COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 03.06.1997 
COM(97)269 final 
Proposal for a 
COUNCIL REGULATION ÏECSC. EC. EURATOM) 
adjusting the weighting applicable in Greece to the remuneration and pensions of officials 
and other servants of the European Communities 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
Preamble 
Article 4 of Annex XI to the Staff Regulations states that interim adjustments of 
remuneration pursuant to Article 65 are to take effect on 1 January and are to be 
made in the event of a substantial change in the cost of living, due allowance being 
made for the forecast of the change in purchasing power during the current annual 
reference period. 
Article 6 of Annex XI stipulates that adjustments are to be made for all places of 
employment (including Brussels) if the sensitivity threshold is reached in Brussels. 
If this threshold is not reached, adjustments are to be made only for those places 
where the threshold has been exceeded. 
Article 5 of Annex XI provides that the Statistical Office of the European 
Communities (Eurostat) is to calculate the joint index and economic parities and is 
to make a forecast of changes in purchasing power on the basis of the information 
supplied by the Member States. 
Changes in the cost of living in Brussels 
The joint index measuring the cost of living in Brussels rose by 0,9% between 
1 July 1996 and 31 December 1996. 
Economic parities 
The economic parities which establish the equivalence of purchasing power on 
1 January 1997 between Brussels (the reference city) and the other places of 
employment are shown in the table below (column 3). 
The implicit index measuring the change in the cost of living over the reference 
period (column 4) is obtained indirectly by multiplying the joint index for Brussels 
(0,9%) by the change in the economic parity of the place of employment in question 
(Article 3(6) of Annex XI). 
Specific indicator 
The specific indicator reflects changes in purchasing power over the annual 
reference period. It is forecast by Eurostat on the basis of the data supplied by 
national experts at the annual meeting of the "Working Party on Article 65", which 
met this year on 10.3.97. The forecast specific indicator is 0,2%. 
5. Calculation of the adjustment 
As required by Article 7 of Annex XI, the amount of the adjustment is the joint 
index for Brussels (0,9%) multiplied, where appropriate, by half the forecast 
specific indicator if this forecast is negative. The adjustment is therefore 0,9% 
(100,9% x 100,0% = 100,9%). This figure is used to adjust the weightings for those 
places where the threshold has been exceeded. 
Sensitivity threshold 
If exceeded, the sensitivity threshold triggers an adjustment. Article 6 of Annex XI 
sets this threshold at 0,4% (55% of the average change in the cost of living in the 
Community over the period in question), subject to upper and lower limits of 5% 
and 2.75% respectively. Therefore, the value of the threshold is set at 2.75%. 
Since this threshold has not been reached in Belgium, only the weightings for the 
countries/places of employment where inflation exceeds this threshold, i.e. Greece, 
need to be adjusted. 
7. Adjustment of weightings 
The substantial increase in the cost of living in Greece, which has meant a 
deterioration in purchasing power over the period concerned, necessitates an 
adjustment of the relevant weighting. Otherwise the principle of equivalent 
purchasing power for all officials (as laid down in Article 64 of the Staff 
Regulations) would be seriously compromised. 
As required by Article 7 of Annex XI, the weighting for the place concerned will be 
the amount of the adjustment multiplied by the relationship between the relevant 
economic parity and the exchange rate. 
Effective date 
The effective date for the adjustments obtained under the method will be 
1 January 1997, except in countries with high rates of inflation, where the date will 
be earlier so as to obtain a loss of purchasing power which matches the 2.75% 
threshold (see column 6 of the table). This year no earlier payments are required. 
Conclusion 
The attached proposal sets the new weightings applicable as from 1 January 1997 in 
the following countries/places : 
Greece 89,2. 
