In view of the rising inflation, EU officials are to receive a salary increase of more than 8 percent in order to compensate for the increase in inflation. Violent envy debates are now brewing. The lavish additional income is common in many sectors.
The report caused a stir: EU officials are to receive a salary increase of more than eight percent in future to compensate for inflation and the resulting rise in prices. But is the lavish salary increase really a scandal? No, as a look at the free economy shows.
The officials of the EU Commission are usually very well educated and have many years of university with successful degrees behind them. Most are lawyers. With their know-how and skills, they could also work in large, international companies, such as automotive groups or large law firms. There they would often earn a multiple of what they would get from the EU – even after the salary increase.
As a reminder: Around 60,000 EU officials and EU employees receive the following bonuses in addition to their regular salary:
That may seem like a lot, but the fact is: the allowances are also paid because partners and children often have to move to Brussels or even travel with them when they go to other countries abroad. The result: EU officials have high expenses, for example for a second apartment, schools and day care centers or the like.
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In Munich, city and state officials also receive a so-called metropolitan area allowance, which also applies to newcomers. The basic amount: 132.50 euros plus child supplement (35.34 euros). Employees of the city of Munich receive twice as much in their so-called Munich allowance. There are also surcharges in the highest federal authorities.
In large corporations such as BMW or comparable companies, salaries in the low six-digit range are usual for executives from the middle management level – gross, of course. With a Christmas bonus, however, that is sometimes even more than EU civil servants in lower tiers earn in a whole year: around 36,700 euros basic salary.
Of course, the top jobs are also well paid in the EU. In principle, an EU civil servant at salary level AD 13 in the Commission, Council or Parliament earns EUR 150,000 per year – but only after a total of four years of service if they have at least two children and work abroad.
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The wage increases can result in a fatal wage-price spiral, as recently criticized by high-ranking economists. The reason: the high inflation results in strong wage increases, which then also raise the price level. Economists then speak of inflation feeding itself. Automatic wage adjustments are therefore viewed critically, including by the experts at the European Central Bank (ECB), writes the “Handelsblatt”.
Read about it: 8.5 percent more salary – EU officials get inflation compensation – economists fear a negative spiral
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