ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (75)75
Vol.1975/0027

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COMMISSION OF.THEEUE.OEBAN COMMUNITIES
COM (75)75final
Brussels .25February 1975
COMMISSION PROPOSAL TOTHE COUNCIL
ONTHE METHOD OFADJUSTING COMMUNITY
STAFF REMUNERATIONS
COM(75 )75final

/
COMMISSION PROPOSAL TOTHECOUNCIL ONTHEMETHOD
OFADJUSTING COMMUNITY STAFFREMUNERATIONS
I.BACKGROUIÏD
On21March1972theCouncillaiddownthemethodbywhich
itproposed tocarryouttheperiodic reviewsofthe
remunerations paidtoofficials andotherstaffofthe
European Communities (copyatAnnexla).
Themethodconsists ofusingtwoindicators tomeasure changes
inthepurchasing powerofofficials andreferstomovements
ofthejointindexusedforoffsetting costoflivingincreases .
Itthusaccordsperfectly withArticle 6.5oftheStaff
Regulations andinthemediumtermshouldenablesalaries
paidtoEuropean officials tomoveinparallel with .the
averagetrendinpurchasing powerfornational civilservants.
TheCouncilDecision of19December 1972(AnnexIb)makesthis
explicit.
Duringitstrialperiodtheprovisional methodhasgiven
satisfactory .results.Ithasbeenpossible toavoidthe
usualconflicts withthestaffforthelasttwoyears.
TheDecision' hasbeenreferred totheCourtofJustice on
twooccasions andtheCourt'sdecisions haveestablished
principles whichareoftenlackinginsuchmatters (Cases
81/72and70/7^).
-/

-2- IXA37/75-E
V•■•^
i
II.REPORT TOTHECOUNCIL
Portheendofthetrialperiod,theCouncilhasrequested :
adetailed reviewoftotalemoluments innational and
Community civilservices ;
acomprehensive studyontheimputation ofcost-of-living
increases againstgrosssalaries andonthetaxaspects
ofthis.
1.Totalemoluments
PointIcofthesystemforadjusting remunerations readsas
follows :
"Annualdecision bytheCouncil onthebasisofthesetwo
indicators .Inthethirdyear,themethodofcalculation will
bechecked bymeansofadetailed reviewoftotalemoluments
innational andCommunity civilservices 60astoseewhether
thesystemisworkingproperly andwhetheranystructural
alterations arenecessary ".
Figuresfortotalemoluments perhead(inrealterms),as
available whendecisions weretaken(seeAnnexII),duringthe
relevantperiod(reference year1971)roseby11.6^,giving
anannualrateof3*7$»Statistical verification ofthese
estimates"' "givesatotal,increaseof11.k%.The,averageannual
ratefortheCommunity isthusalso3»7%»
^ ./-
^"Nowpossiblefor1972and1973tbutnotyetfor197^*

-3 IXA37/75-E
Totalemoluments perhead(inrealterms)ofCommunity staff
inallinstitutions overthesameperiodhaveriseninall
by9.6$,givinganaverageannualrateof3.1%(seetablein
AnnexIII).However,thisoverallfigureoverlooks thequite
considerable structural effectsofstaffmovements whichvary
frominstitution toinstitution ,whicharepartlyduealsoto
enlargement .Thesestructural effectsareparticularly
pronounced inthesmallerinstitutions withrelatively light
payrolls ;intheCommission andtheCouncilthe'structural
effectsseen,.to,belesssignificant andtheincrease insalaries
ismuchthesame(11.1%fortheCommission ,12.8#fortheCouncil).
«
I
<
i
i
!Totalemoluments per j
head:national civil !
services I
l
I
j:Totalemoluments per
!head:Community officiais
i . .
!institutions
!t
|Commission j
i i
i1 . 1 ■
|1971(1964=100)
!197^(1971=100)lkl.2 .
111.V" !-. ,
130.6
'109-6r
•132.5
""111.1
Thecomparison ofnational andCommunity totalemoluments
requested bytheCouncilconfirms thevalueoftheexisting method.
SubjecttoaslighttimelagfortheCommunity ,figure,changes
in1thetwofigures canberegarded asparallel overthethree-
yeartrialperiodforwhichthemethodadopted bytheCouncil
on21March1972wastobeapplied.

