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Government drops challenge to EU bank bonuses cap

Chancellor George Osborne has dropped his attempt to challenge an EU cap on banker bonuses, after it was dismissed by the legal adviser to the European Court of Justice.

The EU measure means that bankers cannot be paid bonuses of more than 100% of annual salary - or 200% if national governments decide to allow firms to increase them to this level.

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Osborne: EU bank challenge 'unlikely to succeed'

Chancellor George Osborne said the legal challenge was withdrawn because it was 'unlikely to succeed'. Credit: Philip Toscano/PA Wire/Press Association Images

Britain said it was withdrawing its legal challenge to a European Union limit on bankers' bonuses because it was "unlikely to succeed".

In a statement Chancellor George Osborne said: "I'm not going to spend taxpayers' money on a legal challenge now unlikely to succeed.

"These rules may be legal but they are entirely self-defeating, so we need to find another way to end rewards for failure in our banks."

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