Report says city acted lawfully

An MEP investigating excess rent paid by the European Parliament to the city of Strasbourg is recommending that the assembly should go ahead and buy the two buildings at the centre of the dispute as there is no proof of any illegal behaviour by the city authorities.

In a report sent to members of the Parliament's budget control committee, German centre-right MEP Markus Ferber says it is "reasonable" to continue to seek the purchase of the two buildings, as there are "no indications that there have been unlawful actions or irregularities" in the city's contractual agreements with the Parliament.

He says, however, that a fair rent for the properties needs to be established in order to calculate an appropriate purchase price. Nevertheless, he says that the city "deliberately ignored" the Parliament's view that the local authorities should not make a profit from rental agreements. This had "dealt a blow to the relationship of trust" between Strasbourg and the Parliament.

Ferber is very critical of the Parliament's administration for failing to realise that the city was keeping a share of the rent.

To prevent such cases occurring in the future, he is calling for a new European Building Authority to deal with constructing and maintaining buildings. In addition, any future decisions on buying buildings should be approved by the budgets committee and there should be a regular review of contracts with third parties.

Ferber's report, which will be debated by MEPs on 11-12 September, raises the prospect that the bureau, made up of senior MEPs responsible for administ-rative issues, will buy the two buildings in the autumn.

Ferber stresses, however, that past overpayments should be offset against this price and the Parliament should acquire the buildings and the land at the same time.

While Ferber's report states that Strasbourg should not be compensated for the sale of the buildings, Strasbourg is keen to ensure that the purchase price will cover at least part of the income it would have received if Parliament continued to pay rent.

An MEP investigating excess rent paid by the European Parliament to the city of Strasbourg is recommending that the assembly should go ahead and buy the two buildings at the centre of the dispute as there is no proof of any illegal behaviour by the city authorities.

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