"-4- pc/437/75-E.
*
. • 1
Thisisclearlyapointinfavourofthemethod.However,theaggregate
figureforthethree-year period -–whetherinrespectofCouncildecisions
(110«6)ortheenrollments perheadofCommunitystaff(109»6)-isoutside
therangeforthesameperiodspecifiedinthemethod(either114*6or
117.2forthespecificindicator and111.4.fortotalemoluments perhead
revised).This ,isbecausethelowerfigureintherangehas"been
eitherthespecificindicator ortotalemoluments ,andtheCouncilhas
consistently optedforthebottomoftherangeintalcingitsdecisions#
National civilservices
Spécifie
indicatorTotalemolu­
mentsperhead,
revised •--Commumty institutions
Council
décisionsTotalemolu­
mentsperhead
1972/1971
1973/1972
1974/1973 3.13.6
7.3
r5-4'3.7.
3.2
4.13.65
3.3
3.3
*974/1971114.6117.2 111.4 n110.6 109.6
Cohciucidn
Althoughthedisparities notedinthistableputCommunity officials ,ata
disadvantage,' theCommission doesnotfeelthattheywarrantanyparticular
structural alterations inthecalculation methodusedhitherto;' However,
"thechangessuggestedatIII,A,1belowwouldhelptoreducethese
disparities inthemedium^term .
1Figureusedin1974subjecttoreviewofthedatasupplied bytheUnited
KingdomDelegation .
?
"1974figurereflecting thecorrection mtheNetherlands andincorporating
theInnerLondonWeighting andThreshold PaymentsfortheUnitedKingdom.

IX/437/75--E
2•Incorporation ofcost-of-livingincreases '
Underthemethodand-underArticles 64and65oftheStaffRegulations ,
weightings aretobeappliedtooffsettheriseinthecostofliving.
Thisrulecertainly doesnotmeanthattheweighting component ofan
official'sremuneration istax:free*Eachtimetheweighting is
alteredtotakeaccountofcost-of-livingincreases ,thestafffacea,
proportionate increaseintheirincometax.SinceunderArticle 5of
theRegulation onCommunity taxtheweightings applyalsotothevarious
taxbrackets ,theseadjustments donotinpracticerenderthetaxanymore
progressive .
Iftheydid,thetax"burdenwouldvarywiththerateofinflation ,and
thiswouldnotbecompatible withasoundtaxsystem.Thispointis
allthemoreimportant atthecurrenttimewhencertainofthe
countries whereCommunity staffareemployedareexperiencing particularly
highratesofinflation . '
ItistruethatincertainMemberStatessalaxyrises,whethergranted
tooffsetcost-of-livingincreases orasaboostertopurchasing power,
dosufferfromtheeffectsoftheprogressive taxsystem.Atthesame
timetherelevant governments findthattheyhavetomakemoreandmore
frequent changesintaxscales.Someofthemevengoasfarasto
recasttheirentiretaxsystems,asGermanydidrecently.

-6- IX/437/75-E
■i
« V•''
In.anycaseitwouldbeahazardous' -undertaking -to,.attempttofollowall
thesemeasurestaken "bythegovernments ofnineMemberStatesongrounds
ofachieflypolitical orsocio-demographic order.Itwould "beeven
morehazardous totakeaCommunity averageofthesemeasures#
Atatimewheninflationisrunningatquiteinconsistent rste$ >(6$in
Germany,2inItaly),itwould "bequiteinconceivable topenalizeEuropean
officials whoaresuffering most,frominflation byprogressively raising
theirtaxburden# Theonlypossible system,then,wouldseemtobeto
keepthecost-of-livingaspectseparate fromtherestandunaffected by
progressive taxation soastopreservetheprinciple thatstaffinthe
variousplacesofemployment shouldhaveequivalent purchasing power;
Article64oftheStaffRegulations explicitly referstothisprinciple.
Ginclusion
Itistherecfor© proposedthattheexistingrulesbemaintained ,sothat
weightings wouldbeappliedtooffsetcost-of-livingincreases inthe
variousplacesofemployment whileincreases giventoaugmentpurchasing
powerwouldbeincorporated directinthesalaryscales.
•/.

