Proposal for a Council Regulation (ECSC, EC, Euratom) adjusting the weighting applicable in Greece to the remuneration and pensions of officials and other servants of the European Communities
Date: 1997-06-03
Institutions: European Commission
Subjects: European official, Greece, ratio, servant (EU), wage determination

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels,  03.06.1997 
COM(97)269  final 

Proposal for a 

COUNCIL REGULATION ÏECSC. EC. EURATOM) 

adjusting  the weighting applicable in Greece to the remuneration and pensions of  officials 

and other servants of the European Communities 

(presented  by the Commission) 

EXPLANATORY MEMORANDUM 

Preamble 

Article 4  of  Annex XI to  the  Staff  Regulations  states that  interim  adjustments  of 

remuneration  pursuant  to Article 65 are to take effect  on  1 January  and  are to  be 

made in the event of a substantial change in the cost of living, due allowance being 

made for the forecast  of the change in purchasing power during the current annual 

reference period. 

Article 6 of Annex XI stipulates that adjustments  are to be made for  all places of 

employment (including Brussels) if the sensitivity threshold is reached in Brussels. 

If this threshold  is not reached, adjustments  are to be made only  for  those  places 

where the threshold has been exceeded. 

Article 5  of  Annex XI  provides  that  the  Statistical  Office  of  the  European 

Communities (Eurostat) is to calculate the joint index and economic parities and is 

to make a forecast  of changes in purchasing power on the basis of the  information 

supplied by the Member States. 

Changes in the cost of living in Brussels 

The joint  index  measuring  the  cost  of  living  in  Brussels  rose  by  0,9%  between 

1 July 1996 and 31 December 1996. 

Economic parities 

The  economic  parities  which  establish  the  equivalence  of  purchasing  power  on 

1 January 1997  between  Brussels  (the  reference  city)  and  the  other  places  of 

employment are shown in the table below (column 3). 

The  implicit  index  measuring  the  change  in the  cost  of  living  over  the  reference 

period (column 4) is obtained indirectly by multiplying the joint index for Brussels 

(0,9%) by the change in the economic parity of the place of employment in question 

(Article 3(6) of Annex XI). 

Specific indicator 

The  specific  indicator  reflects  changes  in  purchasing  power  over  the  annual 

reference  period.  It  is  forecast  by  Eurostat  on the  basis  of  the  data  supplied  by 

national experts at the annual meeting of the "Working Party on Article 65", which 

met this year on 10.3.97.  The forecast specific indicator is 0,2%. 

5. 

Calculation of the adjustment 

As required  by Article 7 of Annex XI, the  amount  of  the  adjustment  is  the joint 

index  for  Brussels  (0,9%)  multiplied,  where  appropriate,  by  half 

the  forecast 

specific  indicator  if  this  forecast  is  negative.  The  adjustment  is  therefore  0,9% 

(100,9% x 100,0% = 100,9%).  This figure is used to adjust the weightings for those 

places where the threshold has been exceeded. 

Sensitivity threshold 

If exceeded, the sensitivity threshold triggers an adjustment.  Article 6 of Annex XI 

sets this threshold at 0,4% (55% of the average  change  in the  cost  of living  in the 

Community  over the period in question),  subject to  upper and lower  limits  of  5% 

and 2.75% respectively.  Therefore, the value of the threshold is set at 2.75%. 

Since  this  threshold has not been reached in Belgium,  only  the weightings  for the 

countries/places  of employment where inflation  exceeds this threshold, i.e.  Greece, 

need to be adjusted. 

7. 

Adjustment of weightings 

The  substantial  increase  in  the  cost  of  living  in  Greece,  which  has  meant  a 

deterioration  in  purchasing  power  over  the  period  concerned,  necessitates  an 

adjustment  of  the  relevant  weighting.  Otherwise  the  principle  of  equivalent 

purchasing  power  for  all  officials  (as  laid  down  in  Article 64  of  the  Staff 

Regulations) would be seriously compromised. 

As required by Article 7 of Annex XI, the weighting for the place concerned will be 

the  amount  of  the  adjustment  multiplied  by  the  relationship  between  the  relevant 

economic parity and the exchange rate. 

Effective date 

The  effective  date  for  the  adjustments  obtained  under  the  method  will  be 

1 January  1997, except in countries with high rates of inflation,  where the date will 

be  earlier  so  as  to  obtain  a  loss  of  purchasing  power  which  matches  the  2.75% 

threshold (see column 6 of the table).  This year no earlier payments are required. 

Conclusion 

The attached proposal sets the new weightings applicable as from 1 January 1997 in 

the following countries/places : 

Greece 

89,2. 

