Almunia backs Euro MP Arlene McCarthy in warning bailed-out banks not to use taxpayers' money for bonuses - 2010-01-12

Competition Commissioner-designate, Joaquín Almunia, was asked to use his powers to ensure taxpayers never again have to bail out the financial sector by Euro MP Arlene McCarthy, the Vice President of the European Parliament's Economic and Monetary Affairs Committee, today (Tuesday 12 January) .

The European Parliament committee held a three hour "hearing" today for the new Commissioner-designate.

Arlene McCarthy said: "The public are furious that bankers intend to pay themselves billions of Euros in bonuses from profits made on the back of massive taxpayer support given to rescue the banking system.

"Mr Almunia has given a commitment that he will join us in standing up for taxpayers, consumers and investors and delivered a clear message to the banks at his hearing today that profits from public subsidy must not be paid out in bonuses. He pledged to look very very closely at how banks are using public subsidies."

Mr Almunia also pledged his support to Arlene McCarthy's call for a financial transaction tax or bank levy to ensure taxpayers do not bear the cost of future bail-outs.

Arlene said: "Mr Almunia clearly stated that the public should never again have to pay for the excessive risk taking of bankers and that banks should be made to take responsibility for their failings through a levy or financial transaction tax".

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