IX/437/75-E
III.COMMISSION PROPOSAL
A#ANALYSIS ANDIIFROVSt^TT OFTHSIXISTDTG KETHOD
Experience overthelastthreeyearsandthestudiesreported above
indicatethatthecurrentmethodshouldbekepton.Anumberof"
problems whichhavebeenfoundcanbesolvedbyappropriate improvements .
Thoproblems arethefollo\ri.ng :
1•Hodium-temparallelism
Asystematic insistence ontakingthefiguresatthelowerendofthe
rangemeans,whentheindicators arereversed,thatinthemedium-term
increases arenotkeptparallel. ;;
This.,couldbesolvedif,eachtimetheannualdecision wastaken,the
aggregate medium-term range(covering fsay,fiveyears)wascomparedwith
theaggregate ofthedecisions takenduringthesameperiod.
2.Changesintotalemoluments perhead(inrealterns)ofnational
civil ,servants
Thefactthatwhentheannualdecisions aretakenonlyestimates of
totalemoluments perheadareavailable hasnotgivenrisetoanymajor
difficulties .Duringthetrialperiodofthemethodjthedifferences
betweenestimates andoutturns havenotbeensignificant .Comparison
ofthefiguresforthelastfiveyearsshowsthattheestimates tended
tobeontheconservative side(seeAnnexIV).
•/.

~-8~ IX/437/75-E
Toensurethatunderestimates oroverestimates donothaveexcessive
effectswhenaggregated overalengthyperiod,"a"self-correcting "
mechanism isproposed.The.statistical -,methodis-setoutin.AnneJcV.
Ifthismethodv.ereapplied,itshouldnolongerbedifficult toestimate
totalemoluments perhead.
Whendeciding whattoincludeintotalemolument s,ouraimisstillto
establish trendsincentralgovernment "bodiesineachMemberState
(seepointIboftheDecisionof21March1972).Untilstatistics
foralltheMemberStatesmakethispossible ,weshouldcontinueusing,
thosecoveringalladministrative authorities .
3.Spécifie mdicator
Despitetheeffortsbothofthenational delegations andofthe
Commission'sownstaff,theindicator forthetrendofpurchasing power
ofnationalcivilservants continues toraiseseriousmethodological
difficulties .
. ; • *
Theimprovement 'ssetoutatpointI{a)oftheDecisionof21March1972
havenotyetbeenfullycarriedthrough.Oftheremaining problems ,
thefollowing areworthmentioning :
(i)howtodeterminetheincomecomponents tobetakenintoaccount
inordertogiveacorrectmeasureofthepurchasing powerof
\civilservicesalaries ;

-9- W437/75-E
(ii)howtodecidewhatdepartments aretoherepresented (ministries ,
centralauthorities ,etc,)withaviewtoachieving country-to-
countryharmonization andasuitable degreeofcorrespondence with
theCommunity departments ;
(iii)whatrelativeweight .in,theindicator .$0.givejfco.each,gradet__step,
category ,andfamilysituation ,soastobreakdowntheindicator
bycategory andmeasurethedegreeofnon-linearity inincreases and
thedifference betweengrossandnetincreases ;
(iv)howtocalculatethenetmovementoftheindicator soastotake
aocountofalltaxesandsocialsecuritycontributions andofany
deductions' made,andallowances giv6nincalculating thetaxable
amount•-
Experience hasshownthatconsiderable effortv.'illberequiredtoovercome
theseproblems.
WiththisinviewitisproposedthattheStatistical OfficeoftheEuropean
Communities chairanadvisory workingpartyofexpertsfromnational
statistical officesandfromtheCommission .The"newworkingpartywhich
willbegiventhejobofsolvingtheaboveproblems ,willinevitably beof
apermanent nature.Itis.very,rarsforMember .States\o.useauniform
methodforadjusting public-sector salaries .Onthecontrary ,thereare
year-to-yearandstate–to–statevariations inmethod *Itwouldtherefore
seemnecessary fortheworkingpartytomeeteachyearinspring,before

