Battle looms over ‘unworkable’ MEP pay and perks plan

Date: 09/11/00

By John Shelley

THE European Parliament is heading for a fierce battle with EU governments over MEPs' pay and perks, with member states dismissing a 'compromise' put forward by President Nicole Fontaine as totally unworkable.

Diplomats say the deal she has suggested is unrealistic, as it would give many members a significant pay rise without any of the concessions governments see as vital, such as reform of the expenses rules. "This proposal is paradise for MEPs and hell for the member states," said one. "My prediction is that we will now have a major conflict between the two sides."

The paper was drawn up by Fontaine in an attempt to break a two-year deadlock over plans for common rules to govern the way MEPs are paid, but diplomats claim she has bowed to pressure from within the Parliament and come up with a very one-sided document.

Under the nine-page draft statute, MEPs would get a salary at the very top end of the figures discussed - €8,420 a month - and pay low EU income tax rather than their national rates, as happens now. They would also benefit from a generous pension system which could allow them to retire at 55.

But member states' attacks on the proposals are focusing on its failure to provide any details of how the assembly's much-abused expenses system will be reformed. Fontaine's draft simply includes a general statement that expenses should be paid on the basis of actual costs incurred, but says the Parliament should have the right to grant flat-rate expenses where it considers appropriate.

The assembly's bureau, made up of the president, vice-presidents and quaestors, would be responsible for drawing up detailed expenses rules. But the paper leaves open the question of whether these would be drawn up before or after the statute was approved.

Diplomats say more explicit rules, particularly to ensure travel expenses are paid only on provision of a receipt and that office expenditure is closely monitored, are a must. "Fontaine's paper would mean an extremely favourable deal for MEPs. As it stands, we cannot accept this statute; that is crystal clear," said one.

Insiders say the paper's content has been coloured by intense lobbying by highly-paid German MEPs, who are among those with the most to lose if a deal is reached. The result, say diplomats, is a proposal which does not offer any compromise at all and, despite months of wrangling, puts the process virtually back at square one.

But pro-reformers in the Parliament are more optimistic, arguing that Fontaine's paper marks a step forward. The decision to prepare her own paper - after months of stalled negotiations in the 'contact group' made up of MEPs and diplomats - has angered the statute's critics, led by the Parliament's rapporteur on the issue, Willi Rothley. This, they say, is evidence that she must be doing something right.

"Rothley was furious," said one MEP. "He saw the contact group as a way of stalling the process. At least we are now seeing some movement."

Fontaine's proposals are due to be discussed by political group leaders today (9 November), and then handed to the French presidency in time for a meeting next week.

MEPs' leaders are expected to broadly support the proposals, although the Greens and Liberals are likely to insist the new expenses rules should be drawn up and agreed alongside the statute. "I think the public would like to know that in doing a deal, this is indeed a package that includes expenses reform," said Liberal Group leader Pat Cox.

The European Parliament is heading for a fierce battle with EU governments over MEPs' pay and perks, with Member States dismissing a 'compromise' put forward by President Nicole Fontaine as totally unworkable.