Brown meets with Merkel against the excesses of the banking

United Kingdom, Germany and France seem to come closer on a joint letter to the leaders of the G20 summit on 24 and 25 of this month in Pittsburgh (USA) on the global crisis. Gordon Brown, Angela Merkel and Nicolas Sarkozy put special emphasis in the debate on how to limit the excesses bonuses of bankers, which some see the root of the crisis of the past two years. Brown had earlier expressed reservations about the introduction of mechanisms to regulate wages in the financial system and the excesses bonuses of bankers.

His message to the rest of Heads of State or Government of the EU, on the eve of today and tomorrow in London to meet finance ministers from the G-20 summit to prepare for Pittsburgh. That quote is a continuation of those held in Washington in November 2008 and London in April, which launched a global action plan to stabilize and the financial system.

Excesses of the banking in Europe

Economic ministers from Spain, Italy, Sweden, Germany, France and the president of the Eurogroup, the Luxembourg Jean-Claude Juncker, signed another letter with the same message: they are not repeated malpractice. "Financial institutions-some of which survive thanks to massive injections of public money are taking advantage of the good first quarter results to act as if the crisis had been a minor setback and could return to act the same way. We must be very clear: these practices are not only risky, but are inappropriate, cynical and unacceptable. They are a provocation to the sharp increase in unemployment, "reads the letter, reproduced below. At his arraignment in the morning, the Spanish vice Elena Salgado went on to defend that position firmly.
Salgado returned to reclaim the banking industry and the excesses bonuses of bankersto lend a hand to overcome the crisis and also requested greater circumspection with bonuses. "Banking has been the source of the crisis and has not always acted ethically," he attacked. Spain will defend in the G-20 that control the salaries of bankers "should be included in the risk monitoring system", leaving the Spanish banking bonus under the umbrella of the Bank of Spain. "All countries are asking the public efforts to overcome the crisis. It seems to also be asked bankers," chimed.

 Merkel against the excesses of the banking

The letter from Brown, Merkel and Sarkozy emphasizes the issue of bonuses bankers perhaps because it is a very sensitive to public opinion. But the solutions offered are so detailed that distill very little agreement on the objectives and principles but little consensus in supporting practical options.

The leaders argue that variable bonuses to reward bankers "have an appropriate level", which when they are paid in shares not be sold "for an appropriate period of time," that those salaries " and the excesses bonuses of bankers take into account the negative developments" that happen after "and may be canceled," and that managers and executives "are not completely sheltered from the consequences of their decisions."

However, the letter points out: "We should work to implement a coordinated exit strategies as the crisis ends." That is, we must now think of how to reduce the massive aid. The irony is that the interventionist is to lead France's eagerness to cut the very liberal compared to UK.