This content was published on Sep 15, 2022 – 13:32
(AFP)
Britain’s new finance minister, Kwasi Quarting, who has promised to reform the financial sector to boost the country’s growth, is considering removing limits on bankers’ bonuses, a measure inherited from the European Union, according to local press.
Several media outlets cited sources close to the minister on Thursday, after information revealed by the Financial Times claimed that Kwarteng could end a cap limiting bonuses to 200% of the annual salary – a measure that London has strongly opposed. When it came into effect in 2014.
At the moment, the ministry, contacted by AFP, did not wish to comment.
Last week, a day after his appointment, Courting told several officials in Britain’s powerful financial sector that they intended to launch their platform with an eye on growth.
The former Conservative government of Boris Johnson launched a financial services reform to improve competitiveness in the sector and turn the page on the European Union.
But Johnson’s CEO hasn’t changed the bankers’ bonus limits.
Kwarteng has said since last week that he is ready to do “differently” than his predecessors to attract investment and grow the economy.
“Bonds in the city are already at a record high,” while “millions of people are up to their necks in the water” due to the rising cost of living, responds Francis O’Grady, TUC general secretary.
He added that “the minister’s first priority should be raising wages for all, not one-time bonuses for those who are already at the top.”
The maximum limit on bankers’ bonds came into effect in early 2014 in the European Union despite strong opposition from the British government. London launched an appeal for the nullity to European courts before waiving it.
One factor in the 2008-2009 financial crisis was the bankers’ bonus system, as it encouraged them to take more risks to reap the rewards.
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