EXPLANATORY MEMORANDUM

1. CONTEXT OF THE PROPOSAL

Articles 11, 12 and 13 of Annex X to the Staff Regulations lay down provisions on payments of remuneration to officials serving in a third country. Under Articles 10 and 118 of the Conditions of Employment of Other Servants of the European Union, those provisions apply by analogy to temporary and contract staff serving in third countries.

Remuneration is payable in euros in Belgium, however upon request of an official, a member of temporary or contract staff, all or part of it may be paid in the currency of the country of employment. In that event, it is subject to the weighting for the place of employment and is converted on the basis of the corresponding exchange rate.

In order to ensure as far as possible that officials, temporary and contract staff of the Union enjoy equivalent purchasing power irrespective of their place of employment, the Council should adjust the weightings once a year. To establish the purchasing power equivalence of the remuneration paid in Brussels, as the reference city, with that paid in the other places of employment Eurostat calculates the economic parities.

The weighting is the factor obtained by dividing the economic parity by the exchange rate. The exchange rates used are established in accordance with the rules for the implementation of the Financial Regulation and correspond to the date of application of the weightings.

The initial weightings applicable from 10 October 1987 were laid down in the Council Regulation (ECSC, EEC, Euratom) No 2175/88 of 18 July 1988. The most recent weightings, which took effect on 1 July 2012, were laid down by the Council in Regulation (EU) No 679/2013 of 15 July 2013.

2. RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS

The elements of the proposal have been discussed with the staff representatives in accordance with the appropriate procedures.

3. LEGAL ELEMENTS OF THE PROPOSAL

Article 13 of Annex X to the Staff Regulations constitute the legal basis.

The attached proposal for the Council Regulation adjusts the weightings applicable from 1 July 2013 to the remuneration of officials, temporary staff and contract staff of the European Union serving in a third country.

The Council should, by the written procedure within one month, act on a proposal from the Commission by the qualified majority provided for in Article 16(4) and (5) of the Treaty on European Union. Should a Member State request formal examination of the Commission proposal, the Council should act within two months.

The Annex to the proposed Council Regulation sets out the weightings derived from the parities communicated by Eurostat for July 2013 for all places of employment outside the European Union.

4. BUDGETARY IMPLICATION

The budgetary impact is small (in percentage terms); see the Financial Statement.

2013/0380 (NLE)

Proposal for a

COUNCIL REGULATION

laying down the weightings applicable from 1 July 2013 to the remuneration of officials, temporary staff and contract staff of the European Union serving in third countries

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to the Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Union, as laid down by Council Regulation (EEC, Euratom, ECSC) No 259/68 ([1]), and in particular the first paragraph of Article 13 of Annex X thereto,

Having regard to the proposal from the European Commission,

Whereas:

(1) It is necessary to take account of changes in the cost of living in third countries and to determine accordingly the weightings applicable from 1 July 2013 to remuneration paid in the currency of the country of employment to officials, temporary staff and contract staff of the Union serving in third countries.

(2) The weightings in respect of which payment has been made on the basis of Council Regulation (EU) No 679/2013 ([2]) may lead to back-dated upward or downward adjustments to remuneration.

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

(4) Provision should be made for the recovery of sums overpaid in the event of a reduction in remuneration as a result of the new weightings for the period between 1 July 2013 and the date of entry into force of this Regulation.

(5) Provision should be made for any such recovery to be restricted to a period of no more than six months preceding the date of entry into force of this Regulation,

HAS ADOPTED THIS REGULATION:

Article 1

1. With effect from 1 July 2013, the weightings applicable to the remuneration of officials, temporary staff and contract staff of the Union serving in third countries payable in the currency of the country of employment shall be as set out in the Annex.

2. The exchange rates for the calculation of such remuneration shall be established in accordance with Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 ([3]) and shall correspond to the rates applicable on 1 July 2013.

Article 2

1. The institutions shall make back-payments in the event of an increase in remuneration as a result of the application of the weightings set out in the Annex.

