Relations between France and Britain, already frayed in the aftermath of last week's EU summit, look set to deteriorate further following comments by French Finance minister Francois Baroin.<br/> Asked about a potential downgrade of his country's prized triple A credit rating, he said the situation could be worse - pointing a finger across the channel.<br/> SOUNDBITE: (French) French Finance Minister Francois Baroin, saying (French):<br/> "We don't have any lessons to give, but we don't want to be given any lessons either. We were given a few and it's true that the economic situation in Great Britain is very worrying and that today, from an economic standpoint, we prefer being French than British."<br/> It follows an attack on ratings agencies by French central bank governor Christian Noyer, who charged that their decisions were guided more by politics than economics.<br/> He said basic economic fundementals should lead to Britain being downgraded first, saying it had more debt and less growth.<br/> The remarks have been met with disbelief in Britain. Dominic Johnson of Somerset Capital.<br/> SOUNDBITE: Dominic Johnson, Partner and Chief Executive of Somerset Capital, saying (English):<br/> "It would be ridiculous to suggest that the UK should be downgraded before France. Firstly we have hugh extra flexibility of having our own currency and secondly we have a far more dynamic economy at its core and remember in France it is illegal to work more than 35 hours a week. We don't suffer those extremely complicated and troublesome regulations in the UK, we have a far more dynamic and entrepreneurial economy and ultimately I think we're more prepared to accept the situations that revolve around free markets then some of our European neighbours are."<br/> Relations between the two nations become strained last week after Britain's Prime Minister David Cameron refused to sign up to a new EU treaty.<br/> Dominic Johnson, Somerset Capital, saying (English):<br/> "When you look at the core comments coming out of Europe they say Britain wants to be in a free trade zone rather than in a community of European countries, a social democracy of European countries. And I actually agree with them."<br/> And although Britain won't officially be part of any new EU deal it has been asked to sit in on negotiations.<br/> Earlier this month France became one of 15 eurozone members to be put on negative watch by Standard & Poors.<br/> Markets are still awaiting the agency's verdict on the deal agreed, by most, in Brussels.<br/> Hayley Platt, Reuters.
