Proposal for a COUNCIL REGULATION (ECSC, EC, EURATOM) adjusting with effect from 1 July 2000 the remuneration and pensions of officials and other servants of the European Communities and the weightings applied thereto

(presented by the Commission)

EXPLANATORY MEMORANDUM (Summary of Eurostat report)

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.

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

2.1. Specific indicator

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

The 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 -0,3 %.

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

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2.2. Control indicators

By way of control indicators Eurostat shows the changes in real terms of per capita emoluments in general government 99,8 % and in central government 99,8 %.

These indicators are compared with the gross real specific indicator of 99,2 %.

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. ECONOMIC PARITIES (Article 1(3) of Annex XI)

The economic parities used to establish the equivalence of purchasing power for the reference city, Brussels, and the other places of employment at 1.7.2000 are shown in Table B below.

Cost-of-living trends in the reference period between the effective dates of the economic parities (column 4) are indirectly derived from the product of the joint index for Brussels and the variation in the economic parity for the place of employment in question.

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5. INTERMEDIATE ADJUSTMENT

An initial adjustment for the change in the cost of living was made by the Council [1] for the reference period i.e. the second half of 1999 with effect from 1.1.2000, in respect of the following countries:

[1] on ...

- none

The adjustment to be made for the trend in the cost of living thus takes into account the interim adjustment for these countries.

6. 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 -0,3 %.

This gives a net nominal increase of 2,1 % (102,4x 99,7 /100) in the remuneration of officials in Brussels and Luxembourg.

For the other places of employment the adjustments are derived indirectly from the product of this change and the variation in the economic parity.

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

7. WEIGHTINGS

a) Incorporation of the increase for Brussels from 1.7.1999 to 1.7.2000 (2,1 %) would bring the weightings for Brussels/Luxembourg back to 100.

Weightings for the other places of employment are directly determined by the differences between the economic parities calculated by Eurostat and the exchange rates applicable on 1.7.2000. The exchange rates are updated at the same time in accordance with Article 63 of the Staff Regulations (Table C).

b) In accordance with the salary adjustment method (Article 3 of Annex XI to the Staff Regulations [2]) the Council has to take a decision before the end of 2001, effective from 1.7.2001, on the next remuneration and pension adjustment.

[2] If proposal COM(2000) 569 extending this Annex is adopted by the Council.

This decision will automatically establish new weightings effective from 1.7.2001.

These new weightings could lead to retroactive adjustments to remuneration and pensions (positive or negative) in respect of the period in 2001 for which payment has already been made on the basis of the 2000 operation.

In this event, either arrears will be paid if there has been an upward adjustment as a result of the new weightings or if there has been a downward adjustment the sums overpaid from that date will be recovered.

8. Changeover to the euro by Greece

From 1 January 2001, Greece will adopt the Euro with a conversion rate [3] of EUR 1 = GRD 340.750.

[3] Regulation (EC) No 1478/2000 - OJ L 167, 7.7.2000, p.1.

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Calculation of the weighting for Greece (changeover to the Euro) at 1 January 2001:

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9. OTHER FACTORS

When the Council adopted its decision on renewal of the salary adjustment method on 19.12.1991, incorporated in the new Annex XI to the Staff Regulations, it also decided:

- to introduce a temporary contribution at a gross rate of 5.83% with effect from 1.1.1992 ,

- to raise staff contributions to the pension fund from 6.75% to 8.25% with effect from 1.1.1993.

10. Extension of the method

The current method for the annual adjustment of the remuneration of staff of the institutions of the European Union and the temporary contribution expire on 30 June 2001.

As part of the reform, the Commission has presented a proposal (COM(2000) 569) to extend the method and temporary contribution for a period of two years.

Proposal for a

COUNCIL REGULATION (ECSC, EC, EURATOM)

adjusting with effect from 1 July 2000 the remuneration and pensions of officials and other servants of the European Communities and the weightings applied thereto

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, [4] as last amended by Regulation (Euratom, ECSC, EC) No ... [5], 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,

[4] OJ L56, 4.3.68, p.1.

