Pro-reform Members of the European Parliament have been defeated today in their efforts to bring about a long awaited overhaul of MEPs pay and expenses.
A German led coalition of anti-reform MEPs has approved a package of proposals which has been described as "indefensible" by Liberal Democrats in the European Parliament who voted against it.
London's Liberal Democrat MEP Sarah Ludford said:
"The proposal voted today is not a genuine reform package, but simply another successful sabotage attempt. Ministers from EU member states will have no choice but to throw it out and we will be back to square one."
The original idea of the package was to end the potential for abuse of expenses and the huge difference in the salaries of Euro-MPs (currently paid the same as their national MPs) from different countries. At present MEPs in Italy are paid £90,000 a year compared to £24,000 paid to MEPs from Greece. British MEPs like MPs earn £56,000.
The plan would set the pay for all MEPs at 8,500 euros a month which, depending on the rate of exchange, would give British ones annual salaries of between £3000 and £16,000 more than now.
Lib Dem MEPs were at the forefront of efforts to seek a reform consensus which would link a common salary to agreement on travel expenses being reimbursed on a cost-only basis and the possibility for national rates of taxation to apply. Instead a majority voted for MEPs to pay only a standard European tax.
Said Sarah Ludford:
"Like my Lib Dem colleagues I cannot justify as an MEP paying lower rates of tax than the people I represent. The reform package has been sabotaged by a group of greedy MEPs determined to resist change. It is a sad day for the European Parliament."
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