EU agrees to cap bankers' bonuses
MEPs in Strasbourg have today voted in favour of measures to cap bankers' bonuses.
The proposal, which was passed by over six hundred MEPs this morning, recommends that bankers' bonuses should not amount to anymore than the actual size of their annual salary.
It will come into force next year if it is formally approved by the European Council.
The idea behind the move is to stop the kind of speculative risk-taking that created widespread instability within the banks.
Fine Gael MEP Gay Mitchell says the capping of bankers' bonuses is well overdue.
He said: "People were paying themselves obscene salaries and how anybody could claim they were qualified for the salaries some people were justifying is quite outrageous.
"The salaries that have been provided for in the capital requirements directive are quite reasonable.
"Banks can pay whatever salary they want, financial institutions can pay whatever salary they want, and if there is a bonus to go with that then the bonus is one time your maximum salary, or up to twice your salary in some circumstances if shareholders agree. That is a perfectly agreeable provision."
