So, let me get this straight.
The EU, in the form of the European Banking Authority (EBA) banned the payment of bonuses to banking staff amounting to over 100% of salary (except in special circumstances). The banks got around this by paying a form of allowance (in addition to the 100% bonus) to keep their bankers happy. Accordingly, the EBA is now proposing to ban these additional allowances.
A fairly logical consequence, you might have thought. But the bankers are up in arms. It is not enough that they receive a bonus of 100% on top of their generous salaries. And, guess what, the Treasury and George Osborne agree with the bankers.
Crazy old world.