Proposal for a COUNCIL REGULATION laying down the weightings applicable from 1 July 2001 to the remuneration of officials of the European Communities serving in third countries

(presented by the Commission)

EXPLANATORY MEMORANDUM

I. Regulation (Euratom, ECSC, EEC) No 3019/87 of 5 October 1987 amended the Staff Regulations by adding an Annex X laying down special and exceptional provisions, including special arrangements for emoluments, applicable to officials of the European Communities serving in third countries.

Articles 11, 12 and 13 of Annex X deal with the remuneration of officials posted in countries outside the European Union. Remuneration is payable in euros in Belgium but there is also provision for all or part of an official's remuneration to be paid in the currency of the country of employment. In that event, the portion paid in local currency is subject to a weighting.

Article 13 of Annex X requires the Council to determine the weightings for third countries every six months.

This proposal concerns the adjustment of weightings applicable to the remuneration of officials of the European Communities serving in third countries from 1 July 2001.

The budgetary impact is negligible compared with the total operating costs of the delegations.

II. Council Regulation (ECSC, EEC, Euratom) No 2175/88 of 18 July 1988 laid down the initial weightings applicable from 10 October 1987. Since then these weightings have been adjusted by the Council every six months, most recently by Regulation No 1794/2001 of 10 September 2001, which took effect on 1 January 2001.

The remuneration system for staff serving in countries outside the Community is based on purchasing power parity of remuneration paid in local currency to officials serving in third countries compared with that paid in Brussels.

To apply this principle Eurostat calculates the economic parities. The weighting is the factor obtained by dividing the economic parity by the exchange rate. This means that implementation of the weighting system primarily involves calculating economic parities between Brussels and other places of employment.

The exchange rates used for accounting purposes are those of June 2001.

Table A sets out the new economic parities, the corresponding exchange rates and the resulting weightings as at 1 July 2001 for all places of employment.

Table B shows the variation in percentage terms between the figures in Table A and those of the previous half-year for all places of employment.

ANNEX

TABLE A

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ANNEX

TABLE B

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Proposal for a COUNCIL REGULATION laying down the weightings applicable from 1 July 2001 to the remuneration of officials of the European Communities serving in third countries

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to the Staff Regulations of officials of the European Communities and the conditions of employment of other servants of the Communities laid down by Regulation (EEC, Euratom, ECSC) No 259/68, [1] as last amended by Regulation (EC, ECSC, Euratom) No 1986/2001, [2] and in particular the first paragraph of Article 13 of Annex X thereto,

[1] OJ No L 56, 4.3.1968, p. 1.

[2] OJ No L 271, 12.10.2001, p. 1.

Having regard to the proposal from the Commission,

Whereas:

(1) Account should be taken of changes in the cost of living in countries outside the Community and the weightings applicable to remuneration paid in the currency of the country of employment to officials serving in third countries should be determined accordingly with effect from 1 July 2001.

(2) Under Annex X of the Staff Regulations, the Council sets the weightings every six months and it will accordingly have to set new weightings for coming half-years.

(3) The weightings to apply with effect from 1 July 2001, in respect of which payment has been made on the basis of a previous Regulation, could lead to retrospective adjustments to remuneration (upwards or downwards).

(4) Provision should be made for back-payments in the event of an increase in remuneration as a result of these weightings.

(5) Provision should be made for the recovery of sums overpaid in the event of a reduction in remuneration as a result of these weightings for the period between 1 July 2001 and the date of the Council decision setting the weightings to apply with effect from 1 July 2001.

(6) However, in order to mirror the weightings applicable within the European Community to remuneration and pensions of officials and other servants of the European Communities, such recovery should be restricted to a period of no more than six months preceding the decision, and for its effects to be spread over a period of no more than twelve months following the date of that decision,

HAS ADOPTED THIS REGULATION:

Article 1

With effect from 1 July 2001, the weightings applicable to remuneration payable in the currency of the country of employment shall be as shown in the annex.

The exchange rates for the calculation of such remuneration shall be those used for implementation of the general budget of the European Union for the month preceding the date referred to in the first paragraph.

Article 2

In accordance with the first paragraph of Article 13 of Annex X to the Staff Regulations, the Council shall set weightings every six months. It shall accordingly set new weightings with effect from 1 January 2002.

The institutions shall make back-payments in the event of an increase in remuneration as a result of these weightings.

For the period between 1 July 2001 and the date of the Council decision setting the weightings applicable with effect from 1 July 2001, the institutions shall make retrospective downward adjustments to remuneration in the event of a reduction as a result of these weightings.

Retrospective adjustments involving the recovery of sums overpaid shall, however, be restricted to a period of no more than six months preceding the decision, and recovery shall be spread over no more than twelve months from the date of that decision.

Article 3

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

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

Done at Brussels,

For the Council

The President

ANNEX

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FINANCIAL STATEMENT

1. TITLE OF OPERATION

Proposal for a Council Regulation laying down the weightings applicable from 1 July 2001 to the remuneration of officials of the European Communities serving in third countries

2. BUDGET HEADING INVOLVED

A 6000

3. LEGAL BASIS

Articles 12 and 13 of Annex X to the Staff Regulations

4. FINANCIAL IMPACT

4.1 Provisional real expenditure EUR 88 531 000 for 2001 (EUR 7 377 583 per month) (1)

4.2 Estimate of effect of July 2001 weightings - EUR 43 306 (2)

4.3 Estimated expenditure for six months [(2) x 6] - EUR 259 836

4.4 Impact in relation to provisional real expenditure [(2) : (1)] - 0,586995%

This budgetary impact does not take account of the adjustment of the weightings laid down each month by the Commission.