Proposal for a Council Regulation (EC, ECSC, Euratom) adjusting the daily subsistence allowance rates for officials on mission within the European territory of the Member States of the European Union laid down in Article 13 of Annex VII to the Staff Regulations of Officials of the European Communities
Date: 1998-07-17
Institutions: European Commission
Subjects: European official, allowances and expenses, price index, price list, regulations for civil servants

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 17.07.1998 
COM(1998) 455 final 

Proposal for a 

COUNCIL REGULATION (EC, ECSC, Euratom) 

ADJUSTING  THE DAILY  SUBSISTENCE  ALLOWANCE  RATES FOR OFFICIALS  ON MISSION 
WITHIN  THE  EUROPEAN  TERRITORY  OF  THE  MEMBER  STATES  OF  THE  EUROPEAN 
UNION  LAID DOWN  IN  ARTICLE  13  OF ANNEX  VII  TO  THE  STAFF REGULATIONS  OF 
OFFICIALS OF THE EUROPEAN  COMMUNITIES 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

1. 

BACKGROUND 

(1) 

(2) 

(3) 

Under  Article  13  of  Annex VII  the  daily  subsistence  allowance  rates  for 
officials  on  mission  within the  European  territory  of  the  Member  States  of  the 
European  Union  may  be  adjusted  by  the  Council  acting  by  qualified  majority 
on a Commission proposal 

The  current  allowances  were  set  by  the  Council  on  22 July  1991  (Regulation 
No 2232/91) following  a survey of hotel rates and restaurant prices. 

The  scales  fixed  then  no  longer  reflect  prevailing  economic  conditions  and 
this,  compounded  by  the  accession  of  three  new  Member  States,  means  that 
the daily  subsistence  allowance rates and the ceilings  for  the reimbursement  of 
hotel expenses for missions within the Member States urgently need revision. 

(4) 

On  23  September  1996,  the  Commission  sent  the  Council  a  proposal,1  which 
set out to: 

(a) 

(b) 

bring  allowances  for  the twelve  Member  States  already  covered  by  the 
Staff  Regulations  into  line2  with  levels  applied  by  Parliament  since 
1996; 

(i)  bring  the  daily  allowances  for  Austria,  Finland  and  Sweden  within 
the  scope  of  the  Staff  Regulations  and  (ii)  update  them  at  the  same 
time; 

(c) 

extend the scales  for  A4-A8  and category  B officials  to category  C and 
D  officials  for missions to headquarters; 

C0M(96) 451  final  96/0232(CNS) 

on the basis of Eurostat's consumer price indices for the hotel and catering industries and the exchange 
rates applied from  1990 to 1996. 

(5) 

(6) 

(7) 

(8) 

(d) 

introduce  a simple  automatic  annual  adjustment  procedure,  whereby  the 
Commission  takes  the decision  to adjust the  rates  and  informs  the  other 
institutions. 

Annex  VII  to  the  Staff  Regulations  gives  the  Council  the  power  to  adjust 
allowances  by  adopting  a  decision  on  the  basis  of  a  Commission  proposal, 
without  the  need  for  consultation.  However,  it  must  seek  the  opinion  of  the 
other  institutions  for amendments  to the Staff  Regulations3  (points b,  c and d). 

The  Court  of  Auditors  and  Court  of  Justice  had  no  comments  to  make  in 
response  to  the  Council's  letter  of  21  October  1996,  but  on  12 March  1997, 
Parliament  adopted  the  Tappin  report4  calling  for  seven  amendments  to  the 
Commission  proposal. 

On  31  July  1997,  the  Commission  sent  the  Council  an  amended  proposal5 
incorporating  some  of  Parliament's  amendments  and  brining  the  scales  in  line 
with those  most recently  adopted by Parliament6  (on 4  February  1997). 

The  Council's  Staff  Regulations  working  party  examined  the  proposal  on 
8 March  1997  and the amended proposal  on 8 July  1997,  7 October  19997  and 
18 November  1997.  It transpired that: 

(a) 

(b) 

(c) 

a  qualified  majority  was  prepared  to  accept  adjustment  based  on  the 
indices  for  the hotel  and catering  industries  and exchange  rates,  without 
using  Parliament's  scale as a starting point; 

there would  be no problems  incorporating  Austria,  Finland  and  Sweden 
into the Staff  Regulations; 

most  countries  wanted  the  system  to  be  revised  in  a way  that  reflected 
different  national  practices  (comparative  study,  use  of  averages  for  the 
fifteen  Member  States,  a  single  scale  for  all  grades,  reimbursement  of 
actual  costs etc.); 

(d) 

there  was  unanimous  opposition  to  any  form  of  annual  adjustment 
procedure. 

