Mayor of London hits out at EU banking bonus proposals

20 February 2013

European negotiations regarding potential reforms to bonus payments in the continent's banking industry could have a negative impact on the UK, the Mayor of London believes.

Yesterday (19 February), it emerged that members of the European Parliament (EP) were holding talks with policymakers from member states of the European Union over the possibility of imposing legislation that would see bonuses capped at a maximum of an individual's salary.

Such an agreement is seen as crucial by the EP if the incoming Basel III global regulations - which were drawn up in the aftermath of the worldwide banking crisis - are to be successful.

However, Boris Johnson has insisted these proposals are not part of the "global response" to the downturn and represent a "threat to the fabric of the City".

Mr Johnson went on to say the plans could "undermine London’s international competitiveness compared with New York or the emerging Asian powerhouses”.

By Asim Shah

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