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Britain is withdrawing its legal challenge to European Union, cap on bankers’ bonuses. The rules limit the payment to no more than 200% of basic salary. Here is our economic correspondent Andrew Walker. “The EU’s rules are motivated by the view that the prospect of the very large bonuses encouraged bankers to take excessive risks. So as a maximum of 200% of basic salary provided shareholders agree. The British government argued that the rule would be counter-productive and simply lead to higher basic salaries. The UK challenged the legal basis but a senior European legal official has advised EU court to reject the case. The British Finance Minister George Osborne said he wouldn’t spend tax payers’ money on a challenge that was unlikely to succeed.”
World News from the BBC.