Banks will be barred from lucrative French government mandates if they fail to abide by new international guidelines on pay, President Nicolas Sarkozy warned on Tuesday as he unveiled tough domestic rules on rewards for traders.

“We will not work with banks that do not apply the rules,” the French president said after a meeting with the country’s top bankers, who were summoned to the presidential Elysée Palace. The executives included Baudoin Prot of BNP Paribas, Frederic Oudéa of Société Générale, and Georges Pauget of Crédit Agricole.