-10- IX/437/75-E
theactualannualreview,soas,"toconsider anyparticular methodological
problemsarisingintheMemberStates(e.g.Inner1LondonWeighting),
Thiswill "betheonlymeansofensuringthatthespecificindicator remains
validovertime.
*- ■
B.ALIGNMENT OFADJUSTMENTS ONREFERENCE PERIODS
Fortheforegoing reasons,andhavingcarriedoutthechecksrequested by
theCouncil,theCommission hasconcluded thattheexisting methodof
adjusting remuneration couldwellbecontinued .
However,problems -constantly arisefromthetimelagbetweennational
decisions oncivilservicesalaries andtheCouncil'sdecisions onCommunity
salaries.
\
TheCommission wouldaccordingly proposethattheCouncil'dealwiththis
problembyasystemofprospective oradvanceincreases .Thiswouldalso
bemoteinlinewithtrendsnowseenincreasingly inanumberofcivil
services intheMemberStates.
Aprospective systemfortheCommunity mighttakethefollowing form:
1.Compensation forcost-of-livingincreases -
Intheorytherearetwopossibilities : "' "*■■£"

-11- W437/75-E
(i)eithersalarieswould,"beincreased assoonasthecostoflivinghas
risenbyapredetermined amount;
(ii)oradaptations would "bemadeatfixedintervalsateachplacewhere
Communitystaffareemployed,inlinewiththerateofincreasein
privateconsumerpricesforecastforthereference period.
Inviewofthedifferences intheratesofinflation atthevariousplaces
wheretheCommunities employstaffandoftheneedforprogrammed increases ,
theCommission wouldpropose,withoutprejudicetoArticle65(2),thatthe
secondformula "betaken.TheCouncil wouldtakeitsannualdecision onthe
"basisofconsumerpriceforecasts foreachcountry.•Therateswould "be
splitintoequalpartswhosenumberwouldbedetermined byreference "tothe
ratiobetweentheforecastrateandathreshold of2.5Therewouldbe
atleasttwoandatmostsixadjustments peryear,eachinvolving adjustment ,
oftheweightings .Theeffective dateswouldbetheendoftheperiodin
whichtheincrease inpriceswasestablished . ..
Thusthefirstadjustment wouldbemadeon1September (two-monthly increases )
or1January(six-monthly increases).
2.Increase inpurchasing power
TheCommission proposesthatthepurchasing powerofCommunitystaffsalaries
beincreased on'1Januaryeachyear.Thefigurewouldbebasedonthe

-12- IX/437/75-S
Community averageofforecasts oftotalemoluments perhead(inrealterms)
ofcivilservantsforthefollowing year,established fromtheMember
States'economic budgets.
3.Corrections .
Sincetheseincreases aretobebasedonforecasts ,theywillhavetobe
corrected subsequently .Thecorrections willbemadebytheexisting
method,allowingfortheimprovements setoutatAabove,asfollows:
(i)compensation forthecostoflivingwouldbegivenwitheffectfrom
1Julyeachyearbyreference tothejointindexprovidedforin
■Article65oftheStaffRegulations ;.
(ii)purchasing powerwouldbeincreased inlinewiththetwoindicators
usedinthecurrentmethod,i.e.:
,, ?•
thespécifie indicator :
totalemoluments perhead(inrealterms)ofcivilservants.
Thecorrections willbemadewitheffectfrom1January,atthesametime
astheincreaseforthefollowing yearisgiven.
4.Equivalence ofpurchasing powerasbetweenthevariousplacesof
employment
Theequivalence ofthepurchasing powerofCommunity staffinthevarious

13- IX/437/T5-E
placesofemployment willnormally "beensured "bythecurrentmethodandby
reference tothesameprinciples ashaveappliedhitherto.
Nevertheless ,appropriate inquiries should "bemadeatregularintervals to
checkwhethertheratios "betweenweightings properlyreflectpurchasing
powerequivalences as"betweenplacesofemployment *.
5.'Transitional arrangements forthechangeover tothenewsystem
TheCommission "believesthatthesystemoutlined aboveshouldtakeeffect
on1July1975*
; >►· ί1"
Ifitisimplemented ,exceptional measureswillhavetobetakentopreserve
staffsalariesatasuitablelevelfortheperiodfrom1July1974"to
1July1975*Thefollowing planisproposed :
(i)Asregardscompensation fortheriseinthecostofliving,afirst
adaptation willbemadetotheweightings witheffectfrom1July1975
byreference tothefirsthalfof1975*Aseconddecisionwillbe
takenonthebasisofpriceforecasts for197^thefirstadjustment
beingincorporated witheffectfrom1September 1975intheweighting
ofthecountryorcountries inwhichanincreaseofatleast15%in
consumerpricesisforecastfor1976#

