German banks set to speed up pay reform

Article reports that German bankers were set on the 10 December 2009 to speed up reform of rules on pay as pressure mounted on bank bonuses following the UK’s decision on the 9 December 2009 to apply a windfall tax.

While Angela Merkel, German Chancellor, said the UK’s idea of a windfall tax on bonuses had 'charm' and would have salutary effects on bankers, it appeared unlikely that Germany would follow suit. Ms Merkel putting greater emphasis on a tax on financial activity. 'We have committed ourselves to a transaction tax in the financial market. I think that would be a more sustainable solution to the problems,' she said.

ESO: Background information: France to impose tax on bank bonuses http://www.europeansources.info/record/france-to-impose-tax-on-bank-bonuses-entente-fiscale/

ESO: Background information: Darling tightens the screws / ‘What banker wants to be in the UK?’ http://www.europeansources.info/record/darling-tightens-the-screws-what-banker-wants-to-be-in-the-uk/

ESO: Background information: EU leaders unite against bank bonuses http://www.europeansources.info/record/eu-leaders-unite-against-bank-bonuses/

ESO: Background information: Germany’s bonus ultimatum to bankers http://www.europeansources.info/record/germanys-bonus-ultimatum-to-bankers/

Deutsche Welle, 10.12.09: Merkel applauds "charming idea" of tax on bankers' bonuses http://www.dw-world.de/dw/article/0,,5002673,00.html

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