2. The institutions shall make retrospective downward adjustments to remuneration in the event of a reduction in remuneration as a result of the weightings set out in the Annex for the period between 1 July 2013 and the date of entry into force of this Regulation.

3. Retrospective adjustments involving the recovery of sums overpaid shall be restricted to a period of six months preceding the date of entry into force of this Regulation. Recovery shall be spread over no more than 12 months from that date.

Article 3

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

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

Done at Brussels,

For the Council

The President

ANNEX

Weightings applicable from 1 July 2013

PLACE OF EMPLOYMENT || Economic parity July 2013 || Exchange rate July 2013 (*) || Weighting July 2013 (**)

Afghanistan (***) || 0 || 0 || 0

Albania || 82,78 || 140,580 || 58,9

Algeria || 75,76 || 104,367 || 72,6

Angola || 172,1 || 127,217 || 135,3

Argentina (***) || 0 || 0 || 0

Armenia || 423,1 || 539,500 || 78,4

Australia || 1,485 || 1,39950 || 106,1

Azerbaijan || 1,024 || 1,02236 || 100,2

Bangladesh || 60,05 || 101,996 || 58,9

Barbados || 3,182 || 2,62036 || 121,4

Belarus || 7263 || 11550,0 || 62,9

Belize || 1,882 || 2,63246 || 71,5

Benin || 657,7 || 655,957 || 100,3

Bolivia || 6,241 || 9,00511 || 69,3

Bosnia and Herzegovina (Banja Luka) || 1,217 || 1,95583 || 62,2

Bosnia and Herzegovina (Sarajevo) || 1,438 || 1,95583 || 73,5

Botswana || 6,062 || 11,2867 || 53,7

Brazil || 2,581 || 2,84200 || 90,8

Burkina Faso || 626,2 || 655,957 || 95,5

Burundi (***) || 1261 || 2013,63 || 62,6

Cambodia || 4352 || 5361,50 || 81,2

Cameroon || 606,2 || 655,957 || 92,4

Canada || 1,189 || 1,35990 || 87,4

Cape Verde || 78,24 || 110,265 || 71,0

Central African Republic || 666,9 || 655,957 || 101,7

Chad || 736,8 || 655,957 || 112,3

Chile || 437,2 || 669,063 || 65,3

China || 7,605 || 8,01320 || 94,9

Colombia || 2142 || 2532,08 || 84,6

Comoros || 371,0 || 491,968 || 75,4

Congo (Brazzaville) || 799,9 || 655,957 || 121,9

Costa Rica || 631,9 || 650,623 || 97,1

Croatia (****) || 5,821 || 7,45400 || 78,1

Cuba || 0,9525 || 1,30320 || 73,1

Democratic Republic of the Congo (Kinshasa) || 1,944 || 1,30320 || 149,2

Djibouti || 214,2 || 231,606 || 92,5

Dominican Republic || 33,21 || 54,4065 || 61,0

Ecuador || 0,9947 || 1,30320 || 76,3

Egypt || 5,680 || 9,17140 || 61,9

El Salvador || 0,9560 || 1,30320 || 73,4

Eritrea || 24,67 || 20,0367 || 123,1

Ethiopia || 21,89 || 24,3471 || 89,9

Fiji || 1,639 || 2,48509 || 66,0

Former Yugoslav Republic of Macedonia || 36,47 || 61,6850 || 59,1

Gabon || 648,2 || 655,957 || 98,8

Gambia || 31,22 || 51,0000 || 61,2

Georgia || 1,543 || 2,16590 || 71,2

Ghana || 2,075 || 2,62335 || 79,1

Guatemala || 8,092 || 10,1982 || 79,3

Guinea (Conakry) || 6980 || 9033,17 || 77,3

Guinea-Bissau || 605,6 || 655,957 || 92,3

Guyana || 179,8 || 270,215 || 66,5

Haiti || 48,81 || 57,0893 || 85,5

Honduras || 20,69 || 26,5996 || 77,8

Hong Kong || 10,45 || 10,1092 || 103,4

Iceland || 157,5 || 162,050 || 97,2

India || 49,68 || 78,4530 || 63,3

