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 commission disclosed yesterday it is still paying 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 Deutschlandnames 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 10 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 annual €52,213 pension in respect of his 27 years as a TD. Ryanair non-executive directors typically receive between €32,000 and €47,000 per year.
The commission did not divulge 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’s spokesman said Mr McCreevy had asked that personal queries be directed to the Fianna Fáil press office. However, a Fianna Fáil press officer said he had no contact details for Mr McCreevy, as he was now a private citizen like other former ministers.