MEPs push through historic statute on salaries and perks

By Martin Banks

Date: 18/12/03

MEMBERS of the European Parliament have taken a significant step towards curbing their controversial system of pay and expenses.

Deputies approved a new salary package yesterday (17 December), which they hope will dispel their "gravy train" image ahead of the European elections in June.

The decision to back the so-called statute was heralded as a "defining moment" in the Parliament's history by its President, Pat Cox, who made this reform one of the priorities of his two-year term.

"Parliament has acted wisely in adopting these new considerably significant rules but it is disgraceful that it has taken 25 years for the EU to make it happen," he said.

"We have shown today that we are ready to clean up our act and I now urge the Council to act with urgency to ensure the statute is in force in time for next year's elections."

Under the pay and conditions review, MEPs will earn €8,500 per month, half the rate of a judge at the European Court of Justice.

Deputies are currently paid at the same rate as their national counterparts. This has created a bizarre situation in which Spanish MEPs receive around €26,000 per annum to do the same job as Austrian MEPs, who earn more than €90,000.

The changes also mean that deputies will now have to provide proof of expenditure to support travel claims.

Until now, they have not been required to produce receipts, which critics say has led to abuse of the system.

Member states will also be able to tax MEPs' salaries under national law and deputies will be entitled to an old-age pension at 63.

The reforms were given the green light after German members, who stood to lose out most under the new salary arrangements, dropped their opposition to the statute at the last minute following huge media pressure.

Out of 527 who voted yesterday, 345 were in favour of reform with 94 against and 88 abstentions.

Hans-Gert Pöttering, leader of the European People's Party group, and his Socialist counterpart Enrique Barón Crespo both welcomed the decision.

Diana Wallis, Liberal Democrat spokesman on legal affairs, described it as "a breakthrough".

However, Austrian centre-right deputy Paul Rubig, who voted against the proposals, said he was "very disappointed", adding: "Why should MEPs receive only half the rate of a European judge?

"After all, I work an average 80-hour week in three different places, Brussels, Strasbourg and Austria.

"Nor do I agree that members should be entitled to retire on a full pension at 63 at a time when most Europeans are being told they will have to work well into their 60s."

Jonathan Evans, leader of the UK Conservatives, also hit out at the deal, saying it meant British MEPs would now receive €72,000 per year.

This represents a 30% rise and €17,000 more than national parliamentarians in the UK.

"The members who supported this will have to explain to their constituents why they deserve this inflation-busting pay rise," Evans added.