UK Chancellor Osborne Against EU Cap on Bank Bonuses

Chancellor George Osborne has told European Union finance ministers that he cannot support proposals to curb bankers’ bonuses.

At a meeting of the EU’s Economic and Financial Affairs Council in Brussels he appealed for further negotiations.

The meeting discussed a possible “tweaking” of plans to limit bonuses to 100% of a banker’s annual salary, or to 200% if shareholders approve.

The City of London fears the rules will drive away talent and restrict growth.

Most members of the 27-nation EU are firmly behind the proposals, which are part of wider measures requiring banks to strengthen their capital buffers in the hope of avoiding another financial crisis.

The proposals still need formal approval from the European Parliament and EU states.

Speaking after the meeting, Mr Osborne said Britain already had the toughest regime in Europe for bankers’ pay and bonuses and that a cap could “have a perverse effect”.

Although ministers could still push through the proposals without the UK’s support, German Finance Minister Wolfgang Schaeuble said “it would be better” to reach consensus.

via BBC

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