3  Article 24 of the Treaty establishing a single Council and Commission of the European Communities 

4 

EP A4-0039/97 

5  COM(97) 429  final  96/0232(CNS) 

6  The proposal took the scale used by Parliament in  1997 as its starting point. 

(9) 

The  chair  of  the  Council's  Staff  Régulations  working  party  asked  the 
Commission  to  present  a  proposal  which  did  not  provide  for  any  automatic 
adjustment  or a "starting point". 

2. 

PROPOSED DECISION 

Consequently,  the  Commission  has  decided  to  remove  the  automatic  adjustment 
procedure and the "starting point" from  its proposal and, for procedural reasons, to: 

(1) 

(2) 

present, on the basis of Article 13 of Annex VII to the Staff  Regulations, the 
attached  proposal  dealing  solely  with  the  adjustment  of  the  scales  for  the 
twelve Member States already covered by the Staff Regulations (on the basis 
of price trends7 and exchange rates and without taking Parliament's scale as a 
starting point); 

present, on the basis of Article 24 of the Treaty, a second  proposal  to  bring 
the  scales  for  Austria,  Finland  and  Sweden  within  the  scope  of  the  Staff 
Regulations, without adjusting them. 
The purpose  is simply to acknowledge the fact  that they  are now inside the 
Community,  without  changing the  scales used, thus neutralising  the  impact 
on the budget. Nevertheless, the proposal requires a separate procedure: the 
Staff  Regulations  Committee  and  the  other  institutions  must  be  invited  to 
give their opinion for any amendment to the Staff Regulations); 

(3) 

consider a comparative study  into the situation  in the Member States with a 
view to a possible reform of the system.8 

The attached  proposal  sets  out to adjust  the daily  subsistence  allowance  rates 
for the twelve Member States already covered by Article 13 of Annex VII to the 
Staff Regulations. 

7 

as reflected  in the harmonised  price indices for the hotel and catering  industries. 

8  Any such reform  might for example, resurrect the idea of applying the scale for  A and  B grade staff  to 

grades C and D, for missions to  headquarters. 

PROPOSAL FOR A 

C O U N C IL R E G U L A T I ON (EC,  E E C,  E U R A T O M) NO ... 

OF 

ADJUSTING  THE  DAILY  SUBSISTENCE  ALLOWANCE  RATES  FOR  OFFICIALS  ON  MISSION 
WITHIN  THE  EUROPEAN  TERRITORY  OF  THE  MEMBER  STATES  OF  THE  EUROPEAN 
UNION  LAID  DOWN  IN  ARTICLE  13  OF  ANNEX  VII  TO  THE  STAFF  REGULATIONS  OF 
OFFICIALS  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  Regulation  (EEC, 

Euratom,  ECSC)  No 259/68,'  as  last  amended  by  Regulation  (EC,  Euratom,  ECSC) 
No 2591/97,2  and  in  particular  Article  13 of  Annex  VII  to the  Staff  Regulations  and 

Articles 22 and 67 of the Conditions of Employment, 

Having regard to the proposal from  the Commission, 

Whereas  the  rates  of  daily  subsistence  allowance  for  officials  on  mission  should  be 

adjusted  in order to take account of the changes  in prices and exchange rates recorded 

in the different  mission locations within the European Union since 1991; 

HAS ADOPTED THIS REGULATION: 

1  OJL  56,4.3.1969 

2  OJL 351, 23.12.1997 

Article  1 

Article  13 of  Annex  VII  to the Staff  Regulations  is amended  as  follows: 

1.  The scale  in paragraph  1(a) is replaced by the  following: 

Member States 

Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
United Kingdom 

1 
Grades A1 - A3 
and LA3 

3391 
3699 
2991 
2663 
2779 
2928 
3265 
2434 
3308 
3157 
2780 
3505 

II 
Grades A4 - A8, 
LA4 - LA8 and 
category B 
6036 
7232 
5127 
4566 
5700 
5256 
6664 
5237 
5788 
5958 
5768 
8036 

(Belgian francs) 

