However, it would not be appropriate to simply copy and paste the same bonus cap across all financial services legislation, as some MEPs are now trying to do. Banks are unique in the sense that only they can create money off the back of liquidity provided by the central bank, which is ultimately underwritten by the tax payer. This is what has happened over the course of the most recent crisis. Fund managers, who in the end are not underwritten by the taxpayer and who are putting up money belonging to themselves or to private investors, should not be tarred with the same brush as banks. While we may want to consider limits on pay for investment funds in order to maintain a level playing field, we need a more nuanced approach that distinguishes between different business models, rather than simply lashing out at the industry as a whole.

Furthermore, while capping bankers' bonuses has inevitably stolen the limelight, it is important to remember that this was just one small part of a whole raft of legislation. One major innovation is the introduction of country-by-country reporting in the financial sector, meaning that banks will have to disclose their profits and tax arrangements in each country in which they operate. Similar rules were just introduced by the EU in order to boost transparency and reduce corruption in the extractive industries. I will now be working to ensure that such requirements are applied across the board in all sectors so that all multinational companies pay their fair share in tax, something I have long called for in my "Own Up, Pay Up' campaign.

This package of legislation also includes measures to kick-start economic recovery in Europe. These include incentives for banks to lend small businesses and measures to encourage short-term trade finance loans, giving an important boost to growth, jobs and innovation and getting more money flowing again in the real economy.

Within the overall EU framework, we have also retained the flexibility for individual countries to impose stricter requirements on banks, for example to address bubbles in the economy such as in the housing market and to enable the ring-fencing of retail operations. This will allow the Coalition Government to implement the Vickers recommendations, separating high-street retail banks from their investment arms and helping to ensure that taxpayers do not bear the costs when risky investments fail.

So while bankers' bonuses may be the only issue to hit the headlines, it is important to remember that the latest package of EU financial regulation is about much more than just this. It is about promoting economic growth, ensuring a level playing field across Europe, while making banking system more secure, sustainable and transparent.

* Sharon Bowlies is a Liberal Democrat MEP for South East England