U. S. Treasury Secretary Timothy Geithner's complaints about proposed hedge-fund regulations were reacted at defensively by the European Union on Thursday.

The New York Times reported on Thursday that the proposals include a provision called an EU passport that treats deals within the 27 EU countries as deals within "a single trade bloc."

"New hedge-fund rules do not discriminate against foreign players and are not protectionist," said Amadeu Altafaj, a spokesman for EU financial market chief, Michel Barnier.

Britain is expected to oppose the regulations, as they may drive business away from the financial hub of London, where 70 percent of the hedge funds in the European Union are located, The Times further said.

The rules were consistent with the international financial community's expectations, Altafaj also said.

A letter was sent to Barnier Geithner by Barnier to complain about the proposals, which require agreement among financial ministers before being forwarded to the European Parliament for consideration. (With Inputs from Agencies)