MEP's set for €12,000 pay rise

Irish MEPs may be set to receive a payrise of over €12,000 per annum, after the European Parliament this evening voted themselves a vastly improved pay deal.

The move is a setback to the President of the Parliament, Munster MEP Pat Cox, who had spearheaded efforts to reform the expenses system which has been dubbed the ''EU gravy train''.

This evening's vote is a result of a centre-left and centre-right alliance.

The original idea had been to give all MEPs from different member-states the same salary.

Currently, MEPs receive the same salary as their national counterparts - meaning Irish MEP's earn the same yearly remuneration as TDs.

But the new deal was supposed to be accompanied by a cut in their vast expense accounts - which has been blocked by tonight's vote.

However, the new arrangement will have to be rubber-stamped by the EU's Council of Ministers, who have been opposing a pay rise for some time.