Proposal for a COUNCIL REGULATION correcting with effect from 1 July 2000 the remuneration and pensions of officials and other servants of the European Communities

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. PREAMBLE

Article 65 of the Staff Regulations and Article 1 of Annex XI to the Staff Regulations require the Council to undertake an annual review of the remuneration of officials and other servants of the Communities on the basis of a report from the Commission.

This report establishes the various parameters which have to be taken into account for the annual review, in particular the cost-of-living trend for Brussels (composite index comprising the joint index and the Brussels consumer price index), the trend in the purchasing power of civil service remuneration in the Member States (specific indicator), and the economic parities used to calculate weightings.

Following its tax reform, Italy sent Eurostat revised salaries for 2000 in February 2001. The specific indicator and the adjustment for 2000 should therefore be corrected to take account of this new information

2. TREND IN PURCHASING POWER OF THE REMUNERATION OF NATIONAL CIVIL SERVANTS

Specific indicator

Eurostat has worked out the trend in civil service remuneration on the basis of information provided by the Member States [1] for the twelve month period up to 1.7.2000, for each category of official in each Member State.

[1] Including the new information for Italy.

The revised specific indicator measuring the trend in the remuneration of national civil servants in central governments in net real terms for the twelve-month period up to 1.7.2000 is -0,1 % (-0,3% prior to correction).

The figures for each Member State are shown in Table A below:

>REFERENCE TO A GRAPHIC>

3. COST-OF-LIVING TREND FOR BRUSSELS

The joint index measuring the rise in the cost of living in Brussels for the twelve months up to 1.7.2000 calculated by Eurostat is 102,5. The Belgian index (Brussels capital component) is 102,0 for the same period.

4. ADJUSTMENTS PROPOSED

An adjustment from 1.7.2000 is required to take account of cost-of-living increases in the places of employment during the reference period.

Since the Brussels capital component of the Belgian index has risen by 2,0 % and the joint index by 2,5 % over the reference period of 1.7.1999- 1.7.2000, the cost-of-living weighting to be incorporated in the salary tables for Brussels is 2,4 % (25 % x 2,0 % + 75 % x 2,5 %) in line with Article 3(2) of Annex XI to the Staff Regulations.

The specific indicator measuring the trend in the purchasing power of civil servants in the central governments in the Member States recorded during the period 1.7.1999 to 1.7.2000 is -0,1 % (-0.3% prior to correction).

This gives a net nominal increase of 2,3 % (102,4x 99,9 /100) in the remuneration of officials in Brussels and Luxembourg (2.1% prior to correction).

For the purposes of this review, the effective date is 1.7.2000 for all places of employment except the following:

- Ireland, 16 May 2000

An initial adjustment was agreed by the Council on 18 December 2000 [2]. The arrears to be paid under the correction will therefore take account of the payments already made.

[2] OJ L 326, 22.12.2000, p. 3.

Proposal for a COUNCIL REGULATION correcting with effect from 1 July 2000 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 the European Community,

Having regard to the Protocol on the Privileges and Immunities of the European Communities, and in particular Article 13 thereof,

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, [3] as last amended by Regulation (Euratom, ECSC, EC) No ... [4], 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,

[3] OJ L56, 4.3.1968, p.1.

[4] OJ ..., ..., p.1.

Having regard to the proposal from the Commission,

Whereas:

(1) Council Regulation (EC, ECSC, Euratom) No 2804/2000 was unable to take account of the real trend in the net remuneration of Italian civil servants.

(2) The figures showing this trend are now available and show that an additional adjustment should be carried out.

(3) The amounts in that Regulation adjusting the remuneration and pensions of officials and other servants of the European Communities should therefore be corrected under the 2000 annual review,

HAS ADOPTED THIS REGULATION:

Article 1

With effect from 1 July 2000 :

a) the table of basic monthly salaries in Article 66 of the Staff Regulations is replaced by the following:

>REFERENCE TO A GRAPHIC>

b) - EUR 173,93 is replaced by EUR 174,27 in Article 1(1) of Annex VII to the Staff Regulations,

- EUR 223,99 is replaced by EUR 224,43 in Article 2(1) of Annex VII to the Staff Regulations,

- EUR 400,14 is replaced by EUR 400,92 in the second sentence of Article 69 of the Staff Regulations and in the second subparagraph of Article 4(1) of Annex VII thereto,

- EUR 200,17 is replaced by EUR 200,56 in the first paragraph of Article 3 of Annex VII to the Staff Regulations.

Article 2

With effect from 1 July 2000, the table of basic monthly salaries in Article 63 of the Conditions of Employment of Other Servants is replaced by the following:

>REFERENCE TO A GRAPHIC>

Article 3

With effect from 1 July 2000 the fixed allowance referred to in Article 4a of Annex VII to the Staff Regulations shall be:

- EUR 104,59 per month for officials in Grade C4 or C5,

- EUR 160,36 per month for officials in Grade C1, C2 or C3.

Article 4

Pensions for which entitlement has accrued by 1 July 2000 shall be calculated from that date by reference to the table of basic monthly salaries laid down in Article 66 of the Staff Regulations, as amended by Article 1(a) of this Regulation.

Article 5

With effect from 16 May 2000, the weightings applicable to the remuneration of officials and other servants employed in the countries and places listed below shall be as follows: - Ireland 119,2

With effect from 1 July 2000, the weightings applicable to the remuneration of officials and other servants employed in the countries and places listed below shall be as follows: - Ireland 116,5

Article 6

With effect from 1 July 2000, the table in Article 10(1) of Annex VII to the Staff Regulations is replaced by the following:

>REFERENCE TO A GRAPHIC>

Article 7

With effect from 1 July 2000, the allowances for shiftwork laid down in Article 1 of Council Regulation (ECSC, EEC, Euratom) No 300/76 [5] shall be EUR 303,16, EUR 457,57, EUR 500,31 and EUR 682,08.

[5] OJ L 38, 13.2.1976, p.1. This Regulation was supplemented by Regulation (Euratom, ECSC, EEC) No 1307/87 (OJ L 124, 13.5.1987, p.6) and last amended by Regulation (Euratom, ECSC, EC) No ... (OJ ..., ..., p.1).

Article 8

With effect from 1 July 2000, the amounts in Article 4 of Council Regulation (EEC, Euratom, ECSC) No 260/68 [6] shall be subject to a weighting of 4,376269.

[6] OJ L 56, 4.3.1968, p.8. This Regulation was last amended by Regulation (Euratom, ECSC, EC) No ... (OJ ..., ..., p.1).

Article 9

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

FINANCIAL STATEMENT

Estimate of the budgetary implications over 12 months resulting from the correction of +0.2% of the annual adjustment of the remuneration and pensions of officials and other servants of the European Communities

>REFERENCE TO A GRAPHIC>