Proposal for COUNCIL REGULATION (EC, ECSC, EURATOM) amending the Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Communities as regards the arrangements for the adjustment of remuneration and the temporary contribution

EXPLANATORY MEMORANDUM

The current method for the annual adjustment of the remuneration (including allowances and pensions) of staff of EU institutions and the temporary contribution expire on 30 June 2001.

In view of the time required to conduct the statutory consultations, it would be impossible for the Commission to take account of the implications of the reform in the proposal it would have to present this year in order to have a method in force in July 2001.

Given the link between, on the one hand, remuneration and pensions and, on the other, the reform, and the complications inherent in having two major consecutive sets of negotiations, the best approach for the staff and the institutions would be to have a single comprehensive set of negotiations covering remuneration and pensions and the reform.

The Commission is accordingly proposing to extend by two years the period of validity of the current system of pay and pensions and undertakes to present to the Council by December 2001 a comprehensive proposal for a review of the Staff Regulations which would cover the reform, the new method and the actuarial balance of the pensions scheme.

The proposal set out below accordingly extends by two years the period of validity of both the current method for adjusting remuneration and the temporary contribution, both of which would otherwise expire on 30 June 2001.

2000/0231(CNS)

Proposal for

COUNCIL REGULATION (EC, ECSC, EURATOM)

amending the Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Communities as regards the arrangements for the adjustment of remuneration and the temporary contribution

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 283(1) thereof,

Having regard to Regulation (EEC, ECSC, Euratom) No 259/68 laying down the Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Communities, [1] as last amended by Regulation (EC, ECSC, Euratom) No ..., [2] and in particular Articles 63, 64, 65, 65a and 82 of the Staff Regulations, Annex XI to the Staff Regulations and the first paragraph of Article 20 and Article 64 of the Conditions of Employment,

[1] OJ L 56, 4.3.1968, p. 1.

[2] OJ ...

Having regard to the proposal presented by the Commission after consulting the Staff Regulations Committee,

Having regard to the opinion of the European Parliament, [3]

[3] OJ C... and opinion of the ... (not yet published in the Official Journal).

Having regard to the opinion of the Court of Justice, [4]

[4] OJ C ...

Having regard to the opinion of the Court of Auditors, [5]

[5] OJ C ...

[Having taken note of the Report of the Concertation Committee set up by the Council Decision of 23 June 1981,]

Whereas:

(1) Following its Decisions of 20 March 1972, 26 June 1976 and 31 December 1981, by Regulations (EC, ECSC, Euratom) Nos 3830/1991 and 3831/1991, [6] the Council inserted Annex XI to the Staff Regulations which confirms and further defines the method for the adjustment of remuneration, and Article 66a which introduces a temporary contribution deducted from the remuneration of officials and other servants of the Communities.

[6] OJ L 361, 31.12.1991.

(2) Social partnerships which tend to avoid conflict have thus been a feature of relations between the European institutions and their staff and other servants with regard to the adjustment of remuneration.

(3) The current method and the temporary contribution expire on 30 June 2001 whereas the proposal from the Commission to the Council on revisions to the Staff Regulations in connection with the reform is scheduled for December 2001.

(4) Extending by two years the period of validity of the agreement on the method would thus avoid having to conduct two separate sets of negotiations between the staff and the institutions, one on the reform and one on remuneration and pensions.

(5) The Staff Regulations of Officials and the Conditions of Employment applicable to Other Servants should therefore be amended to extend the period of validity of the method for adjusting remunerations and the temporary contribution,

HAS ADOPTED THIS REGULATION:

Article 1

In Article 66a(1) of the Staff Regulations of officials of the European Communities, "1 July 2001" is replaced by "1 July 2003".

In Article 15(1) of Annex XI to the Staff Regulations of officials of the European Communities, "30 June 2001" is replaced by "30 June 2003".

Article 2

This Regulation shall enter into force on the day of its publication in the Official Journal of the European Communities.

[It shall apply from 1 July 2001.]

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Council

The President

FINANCIAL STATEMENT

Estimate of the budgetary implications of extending by two years the period of validity of, on the one hand, the current method for adjusting remuneration and pensions and, on the other, the temporary contribution, both of which would otherwise expire on 30 June 2001.

These budgetary implications are already taken into account in the preliminary draft budget 2001.

Estimate in Millions EUR by adjustment year

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* Based upon the February 2000 forecast for the 2001 annual adjustment (approximately 2%) and the budgetary implications of the 1999 annual adjustment (72 M EUR for a 2,7% adjustment). The cost for the period 7/2002 to 6/2003 (111 M EUR) includes equally the supplementary cost for the period 2001-2002 (55 M EUR).

** Budget 2000 ; article 403

Estimate in Millions EUR by budgetary year

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