50% of basic salary
The amount of this compensation is determined based on the basic salary received by the holder. The longer the European Commissioner has worked, the greater his allowance will be. Charles Michel, who took over as President of the European Council in December 2019 and left his seat to Antonio Costa last Sunday, is entitled to 50% of his basic salary, according to European Union regulations.
Exit allowances, a real jackpot for outgoing MPs: more than 500,000 euros for some of them!
In 2024, the indexed annual salary of the President of the European Council will reach 430,000 euros. According to an official EU document, dug up by the PTB, Charles Michel’s compensation will however be higher than what his range provides (“50% if this period is greater than three years but less than or equal to five years” ). The former Belgian Prime Minister will receive 260,000 euros over two years.
This regulation establishing this calculation method also applies to members of the European Commission, including the High Representative of the Union for Foreign Affairs and Security Policy. In the lot, we find Didier Reynders (MR). The former Belgian Deputy Prime Minister received between 20,000 and 30,000 euros per month for his role as guarantor of the rule of law. If we apply the same calculation as for Charles Michel, we obtain a parachute of 240,000 euros over two years.
MEPs too
This exit compensation system also concerns European parliamentarians. Last June, former Prime Minister Guy Verhofstadt (Open VLD) left the European Parliament where he had served since 2009. He was entitled to 15 months of transitional allowances of 10,075 euros, to which are added 3 months of compensation. In total, this makes him 158,550 euros.
In the same situation as Verhofstadt, let us cite Marie Arena (PS) and Frédérique Ries (MR) who can count respectively on 108,175 euros and 208,925 euros gross.
A system sometimes called into question
The transitional allowance system has been revised downwards since its creation. In the first regulation of 1967, these allowances were to be paid for three years. In 2016, it was decided to only pay these IT for two years.
The payment of this aid is justified by “the need to ensure the financial security of the people concerned”. The EU believes that the objective of IT is to serve as compensation for a period of unemployment and lack of income. “It must be taken into account that the persons in question are not entitled to other benefits, in particular unemployment benefits.”
In a 2017 study commissioned by the European Parliament, however, we learned that this explanation does not convince everyone. “This justification is unconvincing given the networks and contacts established by holders of public office during the period in which they occupy it, which protect them from insecurity.
Since this study, the system has not been modified.
