Scholes now works part-time with United's youth team.
He told the Mail on Sunday: "No, not even close. When we were coming through, it was nearly all English players with maybe one or two Irish or Welsh. But clubs now have seven or eight European players coming over to the academies.
"Surely that can't be helping the English players when a local lad from Manchester is going to somebody from Belgium or somewhere else. I know the clubs have to try to compete and get these players early, but surely at Under-18 level it should be predominantly British lads. There should probably be a rule on it because, sooner or later, it is going to affect the national team as there are just not enough players."
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