Patricia Hewitt has attacked the idea of European "industrial champions", weeks before a Franco-German summit designed to encourage the creation of super-firms.

"The challenge for Europe is not to think about national champions or even European champions but to think globally and benchmark ourselves against the best wherever the best is," the trade secretary said.

"I think specifically national champions are a very old-fashioned way of thinking. What we need are great companies that are not only doing well in their home markets but are doing well internationally."

German chancellor Gerhard Schröder and French prime minister Jean-Pierre Raffarin plan a meeting in June to encourage "the creation of the industrial champions needed by the Europe of tomorrow, of which France and Germany could build a... number".