Chancellor of the Exchequer Alistair Darling has warned against more EU regulation of the British financial-services industry, saying whole Europe will suffer in case London loses its leading position.

Speaking on the issue, Mr. Darling said, “London, whether others like it or not, is New York's only rival as a truly global financial centre.”

Mr. Darling’s comments came ahead of Finance Ministers meeting in Brussels on Wednesday.

It may be noted here that France's Michel Barnier has been appointed as Single Market Commissioner, and Britain is reportedly trying to prevent other European financial centers such as Paris from challenging London’s dominance. 

Michel Barnier will propose new EU rules that will cover financial institutions throughout the EU.

European authorities in Brussels are expected to tighten controls in wake of recent economic crisis.