The French government is proposing three options for capping bankers' bonuses, including a targeted tax and a mandatory limit on rewards as a share of profit, which it wants Group of 20 leaders to discuss at their summit later this month.

President Nicolas Sarkozy last week imposed the toughest curbs on bonuses for bankers and traders among G20 countries – ensuring 50 per cent of bonuses are deferred over three years and paid only on performance – and said he would urge other governments to follow suit. But he also insisted the Pittsburgh summit go further and discuss an overall limit.

Christine Lagarde, finance minister, will outline the proposals at a meeting of finance ministers from the G20 in London on Friday. She will also brief her European Union counterparts in Brussels today.