TABLE OF ECONOMIC PARITIES AND 
CALCULATION OF WEIGHTINGS 
ON 1.1.97 
Adjustment = Brussels joint index x Effect of forecast specific indicator = 
100,9% x100% =100,9% 0,9 % 
Country/Place 
of employment 
(1) 
Belgium 
Denmark 
Germany (a) 
Bonn 
Karlsruhe 
Munich 
Greece 
Spain 
France 
Ireland 
Italy (b) 
Va res e 
Netherlands 
Austria 
Portugal 
Finland 
Sweden 
UK(c) 
Culham Former parity at 
1.7.96 
(BFR 1 in nat. 
currency) 
(2) 
1 
0,23493 
0,054169 
0,048967 
0,048101 
0,053657 
6,6570 
3,7318 
0,19132 
0,018532 
47,517 
45,406 
0,057138 
0,39219 
4,2001 
0,17305 
0,24924 
0,023872 
0,018950 New parity at 
1.1.97 
(BFR 1 in nat. 
currency) 
(3) 
1 
0,23484 
0,053845 
0,048771 
0,047898 
0,053425 
6,8037 
3,7447 
0,19036 
0,018417 
48,188 
45,472 
0,057094 
0,39333 
4,1843 
0,17195 
0,24642 
0,023937 
0,019013 Brussels 
joint index 
and 
implicit 
indices 
(4) 
0,9 
0,9 
0,3 
0,5 
0,5 
0,5 
3,1 
1,2 
0,4 
0,3 
2,3 
1,0 
0,8 
1,2 
0,5 
0,3 
-0,2 
1,2 
1,2 Rate for 
remuneration 
1.7.96 
(BFR 1 in nat. 
currency) 
(5) 
1 
0,18733 
0,048596 
0,048596 
0,048596 
0,048596 
7,6970 
4,0891 
0,16443 
0,020113 
48,998 
48,998 
0,054487 
0,34202 
5,0010 
0,14789 
0,21188 
0,020710 
0,02071 Weighting 
for places 
where 
implicit index 
> 2.75 % 
(6) 
89,2 Effective 
date 
(7) 
1.1.97 
(1) (a) Germany except Bonn, Munich and Karlsruhe 
(1) (b) Italy except Varese 
(1) (c) United Kingdom except Culham 
(3) Exchange rate for the implementation of the EC general budget at 1.07.96 (Art63 of Staff Regulations) 
(4) Implicit index = Brussels joint index x parity 1.01.97 / parity 1.07.96 
(6) Interim weighting = Adjustment x PPP/Exchange rate (for places where the implicit index exceeds 2.75%) 
COUNCIL REGULATION (ECSC, EC, EURATOM) N° /97 
adjusting the weighting applicable in Greece to the remuneration and pensions of 
officials and other servants of the European Communities 
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 and the Conditions of Employment of 
Other Servants of the European Communities laid down by Council Regulation (EEC, 
Euratom, ECSC) No 259/68,1 as last amended by Regulation (Euratom, ECSC, EC) 
No 2485/962 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, 
Having regard to the proposal from the Commission, 
Whereas in the second half of 1996 the cost of living increased substantially in Greece, 
Member State where officials and other servants of the European Communities are 
employed; whereas, therefore, the weighting applicable to the remuneration and pensions of 
these officials and other servants pursuant to Regulation (Euratom, ECSC, EC) 
No 2485/96should be adjusted with effect from 1 January 1997, 
1 OJ No L 56, 4.3.1968, p. 1. 
2 OJL338, 28.12.1996, p. 1. 
HAS ADOPTED THIS REGULATION: 
Article 1 
1. With effect from 1 January 1997, the weightings applicable to the remuneration of 
officials and other servants employed in the countries/places referred to below shall 
be as follows: 
Greece 89,2 
2. The weightings applicable to pensions shall be determined in accordance with 
Article 82(1) of the Staff Regulations. 
Articles 3 to 10 of Regulation (ECSC, EEC, Euratom) No 2175/883 shall continue 
to apply. 
Article 2 
This Regulation shall enter into force on the day followmg 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 
3 OJ No L 191, 22.7.1988, p. 1. 
FINANCIAL STATEMENT 
ESTIMATE OF THE BUDGETARY IMPLICATIONS FOR 1997 OF THE ADJUSTMENT OF THE 
WEIGHTING APPLICABLE IN GREECE TO THE REMUNERATION AND PENSIONS OF 
OFFICIALS AND OTHER SERVANTS 
Administrative budget 
Unit: thousand ecus 
Institution Budgetary implications 
Commission 50 
Parliament 20 
Total 70 
Rate: ECU = BFR 40,2459 at 1.4.1997 

ISSN 0254-1475 
COM(97) 269 final 
DOCUMENTS 
EN 01 
Catalogue number : CB-CO-97-255-EN-C 
ISBN 92-78-20692-X 
Office for Official Publications of the European Communities 
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