U.K and EU- charges withdrawn
Finally, British authorities have conceded defeat against their European Union allies over the banker’s bonus issue.
The European Court of Justice dismissed the case where U.K wanted to overrule the banker’ bonus clause which states that bankers cannot obtain up to 100% bonus on their salary and even reach 200% despite a shareholder’s approval.
Following the dismissal of the case, Chancellor George Osborne stated that this case is "now unlikely to succeed.”
He also claimed that although U.K has not been able to change current laws, the repercussions will be felt in the long run with a significant probability of a talent-drain and inflation on basic pay.
This political melodrama continues with opponents claiming that Chancellor Osborne jumped in on the wrong boat and has wasted taxpayers’ money in the quest to defeat the EU.
The tension between the European Union and British Chancellor has been despondent for quite a time, with Mr. Osborne being sceptical about EU measures.
On the European Union side, this law was implemented in an attempt to prevent bankers from taking unnecessary risks, a factor according to them which led to the 2009 financial crisis.
However, U.K counter-attacked by saying that this measure will not be a bullet-proof strategy against financial crisis as the banking system require safer measures.