EU: EU ambassadors failed to agree on a reform of MEPs' pay and expenses after Germany complained that a salary hike would have an adverse effect on the forthcoming European elections, writes Denis Staunton in Brussels
Ireland's EU presidency must now seek a compromise when EU foreign ministers discuss the issue on January 26th.
After years of wrangling, MEPs approved a package of reforms that would end a controversial system of travel expenses that allows them to claim a full, business-class airfare even if they travel economy class on a low-fares airline.
All MEPs would receive a standard salary of between €8,500 and €9,000 a month but could be levied with an extra tax in their home state.
At present, MEPs' salaries are in line with those of national parliamentarians in their member-state, so that Italian MEPs earn €10,974 each month while their Spanish colleagues only receive €2,618.
Most EU governments favour using the package approved by the European Parliament as a basis for reform but Germany, with the support of Austria, blocked a deal at a meeting of EU ambassadors this week. Although the package as a whole ought to be decided by qualified majority, one element of it concerns a tax issue, which must be decided unanimously.
Germany argues that the standard salary, which would give German MEPs a rise of almost €2,000 a month, has been set too high. Berlin fears that such a pay hike will be unacceptable to the public and could affect voter participation in June's European elections.
Although only Germany and Austria spoke out against the deal, Denmark and Sweden have yet to adopt a position and could join the opponents. If the Irish presidency fails to find a compromise acceptable to all member-states and to the European Parliament, reforms will have to be shelved until a new European Parliament convenes later this year.