EXPLANATORY MEMORANDUM

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

The first paragraph of Article 13 of Annex X required the Council to determine the weightings for third countries every six months.

Council Regulation (ECSC, EEC, Euratom) No 2175/88 of 18 July 1988 laid down the initial weightings applicable from 10 October 1987.

This system of remuneration has also applied to contract staff since the new Staff Regulations entered into force on 1 May 2004 (Regulation (EC, Euratom) No 723/2004 of 22 March 2004).

The first paragraph of Article 13 of Annex X to the new Staff Regulations requires the Council to set the weightings applicable in third countries annually.

The most recent weightings, which took effect on 1 July 2009, were laid down by the Council in Regulation (EU) No 768/2010 of 26 August 2010.

The attached proposal adjusts the weightings applicable from 1 July 2010 to the remuneration of officials, temporary staff and contract staff of the European Communities serving in third countries.

Under Article 64 of the Staff Regulations, the remuneration system for staff serving in countries outside the Union is based on purchasing power parity of remuneration paid in local currency compared to 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 by comparing (prices at) Brussels and the other places of employment.

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 Annex to the proposed Regulation sets out the weightings derived from the parities communicated by Eurostat for July 2010 for all places of employment. A detailed comparison with July 2009 is set out below ( Summary of the Overall Change in the Parities ). The budgetary impact is small (in percentage terms); see the Financial Statement.

2011/0208 (NLE)

Proposal for a

COUNCIL REGULATION

laying down the weightings applicable from 1 July 2010 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, and in particular Article 336 thereof,

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 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 countries outside the Union and to determine accordingly the weightings applicable from 1 July 2010 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 (EC) No 613/2009[2] may lead to retrospective 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 2010 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 and for its effects to be spread over a period of no more than twelve months following that date, as is the case with the weightings applicable within the Union to the remuneration and pensions of officials and other servants of the Union,

HAS ADOPTED THIS REGULATION:

Article 1

With effect from 1 July 2010, 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 shown in the Annex.

The exchange rates for the calculation of such remuneration shall be established in accordance with Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities[3] and shall correspond to 1 July 2010.

Article 2

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

2. The institutions shall make retrospective downward adjustments to remuneration in the event of a reduction as a result of the weightings shown in the Annex for the period between 1 July 2010 and the date of entry into force of this Regulation.

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

JULY 2010

PLACE OF EMPLOYMENT | Economic parity July 2010 | Exchange rate July 2010 (*) | Weighting July 2010 (**) |

