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COM (85) 531 
 
 
 
Vol. 1985/0 196 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the openi ng to the public of the historical archives of the European Econom ic 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this f ile is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 198 3 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 vom 27 .9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION OF THE EUROPEAN COMMUNITIES
C 0 N 1 8 5 ) 5 3 1  final
Brussels, 8 October 1985
R E P O R T  F R O M  T H E  C O M M I S S I O N  T O  T H E  C O U N C I L
O N  T H E  U T IL IZ A T IO N  O F  S U M S  A V A I L A B L E  F O R  G R A N T I N G  B U IL D IN G  L O A N S  
T O  O F F IC IA L S  O F  T H E  E U R O P E A N  C O M M U N I T I E S  O V E R  T H E  P E R IO D  
1  J A N U A R Y  T O  3 1  D E C E M B E R  1984
C O M C 8 5 )  5 3 1  final

R E P O R T  T O  T H E  C O U N C I L  O N  T H E  U T IL IZ A T IO N  O F  S U M S  A V A I L A B L E  
F O R  G R A N T I N 6 B U I L D I N G  L O A N S  T O  O F F IC IA L S  O F  T H E  
E U R O P E A N  C O M M U N I T I E S  O V E R  T H E  P E R I O D  1  J A N U A R Y  T O  3 1  D E C E M B E R  1 9 8 ^
INTRODUCTORY NOTE
V
This is the twelfth report draw n u p  b y  the C om m ission. It covers the period 
from  1  January to 3 1  D ecem ber 1 98^ and is in four parts:
I. B ackground
II. W o rk  of the L oans C om m ittee
III. Utilization of funds in 19 8 3
IV . Conclusions
Attached to the report are tables show ing the num ber of loans granted, the 
num ber of officials involved and the location of the properties financed in 
each reporting period.

I. B A C K G R O U N D
T h e  funds draw n o n  b y  the C om m ission to m a k e  buiLding loans available to 
C o m m u n ity  officials c o m e  from  the former E C S C  Pension Fund.
1. E C S C  Pension F u n d
A . Origin and developm ent
T h e  E C S C  Pension F u n d  w a s set u p  o n  1  July 1956 under the E C S C  Staff 
Regulations draw n u p  b y  the C om m ittee of Presidents o n  2 8  January 1956 (these 
rem ained in force until 3 1  D ecem ber 1961) and a  general C o m m u n ity  regulation.
This Pension F u n d  belonged to the E C S C . It w as m anaged b y  the H ig h  Authority 
until the M erger Treaty c a m e  into force and thereafter b y  the single 
C o m m i  ssion.
O w nership of the F u n d  w a s not affected b y  the n e w  Staff Regulations w hich 
applied from  1  January 1 9 6 2  to 4  M arch  1968 or b y  the M erger Treaty, 
Article 2 4  of which, however, required the Council to prepare a  c o m m o n  set of 
Staff Regulations.
T hese w ere adopted b y  the Council o n  2 9  February 1968 (Regulation N o  259/68) 
an d  c a m e  into force o n  5  M arch  1968.
F ro m  that date officials' pensions becam e part of the budget. Contributions 
are n o w  entered as a  revenue item  in the general budget and paym ents as 
expenditure.
Article 8 3  of the n e w  Staff Regulations includes the following special 
provisions:
"T he em ploym ent of the funds for the. former pension schem e referred to in 
Article 83(1) of the former Staff Regulations of the European C oal and Steel 
C o m m u n ity  shall b e decided upon b y  the Council acting b y  a  qualified majority 
o n  a  proposal from  the C om m ission after consulting the Staff Regulations 
Committee."

After consulting the Staff Regulations Committee the 
the Council that part of the funds should be used 
available to Community officials.C om m ission proposed to 
to m a k e  building loans
O n  2  M arch  19 7 0  the Council took the following decision:
"T he su m s entered in the E C S C  balance sheet under "Pension Fund", n o w  m anaged 
b y  the Com m ission, shall be used b y  the C om m ission as follows:
(a) u p  to 4 0 %  shall be m a d e  available as building loans to officials of the 
C om m unities as part of a  housing policy;
(b) u p  to 6 0 %  shall be used to cover retraining com m itm ents under Article 5 6
of the E C S C  Treaty and to grant loans at reduced rates of interest for
the purposes of the social and econom ic objectives of the E C S C  Treaty in 
accordance with the terms of the financial operations provided for 
therein."
B . Size of E C S C  Pension F u n d
A t 3 0 June 1968 the assets of the Pension F u n d  totalled 2 5  5 0 9  3 5 1  u.a., viz:
contributions from  officials 6 5 4 0  8 72 u.a.
contributions from  the institutions 1 8  364 0 2 2  u.a.
interest 604 457 u.a.
T h e Pension F u n d  w as augm ented b y  a  contribution of 7  000 000 u.a. betw een
1 9 74 and 19 7 6  from  the n e w  M e m b e r States under Protocol N o  2 4  to the
Accession Treaty, and b y  a  contribution of 2 8 2  000 E C U  in 1981, 1982 and 1983 
from  Greece.

