For the first time in history, the European Union has agreed to cap bankers' bonuses. The accord is part of new stricter rules on banking in the wake of the financial crisis. Bonuses will be limited to a year's salary
Britain is suing Brussels over rules capping bonuses for bankers -- saying that the new regulations make the banking sector less competitive.
German Finance Minister Wolfgang Schäuble has warned against the idea of Britain leaving the EU, claiming it would be "catastrophic." The comments came after the UK failed to stop an EU agreement on new banking rules.
Irish Finance Minister Michael Noonan has quelled British hopes to renegotiate a controversial deal capping bankers' bonuses. Noonan sees no room for changes at a meeting of EU finance ministers.
EU officials have agreed a new financial reform package including a cap on bonus payments for bankers. Designed to calm public anger at the financial sector, the deal could be introduced as early as next year.
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