Tough talks loom on MEPs’ pay and perks

Date: 29/06/2000

By John Shelley

Deep divisions over the details of an independent report on MEPs' pay and conditions will make getting an early deal on the proposals a steep uphill struggle, warn politicians and diplomats.

MEPs and member state representatives from across the political and geographical spectrum have welcomed the wise men's report, which suggests that parliamentarians should get a common salary of €7,420 per month and calls for a clamp-down on expenses.

But they say the sheer weight of objections to the details of the report will make getting an agreement between all 15 EU governments and the assembly extremely difficult.

The report was commissioned by the Parliament in a bid to break a deadlock over attempts to fulfil an Amsterdam Treaty commitment to establish common rules for members of the Strasbourg-based assembly. The main sticking point until now has been member states' insistence that the Parliament's generous expenses system must be overhauled.

The wise men's report, published earlier this month, suggested a compromise formula mid-way between the current system of loose controls on expenses and the 'account for every penny you spend' approach called for by member states. It also proposed that MEPs' pay be based on the average salary of members from the four highest-paid EU countries, rather than an average of all 15 national salaries.

This proposal has been welcomed by many MEPs and by governments, including those which will face the difficult task of 'selling' big pay increases for their European representatives to their publics, arguing that reforming the expenses system would result in a net cost saving. "It will be in the newspapers, there will be big protests, but I think we recognise that this can not be avoided," said one diplomat.

MEPs from countries such as Germany, Austria and Italy which currently receive the highest salaries are, however, likely to resist the double blow of lower pay and a reduction in their expenses.

Governments have welcomed the proposed expenses changes as a 'step in the right direction', and MEPs accept that increased transparency is necessary. But bridging the gap between the two sides will still be far from easy.

Plans to make MEPs pay only a low EU rate of tax are another likely battleground, with Scandinavian countries and the UK determined to levy local taxes on their representatives amid fears that it would be politically damaging to give them an exemption from normal tax rules.

However, despite the financial benefits for some MEPs of postponing a deal, many remain optimistic the wise men's report provides a basis for a compromise agreement. "People say that turkeys don't vote for Christmas but it is not as simple as that," said one diplomat. "Everyone in the Parliament is beginning to see this as a lingering sore and MEPs are now looking to show themself keen for change."

Deep divisions over the details of an independent report on MEPs' pay and conditions will make getting an early deal on the proposals a steep uphill struggle, warn politicians and diplomats.