The British government appears to have cut all ropes with Europe and is, in my imagination at least, happily sailing along in the Atlantic with its course set for elsewhere.
Yesterday the British government lost its third attempt to change EU financial regulations through the court.
This latest case was about London disliking EU caps for bankers bonuses. The rules allow for a 100% bonus on the fixed salary, tops.
Or 200% if the board of the company agrees to this.
Living outside of the financial sector, you are excused to feel that this would be plenty.
Not so, for the British Chancellor of the Exchequer however.
George Osborne thinks the cap on bonuses may ”create perverse incentives to raise fixed pay”.
That statement is so uncomprehensible to me, I will not even attempt a comment.
Now, in order ”to save British tax payers moneny”, George Osborne will drop the law suit against bonuses, even though yesterday´s ruling was only a recommendation of the general advocate. The judges have not had a go at the case yet.
Osborne has instead written to the governor of the Bankf of England, Mark Carney, asking him to launch the battle for global rules on ”new pay structures to reduce risk-taking and short-term thinking”.
Here´s an idea, Mr Carney.
How about a cap on bonuses?, which is after all the instrument used so far in the financial sector to reward risk-taking and short-term thinking.