MEPs want bonus limits

MEMBERS of the European Parliament yesterday backed a crackdown on bankers' bonuses to come into force in time for this year's round of payouts.

The parliament formally endorsed a deal reached last week at talks between representatives of EU governments, the European Parliament and MEPs. Banks will still be able to set bonus levels, but would be stopped from paying the full amount due in cash in one lump sum.

Arlene McCarthy, a Labour MEP and vice-chairman of the European Parliament's economic and monetary affairs committee, said: "We have a duty as legislators to respond to the public's concerns about the obscene bonus culture."

The vote came as European regulators continued to haggle yesterday over how much detail to reveal about a stress test to assess how banks would cope with a future economic meltdown.