Really… I mean have these people got nothing else to do than bring forward half arsed schemes to further damage the European Economy. Forget the UK for a second the impact of the sugested 1 times salary for bonus scheme with ensure the European Financial services industry slowly withers on a vine. Explain to me why you would get up at 5.30 am every morning (as most of my city friends do), why you would take the judgements that you do with vast squillians of clients money if the size of the prize could be reduced by in some cases 20 times. And where will this talent and tax go… out of these countries and into the Middle East, Zurich, New York, Asia etc etc.
It creates all the wrong drivers. High salaries as we all know does not, in financial services, encourage risk. Risk (measured) is what the financial services industry is all about and that is fundementally why clients, fund managers etc put their money behind bankers. take away the midas dust that enables bankers to take risk on their clients behalf and you kill the system.
Some facts worth considering;
The UK ‘s Financial and Professional Services sector generated a Trade surplus of £40bn in 2010, significantly more than any other sector and is equivalent to 3% of UK GDP.
Financial and professional services enable businesses to start up and invest in expansion. And financial and professional services create opportunity in the economy generating nearly 2 million jobs; one pound in seven of GDP; and a £40bn trade surplus.
The financial services industry accounted for 10% of UK GDP and 11% of UK tax receipts.
The sector currently employs 1 million people, more than 66% of whom work outside London, and underpins the businesses that drive jobs and growth. Another 900,000 people are employed in associated professional services.
I never saw myself as a Euro sceptic but this latest attack on the financial service sector needs to be defended rigorously by both Politicians and UK Plc.