EU Call for Global Curb on Bankers' Mega-Pay

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Byline: Nick Goodway

EURoPEAN Union leaders will tell the world's largest economies that they must agree on measures to curb bankers' pay and bonuses as part of their plan to overhaul the global financial system.

A draft statement prepared for today's Euro-summit in Brussels, says at the G20 meeting in Pittsburgh world leaders should set binding rules on how banks reward their employees. A year after the financial crisis came to a head, Europe wants to make as certain as possible measures are in place to prevent it happening again.

The 27-nation meeting in Brussels is likely to see European leaders take a much harder line that their US counterparts over how much bankers' rewards are directly linked to their risk-taking.

French President Nicolas Sarkozy has publicly said he will walk out of the G20 meeting if other nations refuse to back his hard line.

Swedish Prime Minister Fredrik Reinfeldt, whose country currently holds the EU presidency, said governments must legislate because banks are going back to business as usual as economies recover. …