Paris aims to copy City of London

Ms Lagarde's plans fit in with President Sarkozy's wider aims

French Finance Minister Christine Lagarde has said she wants to promote Paris as a financial services hub to rival, but not overtake, London.

Ms Lagarde told the Financial Times she intended to create a new stock market that would have lighter disclosure rules and operate in English.

Until now, Paris has lagged a long way behind London and Frankfurt as a major financial centre.

Critics have said it has too many regulations and excessive taxation.

'French strength'

Ms Lagarde, who is expected to unveil the changes later, said in the interview that she wanted to reduce France's disclosure requirements and generally cut as much red tape as possible.

Although she said the recent credit crunch had made the City of London vulnerable to increased competition, she added that "one shouldn't rejoice in the misfortunes of others".

"All the same, the weeks since mid-August show us that the strength of a financial market, and its reputation, do not count for much," she said.

"The security and solidarity of France's regulatory structure is a strength, particularly during a period of financial difficulty."

Ms Lagarde's comments echo President Nicolas Sarkozy's wider intention to make France's economy more competitive.

Mr Sarkozy has long declared the need for France's economy to mirror more closely the Anglo-Saxon models of the UK and US, where state intervention is greatly reduced.