MEPs agree Salaries and Expenses

4.50.27pm BST (GMT +0100) Thu 23rd Jun 2005

The European Parliament has today overwhelmingly agreed a new salary system for its members, scrapping the pay discrepancies among them and ending a much criticised reimbursement scheme for their travels.

The reform, which has been long fought over, will remove huge disparities in pay, which see Italian MEPs earn €11,000 a month while Lithuanian colleagues get just €800.

Andrew Duff, Liberal Democrat MEP for the East of England, says:

"Agreement on the Members statute is long over due. It makes the finances of the Parliament more transparent and establishes the principle of equal pay for equal work.

"MEPs have made real progress by putting the reputation of the European Parliament before their personal financial interests."

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Notes:

The agreement is that after the next parliamentary elections in 2009 the salary of all MEPs will be set at 38.5% of the salary of a judge at the European Court of Justice. At present this would amount to €7,000 per month (£55,950 pa at current exchange rates).

It would mean that British MEPs will be paid less than Westminster MPs whose current salary has just been increased to £59,095, although they will benefit from a more generous pensions package. MEPs will pay UK taxes.

The system of travel expenses, currently based on a fixed payment for distance travelled, will be altered to reflect the actual cost.