Chancellor Alistair Darling has warned European Union's new French Finance Commissioner against meddling with UK's financial service industry, stating that giving the EU more powers in the City would be like a "recipe for confusion". The thoughts have been shared by the Chancellor right before various Finance Ministers are to meet in Brussels.

Mr. Darling believes that it is important that regulators of the national level, such as Britain's Financial Services Authority, retain their supervisory roles. The debate on the extent of EU's financial regulations on UK comes right as France's Michel Barnier starts as Single Market Commissioner.

Chancellor Darling is now expected to issue similar warnings to other Finance Ministers of the EU as well and make it clear that he would not accept any new powers governing the decisions on future bail-outs, for which British taxpayers might have to suffer.

"Regulatory reform throughout the world is imperative, and Europe, home to the world's largest single market in financial services, has a particular responsibility. We must resist measures, however superficially alluring, that could undermine the effective functioning of our cherished single market", shared Mr. Darling.

The Chancellor is of the opinion that London should not be viewed in the same light as all other European financial sectors.