MEPs TO REFORM THEIR EXPENSES - AT LAST

10.55.41am BST (GMT +0100) Wed 22nd Jun 2005

MEPs are expected to vote tomorrow (Thursday) for a set of reforms that should lead to the abolition of the controversial expenses regime that has allowed some to pocket more than £20,000 pa tax free on top of their salaries.

Reformers claim that an agreement reached with the Council of Ministers will play a major role in curbing the 'gravy train' reputation that has brought the European Parliament into disrepute.

Central to the deal will be an agreement that all MEPs shall be paid the same salary whatever their nationality, ending the huge disparity in payments that mimic the rates of national parliamentarians in each country.

Currently Italian MEPs receive €11,000 a month while Lithuanians are paid €800 a month - less than their assistants in Brussels. After the next parliamentary elections the salary of all MEPs will linked to that of a judge at the European Court of Justice, set at the rate of 38.5%. At present this would amount to €7,000 per month (€84000 pa or £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 that may amount to significantly more than the actual fare, will be altered to reflect the actual cost.

Diana Wallis MEP, who as Spokesperson for the Liberal group has been following the issue for the past 6 years said:

"MEPs have an historic opportunity to resolve this matter once and for all. This really is the last chance. MEPs should show restraint and not accept amendments, however well intentioned, which will almost certainly wreck any chance of real reform of MEPs' pay and expenses. We know that the Luxembourg Presidency supports what is on the table so if people are serious about the Statute they will vote overwhelmingly to support it."