-HT IX/437/75-E
(ii)Asregardsincreases iripurchasing power,afirstamountwill "be
incorporated inthesalaryscalesonthe"basisofthetwoindicators
usedundertheexisting method,allowingfortheimprovements setout
atIII,A,above.Thiswilltakeeffecton1July1975an<^will
relatetopurchasing powertrends'incivilservicesalaries from
1July1974to1July1975. 1
Asecondadjustment would^be madeon^1January197°"byreferenceto
forecasts fortotalemoluments perheadofcivilservantsin19J6,

13/437/75"E
Annex 1,a
C0PY" .
3russels,23 March1972
R/987/72
Summaryofdecisions takenbytheCouncilatits
192ndmeeting ,heldon20and21March1972
Calculation methodfortheperiodic reviewoftheremunerations
ofofficials andotherservants oftheEuropean Communities
TheCouncilapproved thefollowing text:
SYSTEM FORADJUSTING REMUNERATIONS
INTRODUCTION
Thesystemdescribed belowwillbeappliedforathree-year trialperiod.
ItaccordswithArticle 65oftheStaffRegulations asitnowstands,
I-PURCHASING POKER
(a)Specificindicator
ThisisanindexofchangesincivilservicesalariesintheMemberStates
compiled eachyearforthepreceding yearbytheStatistical Officeofthe
European Communities according tothemethodappliedhitherto ,improved as
follows :
-Greaterdegreeofharmonization ofthemethodsofcalculation usedby
thevariousnational administrations .
-Thevariousstatistical components itfillbebrokendownforCategories
A,B,CandD«
-Eachdelegation willinformtheCommission ofthecomponents which
makeuptheremunerations initscivilserviceandofanychange ■V
therein.
-TheCommission willbeinformed indetailofhowtheannualindices of
civilservicesalaries arecalculated .
-!,rhenevertheCommission hasdoubtsastoanycomponent /usedinpreparing
theindexofcivilservicesalaries ,therelevant delegations willbe
contacted andwillsupplythenecessary explanations .
Itisunderstood thattheCommission willkeepthestaffrepresentatives
fullyinformedasregardsthestatistical components oftheindicator *EUROPEANCOMMUNITIES
TheCouncil

-2- ÏX/^Î/T^tti: -
(b)Indicator oftotalemoluments
Thisisanindicator oftotalemoluments perheadofcivilservants as
published inthenational accounts
Itisunderstood thatthefinalobjective willbeforeachMemberStateto
supplythefiguresprovidedforinlineR10S/61oftheEuropeanSystemof
Integrated National Accounts­
(c)Procédure
Annualdecision bytheCouncil onthebasisofthesetwoindicators ,.Inthe
thirdyear,themethodofcalculation xri.llbecheckedbymeansofadetailed
reviewoftotalemoluments innational andCommunity civilservices soasto
seewhetherthesystemisworkingproperly andwhetheranystructural
alterations arenecessary .
(d)Effective date ...
Totakeeffectattheendofthereference period.
WhentheCounciltakesitsdecision ontheperiodfrom1July1971to
30June1972,aspecial sumtvillbegiven.Itwillfacilitate thechangeover
fromtheoldmethodtothenewandwillprovidecompensation ,asanexceptional
measureforlossesresulting fromamethodwhichdoesnotgiveeffectto
adjustments ofremuneration inthemiddleofthereference period.
(e)Formofadjustment
Directincorporation inthesalaryscale-
II^C0TTPEITSATI01T FORCOST-OF-LIVINGINCREASES 1
(a)Indicator
Jointindes : "•
(b)Timingandeffective date
Adjustment underArticle65(1)witheffectfromtheendofthereference
period,withoutprejudicetoapplication ofArticle65(2)0
Tobeapplieduniformly atallplacesofemployment inBelgiumand
Luxembourg «

