MEPs’ salary deal hangs in balance

By Martin Banks

Date: 23/06/05

EFFORTS to push through reform of the pay and expenses system for MEPs before the end of Luxembourg's presidency of the EU next week could be blocked at the 11th-hour.

The European Parliament was expected to back overwhelmingly Luxembourg proposals for the assembly's 732 deputies to be paid the same salary of €7,000-per-month in return for reform of the expenses regime in a vote at today's (23 June) plenary in Brussels. At present MEPs receive the salary they would get in their respective national parliaments.

But the deal has to be approved by member states and at least two countries, the Netherlands and Sweden, say they still have reservations about the package.

A Dutch source said: "We will not make a final decision until after the Parliamentary vote but we have reservations about some aspects of the package, particularly proposals for changes to the pensions scheme which would see MEPs' pensions wholly funded by the European Parliament, in effect, European taxpayers."

A source at Sweden's permanent representation said: "The current proposals will see monthly salaries for Swedish MEPs rise from €4,750 to €7,000. For some, such a considerable increase is a real problem."

A Spanish official said that although the government in Madrid is unlikely to oppose the deal, it would have problems presenting it back home. "It will not go down well with the public that while Europe is in a crisis and can't decide on anything - no constitution, no financial perspectives - we do have agreement on something in Brussels - and that's on increasing the salaries of our MEPs," he said.

It would take just one country to vote against the package to scupper the deal. Eighteen months ago Germany, together with France, Austria and Sweden, blocked proposals which would have seen MEPs receive a monthly salary of €8,600.