EU calls for banking bonus caps

Europe has made it quite clear it will try to get the United States to agree to strict rules putting a lid on bonuses in the banking world. This was at a meeting in Brussels to prepare for the G20 summit in Pittsburgh next Thursday. EU leaders will also be pushing for significant signals on acting responsibly to fight climate change.

A draft text talked about linking bonus levels to banks’ performances, and avoiding guaranteed payouts. This essentially comes from a French-British-German proposal made earlier this month. But imposing a ceiling on bonuses will not be an easy sell, what with President Obama this week coming out clearly against individual caps.

The international conference to reduce emissions affecting the world’s climate is scheduled for December. World number two carbon emitter after China the US has proposed bringing its own emissions down to 1990 levels by 2020. Yet the Obama administration has also stressed that any goals must be realistically achievable. Europe has committed to ambitious cuts and wants the broadest possible similar action from other countries.

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tags: Financial Crisis