-3- IX/437/75-E
)
(c)Formofadiustment
Application ofweightings forthisthree-;''eartrialperiod .
TheCouncilalsoagreedtoinsertthefollowing iteminitsminutes :
"1.Itisunderstood thatapplication ofthenewmethodforathree-year
trialperiodcannotgiveriseto"vestedrights"..
2.Theapplication ofweightings tocompensate forcost-of-livingincreases
isapproved forthethree-year trialperiod *TheCommission isinvited :
tomakeacomprehensive studyontheimputation ofcost-of-living
increases againstgrosssalaries andonthetaxaspectsofthis;
tomakeaproposal inthemattertotheCouncilbeforetheendof
thethree-year period*"

TV^?7/7r-r
h!:r '
AÏU.C.Vi-b
EUROPEM COIMflTITIES Brussels ,5January 1973
TheCouncil R/2935/72
NOTE
Summaryofdecisions taken "bytheCouncilatits
221stmeeting ,heldon18and19December 1972

-2~ 1V437/75-E
OTHERBUSIIÎESS
(d)Systemforadjusting remunerations paidtoofficials andother
servants oftheEuropean Communities ;dialogue betweentheCouncil
andthestaffrepresentatives
TheCouncilapproved thefollowing text:
:,TheCouncil
I.believethattheRegulation of12December 1972doesnotprejudge
theinterpretation ofitsDecision of21March1972onthesystem
foradjusting remunerations andconfirmsthatthissystemformspart
ofapolicywiththeaimofguaranteeing ,inthemediumterm,that
remunerations paidtoEuropeanofficials willmoveinparallel with
averagesalaries paidinnationalcivilservices ;
II.considers thatthedialogue procedure needsimproving ;
îIII.notesthefollowing statement madebytheCommission on18December
1972:

•r3%
.1Î-f/*«5«/r-r
J
*1.InJanuarytheCommission intendstoholdtalkswiththe
representatives oftheMemberStates,therepresentatives of
,the,otherinstitutions ,andrepresentatives of_thotradetuiions .
•end.staffassociation ?ofEuropeanofficials .
Theaimofthetalkswillbetoseekimproved methodsofpreparing
andadopting decisions adjusting theremunerations ofthestaff
oftheenlarged Communities#
2.TheCommission isproposing toraisethefollowing pointsat
thesetalks:
(a)possibilities forsimplifying thedecision-making process
inthreeyearsoutoffour;
(b)waysofimproving endextending thedialogueprocedure ;
(c)thepossibility ofintroducing aconciliation ormediation
phase,ifappropriate .
3.TheCommission willmakeproposals totheCouncilfollowing these
talks,before31March1973*;
IV.instructs thePermanent Representatives Committee toreportatthe
beginning ofJune1973sothattheCouncilcanreachadecisionbefore
1July1973ontheproposals tobepresented bytheCommission to
followupthestatement setoutabove."

Annex II
INCREASE U1REALTERMSOFGROSSSALARIES PERHEADOPCIVILSERVANTS PROM1964TO1974
Country 1964 1965 1966 1967 1968 1969 1970 1971f
1972
I1973 1974
.Germany 100106.7111.7113.6 117.9128.2138.4150.7i
154.0
I161.2169.8
France ■ 100102.4104.9 107.7 115.5120.8126.7131.6 135.5139.4 142.2
Italy 100108.0110.7 110.6 114.2115.3115.9132,0138,2141.4 I140.9
ïïetherlanas 100109.4 115»3122.9 137.94145.0153.3161.9 167.9172.1181.0
JBelgium 100107.5112.0116.8 121.6 130.0140.0147.5163.5170.9179.0
Luxembourg•- » .
UnitedKLngdom •* « a-100 103,9109.5115.3117.3123.5
Ireland 100 106.9113.2120.8 127.4 129.0
Denmark • I 100 107,01X4.9110.1109.7112.4
EEG6
EEC9I
100
100105.7109.5111.9 117.1123.5130.6I
!141.2
i
i146.'4
151.0
I157.3

