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| Version 0 | Version 1 |
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| EU rejects UK's bonus cap challenge | EU rejects UK's bonus cap challenge |
| (35 minutes later) | |
| The Advocate General of the EU Court of Justice has rejected the UK's challenge to its cap on bankers' bonuses. | |
| The cap restricts bonuses to 100% of banker's pay or 200% with shareholder approval. | |
| Advocate General Niilo Jääskinen ruled the EU legislation limiting the ratio was valid. | |
| The cap is designed to reduce the incentives for bankers to take excessive risks. | |
| The UK government challenged the legislation asking the Court of Justice in Luxembourg to consider six arguments challenging both the scope and the legal basis for the new rules. | |
| "Not a cap" | |
| Advocate General Jääskinen said "fixing the ratio of variable remuneration to basic salaries does not equate to a 'cap on bankers bonuses', or fixing the level of pay, because there is no limit imposed on the basic salaries that the bonuses are pegged against." | |
| However, the UK argued that big basic salaries would be more difficult to cut when the business climate deteriorates. | |
| It also said the new rules may persuade bankers to relocate outside Europe. |