U.K. Starts Court Challenge Against European Union Bonus Caps
By Ben Moshinsky & Svenja O’Donnell – Sep 25, 2013 10:41 AM ET
The U.K. government challenged European Union caps on banker bonuses at the bloc’s highest court.
The challenge was filed at the EU Court of Justice in Luxembourg, the U.K. Treasury said in a statement.
The EU brokered a deal in February to outlaw banker bonuses that are more than twice fixed pay, a move lawmakers said would prevent excessive payouts and curb irresponsible risk-taking. U.K. Chancellor of the Exchequer George Osborne opposed the curbs, saying they would harm the competitiveness of the nation’s finance industry.
About 35,000 employees at banks around the world may be caught by the European Union caps, more than 20 times the current number of people affected by the pay rules, the British Bankers’ Association said in a report last month.
Sky News reported the legal challenge earlier today.
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