Brussels, 10/09/2014 (Agence Europe) - The S&D group at the European Parliament will not endorse the future Commissioner for Financial Services, British Conservative, Jonathan Hill, if the latter does not unreservedly speak in favour of respecting European rules to limit bonuses.
The president of the S&D group at the European Parliament, Gianni Pittella, from Italy, stated: “We will not accept any backsliding on curbing bonuses. Major banks using allowances to side-step the cap is a provocation. If you are part of the EU, you must apply the same rules as any other member state. The next commissioner for financial services must be crystal clear on this, otherwise we will reject their candidacy”. She added that “the fight against irresponsible, predatory behaviour in the financial world is and will be a condition sine qua non - an essential precondition for the S&Ds to back the new Commission team”.
The United Kingdom has taken its case against the European legislation (“CRD IV” package) to the European Court of Justice, to protest against the EU introduction this year of a threshold on the variable part of pay to banking and investment company executives (see EUROPE 10812). A bonus will no longer be able to be above the fixed part of the annual salary (ratio 1: 1) unless a majority of shareholders give their approval for granting a bonus that can go up to double the fixed rate salary (ratio 2: 1). During the adoption of the Council of EU rules, the United Kingdom found itself in a minority in the official vote. (MB)