EU GOVERNMENTS and the European Commission have settled their differences over a disputed pay rise for 50,000 officials of the union and newly elected MEPs. Their agreement last evening will see employees of the EU institutions and agencies receive a 1.85 per cent increase in their gross pay from January.
This is half the 3.7 per cent rise sought by the commission after an annual review which pegs EU salaries with civil service pay in eight of the wealthiest member states.
It comes in spite of resistance to a pay rise from most EU governments, which argued it was difficult to justify in light of the economic crisis. For weeks, however, the commission insisted it was contractually obliged to mandate a 3.7 per cent increase.
Five Irish MEPs elected for the first time this year stand to benefit from the deal: Pat “the Cope” Gallagher (FF); Nessa Childers (Lab); Alan Kelly (Lab); Joe Higgins (Socialist); and Seán Kelly (FG). However, Seán Kelly opposed the increase and Mr Higgins said it should be awarded to officials but not to MEPs.
In Ireland about 450 staff of EU institutions will also benefit from the rise, which comes against the backdrop of pay cuts imposed by Minister for Finance Brian Lenihan in the Irish public sector.
Sweden’s outgoing presidency of the EU, keen to avoid the continuation of a damaging political standoff in the run-up to Christmas, tabled a compromise plan to EU ambassadors yesterday in an attempt to break the logjam.
While signing off on a 1.85 per cent rise, the ambassadors also agreed to initiate a formal review next year of the system for calculating EU salaries. Ireland supported the Swedish compromise, though the Government continues to believe that any salary increase at this time is politically difficult.
“This is a reasonable compromise,” said an Irish spokeswoman.
The dispute, which threatened to disrupt preparations for confirmation hearings for the incoming European Commission next month, led some unions to organise work stoppages in Brussels this week in support of their pay claim. Legal advice, deemed solid even among EU governments opposed to the principle of mandating a pay rise, said the commission was obliged as employer to proceed with the increase or face the risk of court challenge.
While some EU governments signalled their willingness this week to call publicly on the European Commission to rethink its plan, they did not proceed due to divisions among member states.
