EU countries back France on curbing bank bonuses
- Source: Global Times
- [00:50 September 03 2009]
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A French bid to crimp international bankers' bonuses won broad support from European countries in Brussels yesterday, but the move still faces strong British reservations.
Senior figures led by Eurogroup head Jean-Claude Juncker and Swedish Finance Minister Anders Borg, whose country holds the rotating EU presidency, offered unqualified support in the run-up to a meeting of G20 finance ministers in London over the weekend.
However, others acknowledged that Britain must still be brought on board if French President Nicolas Sarkozy's intention to secure strong G20 regulation on the issue is to succeed at a summit of world leaders in Pittsburgh from September 24 to 25.
Britain Chancellor of the exchequer Alistair Darling did not attend the meeting of EU finance ministers in Brussels, sending Ian Pearson, a minister at the treasury, in his place.
Last week, Sarkozy won commitments from French bankers for a performance-related pay system, as part of a drive to rein in a bonus culture.
However many bank chiefs believe such a bonus cap would be ineffective at merely national level, and it must also be introduced in other nations. "I totally support the proposals made by France" being discussed at the G20 summit, Luxembourg Prime Minister Juncker said.
Sweden's Borg said the key issue was "to stop the restarting of the bonus culture."
He added, "The bankers are acting like it's 1999, but it's actually 2009. The bonus culture must come to an end and it must come to an end in Pittsburgh."
The French proposal has already received support from Germany and the European Commission.
But Britain, mindful of protecting the financial capital of Europe, has voiced reservations, along with the US.
British Prime Minister Gordon Brown pledged action Tuesday on excessive bonuses, but he said a mandatory cap would be difficult to enforce.
"I think that is very difficult in an international environment. But there may be ways ... that we could do better," Brown said.
AFP