C. Loans by ECSC High Authority
Following a decision taken by the High Authority on 18 December 1963, part of  
the Pension Fund's assets were used to top up loans made to officials covered  
by the ECSC Staff Regulations for the construction, purchase or conversion of  
a dwelling.
This decision allowed up to 10% of the Pension Fund's assets to be used for  
this purpose. The High Authority granted loans totalling 2 541 970 u.a. to  
225 officials at an interest rate of 3.50%.
2. New implementing provisions from 17 June 1971
Following the Council Decision of 2 March 1970 authorizing the Commission to  
use 40% of the ECSC Pension Fund for loans to officials, the Commission, after  
consulting the Council, adopted implementing provisions.
The basic principle was that the funds should be "revolving", that is to say 
that loans should be made available not only from the initial sum (40% of the  
Pension Fund) but also through the immediate redistribution of sums repaid  
monthly by borrowers (capital plus interest).
The interest rate was fixed at 4%. This can only be changed with the  
agreement of the Council on a proposal made by the Commission after consulting  
the Staff Regulations Committee; no such proposal has yet been put forward,  
and the Commission does not at the moment intend to present one.
The loans are guaranteed by:  
death and invalidity insurance;  
assignment of salary or retirement pension;  
assignment of severance grant;
prohibition of any mortgage without the Commission's prior written consent;  
limitation of the financial commitment entered into by the borrower.

The Commission undertook to grant a total of not less than Bfrs 50 000 000 in  
loans each year, and this commitment has always been honoured.
Because a large number of loan applications could not be satisfied in 1971 and  
1972, the Commission decided to increase the social emphasis of its lending  
policy by introducing priority criteria reflecting the financial situation and  
family responsibilities of applicants.
Since then the Commission has been able to grant a number of loans each year.  
The number of loans should be increasing in theory but in practice expansion  
is being slowed down by the impact of increases in the cost of living.
There is also a considerable disparity between the funds available and the  
number of officials employed by the institutions, which means that it is  
impossible to grant all the applications. Moreover, the Commission intends
to grant loans to temporary staff under contract for an indefinite period,  
subject to certain insurance requirements.
3. Loans granted from budget appropriations
This is why the Commission asked the Council again and again from 1973 onwards  
to make funds available under the budget. The Council steadfastly refused.
In 1976, however, Parliament authorized the insertion of a one-off  
appropriation of 1 000 000 u.a. in Chapter 14. Receipts (capital repayments  
plus interest) were to be entered under Chapter 81 and so, unlike the  
ECSC Pension Fund assets, do not constitute a revolving fund. These budgetary  
funds were used to the full in 1976, enabling 67 loans, totalling  
Bfrs 49 999 994, to be granted.
Receipts (capital repayments plus interest) are entered in Chapter 81 each  
year. The amount outstanding at 31 December 1984 was Bfrs 30 386 098.

-  16  -
II. WORK OF THE LOANS COMMITTEE
The Loans Committee was established by/Commission decision on 19 May 1971 and  
became operational when the implementing provisions adopted by the Commission  
came into force on 18 June 1971.
It is a fully representative body, half its members being appointed by the  
institutions and half by the various Staff Committees.
After a running-in period ip 1971, it began to vet loan applications as these  
were submitted. This exercise revealed that some of the implementing
provisions were open to interpretation.
Some provisions were amended to facilitate their application.
Before long the Committee became aware of the need to apply priority criteria  
reflecting the family responsibilities and financial situation of applicants.
Three systems for identifying applicants with the strongest social claims to  
assistance were devised.
The latest, which has been operating since 1976, is the most selective and  
takes into consideration:
(a) the location of the property to be financed;
(b) the applicant's age and family responsibilities;
(c) the applicant's financial situation.
The Committee held four ordinary meetings in 1984 and considered more than 350  
applications.
On the basis of the above criteria, it approved 108 applications (three were for 
transfers) and rejected six.