III 

Other categories 

5586 
6688 
4745 
4225 
5275 
4865 
6161 
4845 
5351 
5514 
5337 
7436 

2.  The first  sentence  in paragraph 2  is replaced by the  following: 

"2.  In  addition  to  the  rates  set  out  in Column  I of  the  foregoing  scale,  the  hotel 
bill  covering  room,  service  and  taxes,  but  excluding  breakfast,  shall  be 
reimbursed  up to a maximum of 

BFR 
BFR 
BFR 
BFR 
BFR 
BFR 
BFR 
BFR 
BFR 
BFR 
BFR 
BFR 

4723 
5974 
3914 
4019 
5106 
3924 
5620 
4612 
4313 
5315 
5038 
6011 

for 
for 
for 
for 
for 
for 
for 
for 
for 
for 
for 
for 

Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
United Kingdom 

Article  2 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in 
the Official  Journal  of  the European Communities. 

This  Regulation  shall  be  binding  in  its  entirety  and  directly  applicable 
Member States. 

in  all 

Done  at Brussels 

For the Council 
The President 

1998 daily subsistence allowances 

Annex I 

1991  Staff Reg. amounts 

BFR 

1991 Staff Reg. amounts 

National currencies 

1998 indexed amounts 

National currencies 

1998 indexed amounts 

BFR 

A1toA3 

A1IOA3 

A4toA8 
andB 

Other 
grades 

Exchange 
rate to BFR 

A1 to A3 

A1toA3  andB 

A4toA8 

Other 
grades 

Hotel and 
catering 
CPI 

A1 to A3  A1 to A3 

A4toA8 
andB 

Other 
grades 

Exchange 
rate to BFR 

A1  to A3 

A1 to A3 

A4toA8 
andB 

Other 
grades 

Daily 
allow, not 
ind. hotel 

Ceiling 
hotel 

Daily 
allow, ind. 
hotel 

Daly 
allowance 
ind. hotel 

B 
DK 
D 
GR 
E 
F 
IRL 
I 
L 
NL 
P 
UK 

2635 
3130 
2465 
1680 
2550 
2395 
2565 
2610 
2535 
2625 
2000 
2510 

3670 
5055 
3225 
2535 
4685 
3210 
4415 
4945 
3305 
4420 
3625 
4305 

4690 
6120 
4225 
2880 
5230 
4300 
5235 
5615 
4435 
4955 
4150 
5755 

1 

2 

3 

4 

4340 
5660 
3910 
2665 
4840 
3980 
4840 
5195 
4100 
4585 
3840 
5325 

5 

°Ç> 

Daily 
allow, not 
ind.  hotel 

Ceiling 
hotel 

Daily 
allow, ind. 
hotel 

Daily 
aHow. ind. 
hotel 

2635,0 
580,6 
119,67 
8033 
7757 
389,23 
46,39 
94850 
2535,0 
143.69 
8639 
41,53 

3670,0  4690,0 
937,6  1135,2 
156,56  205,11 
12120^13770 
14251  15909 
521,68  698,82 
79,86 
94,69 
179707  204056 
3305.0  4435,0 
241,94  271,22 
15659  17927 
95,23 
71,24 

4340,0 
1049,9 
189,82 
12742 
14723 
646,82 
87,54 
188792 
4100,0 
250,97 
16587 
88,11 

Oct-90 
1 
5,3912 
20,599 
0.20915 
0,32874 
6,1532 
55,287 
0,027517 
1 
18,269 
0,23150 
60,433 

Oct90-
Nov97 

28,7% 
17,6% 
21,2% 
154,0% 
46,8% 
22,2% 
32,5% 
22,3% 
30,5% 
20,1% 
59,3% 
43,2% 

Daily 
allow  not  Ceding 
ind  hotel  hotel 

Daily 
allow  ind. 
hotel 

Deity 
allow, ind. 
hotel 

3391,2  4723,3 
682,8  1102,7 
145,04  189,75 
20403  30786 
11387  20921 
475,64  637,49 
61,47  105,81 
116002  219782 
3308,2  4313,0 
172,57  290,57 
13762  24944 
59,48  102,01 

6036,0 
1335,0 
248,59 
3^976 
23355 
853,96 
125,46 
249560 
5787,7 
325.74 
28557 
136,37 

5585,6 
1234,6 
230.06 
32365 
21613 
790,41 
115,99 
230893 
5350.5 
301.42 
26424 
126,18 

