The European Commission has published a letter from Michel Barnier, Commission Vice-President, to Andrea Enria, European Banking Authority (EBA) Chair, on the possible circumvention of the EU rules on bankers’ bonuses.

Mr Barnier refers to a previous letter from Jonathan Faull, Commission Director General for Internal Market and Services, in which Mr Faull voiced concerns relating to the reported plans of banks in certain Member States to introduce so-called allowances for key staff. Unfortunately, the press has seen these allowances as a circumvention of the bonus cap.

Mr Barnier is concerned about the continuing reports of the use of these allowances. He considers that it is important to show a collective proactive stance on this issue, and address the claims made that the spirit, if not the letter, of EU law is being disregarded. Mr Barnier welcomes the fact that the EBA has already taken steps under the EBA Regulation by initiating a fact-finding exercise and investigation of this issue and hopes the next stage in this investigation can be reached by the end of September 2014.

View Letter from Mr Michel Barnier to Mr Andrea Enria, 4 September 2014