PRIME Minister Tony Blair has branded the European Commission's proposals on the future of the football transfer system "misguided and wrong" and added they must be changed to prevent smaller clubs from going bust.

Former Sports Minister Tony Banks raised the issue during a House of Commons debate about the Prime Minister's statement on the Nice summit.

Banks asked Blair about the outcome of negotiations between the Prime Minister and German leader Gerhard Schroeder about the transfer system.

Blair said: "Myself and the German Chancellor are wholly opposed to the Commission's proposals. I think they are misguided and wrong, and we need to make sure that we get them changed."

"For many of the clubs the transfer fee system is essential for their future, and we do not want to see a situation where we have smaller clubs go to the wall as a result of a misguided intervention."

According to the Commission, a player who leaves a club before the end of his contract would not lose his right to play again as soon as he signs for a new team.