Schulz under pressure as MEP expenses row hots up

Date: 05/02/04

A BITTER war of words has broken out between Socialist MEPs over the failed attempt to clean up the Parliament's notoriously lax expenses regime.

Deputy Socialist (PES) group leader Martin Schulz, in particular, has come under fire for opposing the proposals to introduce a members' statute on pay and perks.

Pat Cox, the Parliament's president, had hoped that the statute would be in force before the European elections in June.

But EU foreign ministers from Germany, France, Austria and Sweden rejected the reform package on 26 January, arguing that the proposed 8,500 euro-per-month salary for all members was too generous.

As part of the deal, MEPs would have accepted much tighter controls over their expenses. They would, for example, have had to produce proper receipts to make travel claims.

At present, MEPs can claim back the cost of full business fares, even if they travel economy class or share cars.

Berlin argued that the pay deal, which would have meant a significant pay hike for most members, would have cost up to €100 million per year to fund at a time when it is trying to rein back spending.

Schulz, the favourite to replace Spaniard Enrique Barón Crespo when he steps down as PES group leader at the elections, underlined his opposition to some elements of the proposed statute ahead of the foreign ministers' meeting.

Now the recriminations have started, with two of the German's Socialist colleagues turning on him.

The fiercest attack came from fellow German Willi Rothley who, as rapporteur on the statute, had steered the proposals through Parliament.

He is quitting the 35-strong German SPD delegation in protest at Schulz's position on the issue.

Rothley said: "Certain German MEPs, with Schulz in the forefront, and assisted by the [German] tabloid press, exerted pressure on the German government to block what is a very necessary reform of the Parliament.

"In doing so, they have seriously damaged the Parliament, maybe for the long term."

Rothley, who is not standing in June's elections, accused Schulz and his allies of "thwarting the development of a real Parliament for Europe", adding: "As someone who has been fighting for reform for years, this anti-European and anti-Parliamentary behaviour is totally unacceptable."

Dutch Socialist Michiel van Hulten said: "No one bears more responsibility for this fiasco than Schulz.

"He has been opposed to the statute from the very start."

Van Hulten claimed that Schulz had personally lobbied German Chancellor Gerhard Schröder to oppose the reforms. "Schröder had previously been unaware of the statute but this persuasion campaign by Schulz clearly worked.

"Schulz believes he had to be seen to oppose the statute to get the support he needs to become the next leader [of the PES group]."

The German MEP was unavailable for comment, but Michael Popp, spokesman for the SPD delegation, strongly defended Schulz, saying he still commanded widespread support.

"It is absolutely ridiculous to suggest that Martin Schulz in some way influenced Germany's decision to oppose the statute.

"In fact, he was initially one of the strongest supporters of a statute. But he opposed recent changes to the original proposals, particularly the national tax opt-out. He believes MEPs should pay the same flat-rate European tax."

Schulz came to prominence last summer when Italian Prime Minister Silvio Berlusconi compared him to a Nazi concentration camp guard after Schulz heckled him in the Parliament.

It led to a diplomatic row between Germany and Italy.

The General Affairs Council of 26 January 2004 failed to approve the Statute for Members of the European Parliament which would have tightened up the Parliament's expenses regime for MEPs. Germany opposed the pay deal, and German MEP Martin Schulz has been strongly criticised for exerting pressure, along with other German MEPs, on the German government to block the reform.

• Primary Source

http://consilium.europa.eu/ueDocs/cms_Data/docs/pressdata/en/gena/78832.pdf http://consilium.europa.eu/ueDocs/cms_Data/docs/pressdata/en/gena/78832.pdf

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