Last Thursday, the European Commission threatened Spain with a complaint to the Court of Justice of the EU if within two months the nation has still not implemented the EU directive which, among other things, attempts to constrict the outrageous incentives, bonuses and other variable compensation of bankers.
Slovenia, Greece, Italy, Poland and Portugal face the same situation. Also in the community executive?s sight are Belgium, Slovakia, Luxembourg and Sweden, which compliance with the standard is still incomplete. It refers to the EU directive of 2010 on capital requirements, the third in the field, which should had been implemented since January 1, 2011.
In addition to updating the requirements for banks to equip themselves with adequate capital reserves to ensure its solvency, also regulates the remuneration policy of these entities. The purpose of this policy is to try to prevent the design of variable-pay systems premiums, bonuses, etc.- that incentive excessive risks and short-term. This would eradicate one of the causes of the ongoing global financial and economic crisis.