[5] OJ ..., ..., p.1.

Having regard to the proposal from the Commission,

(1) Whereas a review of the remuneration of officials and other servants carried out on the basis of a report by the Commission has shown that the remuneration and pensions of officials and other servants of the Communities should be adjusted under the 2000 annual review;

(2) Whereas, in accordance with Annex XI to the Staff Regulations [6], the annual adjustment in respect of 2001 will entail the establishment before 31 December 2001 of new weightings with retroactive effect from 1 July 2001;

[6] If proposal COM(2000) 569 extending this Annex is adopted by the Council.

(3) Whereas these new weightings could lead to retroactive adjustments to remuneration and pensions (positive or negative) in respect of the period of 2001 for which payments have already been made on the basis of this Regulation;

(4) Whereas provision should therefore be made for the payment of arrears in the event of an upward adjustment as a result of these weightings or for the recovery of sums overpaid in the event of a downward adjustment for the period between the effective date and the date of entry into force of the Council's decision on the annual adjustment in respect of 2001;

(5) Whereas provision should be made for the effects of any such recovery to be spread over a period of not more than twelve months following the date of entry into force of the Council's decision on the annual adjustment in respect of 2001,

(6) Whereas Greece will adopt the Euro from 1 January 2001 with a conversion rate of EUR 1 = GDR 340.750,

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:

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b) - EUR 170,35 is replaced by EUR 173,93 in Article 1(1) of Annex VII to the Staff Regulations,

- EUR 219,38 is replaced by EUR 223,99 in Article 2(1) of Annex VII to the Staff Regulations,

- EUR 391,91 is replaced by EUR 400,14 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 196,05 is replaced by EUR 200,17 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:

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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 104,39 per month for officials in Grade C4 or C5,

- EUR 160,04 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 1 July 2000, the date "1 July 1999" in the second paragraph of Article 63 of the Staff Regulations is replaced by "1 July 2000".

With effect from 1 January 2001, remuneration in Greece shall be paid in euros.

Article 6

1. 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 118,9

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:

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3. With effect from 1 January 2001, the weighting applicable to the remuneration of officials and other servants employed in Greece shall be 83.6.

4. The weightings applicable to pensions shall be determined in accordance with Article 82(1) of the Staff Regulations. Articles 3 to 10 of Council Regulation (ECSC, EEC, Euratom) No 2175/88 [7] shall remain in force.

[7] OJ L 191, 22.7.88, p.1.

5. In accordance with Annex XI to the Staff Regulations [8] these weightings could be adjusted by a Council regulation before 31 December 2001 establishing new weightings with effect from 1 July 2001. In this event the institutions shall make the corresponding positive or negative adjustment to the remuneration and pensions of the officials, former officials and other persons concerned with retroactive effect for the period between the effective date and the date of entry into force of the decision on the 2001 adjustment. If this retroactive adjustment necessitates the recovery of sums overpaid, such recovery may be spread over a period of not more than twelve months from the date of entry into force of the decision on the 2001 annual adjustment.

[8] If proposal COM(2000) 569 extending this Annex is adopted by the Council.

Article 7

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

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Article 8

With effect from 1 July 2000, the allowances for shiftwork laid down in Article 1 of Council Regulation (ECSC, EEC, Euratom) No 300/76 [9] shall be EUR 302,56, EUR 456,67, EUR 499,33 and EUR 680,74.

[9] OJ L 38, 13.2.76, p.1. This Regulation was supplemented by Regulation (Euratom, ECSC, EEC) No 1307/87 (OJ L 124, 13.5.87, p.6) and last amended by Regulation (Euratom, ECSC, EC) No ... (OJ ..., ..., p.1).

Article 9

With effect from 1 July 2000, the amounts in Article 4 of Council Regulation (EEC, Euratom, ECSC) No 260/68 [10] shall be subject to a weighting of 4,367713.

[10] OJ L 56, 4.3.68, p.8. This Regulation was last amended by Regulation (Euratom, ECSC, EC) No ... (OJ ..., ..., p.1).

Article 10

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

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