The European parliament is supposed to be the ultimate expression of pan-European democracy but for many voters it has become synonymous with a less-exulted concept: the "gravy train".

For all the thankless legislative work members perform in areas from oil tanker safety to financial services regulation, some voters suspect their efforts are mainly devoted to lining their pockets. "There is a fog of prejudice," admitted Pat Cox, the president of the parliament, in an interview with the FT. "People think we're over here and overpaid, and people don't get beyond that prejudice."

Supporters of the parliament complain that the expenses issue diverts attention from the body's developing maturity as a legislative assembly and check on the European Commission, the European Union's executive.

But there is no escaping it. The issue is one of the most common topics of conversation among members (MEPs), the cause of bitter argument and about the only story about the parliament that makes it on to newspaper front pages.

The problem is so chronic that, according to the young Dutch socialist MEP Michiel van Hulten, it is virtually the only thing some voters know about the parliament.

"Voters complain that they don't know enough about what we do and that we are only in it for the money," he said.

The issue is particularly acute in northern Europe, including Britain and Germany, where the media have exposed the excesses of the system.

Nigel Gardner, a first-time candidate for Labour in Britain's eastern region, said: "The first reaction from voters is a distance from the European parliament, then you get people raising the question of the gravy train. That adds to the sense of remoteness."

The parliament's pay and expenses, set up to compensate members for the stresses of working far from home, is like any benefits system: it is open to abuse and many claimants have become adept at working it to maximum advantage.

On top of their salaries, which are paid according to the rate of MPs in an MEP's national parliament, deputies are entitled to a raft of allowances that can top up incomes by more than Euros 100,000 (Dollars 120,000, Pounds 66,000) a year.

The most lucrative is the regime for travel expenses, paid on each journey according to the most costly, flexible economy-class fare. No receipt is required, so MEPs can travel on a budget airline and pocket the difference.

Then there is the secretarial allowance of Euros 150,000 a year, which some MEPs choose to pay to family members, and even a late taxi allowance that kicks in when the parliament's chauffeurs go off duty at 10pm.

The perk most recently in the spotlight is the Euros 262 daily attendance allowance, which is claimed by signing a register and covers accommodation, taxis and other costs.

Hans-Peter Martin, a former journalist and an Austrian MEP, produced footage taken secretly with a hand-held camera showing MEPs turning up just to sign the register, even though there was no parliamentary session that day.

MEPs closed ranks to defend themselves against Mr Martin's detailed accusations and unorthodox methods, which even saw him involved in scuffles with his colleagues. But his campaign propelled the pay-and- expenses issue on to the front pages of Bild, the German tabloid, and forced German and Austrian MEPs to pledge that in future they would take no more in travel expenses than they paid.

Mr Cox tried to reform the system over the past two years and persuaded parliament to accept a statute that would end the worst excesses of the travel regime and set up a common salary for all MEPs.

The package would have meant a salary rise for some members - even though most would have been net losers because of the expenses crackdown - but it was vetoed by Gerhard Schroder, the German chancellor, who said any pay rise was unacceptable.

"We have missed a chance to rid ourselves of this eyesore and strengthen the parliament's position," said Mr van Hulten, who is stepping down as a deputy.

The pressure to reform the system could diminish after this week's elections with the arrival of deputies from the EU's 10 new members, many of whom will be depending on their expenses to top up their relatively low salaries.

For example, Hungarian legislators will earn about Euros 10,000 a year - the same as national parliamentarians in Hungary and considerably less than their secretaries.

But Mr Cox has urged the parliament to make one last effort at reform or run the risk of falling further in public esteem and distracting from its genuine achievements.