III. UTILIZATION OF FUNDS IN 1984
A. General administration
In1984 Since1 August 1971
(a)Applications lodged 145 3 397
(b)Loans granted 105 2 195
(c)Loans refused 6 8.9
(d)Applications withdrawn 5 954
(e)Applications pending 26 159
(f)Number of beneficiaries 95 2 097
B.Financial administration
(a)ReceiptsBfrs129 411 681
Loans redeemed Bfrs73099736
Interest Bfrs'40594715
Repayments (death,
invalidity, etc.) Bfrs15717230
(b) Loans granted Bfrs 119 787 915
(c) Outlook for 1985
Receipts are estimated at Bfrs 136 000 000; this should make it possible  
to grant about 100 loans.
It will be remembered that 67 loans were granted from budget
appropriations (Article 145) in 1976. The total sum involved was  
Bfrs 49 999 994.
(e) Receipts entered under Article 812 of the 1984 budget came to
Bfrs 2 021 092 for redemptions, Bfrs 1 237 209 for interest, and Bfrs 1 653 163  
for repayments.
(f) The capital sum outstanding at 31 December 1984 was Bfrs 30 386 098.
t

IV. CONCLUSIONS
1. New applications in 1984 totalled 145.
2. During the year 105 loans, totalling Bfrs 119 787 915 were granted.
3. The obligation imposed by the Council to distribute a minimum of  
Bfrs 50 000 000 a year was therefore respected.
4. On 31 December 1984 159 applications were pending.
5. The ceilings set in June 1971 have been raised as follows over the years  
in line with increases in the Belgian retail price index:
On1 7’  June 1971: Bfrs600000+Bfrs50000perchi Id
On1May 1972: Bfrs630000 +Bfrs52500perchi Id
On1December 1972: Bfrs660000+Bfrs55000perchi Id
On24■  January 1974: Bfrs693000+Bfrs57750perchi Id
On1April 1974: Bfrs727650+Bfrs60638perchi Id
On1August 1974: Bfrs764033+Bfrs63670perchi Id
On1January 1975: Bfrs802235+Bfrs66854perchi Id
On1July 1975: Bfrs842347+Bfrs70197perchi Id
On1January 1976: Bfrs884464+Bfrs73707perchi Id
On 1October 1976: Bfrs928687+Bfrs77392perchi Id
On1July 1977: Bfrs975121+Bfrs81262perchi Id
On1October 1978: Bfrs1023877+Bfrs85325perchi Id
On1November 1979: Bfrs1075071+Bfrs89591perchi Id
On1August 1980: Bfrs1128825+Bfrs94071perchild
On1April 1981,: Bfrs1185266+Bfrs98775perchi Id
On1January 1982: Bfrs1244529+Bfrs103 714 per child
On1August 1982: Bfrs1306755+Bfrs108 900 per child
On1May 1983: Bfrs1372093+Bfrs114 345 per child
On1February 1984: Bfrs 1440 698 +Bfrs 120 062 per chi Id
Ceilings have been raised by only 1 4 0 %  although the A B E X  index e r f  
building costs shows an increase of 1 9 5 %  between 1 November 1971 and  
1 November 1984.

LIST Or TABLES
TABLE 1. Loan applications since 1 August 1971.
TABLE 2. Sums lent since 1 August. 1971.
TABLE 3. Officials granted loans since 1 August 1971.
Breakdown by category and grade.
TABLE 4. Officials granted loans since 1 August 1971.
Breakdown by nationality.
TABLE 5. Properties for which loans granted since 1 August 1971.  
Breakdown by location.
TABLE 6. Situation at 31 December 1984.

Table 1
L o a n  applications since 1  A ugust 1 9 7 1
1/8/71 to 
31/7/73 
(24 months.1/8/73 to 31/7/75  
(24 months)1/8/75 to 
31/12/76 
(18 months)197719781979 19801981 1982 19831984
a) Applications  
received 1400 324 341 294143146 156140 167 141145
b) Applications
withdrawn or cance ted 82 120 66 41234 87 6524 14 145
c) Loans refused 28 16 6 13 64 43 1 26
d) Loans granted 867 179 271 198 90116 106 111 121 103105
e) Cumulative total  
of applications  
pending at end of  
each period423432392 452278216 244 248 225 168159
Number of officials  
involved (some loans  
were paid in two  
instalments)
---—____________ I77
7 161
<265 194 84106 98106 118 9495