TABLE  OF  ECONOMIC  PARITIES AND 
CALCULATION  OF  WEIGHTINGS 
ON  1.1.97 

Adjustment =  Brussels joint index x Effect of forecast specific  indicator = 

0,9 % 

100,9% x100% =100,9% 

Former  parity  at 
1.7.96 
(BFR  1 in nat. 
currency) 
(2) 

New parity  at 
1.1.97 
(BFR  1 in nat. 
currency) 
(3) 

Brussels 
joint  index 
and 
implicit 
indices 

(4) 

Rate for 
remuneration 
1.7.96 
(BFR  1 in nat. 
currency) 
(5) 

Weighting 
for places 
where 
implicit  index 
>  2.75 % 
(6) 

Effective 
date 

(7) 

Country/Place 
of employment 

(1) 

Belgium 

Denmark 

1 

1 

0,23493 

0,23484 

Germany  (a) 

0,054169 

0,053845 

Bonn 

0,048967 

0,048771 

Karlsruhe 

0,048101 

0,047898 

Munich 

0,053657 

0,053425 

Greece 

Spain 

France 

Ireland 

Italy  (b) 

Va res e 

6,6570 

3,7318 

6,8037 

3,7447 

0,19132 

0,19036 

0,018532 

0,018417 

47,517 

45,406 

48,188 

45,472 

Netherlands 

0,057138 

0,057094 

Austria 

Portugal 

Finland 

Sweden 

0,39219 

0,39333 

4,2001 

0,17305 

0,24924 

4,1843 

0,17195 

0,24642 

-0,2 

U K ( c) 

0,023872 

0,023937 

Culham 

0,018950 

0,019013 

1,2 

1,2 

0,9 

0,9 

0,3 

0,5 

0,5 

0,5 

3,1 

1,2 

0,4 

0,3 

2,3 

1,0 

0,8 

1,2 

0,5 

0,3 

89,2 

1.1.97 

1 

0,18733 

0,048596 

0,048596 

0,048596 

0,048596 

7,6970 

4,0891 

0,16443 

0,020113 

48,998 

48,998 

0,054487 

0,34202 

5,0010 

0,14789 

0,21188 

0,020710 

0,02071 

(1) (a) Germany except Bonn, Munich and Karlsruhe 
(1) (b) Italy except Varese 
(1) (c) United Kingdom except Culham 
(3) Exchange rate for the implementation of the EC general budget at  1.07.96  (Art63 of Staff Regulations) 
(4) Implicit index  = Brussels joint index x parity  1.01.97  / parity 1.07.96 

(6)  Interim weighting = Adjustment x PPP/Exchange rate (for places where the implicit index exceeds 2.75%) 

COUNCIL REGULATION (ECSC, EC, EURATOM) N° 

/97 

adjusting  the  weighting  applicable  in  Greece  to  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 a Single Council and a Single Commission of the 

European Communities, 

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 259/68,1  as  last  amended  by  Regulation  (Euratom,  ECSC,  EC) 
No 2485/962  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, 

Having regard to the proposal from the Commission, 

Whereas  in  the  second  half  of  1996 the  cost  of  living  increased  substantially  in  Greece, 

Member  State  where  officials  and  other  servants  of  the  European  Communities  are 

employed; whereas, therefore, the weighting applicable to the remuneration and pensions of 

these  officials  and  other  servants  pursuant  to  Regulation  (Euratom,  ECSC,  EC) 

No 2485/96should be adjusted with effect from 1 January 1997, 

1 OJ No L 56, 4.3.1968, p. 1. 

2 OJL338, 28.12.1996, p. 1. 

HAS ADOPTED THIS REGULATION: 

Article 1 

1. 

With effect  from  1 January 1997, the weightings  applicable to the remuneration  of 

officials  and other servants employed in the countries/places referred to below shall 

be as follows: 

Greece 

89,2 

2. 

The  weightings  applicable  to  pensions  shall  be  determined  in  accordance  with 

Article 82(1) of the Staff Regulations. 

Articles 3 to  10 of Regulation (ECSC, EEC, Euratom) No 2175/883  shall  continue 

to apply. 

Article 2 

This  Regulation  shall  enter  into  force  on the  day  followmg  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 

3 OJ No L 191, 22.7.1988, p.  1. 

FINANCIAL STATEMENT 

ESTIMATE  OF THE  BUDGETARY  IMPLICATIONS  FOR  1997  OF THE  ADJUSTMENT  OF THE 

WEIGHTING  APPLICABLE  IN  GREECE  TO  THE  REMUNERATION  AND  PENSIONS  OF 

OFFICIALS AND OTHER SERVANTS 

Administrative budget 

Unit: thousand ecus 

Institution 

Budgetary implications 

Commission 

Parliament 

Total 

50 

20 

70 

Rate: ECU = BFR 40,2459 at 1.4.1997 

ISSN 0254-1475 

COM(97) 269 final 

DOCUMENTS 

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Catalogue number  : CB-CO-97-255-EN-C 

ISBN 92-78-20692-X 

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