Indonesia (Banda Aceh) || 9094 || 12936,1 || 70,3

Indonesia (Jakarta) || 9932 || 12936,1 || 76,8

Iraq (***) || 0 || 0 || 0

Israel || 5,076 || 4,73800 || 107,1

Ivory Coast || 634,6 || 655,957 || 96,7

Jamaica || 123,8 || 131,208 || 94,4

Japan (Tokyo) || 144,0 || 127,930 || 112,6

Jordan || 0,9240 || 0,923969 || 100,0

Kazakhstan (Astana) || 196,4 || 198,460 || 99,0

Kenya || 92,28 || 112,916 || 81,7

Kosovo (Pristina) || 0,7282 || 1,00000 || 72,8

Kyrgyzstan || 48,77 || 63,3131 || 77,0

Laos || 9166 || 10127,0 || 90,5

Lebanon || 1570 || 1964,57 || 79,9

Lesotho || 6,479 || 12,9640 || 50,0

Liberia || 1,504 || 1,30320 || 115,4

Libya (***) || 0 || 0 || 0

Madagascar || 2429 || 2865,05 || 84,8

Malawi || 251,9 || 438,269 || 57,5

Malaysia || 3,066 || 4,13620 || 74,1

Mali || 663,7 || 655,957 || 101,2

Mauritania || 239,9 || 396,710 || 60,5

Mauritius || 31,65 || 40,3387 || 78,5

Mexico || 12,66 || 17,0117 || 74,4

Moldova || 10,66 || 16,2640 || 65,5

Montenegro || 0,6349 || 1,00000 || 63,5

Morocco || 7,845 || 11,1215 || 70,5

Mozambique || 31,95 || 38,5000 || 83,0

Myanmar || 745,8 || 1227,61 || 60,8

Namibia || 8,744 || 12,9640 || 67,4

Nepal || 85,32 || 125,865 || 67,8

New Caledonia || 133,4 || 119,332 || 111,8

New Zealand || 1,730 || 1,66400 || 104,0

Nicaragua || 18,44 || 32,1974 || 57,3

Niger || 543,2 || 655,957 || 82,8

Nigeria (Abuja) || 214,8 || 202,198 || 106,2

Norway || 10,38 || 7,88100 || 131,7

Pakistan || 65,63 || 128,896 || 50,9

Panama || 0,8445 || 1,30320 || 64,8

Papua New Guinea || 3,680 || 2,85144 || 129,1

Paraguay || 3776 || 5830,52 || 64,8

Peru || 3,138 || 3,62420 || 86,6

Philippines || 44,45 || 56,4420 || 78,8

Russia || 47,88 || 42,7350 || 112,0

Rwanda || 696,0 || 836,494 || 83,2

Samoa || 2,969 || 3,09549 || 95,9

Saudi Arabia || 3,645 || 4,88700 || 74,6

Senegal || 610,3 || 655,957 || 93,0

Serbia (Belgrade) || 83,27 || 114,460 || 72,8

Sierra Leone || 6948 || 5646,66 || 123,0

Singapore || 1,990 || 1,64650 || 120,9

Solomon Islands || 11,60 || 9,33521 || 124,3

South Africa || 6,702 || 12,9640 || 51,7

South Korea || 1473 || 1495,51 || 98,5

Southern Sudan (Juba) (***) || 0 || 0 || 0

Sri Lanka || 122,9 || 168,790 || 72,8

Sudan (Khartoum) || 5,479 || 7,25179 || 75,6

Suriname || 2,649 || 4,30056 || 61,6

Swaziland || 7,019 || 12,9640 || 54,1

Switzerland (Berne) || 1,520 || 1,23260 || 123,3

Switzerland (Geneva) || 1,536 || 1,23260 || 124,6

Syria (***) || 0 || 0 || 0

Taiwan || 33,79 || 39,1171 || 86,4

Tajikistan || 4,274 || 6,20910 || 68,8

Tanzania || 1467 || 2088,16 || 70,3

Thailand || 32,88 || 40,5560 || 81,1

Timor Leste || 1,588 || 1,30320 || 121,9

Togo || 545,3 || 655,957 || 83,1

Trinidad and Tobago || 6,945 || 8,30780 || 83,6

Tunisia || 1,391 || 2,15770 || 64,5

Turkey || 2,249 || 2,50700 || 89,7

Turkmenistan || 2,208 || 3,71412 || 59,4

Uganda || 2459 || 3416,28 || 72,0

Ukraine || 8,002 || 10,4165 || 76,8

United Arab Emirates (***) || 0 || 0 || 0

United States (New York) || 1,246 || 1,30320 || 95,6

United States (Washington) || 1,212 || 1,30320 || 93,0

Uruguay || 26,25 || 26,7834 || 98,0

Uzbekistan || 1582 || 2727,73 || 58,0

Vanuatu || 143,8 || 127,470 || 112,8

