EU bonus cap could force redundancies

Mayor of London Boris Johnson has attacked the EU's decision to limit the decisions banks can make on variable pay, declaring in a statement:

People will wonder why we stay in the EU if it persists in such transparently self-defeating policies.

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The most this measure can hope to achieve is a boost for Zurich and Singapore and New York at the expense of a struggling EU. This is possibly the most deluded measure to come from Europe since Diocletian tried to fix the price of groceries across the Roman empire.

Boris has previously opposed this measure on the grounds that it will do tremendous damage to the financial sector in the city.

City A.M.'s Allister Heath spoke on Sky News arguing that this will lead to greater redundancies. If banks will no longer be able to deal with poor performance by reducing bonuses then they will have to lay off staff instead. This would be a very expensive process and he added that "if the idea is to make the banking system more robust, this one will fail spectacularly".