SIR,

The Finance Ministers of the European Union have reached an agreement aimed at reining in bankers' bonuses – a move that leaves Britain isolated as the only member-nation refusing to sign up.

The Ministers endorsed a deal struck last week between representatives of the European Parliament, the European Commission and the EU Council of Ministers to cap bonuses to a banker's annual salary.

Despite Britain's objections, the new rules will come into force at the beginning of next year, as only a two-third majority is needed to pass the legislation.

This outcome perfectly illustrates how weak and ineffective the British Government is in defending the interests of one of our largest and most profitable industries.

It also clearly demonstrates Prime Minister David Cameron's complete inability to stand up for our country's best interests on the European stage.

The only people who will benefit from the caps are the bankers of Switzerland and Asia, because that is where the business and talent will all go from now on.

In my opinion, this is a very dangerous time indeed for Britain's financial sector.

John Bufton

(UKIP MEP for Wales)