Member states will be facing the European Court of Justice over a decision to slash by half an agreed pay-rise to the EU's staff including commissioners and MEPs.

During their first meeting after the Christmas holidays, the college of EU commissioners yesterday approved a proposal tabled by Commission president Josè Manuel Barroso to take the issue to court.

"The matter will now be decided by the ECJ and the Commission is very confident on a positive outcome," a spokesman said.

During a meeting of EU Permanent Representatives last month, member states decided to unanimously approve a proposal to halve a previously-agreed 3.7 per cent increase for all the EU's staff for 2010 due to the recession. Many member states, particularly the main contributors to the EU coffers, were "politically embarrassed" to approve such an increase to the already well-paid Eurocrats while pursuing cost-cutting measures at home.

Malta too voted in favour of the cut, a decision that angered hundreds of Maltese employees with the EU institutions in Brussels, Luxembourg and in various agencies based in other member states. Originally, Malta was not taking any particular stand in this dispute, which also saw hundreds of Eurocrats going on strike action for a few hours in the last days of December. However, following a compromise position designed by the Swedish presidency, Malta agreed with the other member states to support the proposal and slash the wage increase.

If the ECJ finds for the Commission, the full increase will amount to €8,000 a year for EU Commissioners and judges and over €3,000 for MEPs while a junior functionnaire will see his salary rise by €2,000.