MEPs halt attempt to slash perks

Euro MPs are under pressure to put their house in order

A new attempt to curb the controversial expenses system enjoyed by Members of the European Parliament (MEPs) has run into the ground.

The EU's elected legislators are often criticised for being reimbursed for expenses they have not incurred - a system which easily enables them to double their salaries.

They get paid for first-class air travel even if they travelled by a budget airline.

We were tantalisingly close to achieving a transparent and accountable system

European Liberal Democrat leader Graham Watson

They have to show a boarding pass but not a receipt.

On Thursday, Pat Cox, Irish president of the European parliament, asked assembly members to back new rules on salaries, expenses, tax and pensions.

But while MEPs approved changes to their pay structure, they failed to overhaul the expenses system.

Furthermore, correspondents say the pay reform - which would result in all MEPs earning the same salary - will be rejected by EU governments at next week's Copenhagen summit.

One official described the decision on pay reform as a "non-starter".

"There is no chance of it being given the go-ahead by ministers," he said.

'Wrong message'

European Liberal Democrat leader Graham Watson said the continental Christian Democrats and Socialists who blocked sweeping reforms were sending the wrong message to ministers and the public.

Euro expenses

First class air fares

Attendance payments

No receipts required

Wives employed as secretaries

"We were tantalisingly close to achieving a transparent and accountable system thanks to the efforts of Pat Cox," he said.

"But today, that reform effort was blocked by an unholy alliance of Christian Democrat and Socialist MEPs. Through their action, they show a lack of respect for the reputation of the European Parliament."

Minority groups in the parliament criticised the Socialists and Christian Democrats for linking the pay question to other issues, such as parliamentary immunity and privileges, that would need ratification by governments.

Cox wants change before 10 more states join

This, they say, would be a long drawn-out process that governments are unlikely to want to get involved in.

The BBC's Brussels correspondent, Shirin Wheeler, says national governments have been pushing for a firm commitment to reform the expenses system before they approve a common salary.

Currently MEPs pay is linked to that of their national assemblies, with Spanish MEPs getting about 30,000 euros a year, while Austrian members receive more than treble that.

Attendance money

The Italians and Germans are among the best paid, and the British somewhere in the middle.

If approved in Copenhagen, the pay proposals would establish the same salary for all MEPs at 96,000 euros per annum - slightly above the average.

Those pushing hardest for reform include Liberals, Greens former Communists, and MEPs from Scandinavia and Britain.

German, Spanish and Italian MEPs are least enthusiastic.

As well as potentially making tens of thousands of euros per year on travel expenses, MEPs get a generous fee for attending EU meetings.

This has become known as the "so-so" system, short for "sign-on, sod-off", on the grounds that some MEPs register their presence, then immediately head for the airport.

Wages, expenses and other running costs of the European Parliament are estimated to exceed 1bn euros a year.