The most stringent curbs on bankers’ pay since the 2008 financial crisis are to be imposed by the EU, as Britain faces defeat in Brussels over an issue dear to the City of London.
Talks on EU reforms to make banks safer are entering a potentially decisive week with London heavily outgunned, after almost a year of backroom diplomacy to blunt a bonus crackdown pushed by the European Parliament.
France is now backing parliament’s demand for strict limits on bonuses that exceed salary and a clear majority – which now crucially includes Germany – want to compromise so that the bonus dispute does not hold up reforms of bank capital rules.
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