EC defends 'transition allowances'

The European Commission has defended the payment of large transition allowances to retired EU commissioners, Charlie McCreevy…

The European Commission has defended the payment of large transition allowances to retired EU commissioners, Charlie McCreevy among them, even after they take up new jobs.

As governments throughout Europe urge austerity on their citizens, the European Commission disclosed today that it continues to pay 17 former Commissioners between 40 per cent and 65 per cent of their salaries to help them adjust to life away from Brussels.

A report in the Financial Times Deutschland names among the recipients Mr McCreevy, who became a director of Ryanair in the months after his departure from the Commission last year.

Mr McCreevy is entitled to about €11,500 per month pre-tax from the Commission for three years after his retirement. This represents some 55 per cent of his commissioner's salary, the entitlement in respect of service between five and ten years.

His remuneration from Ryanair would be deducted from this allowance, which is in addition to his annual ministerial pension of €74,746 and his €52,213 pension in respect of the 27 years he spent as a TD. Ryanair non-executive directors typically receive between €32,000 and €47,000 per year.

The Commission did not confirm or deny the identity of any of the recipients, who are also reported to include Italian foreign minister Franco Frattini and British Labour politician Lord Mandelson.

"This is paid to all the commissioners unless they don't want it," a commission spokesman said.

"The aim of this system is to ease their return to the labour market, to maintain their independence after their time as commissioner."

Ryanair declined to comment, its spokesman saying Mr McCreevy had asked that any personal queries be directed to the Fianna Fail press office. A Fianna Fail press officer said, however, that he had no contact details for Mr McCreevy as he was now a private citizen like any other former minister.