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

Albania | 86,28 | 136,693 | 63,1 |

Algeria | 73,2 | 94,6259 | 77,4 |

Angola | 137 | 115,037 | 119,1 |

Argentina | 3,321 | 4,8506 | 68,5 |

Armenia | 376,7 | 453,4 | 83,1 |

Australia | 1,542 | 1,425 | 108,2 |

Azerbaijan | 1,088 | 0,9806 | 111 |

Bangladesh | 50,15 | 85,5047 | 58,7 |

Barbados | 2,979 | 2,4518 | 121,5 |

Belarus | 2610 | 3722,37 | 70,1 |

Belize | 1,81 | 2,4049 | 75,3 |

Benin | 610,3 | 655,957 | 93 |

Bolivia | 5,66 | 8,563 | 66,1 |

Bosnia and Herzegovina (Banja Luka) | 1,253 | 1,95583 | 64,1 |

Bosnia and Herzegovina (Sarajevo) | 1,456 | 1,95583 | 74,4 |

Botswana | 5,447 | 8,62069 | 63,2 |

Brazil | 2,459 | 2,1946 | 112 |

Burkina Faso | 634,6 | 655,957 | 96,7 |

(***) | Burundi | 0 | 0 | 0 |

Cambodia | 4448 | 5201 | 85,5 |

Cameroon | 612,1 | 655,957 | 93,3 |

Canada | 1,207 | 1,2812 | 94,2 |

Cape Verde | 81,84 | 110,265 | 74,2 |

Central African Republic | 664,5 | 655,957 | 101,3 |

Chad | 733,3 | 655,957 | 111,8 |

Chile | 452,4 | 652,86 | 69,3 |

China | 8,31 | 8,2918 | 100,2 |

Colombia | 2185 | 2304,82 | 94,8 |

Congo (Brazzaville) | 765,4 | 655,957 | 116,7 |

Costa Rica | 599,1 | 641,853 | 93,3 |

Côte d'Ivoire | 634,7 | 655,957 | 96,8 |

Croatia | 5,972 | 7,1973 | 83 |

Cuba | USD 1,006 | USD 1,2198 | 82,5 |

Democratic Republic of the Congo (Kinshasa) | USD 1.801 | USD 1.2198 | 147,6 |

Djibouti | 237,9 | 216,784 | 109,7 |

Dominican Republic | 31,13 | 44,0387 | 70,7 |

Ecuador | USD 0.9829 | USD 1.2198 | 80,6 |

Egypt | 4,159 | 6,99795 | 59,4 |

El Salvador | USD 0,9752 | USD 1.2198 | 79,9 |

Eritrea | 17,91 | 18,8103 | 95,2 |

Ethiopia | 15,26 | 16,7933 | 90,9 |

Fiji | 1,573 | 2,43635 | 64,6 |

Former Yugoslav Republic of Macedonia | 37,3 | 61,6021 | 60,5 |

Gabon | 685 | 655,957 | 104,4 |

Gambia | 28,07 | 32,8 | 85,6 |

Georgia | 1,652 | 2,2603 | 73,1 |

Ghana | 1,284 | 1,75825 | 73 |

Guatemala | 7,756 | 9,7462 | 79,6 |

Guinea (Conakry) | 4931 | 7293,53 | 67,6 |

Guinea-Bissau | 624,3 | 655,957 | 95,2 |

Guyana | 173,2 | 250,657 | 69,1 |

Haiti | 54,21 | 50,0791 | 108,2 |

Honduras | 19,13 | 23,129 | 82,7 |

Hong Kong | 10,35 | 9,4958 | 109 |

Iceland | 149,4 | 157,29 | 95 |

India | 39,17 | 56,702 | 69,1 |

Indonesia (Banda Aceh) | 8672 | 11052,7 | 78,5 |

Indonesia (Jakarta) | 9431 | 11052,7 | 85,3 |

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

Israel | 5,229 | 4,7628 | 109,8 |

Jamaica | 112 | 104,64 | 107 |

Japan (Tokyo) | 162,6 | 108,31 | 150,1 |

Jordan | 0,8491 | 0,86484 | 98,2 |

Kazakhstan (Astana) | 174 | 180,65 | 96,3 |

Kenya | 83,16 | 99,834 | 83,3 |

Kosovo (Pristina) | 0,6088 | 1 | 60,9 |

Kyrgyzstan | 44,4 | 56,1108 | 79,1 |

Laos | 8644 | 10164 | 85 |

Lebanon | 1612 | 1838,85 | 87,7 |

Lesotho | 6,406 | 9,318 | 68,7 |

Liberia | USD 1.321 | USD 1.2198 | 108,3 |

Libya | 1,011 | 1,6193 | 62,4 |

Madagascar | 2218 | 2720,67 | 81,5 |

Malawi | 166 | 184,836 | 89,8 |

Malaysia | 3,189 | 3,9692 | 80,3 |

Mali | 657,2 | 655,957 | 100,2 |

Mauritania | 233,1 | 346,305 | 67,3 |

Mauritius | 32,06 | 40,028 | 80,1 |

Mexico | 12,22 | 15,6591 | 78 |

Moldova | 10,16 | 15,7927 | 64,3 |

Montenegro | 0,6501 | 1 | 65 |

Morocco | 8,577 | 10,997 | 78 |

Mozambique | 29,96 | 42,61 | 70,3 |

Namibia | 8,034 | 9,318 | 86,2 |

Nepal | 75,54 | 90,77 | 83,2 |

New Caledonia | 135,5 | 119,332 | 113,5 |

New Zealand | 1,764 | 1,7579 | 100,3 |

Nicaragua | 16,53 | 26,0955 | 63,3 |

Niger | 578 | 655,957 | 88,1 |

Nigeria (Abuja) | 179,9 | 181,748 | 99 |

Norway | 11,12 | 7,9085 | 140,6 |

Pakistan | 54,66 | 104,835 | 52,1 |

Panama | USD 0.8233 | USD 1.2198 | 67,5 |

Papua New Guinea | 3,58 | 3,4638 | 103,4 |

Paraguay | 3881 | 5830,04 | 66,6 |

Peru | 3,165 | 3,4502 | 91,7 |

Philippines | 44,41 | 56,609 | 78,5 |

Russia | 40,98 | 38,13 | 107,5 |

