Enemies at the gate

London's financial community feels it is fighting a war on two fronts: the prospect of being hamstrung by pending EU measures and suffering targeted attacks from the government at home.

Earlier this month, French President Nicolas Sarkozy gloated publicly at the appointment of Frenchman Michel Barnier to the EU Internal Market portfolio, which supervises the bloc’s financial sector. The British, Sarkozy said, were “the big losers”, while the French model was victorious. His tone appalled financiers on both sides of the Channel who have been working to agree directives that could promote financial services across the region. The reaction in the City, already suspicious of EU intentions, was initial shock followed by a predictable, if inglorious move to stoke popular host...