MEPs’ statute could be delayed until 2003

Date: 30/11/00

By John Shelley

PLANS to reform the European Parliament's much-criticised expenses system could be delayed for up to three years as talks on a common pay and perks deal descend into increasingly bitter mutual recriminations.

Diplomats and Euro MPs now admit privately that it will be almost impossible to reach an agreement on the MEPs' statute before the end of the French presidency, despite the recent compromises struck on many of the most controversial aspects of the package.

They say that if the current round of negotiations collapses, as seems likely, the reform plan may be put on hold until after the changes to the EU's decision-making rules introduced by the Nice Treaty are implemented - i.e. in 2002 at the earliest - or even until political pressure intensifies before the European elections in 2003.

Publicly, negotiators insist there is still a slim chance that the French can broker a deal this year. But behind the scenes, all sides appear to be more concerned with ensuring they are not blamed for the imminent failure to secure an agreement than finding a way to settle their differences.

Member states will claim that any collapse is a result of greed on the part of MEPs who are demanding both a huge salary and generous expenses. But the intransigence of some EU governments over whether parliamentarians should be subject to some national taxes as well as the Union levy means member states face a nightmare scenario in which they get no deal and are blamed for derailing the talks.

"As Churchill said they had a choice between war and dishonour and now they are going to get both," said one diplomat.

The continuing arguments are a bitter blow to the French presidency, which has been working hard to broker an agreement.

Less than a week ago, a deal appeared to be in sight on the most controversial elements of the plan, including a common salary for MEPs and new rules to govern expenses.

The tax issue was the only major sticking point, with powerful conservative elements in the Parliament only too happy to use this deadlock as an excuse to scupper any deal.

Parliament President Nicole Fontaine has written to MEPs arguing that the best way to resolve the stalemate might be to wait for the treaty reforms due to be agreed at next week's Nice summit to enter into force. She says this could allow member states to agree the new rules by qualified majority vote instead of unanimity, overruling the minority which are holding out over the tax issue.

But her suggestion has provoked rage in some quarters. "I think Fontaine's letter is disgraceful," said Dutch Socialist MEP Michiel van Hulten. "The Parliament cannot afford to adopt a statute that will go down like a lead balloon in several member states."

Plans to reform the European Parliament's much-criticised expenses system could be delayed for up to three years as talks on a common pay and perks deal descend into increasingly bitter mutual recriminations.