Europe's parliament pushes for tougher rules on bank pay | business | Hindustan Times
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Europe's parliament pushes for tougher rules on bank pay

business Updated: Jun 15, 2010 22:04 IST

European lawmakers demanded on Monday that no banker be paid more bonus than salary, a radical position that could soon result in tighter pay controls for an industry blamed for triggering economic crisis.

European Union countries are attempting to overhaul financial services with a raft of rules demanding banks hoard more capital or show restraint on pay.

French President Nicolas Sarkozy had earlier bowed to German demands for tougher European budget rules as a steep downgrade of Greece's credit rating and distress signals from some Spanish banks put new pressure on the EU.

After talks in Berlin late on Monday, Sarkozy accepted a German proposal that euro zone states which persistently breach budget deficit limits should have their voting rights in the bloc suspended, even if that requires changing the EU treaty.

He also yielded to Chancellor Angela Merkel's insistence that closer "economic government" should involve all 27 European Union members and not just the 16 that share the common currency, as France had sought, and he dropped demands for a dedicated euro zone secretariat.