European Union (EU) officials have reached an agreement to limit bankers' bonuses in spite of opposition by the UK.

Under the deal, bonuses would be capped at a year's salary, but could be increased to two year's salary with shareholder approval.

The agreement was produced in a meeting between the European Commission, European Parliament, and representatives from the 27 members of the EU.

Final approval is still needed by government leaders. However, the mains points of the agreement are expected to be passed into law by early next year. The UK will be unable to veto the proposal if it receives majority approval by members.

London Mayor Boris Johnson has already voiced his opposition to the decision, saying: "This is possibly the most deluded measure to come from Europe since Diocletian tried to fix the price of groceries across the Roman Empire."

The UK is concerned that the rule would be detrimental for jobs and competiveness at its businesses, where performance bonuses can sometimes be several times the base salary.

"People will wonder why we stay in the EU if it persists in such transparently self-defeating policies," Johnson added.

"We need to make sure that regulation put in place in Brussels is flexible enough to allow those banks to continue competing and succeeding while being based in the UK."

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