FRANCE and Germany are squaring up for a fight with Britain and the US over bankers' bonuses after President Nicolas Sarkozy and the German chancellor, Angela Merkel, agreed to a hardline stance before the G20 finance ministers' meeting this weekend. France and Germany will seek widespread agreement for proposals that will limit bonus payments and the risks taken by banks. The proposals are aimed at preventing a repeat of the financial crisis.

The French administration plans to ban banks from winning government contracts if they fail to agree to limits on bonuses, while bonuses must be deferred for at least four years under rules being considered by Merkel's cabinet.

However, the Obama administration is expected to say that it wants the summit to focus on getting the world economy back on its feet and promoting financial stability.

Tim Geithner, US treasury secretary, is due to set out his views before the meeting, where he will sit down with the UK chancellor (finance minister), Alistair Darling, and finance ministers from the G20 including Australia, Argentina, Saudi Arabia, Russia and Brazil.

Geithner will agree with comments by British prime minister Gordon Brown that the finance industry must be prevented from taking risks that destabilise the world economy and limits on bank bonuses must be part of that debate.

— The Guardian, London