EU-BANKS/BONUSES EU should keep limit on bank bonus, adviser says in blow to UK

Record ID: 565678

  • Title: EU-BANKS/BONUSES EU should keep limit on bank bonus, adviser says in blow to UK
  • Date: 20th November 2014
  • Summary: LONDON, UNITED KINGDOM (FILE) (REUTERS) CITY OF LONDON CANARY WHARF
  • Embargoed: 5th December 2014 12:00
  • Keywords:
  • Location: United Kingdom
  • Country: United Kingdom
  • Topics: General
  • Reuters ID: LVA7CPYGXQ84196DJ2KO3KUK84LE
  • Story Text: A legal adviser to the European Court of Justice (ECJ) recommended on Thursday (November 20) that the court uphold the European Union's cap on bankers' bonuses after a complaint filed by the British Government.
    The EU law limits any bonus to a sum that is no more than a banker's fixed pay, though it may rise to twice that level with shareholder approval. The aim is to curb excessive risk-taking in banking that led to the financial crisis.
    The adviser to the court, known as the advocate general, found that the limit on banker bonuses was valid and did not restrict the total amount of pay.
    Advocate general opinions are non-binding but tend to be followed by the court in most cases.
    "In case C-507/13, the advocate general Jaaskinen suggests that the Court rejects the plea, says that the Commission will bear its own costs and condemns the United Kingdom of Great Britain and Northern Ireland to the costs of Council and the European Parliament," ECJ advocate general Paolo Mengozzi told attendees at the court in Luxembourg
    Britain had argued that the law, which will affect bonuses that are handed out in early 2015, goes beyond the EU's treaty powers by impinging on pay.
    The full court is expect to issue its ruling on the UK challenge in early 2015.
    The opinion is a setback for Britain and could give more ammunition to anti-EU campaigners who object to having decisions imposed by Brussels. The UK Independence Party, which rejects the influence of the EU over Britain, is hoping to win a vote on Thursday that would give it a second parliamentary seat.
  • Copyright Holder: FILE REUTERS (CAN SELL)
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