Rwanda | 702,7 | 721,185 | 97,4 |

Samoa | 2,91 | 3,15976 | 92,1 |

Saudi Arabia | 3,619 | 4,4823 | 80,7 |

Senegal | 592,1 | 655,957 | 90,3 |

Serbia (Belgrade) | 70,63 | 104,089 | 67,9 |

Sierra Leone | 5193 | 4764,26 | 109 |

Singapore | 2,062 | 1,7075 | 120,8 |

Solomon Islands | 10,8 | 9,7236 | 111,1 |

South Africa | 6,319 | 9,318 | 67,8 |

South Korea | 1577 | 1484,96 | 106,2 |

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

Sri Lanka | 114,1 | 140,185 | 81,4 |

Sudan (Khartoum) | 2,663 | 3,01508 | 88,3 |

Suriname | 2,179 | 3,46 | 63 |

Swaziland | 6,689 | 9,318 | 71,8 |

Switzerland (Berne) | 1,586 | 1,3258 | 119,6 |

Switzerland (Geneva) | 1,617 | 1,3258 | 122 |

Syria | 52,11 | 57,71 | 90,3 |

Taiwan | 35,34 | 39,365 | 89,8 |

Tajikistan | 3,751 | 5,34565 | 70,2 |

Tanzania | 1295 | 1691,16 | 76,6 |

Thailand | 32,43 | 39,564 | 82 |

Timor Leste | USD 1.212 | USD 1.2198 | 99,4 |

Togo | 563,8 | 655,957 | 86 |

Trinidad and Tobago | 7,192 | 7,85895 | 91,5 |

Tunisia | 1,338 | 1,8572 | 72 |

Turkey | 1,899 | 1,9303 | 98,4 |

Uganda | 1946 | 2768,57 | 70,3 |

Ukraine | 7,584 | 9,69851 | 78,2 |

United States (New York) | 1,286 | 1,2198 | 105,4 |

United States (Washington) | 1,232 | 1,2198 | 101 |

Uruguay | 24,06 | 25,5548 | 94,2 |

Uzbekistan | 1095 | 1942,23 | 56,4 |

Vanuatu | 152,5 | 127,05 | 120 |

Venezuela | 4,246 | 5,23861 | 81,1 |

Vietnam | 13488 | 23380,7 | 57,7 |

West Bank - Gaza Strip | 5,512 | 4,7628 | 115,7 |

Yemen | 202,4 | 278,652 | 72,6 |

Zambia | 4985 | 6254,26 | 79,7 |

(***) | 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. |

N.B. | 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. |

FINANCIAL STATEMENT

1. TITLE OF OPERATION

Proposal for a Council Regulation laying down the weightings applicable from 1 July 2010 to the remuneration of officials, temporary staff and contract staff of the European Communities serving in third countries.

2. BUDGET LINES CONCERNED

CE (BGUE-B2011): XX-01.01.02-11.01, 08.01.05.01, 19.01.04.02-02,

19.01.04.03-02, 21.01.04.01-02, 21.01.04.10.

SEAE/EEAS (B2011) : 1100, 3000, 3001.

3. LEGAL BASIS

Articles 12 and 13 of Annex X to the Staff Regulations.

4. FINANCIAL IMPACT

4.1 For EC + SEAE/EEAS budgets

Estimated amount for 2010 of the salaries of all staff posted outside the Union €187 175 000 (1)

Estimated actual expenditure in local currency for 2010, just the staff concerned €12 884 461 (2)

Estimated impact of weightings July 2010 + €1 305 029 (3)

Difference

[(3) : (1) =] + 0,006973

[(3) : (2) =] + 0,101287

4.2 For the EC budget

Estimated actual expenditure in local currency 2010 for just the staff concerned €7 166 250 (1)

Estimated impact of weightings July 2010 + €659 617 (2)

Difference

[(2) : (1) =] + 0,092045

4.3 For the SEAE/EEAS budget

Estimated actual expenditure in local currency 2010 for just the staff concerned €5 718 211 (1)

Estimated impact of weightings July 2010 + €645 412 (2)

Difference

[(2) : (1) =] + 0,1128694

N.B. For details see the basic table; because of its size it is available only in electronic format (Excel). It can be supplied, on request, by Division EEAS/MDR/C3. With the ‘ Table coef correct’ tab you can see the trend in weightings over the previous twelve months and compare them with this proposal for July 2010. The ‘ Calculs ’ tab shows the persons concerned, their salary in local currency and their place of employment. The ‘ Synthèse fonct contract’ tab summarises the various amounts by population group (officials (FO) and contractual staff (AC)). The ‘ Synthèse budget’ tab sets out the totals making up the grand total, grouped by budget line (one column per line, where the budget codes are associated with different PMO codes).

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

[2] OJ L 181, 14.7.2009, p. 1.

[3] OJ L 248, 16.9.2002, p. 1.