to the value of gold.

12-03-2009, 01:23 AM	#7
VodsNittats Join Date Oct 2005 Posts 551 Senior Member	http://business.timesonline.co.uk/to...cle6939892.ece From The Times December 2, 2009 It’s déjà vu all over again as Sarkozy takes aim at City of London By Suzy Jagger, Martin Waller and Francis Elliott Napoleon Bonaparte scorned England as “a nation of shopkeepers”, but he knew it was the vitality of the City of London that made Britain such a threat to his imperial ambitions. The feeling was mutual. The City, fearful of a European ruler who would cut off their trade, readily funded the war effort that culminated in Napoleon’s downfall. Last night the City was again going on the offensive as one of its most successful bankers predicted that the French President’s criticism of Britain’s financial sector would encourage firms to quit Britain for markets more supportive of business. Terry Smith, chief executive of the bonds broker Tullett Prebon, told The Times: “I’ve never seen so much work going on by companies, individuals and teams of people to evaluate relocation out of the UK. Switzerland isn’t in the EU, but there are other destinations being considered as well.” President Sarkozy expressed glee yesterday at the appointment of Michel Barnier as finance chief in Brussels. Last month the Frenchman was appointed European Commissioner for the internal market and financial services. Mr Barnier now has influence over the reform of hedge fund, banking, insurance and banking regulation. At a meeting of European finance ministers in Brussels today, the powers of three new EU-wide economic watchdogs are to be agreed. The French are leading a drive for the bodies to be given power directly to interfere in the workings of individual companies, a move resisted by Britain. A proposed EU directive covering the workings of Britain’s private equity industry is also entering a key phase in negotiations. Yesterday Mr Sarkozy said that the nomination of a French commissioner in charge of EU markets would help continental economic ideals to prevail over the discredited Anglo-Saxon model. In a speech in France the President blamed the reputedly free-wheeling Anglo-Saxon model for the global economic downturn. The Group of 20 rich and emerging nations had made remarkable strides during the crisis to regulate bonuses and eliminate tax havens, but the battle was not over, Mr Sarkozy said. “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 of Mr Barnier’s nomination. “I want the world to see the victory of the European model, which has nothing to do with the excesses of financial capitalism.” His comments met with alarm and dismay in the City. One senior banker said: “Surrendering control of the City of London to the French in return for some nonentity getting a non-job [Baroness Ashton of Upholland’s appointment as EU foreign affairs chief] is one of the biggest fiascos of British diplomacy since Suez. The fact that Sarkozy is now being gleeful makes it worse. The Prime Minister must explain how he will protect the City from EU meddling or lose what remaining credibility he has in the City.” Sir Victor Blank, the banker and company chairman whose work forms the basis of Britain’s takeover code, told The Times that the “inherent strength” of Europe meant that any changes to financial regulation would take years to implement and that such measures would need the approval of 27 member nations of the EU. “This is not something that will shift and change overnight. It will be subject to debate. The City of London has an innate strength. People want to be here.” Richard Lambert, Director-General of the CBI, said: “Mr Sarkozy needs to be very careful with his rhetoric because he is making the job of Mr Barnier much more difficult. Mr Barnier has made clear — very sensibly — that he sees the City of London as one of Europe’s most valued assets.” Lord Levene of Portsoken, the head of the Lloyd’s insurance market, the biggest in the world, said of Mr Sarkozy’s words: “That’s today’s quotation. There will be another one tomorrow. I can’t get too excited about it. I think what we should do is to get our highest representative to intervene on our behalf. You know what politicians are like — good for a quote.” Simon Walker, head of the British Venture Capital Association, whose members are facing onerous proposed regulations from Brussels, said: “This is not a war against capitalism. But there is a need for a much greater degree of subsidiarity which respects the models of different countries.” He added: “President Sarkozy’s rhetoric is over the top and he is clearly playing to his domestic audience. The free market is deeply entrenched in the British psyche.” Another senior City source, who declined to be named, said: “Sarkozy’s language is very alarming. If it is a true reflection of Barnier’s approach, that is very bad news for London indeed. Besides, Sarkozy’s analysis is completely wrong. European companies also imploded during the crisis. There is very little evidence that excessive bonuses, however distasteful, caused the crisis themselves.” Last century, another Frenchman, Charles de Gaulle, had a similar antipathy for the Square Mile, which he made clear in the 1960s when he withdrew his country from the Gold Pool, the London-based reserve designed to stabilise currencies by tying them to the value of gold.
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