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Barroso slammed over Goldman Sachs Brexit job

Published on 09/07/2016

Former European Commission president Jose Manuel Barroso faced a wave of criticism Saturday after it emerged that he will advise US investment bank Goldman Sachs on the fallout from Brexit.

Barroso, who also served as Portugal’s prime minister, will become a non-executive chairman of Goldman Sachs International (GSI), the bank’s international arm based in London.

“Jose Manuel brings immense insights and experience to Goldman Sachs, including a deep understanding of Europe,” GSI co-chief executives, Michael Sherwood and Richard Gnodde, said in a statement.

But his appointment drew criticism from across the political spectrum.

Pedro Filipe Soares, a leader in Portugal’s radical Left Bloc that supports the ruling leftist coalition, said: “This nomination shows that the European elite of which Barroso is part knows no shame.”

France’s foreign trade minister Matthias Fekl, meanwhile, tweeted: “Serving the people badly, serving yourself at Goldman Sachs: Barroso, an obscene representative of an old Europe that our representative will change.”

Fekl’s socialist colleagues in the European Parliament also condemned Barroso’s move, calling it “scandalous”.

– ‘Boon for europhobes’ –

“We call for the rules to be changed to prevent the appointment of former European commissioners,” French socialist Euro MPs wrote in a joint statement, adding that the “revolving door system strongly resembles a conflict of interest”.

Barroso served as president of the European Commission for a decade until 2014 — steering it through the global financial crisis — and before that as Portugal’s prime minister between 2002 and 2004.

“After having spent more than 30 years in politics and public service, it is an interesting and stimulating challenge that will allow me to use my skills for a global financial institution,” Barroso told Portuguese daily Expresso.

Goldman Sachs was heavily involved in selling complex financial products, including subprime mortgages that contributed to the world financial crisis in 2008.

Leftwing French daily Liberation described Barroso’s appointment as “the worst timing for the Union and a boon for europhobes,” adding that it was tantamount to giving Europe “the finger”.

Marine Le Pen, leader of France’s far-right National Front (FN) party, said on Twitter that the appointment was “nothing surprising for people who know that the EU does not serve people but high finance”.

Despite the chorus of criticism, Barroso’s appointment adheres to the European Commission’s rules that specify that commissioners remain accountable to the body for 18 months after the end of their term.