Kamall: "Bonus ruling will alienate Britain"

20-Nov-2014 @ 11:0

Syed Kamall Syed Kamall

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Today's legal advice  on bankers' bonuses risks driving a further wedge between Britain and the EU, a senior Conservative said.

Syed Kamall, leader of Britain's Conservative MEPs warned that if the advice were accepted by the European Court of Justice it would have a negative impact on the City of London and further tarnish UK public opinion on Europe.

The London MEP  was speaking after legal opinion was issued by the court's senior adviser the Advocate General over a legal challenge by the UK to EU rules limiting bankers' bonuses to 100 per cent of salary. The advice is to reject Britain's appeal and to confirm that the legislation is valid. In the vast majority of cases, the court will ultimately adopt the Advocate General's opinion as EU law.

Dr Kamall said: "Part of the advice says that a limit on bonuses will not limit overall pay – and that is exactly the problem.  Banks will still find ways of rewarding talented and hardworking staff in a global employment marketplace, but if bonuses are capped that will mean increasing salaries.  That will lead to less alignment between performance and pay, meaning bankers would be paid well even if they performed badly.

"I see this as a gross interference in the way a key sector of the British economy organises its staff remuneration. If the advice is adopted it could drive another wedge between Britain and the EU and further offend public opinion over Europe."


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