Venezuela || 7,313 || 8,19986 || 89,2

Vietnam || 15308 || 27406,9 || 55,9

West Bank — Gaza Strip || 5,344 || 4,73800 || 112,8

Yemen || 239,9 || 280,286 || 85,6

Zambia || 6,854 || 7,14850 || 95,9

Zimbabwe (***) || 0 || 0 || 0

(*) 1 EURO = x units of local currency (USD for Cuba, El Salvador, Ecuador, Liberia, Panama, D.R. Congo and Timor-Leste).

(**) Brussels = 100 %.

(***) Not available because of local instability or unreliable data.

(****) Applicable to statutory staff maintained in Croatia for a maximum of 18 months following its accession under Article 44 of the Accession Treaty of Croatia to the EU.

NB: Economic parity or purchasing power parity (PPP) is: Number of monetary units required to buy the same product compared with Brussels (per euro). The figure provided in the first column (PPP) is the product of multiplying the exchange rate (TX) by the weighting (CC). The mathematical formula used to calculate the CC is therefore: PPP (provided by Eurostat) divided by TX = CC. The amounts due to staff are calculated by applying the invariable PPP established by this table — not by multiplying each time the CC by the TX of the date of the transaction, since this TX is variable and will produce a different (wrong) PPP.

LEGISLATIVE FINANCIAL STATEMENT

1. FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1. Title of the proposal/initiative

Proposal for a Council Regulation laying down the weightings applicable from 1 July 2013 to the remuneration of officials, temporary staff and contract staff of the European Union serving in third countries

1.2. Policy area(s) concerned in the ABM/ABB structure[4]

All areas and activities are potentially concerned

1.3. Grounds for the proposal/initiative

1.3.1. Requirement(s) to be met in the short or long term

To ensure the same purchasing power of EU officials and other civil servants regardless of their place of employment

1.4. Duration and financial impact

ý Proposal/initiative of unlimited duration

– Implementation with a start-up period from 1 July 2013,

– followed by full-scale operation.

1.5. Management mode(s) planned[5]

ý Centralised direct management by the Commission: PMO

2. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

2.1. Heading(s) of the multiannual financial framework and expenditure budget line(s) affected

· Existing budget lines

· The proposal has a financial impact on all budgetary lines related to staff expenditure in the Commission and the EEAS.

In order of multiannual financial framework headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Description………………………...…….] || DA/NDA ([6]) || from EFTA[7] countries || from candidate countries[8] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

|| European Commission: XX-01.01.02, 08.01.05.01, 19.01.04.02, 19.01.04.03, 21.01.04.01, 21.01.04.10. European External Action Service: 1100, 3000, 3001. || non-diff. || NO || NO || NO || NO

2.2. Estimated impact on expenditure

2.2.1. Summary of estimated impact on expenditure

EUR million (to 3 decimal places)

Heading of multiannual financial framework: || 5 || " Administrative expenditure "

