Alex Deane is Head of Public Affairs at Weber Shandwick. Follow Alex on Twitter.
We now know that a cap on bankers' bonuses will be imposed by our European friends, against the UK's wishes. Whilst our government has seen some very welcome recent successes in Europe, I fear that this news outweighs those gains in no uncertain terms.
Even if the idea was right in principle, which it isn't, it falls down given the all-too-obvious point that the EU doesn't control global banking (thank goodness). Other banks will be able to pursue a more free market approach, whilst EU banks will now be competing with one hand tied behind their backs. In short, this measure gives a competitive advantage to banks headquartered outside Europe. Bankers working for EU-headquartered banks in Singapore or Zurich or New York will be handicapped in a way that their market competitors will not. The effect on their performance will be obvious. If your labour can command better remuneration elsewhere (and not in another country, but across the street!), then you'll go. It is simply daft.