LONDON: Europe's new financial overlord has pledged to ease economic cooperation within the EU and said improved regulation is the key to bolstering the single market, in a newly published interview.

"I want to be the commissioner for more single market, not less," France's Michel Barnier told the Financial Times newspaper.

Better regulation was needed to rebuild confidence in the single market, he said. Without this, "we risk a nationalist, populist and protectionist approach," the European Union's new internal market commissioner said.

Barnier, whose appointment at the end of last year as the bloc's internal market commissioner raised fears among London's bankers of increased control from Brussels, also said his credibility depended on his independence.

"I'm not horrible, but I'm not a pussycat either," he said.

Fears over his ascent to the European Union's top finance post were compounded when French President Nicolas Sarkozy declared the British government the "big losers" of the bloc's jobs battle. Related article: EU unveils 2020 vision for economy

But Barnier has distanced himself from accusations that he is driven by an interventionist ideology and appointed an Englishman, Jonathan Faull, as his right-hand man.

Speaking as he ended a trip to London on Tuesday -- described by the Financial Times as a "24-hour peace mission" -- Barnier expressed support for the British capital as a leading financial centre.

He praised London, which is home to 80 percent of Europe's financial services funds, as "the financial powerhouse of Europe".

But he made clear his wish for markets to come under stricter control as European economies struggle to recover from the worst recession for decades.

"Markets should be at the service of the economy and not the contrary," he said.

The City of London and Europe would benefit from "good, intelligent regulation," added Barnier.

The commissioner also pledged to work further on EU plans to impose regulations on hedge funds and private equity.

He conceded that a directive to regulate private equity and hedge funds had been rushed and told the paper: "The directive has been improved and it might be improved further."

During his London visit, the Frenchman met British Chancellor Alistair Darling, and George Osborne, finance spokesman of the main opposition Conservative Party.

He also met the governor of the Bank of England, Mervyn King and other senior City figures.