AIMNEXIII
TRENDOPTOTALEMOLUMENTS PERHEADOFEUROPEAN OFFICIALS
(1974/71)
• <
• <'Nominal
perhead1 «Deflationary '/
:index !Realper
;Head !11974staff' •
>strength î
► . : m
:Commission» «
1 *
1148.07 :133.33 111.055»––––»––
1 •
:8430 :
»Counoil 149.27 132.3 112.83» •
;1167!
:Parliament 134.49 /132.31101.66 120d s
:CourtofJustice
:137.26» 1
132.3
i 1»
l
:103.75 235
■ .•
• i
• i
ESC !
• I157.23 132.3 118.84• •
É •
i279:
• «
• «• *
;Total :'145.26 133.06 109.63• •
• •• •
:11319 s

Increaseinrealtermsofgrosssalariesperhead
ofcivilservants 'Table
ANi-ûfiîCIV
Estimâtes and.outturlis
CountryYear-to-yearchange(%) *Aggregate figures %
:1970/
:1969:197V
:1970:1972/
:1971
• : <81973/
:1972î1974/:
:1973 ::197V ;
:1969 ::1973/
:1969 11:197V
:1971:
Germany >:E
:0:7.0
:8.0:8.0;
:8.9 .:5.7 I
:2.2:4.1 ;
:4.7 ::5.3 !
:•»
»33,9
32.5:27.2
:25.8 ;:15.9 :
:12.8 :
.PranceE
0:2-9
4.93.4
3.82.9
3.03-2
2.2.015.2
17.712.9
15.48.1;
8.1 :
ItalyE
0-0.2 :
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E:estimâtes : :0«outturns

IV437/75-E
ATOEXIV
■MMWWMI
STATISTICAL VERIFICATION OPTHEINDICATOR OP
TOTALEMOLUMENTS
Theindicator ofrealpercapitaemoluments ofcivilservants hasbeen
checked toycomparing outturns withtheestimates regularly putforward
bytheCommission forthecurrentyear;thestatistical baseranfrom
1969to1973inaccordance withTable 1inAnnexIVtodocument COM(74)
1800finalof14November 1974- >
Thefollowing tablesetsout,intheformofpercentage variations over
thepreceding year,thewaythisindicator hasmovedforeachmember
country -andinaggregate termsatCommunity level.Onlyfor1974arethe
statistics notyetavailable .Theaggregate increase intheindicator is
alsogiven,bothforthewholeperiodunderreviewandfortheperiod
coveredbythecurrentmethodofadjustment .TheE.figures ,arethe .
Commission'' ^"annualestimates andthe0figuresarethe-outturns.
Iftheseestimates weregoodones,aggregation ofthemshouldinbroad
termsgivethesameresultasaggregation oftheoutturns .Thisisindeed
thecase,the+11.6%(E)beingvirtually thesameasthe+11.4%(0)
fortheperiodfrom1971 "to1974*Takingtheaggregation asawhole,
the+23.7$estimatesliebelowthe+27.3%outturns.
Ifweignore1974»sincenostatistics areyetavailable ,aggregation for
theperiodfrom1969to1973givesoutturnsof+22.3%andestimates of
+18.8%fortheCommunity.
Thusourestimates wereclearlyontheconservative sideandwere
overtaken byevents.

IX/437/75-E
ANNEXV
Theself-correcting mechanism canbestbeexplained bymeansofan
example.Letusassumethatinyeart^thetotalemoluments indexis
estimatedat104(tg»100),givingachangeof+4%•Oneyearlater,
anestimateforyeartggivesanindexof108(tQ=100),butthenew
statistics giveanoutturnforyeart^of105.:Thepercentage change •
intgisestimatedas108.7105=2.9$*Atthispointaself-correcting
mechanism wouldcomeintoplay:sincetheoutturnfort^isnotthe
sameastheestimatef?rthatyear,theestimatefortgmustberelated
nottothenewstatistical basebuttotheformerestimate soastogive
ayear-to-yearchangewhichwillbeconsistent withthepreceding
changes.Onlythenwilltheaggregate estimated changebethesameas
theactualoutturn.
t0*1*2
*1100104
k100105!
108!•Estimâtest1*2
Ai*3.8%
5%2,9f0|108I104J
;io8)Cumul
8%