Enter multiple symbols separated by commas

Boris Johnson: Bank Bonus Caps 'Deluded Measure'

Boris Johnson, mayor of London, speaks during the Confederation of British Industry
Simon Dawson | Bloomberg via Getty Images

London's mayor Boris Johnson has called the European Union (EU) deal to cap bankers' bonuses as the most deluded measure since Roman times.

"This is possibly the most deluded measure to come from Europe since Diocletian tried to fix the price of groceries across the Roman empire," Johnson said in a statement.

The European parliament reached a provisional deal to limit variable pay to salary at a ratio of 1:1, although this can rise to 2:1 with shareholder approval.

(Read More: London Mayor: Choose Us Over Silicon Valley 'Donut Shacks')

The deal was a blow to the U.K., which had been fighting to fend-off caps on banker pay. London's financial sector employs 320,000 people, despite massive cuts in recent years.

Britain's Prime Minister David Cameron has promised a referendum on the U.K.'s membership of the EU after the next general election in 2015

"People will wonder why we stay in the EU if it persists in such transparently self-defeating policies. Brussels cannot control the global market for banking talent, Brussels cannot set pay for bankers around the world. 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," Johnson said.

Contact Europe News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Europe Video

  • Europe opens higher; China rout watched

    European equities opened higher Tuesday, with investors around the world watching how Chinese stocks are trading after a sharp drop on Monday and volatile trade in the current session.

  • How e-commerce is helping this warehouse firm

    David Sleath, CEO of Segro, says the rise of internet retailing in the U.K. has increased demand for warehouses which is helping his company.

  • Is it time to buy Chinese stocks?

    Will Ballard, head of emerging markets and Asia at Aviva Investors, discusses what investors need to watch out for if they are thinking of buying Chinese stocks.