EU officials set to ratify banking bonus cap

20 March 2013

Policymakers in the European Union (EU) are expected to implement the new bonus cap on the region's banking industry today (20 March).

Following extensive talks in recent weeks, officials from across the 27-member state economic bloc came to an agreement that professionals in the financial sector should only be eligible to receive a bonus of the equivalent of one year's salary.

This new law has been designed to quell the high level of public anger still felt towards the banks for their role in the global economic crisis by encouraging employees to focus on a system of work that operates on good practice rather than excessive risk.

And, despite the opposition of Britain, this plan is set to be introduced in 2014 and will be formalised today, Reuters reports.

Lawmakers from the European Parliament are set to meet with EU diplomats this afternoon to finalise the arrangement, with one insider telling the news source that only "minor tweaks" will be made to the original plans.

By Gary Cooper

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