EU polls could scupper MEPs’ pay deal

By Martin Banks

Date: 26/05/05

Member states are expected to agree on a common salary for members of the European Parliament next week, but the French referendum on the EU constitution and early elections in Germany could still scupper the deal.

Under proposals discussed at a meeting of Parliament's legal affairs committee last night (25 May), the 732 deputies will be paid the same salary, 7,000 euro per month.

Their pay is currently tied to that of national parliaments - for example, the Italian MEPs are paid more than 11,000 euro per month, four times as much as their Spanish counterparts and ten times more than the Baltic states' members. Those currently being paid more would see their salaries reduced gradually until they match the common salary.

In exchange, MEPs will be asked to agree to reform their expenses regime, which has been open to abuse, so as to be able to claim only what they spend. The pay and conditions review also involves changes to MEPs' pension arrangements.

If agreed, the statute could be applied within the next two years.

Luxembourg, current holder of the EU presidency, is believed to have virtually clinched a deal on a common members' statute with the EU governments. "I think that it will work," said one Luxembourg minister involved in the talks.

But MEPs must also approve it - hence yesterday's legal affairs committee meeting, called at the request of the Council of Ministers.

Last year, a bid to solve the problem failed when Germany, France, Sweden and Austria rejected a proposed salary of 8,600 euro saying that would mean an unacceptable pay rise for MEPs.

Debate on a single salary dates back to 1986.

Klaus-Heiner Lehne, legal affairs committee rapport€ for the Parliament's biggest group, the centre-right European People's Party (EPP-ED), says he is "90% certain" agreement can now be reached.

He warns, however, that a French rejection of the constitution this Sunday (29 May), or by the Dutch on 1 June, could prove to be the main obstacle.

He said: "I can see some using a 'No' vote as an excuse to hold up agreement on a statute. They could argue that we have more important things to address and the political will for an agreement would be lost. If that happens, it would be a great shame because the Luxembourg presidency is now within touching distance of a deal."

Austrian MEP Maria Berger, the Socialist (PES) group's rapport€ on the legal affairs committee, warned that the early German elections in September could also prove a stumbling block.

"The package is a good basis for agreement and, though some may not like it, I think the Parliament will vote in favour of it," she said. "However, one possible problem may be the German elections.

"Even though the proposed new salary of 7,000 euro is approximately what German MEPs current receive, it may be that the German political parties will not want to discuss MEPs' pay during an election campaign and the current momentum for agreement is lost."

Parliament's main political groups are generally backing the Luxembourg proposal with sources in the two biggest, the EPP-ED and the PES, describing them as "reasonable".

But an EPP-ED source said: "The devil is often in the detail and we need to carefully study the proposals, such as the salary transition measures and double taxation, before finalising our position."

The proposal is to go to a justice ministers' meeting on 2 June and a legal affairs committee meeting in Strasbourg on 6 June for formal approval.

If agreement is reached, MEPs could vote on the statute at a plenary session in Brussels on 22 June.

Article reports that Member States were expected to agree on a common salary for members of the European Parliament at the Justice and Home Affairs Council, 2-3 June 2005, but that the French referendum on the EU constitution and early elections in Germany could still scupper the deal. Under proposals discussed at a meeting of Parliament's legal affairs committee on 25 May, the 732 deputies would be paid the same salary, €7,000 per month. If approved by Ministers the proposal was to go to a Legal Affairs Committee meeting in Strasbourg on 6 June for formal approval. If agreement was to be reached there, MEPs could vote on the statute at a plenary session in Brussels on 22 June 2005.