[RE: EU agrees to cap bankers’ bonuses, Thursday]
The EU bonus cap risks ceding even more ground to the emerging economies at a time when financial services are one of the main areas in which Europe remains competitive. In a global economy, an artificial cap in one region means the best talent would simply relocate to financial centres elsewhere. Our research, conducted before the proposals were announced, found that 71 per cent of finance professionals are considering relocating abroad, and the top destinations are non-European. This will increase the lure of other international financial centres, which will have dire consequences for Europe’s already embattled economies.
Dave Way, managing director, Marks Sattin
[RE: What is the best approach for improving competition in Britain’s energy market, Thursday]
At a time when spiralling energy bills are consumers’ top financial worry, people are bound to question whether they’re paying a fair price when they see a big profits announcement from the biggest of the energy giants. Ofgem’s proposals for simpler energy tariffs are a welcome step. But they do not go far enough. There is a danger that these proposals will fail to live up to the Prime Minister’s promise of fairer bills because of the lack of competition in this market. Consumer trust in the energy industry has plummeted. The government must act to give consumers the confidence that the price they’re paying is fair.
Richard Lloyd, executive director, Which?
BEST OF TWITTER
Why are the Tories celebrating the drop in net migration? More Brits leaving; fewer foreign students arriving. This isn’t positive.
Bonus cap: so we now meekly accept that Brussels can restrict how much private companies choose to pay their employees?
Bonus cap is a poor idea. Bankers will move away from the UK if bonuses are capped and the Treasury will lose tax revenue.
RBS chief executive Stephen Hester says that it may be ready for a sale by 2015. I hope that each citizen will get a stake then.
Readers of City A.M.