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EU finance ministers declare war on bankers' bonuses

Category :International Sub Category :Europe
2009-09-02 00:00:00
   Views : 378

Brussels, Sep 2 (DPA) The European Union's finance ministers were meeting in Brussels Wednesday in a bid to curb bankers' bonuses amid strong opposition from Britain, home to the bloc's most important financial centre.

'Bankers are partying like it's 1999, and it's actually 2009. The bonus culture must come to an end, and it must come to an end in Pittsburgh,' said Swedish Finance Minister Anders Borg, who was chairing the meeting as current holder of the bloc's rotating presidency.

The informal talks in Brussels are part of a number of preparatory meetings ahead of this month's Group of 20 meeting in Pittsburgh, which will be tasked with reforming global finance in the wake of the credit crunch.

Some of Europe's big banks have attracted the wrath of governments for paying out lavish bonuses to their top managers at a time of rising unemployment.

The backlash has been particularly strong in France, which has taken the lead in formulating proposals on the table at Tuesday's meeting.

'We have very firm proposals to put some order into bonuses and renumerations,' French Finance Minister Christine Lagarde said as she arrived in Brussels.

Describing the bonus issue as 'emblematic' of all that is wrong with capitalism, Lagarde's proposals include a special tax on the financial sector and a cap on variable pay.

France has already imposed tough curbs on bonuses for its own bankers and traders. But while it can count on the support of most EU member states, including Germany, Luxembourg and the Netherlands, it must yet overcome strong resistance from the City of London.

'I've seen some major countries move in the right direction, but not everyone is yet moving as quickly as they possibly could,' Dutch Finance Minister Wouter Bos said when asked about Britain's position.




Author :DPA



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