# CE2004070EN.01000401.xml

| 20.3.2004 | EN | Official Journal of the European Union | CE 70/4 |
| --- | --- | --- | --- |

20.3.2004

EN

Official Journal of the European Union

CE 70/4

---

(2004/C 70 E/004)

WRITTEN QUESTION E-2617/02

by Michl Ebner (PPE-DE) to the Commission

(18 September 2002)

Subject:   Differential allowances in the pay scheme of European Schools

Subject:

Since September 2000 European Schools have had a new pay scheme for their teachers.

Teachers are appointed by the authorities in their home nations and are paid the normal rate for a teacher according to the pay scales in their home nation. All income tax, social security contributions, etc. are deducted from this salary in the home nation. As the rates of pay for teachers differ greatly in the various home nations, the teacher's salary is rounded up by the Governing Body of the European Schools so that teachers in the European schools (ES) are paid at ‘the same rate for the same work’. The new approach in the Adjustment Differential is thus. It was pointed out that different teachers were paying different proportions of their salary in income tax, because the home nations have very different tax regimes. The Governing Body of the ES now declared this situation to be unfair. In order to introduce fairness, so it was explained, the Governing Body would in future take as a benchmark the amount of tax a European civil servant would pay if he/she were earning the same salary as a European School teacher and reduce or increase the teacher's pay accordingly.

In this way the new pay scheme interferes in the tax situation which pertains between the teacher and the national tax authorities, which means that the teachers have to give detailed information about their income tax in their national country to the Schools.

Secondly, anything that legally reduces tax bills in the Member States simply puts up the sum deducted by the ES. The teachers, however, still have the right to set these expenses against tax in their home state, but the benefit of this right is immediately deducted from the teachers' pay. In many cases like for British citizens, this results in double taxation regarding pension tax.

Formal objections to the new pay scheme have been made but dismissed as groundless by the European Schools. Also formal appeals to the Court of Appeal of the European Schools have been rejected. It seems that there is no organisation outside the structure of the European Schools to which an appeal can be made. This is in part because the ES do not accept any other organisation as having any jurisdiction over their affairs.

The European Commission is therefore asked to explain the legal and juridical situation of ES and to check that this apparently very unfair situation complies with EU-legislation.

Answer given by Mr Kinnock on behalf of the Commission

(8 November 2002)

(8 November 2002)

As the Honourable Member knows, the European Schools are managed by a Board of Governors, an intergovernmental body made up of representatives of the Ministries of the Member States responsible for education and/or international cultural relations. One Commission representative also sits on the Board of Governors.

The Regulations for members of the seconded staff of the European Schools to which the Honourable Member refers were adopted by the Board of Governors of the European Schools on 23 and 24 April 1996 under the Conventions of 12 April 1957 and 21 July 1994 (1). These Regulations became applicable from 1 September 1996, with a transitional period for existing staff of 4 years, which came to an end on 1 September 2000. The Regulations are based on agreements to which all the signatory states have subscribed and as such constitute international law.

1

These Regulations, as the Honourable Member mentions, set the basic staff salaries. Article 49(c) stipulates in particular that:

| | Should the amount levied in taxes on the national salary be different from the amount which would be levied on the remuneration provided for in these Regulations pursuant to the regulations applicable to officials of the European Communities laying down conditions and procedures for applying the tax for the benet of the Community, a positive or negative adjustment, equal to the difference between the above two amounts, shall be made in order to ensure an equal salary for members of staff from different countries of origin. |
| --- | --- |

Should the amount levied in taxes on the national salary be different from the amount which would be levied on the remuneration provided for in these Regulations pursuant to the regulations applicable to officials of the European Communities laying down conditions and procedures for applying the tax for the benet of the Community, a positive or negative adjustment, equal to the difference between the above two amounts, shall be made in order to ensure an equal salary for members of staff from different countries of origin.

| | The final calculation of this adjustment shall be made on the basis of the tax certicate drawn up by the national tax authorities competent for the member of staff, disregarding income other than national salary but ensuring that any tax advantages reducing the amount of national tax payable are taken into consideration. |
| --- | --- |

The final calculation of this adjustment shall be made on the basis of the tax certicate drawn up by the national tax authorities competent for the member of staff, disregarding income other than national salary but ensuring that any tax advantages reducing the amount of national tax payable are taken into consideration.

The Commission notes that the calculation of this differential allowance, whether positive or negative, is not without difficulties. However, the Board of Governors — which includes 15 Government representatives who are, for obvious reasons, well aware of various potential tax and associated implications — deemed this to be the most appropriate means of ensuring equal treatment of teachers and the best way of putting their tax situation on a par with that of Community officials in a fair and relevant way.

Disputes between teachers and the Schools can be referred in the first instance by administrative appeal procedure to the Representative of the Board of Governors in the case of administrative or financial issues, or to the Board of Inspectors in the case of educational issues. Subsequently, a complaint can be made to the Board of Appeal which is an independent administrative tribunal of the first and last instance. The decisions of the Board, as an independent body, are final and enforceable.

In this context the Commission would like to point out that a Round Table on the future of the European Schools involving all parties concerned (including interested Members of the European Parliament as well as the Commission) is being organised on 7 November 2002 in Brussels. This Round Table will provide an opportunity for all issues related to the European Schools to be raised.

Meanwhile, if the Honourable Member has a particular case in mind he is invited to put it to the Commission, with any relevant accompanying material, so that further assistance can be given with clarification.

---

(1)  The Convention defining the statute of the European Schools entered into force on 1st October, 2002, the first day of the month following the deposit of all instruments of ratification by the Member States and of the acts notifying conclusion by the European Communities (Article 33 of the Convention).

1

---