AN ETHICS committee in the European Commission is examining whether newly retired commissioner Charlie McCreevy can join the board of Ryanair, a company subject to seven state-aid inquiries by his former employer.
Mr McCreevy’s invitation to become a non-executive director of Ryanair comes a little more than two months after his departure from Brussels.
“He has informed us that he intends to take up a post in Ryanair and we have consulted our ad-hoc ethical committee,” a commission official said. “This is a process we often go through when an ex-commissioner takes up a new job within a year of leaving office. Based on the committee’s opinion, we will have to make a decision in the coming weeks as to whether this would be in line with the rules of the Treaty.”
The committee is examining Mr McCreevy’s proposed directorship under laws obliging former commissioners to “behave with integrity and discretion as regards the acceptance . . . of certain appointments or benefits”.
Ryanair, which campaigned in favour of the Lisbon Treaty, has a fractious relationship with the commission. Seven of the company’s contracts with European airports are subject to state-aid inquiries that have been going on for years. These inquiries are not being managed by the internal markets division led until February by Mr McCreevy.
The Ryanair board includes its chief executive Michael O’Leary, Davy stockbroker Kyran McLaughlin and former head of solicitors AL Goodbody James Osborne. The chairman is American businessman David Bonderman.
Mr McCreevy would not be the first retired commissioner to join the board – Ray MacSharry, former agriculture commissioner, also served on its board. In the year to March 2009, the airline’s non-executive directors received €32,000 or €47,000. They are also entitled to share options.
A sum equivalent to Mr McCreevy’s remuneration from Ryanair would be deducted from a “transition allowance” he receives from the commission for three years after his retirement. This allowance is about €11,150 per month, or 55 per cent of his commissioner’s salary.
Mr McCreevy also receives an annual ministerial pension of €74,746 and a €52,213 pension in respect of the 27 years he spent as a TD. For one year after his retirement, he must tell the commission if he proposes to take up any job.
In January, the commission closed an investigation into contracts with an eighth airport. Last year, it opted not to appeal a 2008 ruling by Europe’s second-highest court which overturned a finding that Ryanair received illegal state aid when it opened its first European hub near Brussels. In 2007, the commission blocked Ryanair’s first bid for Aer Lingus. The airline withdrew a second bid in January.
“Ryanair does not comment on rumour and speculation,” said a spokeswoman. Attempts to reach Mr McCreevy were unsuccessful.