Europe’s divisions over inflation were highlighted on Friday when José Manuel Barroso, the European Commission president, defended the European Central Bank against political critics.

He said: “When it comes to inflation, I have more confidence in the position of central bankers than in politicians...central bankers are not moved by short-term political pressures.”

His remarks put him at odds with Nicolas Sarkozy, France’s president, who berated the ECB for putting price stability before economic growth and raising its main interest rate on Thursday by a quarter-point to 4.25 per cent, a seven-year high.

The difference of views has taken on extra significance because France assumed the EU’s rotating presidency on Tuesday and will speak for the 27-nation bloc at international gatherings over the next six months.

Mr Barroso and the Commission are responsible for EU policies such as world trade negotiations – another area where Mr Sarkozy disagrees with Brussels.

The French president contends that higher interest rates will be little use against inflation because they will not contain the rise in oil prices, which has helped push up annual eurozone inflation to 4 per cent – double the ECB’s target.

Mr Barroso, speaking to reporters before he left for next week’s G8 meeting of industrial nations in Japan, said: “Let’s trust the ECB when it comes to monetary policy and interest rates. We have to respect the independence of the ECB. It would have been difficult in the face of the threat from inflation for the ECB not to take the decision it took...[Inflation] can really put in danger not only the European but the global economy.”

The dispute appears unlikely to fade away because Mr Sarkozy can count on the support of Silvio Berlusconi, Italy’s premier, and José Luis Rodríguez Zapatero, prime minister of Spain in his campaign against the ECB’s strict anti-inflationary stance.

According to a senior official in France’s presidential office who briefed reporters in Paris this week, Mr Sarkozy also claims to have the backing of Peer Steinbrück, finance minister of Germany. However, Mr Steinbrück said on Thursday he had “full respect” for the ECB’s action.