Britain's bonus challenge likely to get 'bogged down'

European Union

Britain's challenge to European Union rules capping bankers' bonuses is likely to get bogged down in court long beyond their implementation, and critics say it is more about pleasing domestic voters unimpressed by the loss of powers to Brussels.

Reuters reports that the UK, which houses Europe's biggest financial centre, was outvoted when the European Union agreed that bonuses must be no more than a banker's fixed pay, or twice that amount with shareholder backing.

The British government is now asking the EU's top court, the European Court of Justice, to rule that the world's toughest curb on bankers' pay is illegal.

This follows its legal challenges to EU plans for a tax on financial transactions, new rules on short-selling and a policy of locating clearing houses in the euro zone.

Its latest case could take up to two years to be heard, by which time the cap will be common practice, and Britain has said it would apply it from 2014 as required.

The challenge has been given short shrift by EU lawmakers and the EU's executive body, the European Commission, which will defend the cap in court.

To access the complete Reuters article hit the link below

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