Economy | Wed Feb 20, 2013 12:00am IST

EU talks to cap banker bonuses stall

BRUSSELS (Reuters) - Diplomatic talks to introduce a cap on banker bonuses in the European Union stalled after representatives of EU countries and the bloc's parliament failed to reach agreement on Tuesday, officials said.

The talks centre on a reform, which is part of the implementation of so-called Basel III bank capital rules aimed at preventing a repeat of the financial crisis. The new rules could cap banker bonuses at the level of their salaries.

One official who followed the discussions said that there had been no agreement on bonuses, with several parties unhappy with a proposal to allow for a higher cap on bonuses of three times salary.

"There still remain a few issues to be resolved," said a spokeswoman for Ireland, which as the holder of the rotating EU presidency, steered the talks.

"More intensive work needs to be done," she said, adding that another round of negotiations on February 27 would hopefully result in a deal.

(Reporting By Claire Davenport and John O'Donnell; editing by Ron Askew)

X