EU: Ireland is facing the first deadlock of its European Union presidency in a dispute between national governments over how to reform the pay of Members of the European Parliament, writes Tim King in Brussels and Denis Staunton in Davos
The Government wants Monday's meeting of foreign ministers to approve a new pay package for MEPs that would do away with their notoriously generous travel allowances and introduce the novel idea that they be reimbursed for costs actually incurred.
Irish Ministers and officials believe a deal would be "good for the image of the Parliament and, by extension, good for the image of the EU".
However, it now looks as if an agreement will elude the Foreign Minister, Mr Cowen, who will be chairing the meeting in Brussels, with Germany ready to use its veto if necessary.
The President of the European Parliament, Mr Pat Cox, has accused Germany's Chancellor, Mr Gerhard Schröder, of allowing himself to be misled by the "populist press" into opposing the pay reform.
In a letter to Mr Schröder, Mr Cox said the new rules were essential to ensuring transparency in the European Parliament.
"Most member-states in Council have indicated their acceptance of this approach, which they believe to be the best possible compromise available.
"I am, however, disappointed and perplexed to learn that the Federal Republic of Germany may not be able to associate itself with this consensus.
"I have also been disconcerted by a sustained misrepresentation of the facts in certain sections of the populist press in Germany," he said.
The main element in the package is an agreement on a uniform basic salary for every MEP so that they would each be paid the same amount.
The salary of €8,600 per month would be pegged to half that of a judge at the European Court of First Instance.
Up to now, an MEP's salary has been tied to that of a member of his or her national parliament.
This led to great disparities in remuneration: an Italian MEP receives more than €11,000 per month, before tax, while a Spanish MEP is paid less than €3,000 per month.
Effectively, expense allowances were being used, and justified, to supplement the income of the less well-paid MEPs.
In addition to their salaries, MEPs also receive office and secretarial allowances.
It was hoped that an agreement on the basic salary would then lead to an end to the travel expenses regime.
Mr Cox claimed earlier this month when MEPs approved the package that "we have brought reform, we have cleaned up our act".
However, Germany is resolutely opposed to the deal.
"We think the increase in salary is too high. The approach to the new allowances system is still too lax.
"It is not clear how these allowances will be paid from the EU budget and we believe this is the wrong moment to be attempting reform in the run up to elections to the European Parliament," a German government official said.
Irish officials believe that after years of wrangling, the European Union has to "seize the moment" to put its house in order before the admission of 10 more countries in May makes a resolution still more difficult.
"If we don't sort this out now, then the opportunity will have escaped us for quite some time to come," said one.
The German official responded: "You have to set some standards.
"You can't accept anything just because the EU will become 25 countries rather than 15."
Germany can block the deal single-handed because taxation issues require unanimous consent.