EUR million (to 3 decimal places)

|| || || Year 2013 || Year 2014 || Year 2015 || Year 2016 || Subsequent years || TOTAL

DG: <…….> ||

 Human resources || || || || || || || ||

 Other administrative expenditure || || || || || || || ||

TOTAL DG <…….> || Appropriations || || || || || || || ||

BGUEXX.010101 || || -0,01 || -0,01 || -0,01 || -0,01 || -0,01 || -0,01 || -0,01 || Not available

BGUEXX.010102 || || -0,20 || -0,40 || -0,40 || -0,40 || -0,40 || -0,40 || -0,40 || Not available

EEAS -3001 || || -0,05 || -0,10 || -0,10 || -0,10 || -0,10 || -0,10 || -0,10 || Not available

EEAS -3000 || || -0,33 || -0,66 || -0,66 || -0,66 || -0,66 || -0,66 || -0,66 || Not available

SUBTOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || -0,58 || -1,17 || -1,17 || -1,17 || -1,17 || -1,17 || -1,17 || Not available

EUR million (to 3 decimal places)

Heading of multiannual financial framework: || Other headings || Outside HEADING 5 of the multiannual financial framework

EUR million (to 3 decimal places)

|| || || Year 2013 || Year 2014 || Year 2015 || Year 2016 || Subsequent years || TOTAL

DG: <…….> ||

 Human resources || || || || || || || ||

 Other administrative expenditure || || || || || || || ||

BGUE- -08.010501 || || -0,02 || -0,04 || -0,04 || -0,04 || -0,04 || -0,04 || -0,04 || Not available

BGUE- 19.010402 || || -0,00 || -0,00 || -0,00 || -0,00 || -0,00 || -0,00 || -0,00 || Not available

BGUE- 19.010407 || || -0,01 || -0,01 || -0,01 || -0,01 || -0,01 || -0,01 || -0,01 || Not available

BGUE- 21.010401 || || -0,02 || -0,03 || -0,03 || -0,03 || -0,03 || -0,03 || -0,03 || Not available

BGUE- 21.010410 || || -0,04 || -0,09 || -0,09 || -0,09 || -0,09 || -0,09 || -0,09 || Not available

BGUE- 19.010403 || || -0,01 || -0,01 || -0,01 || -0,01 || -0,01 || -0,01 || -0,01 || Not available

SUBTOTAL appropriations outside HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || -0,09 || -0,19 || -0,19 || -0,19 || -0,19 || -0,19 || -0,19 || Not available

EUR million (to 3 decimal places)

|| || || Year 2013 || Year 2014 || Year 2015 || Year 2016 || Subsequent years || TOTAL

TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || -0,68 || -1,35 || -1,35 || -1,35 || -1,35 || -1,35 || -1,35 || Not available

Payments || -0,68 || -1,35 || -1,35 || -1,35 || -1,35 || -1,35 || -1,35 || Not available

2.2.2. Estimated impact on operational appropriations

The proposal/initiative does not require the use of operational appropriations.

2.2.3. Estimated impact on appropriations of an administrative nature

2.2.3.1. Summary

The proposal/initiative requires the use of administrative appropriations.

2.2.3.2. Estimated requirements of human resources

The proposal/initiative does not require the use of human resources.

2.2.4. Compatibility with the current multiannual financial framework

Proposal/initiative is compatible the current multiannual financial framework.

2.2.5. Third-party contributions

The proposal/initiative does not provide for co-financing by third parties.

2.3. Estimated impact on revenue

Proposal/initiative has no financial impact on revenue.

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

[2] OJ L 195, 18.7.2013, p. 3.

[3] OJ L 298, 26.10.2012, p. 1.

[4] ABM: activity-based management – ABB: activity-based budgeting.

[5] Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html

[6] Diff. = Differentiated appropriations / Non-Diff. = Non-differentiated appropriations

[7] EFTA: European Free Trade Association.

[8] Candidate countries and, where applicable, potential candidate countries from the Western Balkans.