Eurogroup head Jean-Claude Juncker yesterday pledged support to a French proposal to set international limits on bankers' bonuses.
"I totally support the proposals made by France," for a G20 summit to be held in the United States on September 24 and 25, Luxembourg Prime Minister and Eurogroup head Mr Juncker told reporters as he arrived for a meeting of EU Finance Ministers in Brussels.
Last week, French President Nicolas Sarkozy announced his intention to urge his G20 partners to limit banking bonuses, after winning a commitment from French bankers for a system of performance-related pay for traders.
The idea is part of a drive to reign in a bonus culture seen as a major factor in the global credit crunch.
However, many bank chiefs believe such a bonus cap would be ineffective merely at national level and must be also be introduced by other major banking nations.
Swedish Finance Minister Anders Borg, whose country holds the rotating EU Presidency, said the key issue was "to stop the restarting of the bonus culture".
"The bankers are acting like it's 1999 but it's actually 2009," he said.
French Finance and Economy Minister Christine Lagarde, entering the Brussels talks, said the proposals were aimed at "bringing order to the bonuses and remuneration question which is obviously an emblematic issue (for us)".
Ms Lagarde said it remained to be seen whether the bonus limits scheme would be will supported by her other EU colleagues.
The French proposal has already received support from Germany and the European Commission.
Britain, however, mindful of protecting the financial capital of Europe in London, has voiced reservations as has the US.
The European Commissioner for Economic and Monetary Affairs, Joaquin Almunia, said EU nations "should follow the guidelines" which the EU's executive arm recommended in April, including blocking bonuses in non-performing banks and basing bonuses on "longer-term performance".
"Some of them are adopting measures that I consider broadly adequate in this regard," he added.
The European finance ministers were meeting in Brussels hoping to forge a common position for the G20 meeting in Pittsburgh which will discuss new measures to control financial markets and help the global economy back to growth.
Mr Juncker, who is Luxembourg's PM and finance minister as well as being chairman of the Eurogroup of finance ministers, said the worst of the financial crisis was "over for the timebeing".
However, he added that it was not yet time to withdraw fiscal stimulus packages.