Table 2
Sums lent since 1 August 1971
Note: 40% of ECSC Pension Fund (Bfrs 510 187 020) plus interest
1970/71 (Bfrs 7 104 737) less balance due on ECSC loans (Bfrs 93 878 178)
1/8/71 to 
31/7/73 
(24 months1/8/73 to 31/7/75  
(24 months))1/8/75 _to  
31/12/76
(18 montfs)1977 1978 1979 1980 1981 1982 1983 1984
(a)423 413 579 20 425933 -80606384- - - - - -
(b) - - -140 000 000 - - - - 20000001.200 000 2100000
(c)30 010 659 53 935701 58 647 723 39056 0284491897851001 07956.274.293 5961718063758 1536867143273099
20 956 710 41 702074 33 315 305 281577583165732633077 95735.029.625 3636573638148 7593971608840594
3 072 113 11 439326 10 621 403 74060941649129418097 94412.953.248 1840732817044 2681616856215717
<d)459 553 869 127 854485 159 119 855 17251182888771261106869 665105.985.500 117710219123616 900110245500119787
(a) Funds available at beginning of period'
(b) Contribution from new Member States
(c) Receipts for period
. Redemptions  
. Interest  
. Repayments
(d) Loans granted during period

Officials granted loans since 1  A ugust 1 9 7 1  
1. B reak d o w n  b y  category and gradeTable 3
1/5/71 to... - . ____g ,
1/
8/73 to 31/7/75 1/8/75 to
31/7/73 (24 months) 31/12/76 197719781979 19801981 19821983 1984
(24 months )(18 months]
A 1 2- _ __ _ . --
A 2 12 - -- - -- - - “
A 3 32 - - - - -- - -
A 4 64 1 - - - - -- -,
A 5 125 17 4 - - - 11 - —
A 6 70 15 10 3 -1 1- 2— —
A 7 19 6 5 1-1 -1-1 1
A 8 1 *  — - --“ - - -·-
TOTAL A 325 39 19 4-2 22 21 1
B 1 40 6 12 7 1 1 11
6 2 65 9 23 11 68 59 54
e 3 69 23 37 18 913 13 7.  14 67
B 4 40 17 13 12 63 56 8810
B 5 15 9 8 712 11 22
TOTAL B 229 64 93 552227 2523 302018
C 1 46 10 22 14 910 912 13311
C 2 75 20 63 491928 1917 21201 4
C 3 56 18 38 281318 2921 152126
C A 11 1 9 12 25 3.  9 1087
C 5 2 3 -31 1- 312
TOTAL C 190 49 135 103 4662 6159 625360
D 1 22 6 9 727 412 875
9D 2 11 2 8 15 86 581111 2D 3 - 1 1 10 62 12 52
16
|  TOTAL 0 33V18 321615 1022 2420
;  TOTALS 777 161 265 194 84106 98106 11? 1  94" 95
i

Table 4
Officials granted loans since 1  A ugust 1 9 7 1  
2. B reakdow n b y  nationality
1/8/71 to 
31/7/73 
(24 months)1/8/73 to 31/7/75 '  
(24 months)1/8/75 to 
31/12/76 
(18 months)197719781979 19801981 19821983 1984
3 E L G I U M . 147 45 79 592025 1529 31 2730
D E N M A R K - - - -21 21 2 1 -
G E R M A N Y 199 28 46 281515 1511 14 84
F R A N C E 127 30 42 271211 1515 17 717
I R E L A N D - - ■  - .....11 - 51 2 32
I T
A L Y 208 42 66 642938 3037 43 3925
L U X E M B O U R G 28 6 5 2-5 44 3 65
N E T H E R L A N D S 65 10 25 754 55 2 26
U N I T E D  K I N G D O M 3 - 2 5 -6 62 3 15
O T H E R S--- 1 - - 11 1 -1
T O T A L S 777 161 265 194 84106 9 8106 118 9495
3. Breakdown by in stitutior
C O M M I S S I O N 678 144 231 145 6075 8177 84 6155
P A R L I A M E N T 35 7 10 544 5811 1814
C O U N C I L 38 9 16 351522 916 17 9 2 1
C O U R T  O F  J U S T IC E 12 1 3 321 13 1 1 1
C O U R T  O F  A U D I T O R S 4 -- -2 - - - 1 3 2
E C O N O M I C  A N D  S O C I A L  
C O M M I T T E E1 0 - 5 614 22 4 22
T O T A L S 777161265I194 84106 98106 118 9495

