One of the most stupid EU policies is on its way. The bonuses of bankers will be limited to the size of the base salary. In exceptional cases 2 times the base salary. An absolute victory of the socialist thinking.
What is a bonus? It is a payment depending on the results of working. The more profit the banker makes, the more bonus will be got. It is the clear principle of capitalism. The economy is driven by the greed and the hardworking for more profits. Such efforts must be awarded.
With killing the bonuses, the EU bureaucrats are killing the imagination and the most powerful driving force of the business. In a bonusless banking system everyone will have an equal stimulus not to work. Why you should work and think more when this will not affect your income? Instead you must fight just to take the job, and then go and sleep in the office.
In former socialist countries in Europe exactly this had happened during the socialist period. All people were employees of the government and had almost fixed salaries. So everyone tried just to avoid the job, as the salary was granted.
It is stupid to leave the banks without a so important economic mechanism. Bonuses are used across the whole economy. Why only the bankers mush differ?
The result of any socialism is a leak of talented people, a loss of competitiveness, markets and a step by step granted slump in economic activity. The victorious socialism means a victory of the misery.
Feb 28th 2013