Proposal for a OUNCIL REGULATION (EC) laying down the weightingsapplicable from 1 January 1999to the remuneration of officials of the European Communitiesserving in third countries

EXPLANATORY MEMORANDUM

I. On 5 October 1987, by Regulation No 3019/87, the Staff Regulations were amended by the addition of 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 Belgian francs 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 of remuneration paid in local currency is subject to a weighting. Article 13 of Annex X requires the Council of the European Union to determine the weightings for third countries every six months.

This proposal relates to the adjustment of weightings applicable in third countries with effect from 1 January 1999. The budgetary impact is negligible compared with the total operating costs of the delegations.

II. Council Regulation (EEC, Euratom, ECSC) 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 342/99 of 15 February 1999 which took effect on 1 July 1998.

The remuneration system for staff serving in countries outside the Community is based on equivalent purchasing power for Brussels and the various places of employment.

Application of this principle is based on the calculation of economic parities by the Statistical Office of the European Communities (SOEC). The weighting is the factor obtained by dividing the economic parity by the exchange rate. This means that implementation of a weightings system primarily involves calculating economic parities between Brussels and the various places of employment.

The accounting exchange rates used are those for January 1999.

Table A shows for each place of employment the economic parity calculated by the SOEC for January 1999, the exchange rate used and the resulting weighting, applicable from 1 January 1999.

Table B shows for each place of employment variations in percentage terms between the figures in Table A and those for the previous half-year.

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Proposal for a

COUNCIL REGULATION (EC)

laying down the weightingsapplicable from 1 January 1999to the remuneration of officials of the European Communitiesserving in third countries

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing a Single Council and a Single Commission of the European Communities,

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, Euratom, ECSC) No 2762/98 [2], and in particular the first paragraph of Article 13 of Annex X,

[1] OJ L 56, 04.03.1968, p. 1.

[2] OJ L 346, 22.12.1998, p. 1.

Having regard to the proposal from the Commission,

(1) Whereas account should be taken of changes in the cost of living in countries outside the Community and weightings applicable to remuneration payable in the currency of the country of employment to officials serving in third countries should be determined with effect from 1 January 1999;

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

(3) Whereas the weightings to apply with effect from 1 January 1999 in respect of which payment has been made on the basis of a previous regulation could lead to retrospective adjustments to remuneration (positive or negative);

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

(5) Whereas 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 January 1999 and the date of the Council decision setting the weightings to apply with effect from 1 January 1999;

(6) Whereas, 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, provision should be made for any such recovery to apply solely 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 January 1999, 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 Communities 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 of the Staff Regulations, the Council shall set weightings every six months. It shall accordingly set new weightings with effect from 1 July 1999.

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 January 1999 and the date of the Council decision setting the weightings applicable with effect from 1 January 1999, 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, concern only a period of no more than six months preceding the decision and this 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 following 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

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FINANCIAL STATEMENT

1. TITLE OF OPERATION

Proposal for a Council Regulation (EC) laying down the weightings applicable from 1 January 1999 to the remuneration of officials of the European Communities serving in third countries

2. BUDGET HEADING(S) 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 78 027 000 for 1999 (EUR 6 502 250 per month) (1)

4.2 Estimate of effect of January 1999 weightings - EUR 9 886 (2)

4.3 Estimated expenditure for six months [(2) x 6] - EUR 59 316

4.4 Impact in relation to provisional real expenditure [(2) : (1)] - 0,15203%

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