Table 5
Properties for w hich loans granted since 1  A ugust 1 9 7 1  
1. B reakdow n b y  location
1/8/71 to 1/8/73 to 31/7/75 ,1/8/75to
31/7/73 (24 months) 31/12/76 19771978 1979 1980 1981 1982 1983 1984
(24 months) (18 months)
BELGIUM 401 90 184 15254 69 66 7577 5768
DENMARK - “ - - - 1 - 1 - - -
GERMANY 24 - 8 2 - 2 3-2- -
FRANCE 55 8 10 . . .  3 .1 4 3 4311
IRELAND - -* - - - 1 -1 - -
ITALY *65 31 31 1717 14 10 1011 64
LUXEMBOURG . 109 26 25 1511 14 14 1524 3022
NETHERLANDS 20 5 7 21 - - 1 ‘ - -
UNITED KINGDOM 3 - - - - 2 1 - - - -
OTHERS - 1- 1 - - - - - -- -
TOTALS ■ 7 7 7 1 6 1 265 19484106 98106118 94 9 5
2. Breakdown by lo cation inrelation t :o borrowe r
PLACE OF EMPLOYMENT 667 1 5 1 240 18883 93 96 97110 9394
PLACE OF ORIGIN 75 9 25 6113 2 98 11
ELSEWHERE 35 1 - - - - - - - - -
TOTALS 77 7 1 6 1 265 19484106 98106118 94 9 5

IX/B/2 - Building loansTable 6
SITUATION AT 31 DECEMBER 1984
GRADE
1STAFF
NUMBERS
2APPLICATIONS SUCCESSFUL APPLICANTS BY NUMBER OF 
EPENDANTS AS DEFINED IN THE STAFF  
REGULATIONS fFXCI. SPOlISFlRATIO
’LICATIONS
PENDINGAPPLICATIONS  
PENDING AS REC'D
3WITH­
DRAWN
4RF.IFOTFnD
APPLICA­
TIONS/
staffLOANS
GRANTED/
APPLICA­
TIONSAPF
5 DOSSER
INCOM­
PLETEDOSSIERTOTALX OF
APPLICATIONS
RECEIVED
fr 1  
•  2
3
4
5
6
7
8'4 2  
191 
610 
1.544 
1.795 
1.199 
979 
66
26
95
182
287
180
62
14
.  1 1  
47 
100 
116 
68 
241 2TOT 0 1 23 4 j  5 6 7TOTALNUMBERSourir
RPL*-C. 1  L
OTHER
2
9
6
7
4
11
5
3
3
13
14
9
10
5
11
4
4  
17 
14
54 
2
5  
13 
13
3«i
13 
2 1  
54 
30
14 
14
7
1 5
4 1
28
131
1
2
16
18
1 1
1i ;
5
2
4
4
11
132
12
33
66
148
100
37
1.  -
11
7
12
611
7
13
7
TOTAL A 6.366 839 370 29 13 42 45 40 134 108 50 17 2 3 399 13,18 X 47,56 % 1 26 1 28 3,34 X
e 1  
2
34
5808 
954 ·  
956 ' 
664 
361122
221
296
194
7 138
58
67
50
205
4
4
5  
12
6
17
10
5
5
11 1
28
33
13
101 1
17
34
30
1325
58 
93
59 
1312
33
35
20
69
8
13
8
61
4
1< 1
370
147
212
131
48374
7
6
12
2
2
17
■  6  
12
8  ?
TOTAL B 3.743 904 233 19 928 95 105 248 106 44 6 4- 608 24,15 X 67,26 X 3 25 7 35 3,87 X
C  1  
2
3
4
51.589
2.131
1.970
713
339220
501
373
118
1942
116
72
27
24
3
4  
21
3
25
6 
6  
268
97
61
10
237
113
94
15
534
8 1
8 1
40
51 5
39
28
1 15
6
10
2
35
11
2-159
347
276
78162
3
1
29
23
1 2
73
6
6
2
114
32
19
1 1
TOTAL C6.742 1.231 259 13619 238 269 241 93 26 6 3 876 18,26 X 71,16 X 8 5 1 18 77 6,26 X
D  1  
2
3
4484
453
402
3105
116
377
12
6--15
6
223
27
634
43
1413
10
64
7
1 21
-89
94
3 11
14
74
29
10
TOTAL D 1.342 258 25--- 23 56 9 1 29 12 2 1- 214 19,23 7.82,95 X 2 1 1 6 19 7,36 X
GRAND
TOTAL18.193 3.232.887 6 1 28 89 401 470 714 336j132
1 . __l__3 1 1
0 3 2.097 17,77 7.64,88 X 14113
1432(
5159 4,92 X
Col. 5: 1 = not admissible (does not comply with rules). RPL* = Repayment of previous loans.
2 = rejected for social reasons.