Nov-97 
1 
5.4173 
20.625 
0,13054 
0,24408 
6,1551 
53,113 
0,020984 
1 
18,292 
0,20198 
58,930 

Daily 
allow, not 
ind. hotel 

Ceiling 
hotel 

Daily 
allow, ind. 
hotel 

Daily 
allow, ind. 
hotel 

Proposed 
change in BFR 
terms (%) 

3391 
3699 
2991 
2663 
2779 
2928 
3265 
2434 
3308 
3157 
2780 
3505 

4723 
5974 
3914 
4019 
5106 
3924 
5620 
4612 
4313 
5315 
5038 
6011 

6036 
7232 
5127 
_w4566 
5700 
5256 
6664 
5237 
5788 
5958 
5768 
8036 

5586 
6688 
4745 
4225 
5275 
4865 
6161 
4845 
5351 
5514 
5337 
7436 

B 
DK 
D 
GR 
E 
F 
IRL 
i 
L 
NL 
p 
UK 
21 

28,7% 
18,2% 
21,3% 
58,5% 
9,0% 
22,2% 
27,3% 
-6,7% 
30,5% 
20,2% 
39,0% 
39,6% 
22 

6 

7 

e 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

INAN<  IAI- SiA  I I;MI:N T  FOR PROPOSAI.  TO ADJUST MISSION AIJ.OWANCK.S -  1098 - K1IK 12 

ANNKX 2 

I hilly ttiiNsioti allowances (nil punies)  i  hotel expenses lor A I- A 1  (I'nrliuiuunl ulrcudy grunts allowances ol 

higher or c(|iinl vnltie mid is Ihcrclorc mil included) 

Annual amount  in  BFR 

million 

Commi.ssion 

Commission 

Commission 

Court  of 

Court  of 

Total  for  all 

Operating 

Research 

Sub-lolal 

Council 

Auditors 

Justice 

ESC-CoR 

institutions 

Ollieials  mill oilier  iliill 

Budget 

headings 

A 7 0I 
A1040 

Belgium 

Denmark 

Germany 

Greece 

sub-section 

Spain 

B6and 

B21830, 

B43070 

for 

France 

Ireland 

Italy 

the research 

Luxembourg 

budget 

Netherlands 

Portugal 

United  Kingdom 

Total  in  BFR  m 

llion 

Total  in  ECU  in 

illion* 

Adjustment 

Belgium 

Denmark 

Germany 

(jrecce 

Spain 

Fiance 

licland 

Italy 
Luxembourg 

Netherlands 

Portugal 

28,7% 

18,2% 

21.3% 

58,5% 

9,0% 
"  ">"/« 
27.1% 

-6,7% 

30,5% 

20,2% 

39,0% 

United Kingdor 

Total  in BFR  m 

i 
llion 
nillion* 
Total  in E CU  n 
•Rate at 1.3.98  ECU  1  =BFR 40.7757 

39,6% 

47,601 

11,427 

27,098 

13,305 

30,172 

64,224 

19,292 

52,081 

36,781 

19,544 

16,205 

35,696 

373,427 

9.2 

13,662 

2,080 

5,772 

7,784 

2,715 

14.258 

5.267 

-3,48" 

11,218 

3,948 

6,320 

14,136 

83,669 

2,1 

30,146 

4,377 

19,793 

4,352 

20,598 

41,966 

3,196 

37,096 

4,126 

6,377 

4,229 

45,363 

221,620 

5,4 

8,652 

0.797 

4.216 

2,546 

1,854 

9,116 

0.872 

-2.485 

1,259 

1,288 

1,649 

17,964 

47,928 

1,2 

77,747 

15,804 

46,891 

17,657 

50,770 

106,190 

22,488 

89,178 

40,908 

25,921 

20,434 

81,059 

595,047 

14,6 

0,395 

0,246 

1,783 

0,182 

1,130 

5,647 

3,130 

2,411 

14,727 

6,611 

0,470 

1,194 

9.167 

0,547 

1,624 

0,488 

1,781 

2,131 

0,740 

1,715 

0,010 

0,462 

0,487 

1,720 

37,925 

20,872 

0,9 

0,5 

Total difference in  BFR 

million 

0,113 

0.045 

0,380 

0.107 

0,102 

1.254 

0,854 

2,63 1 

0.100 

0,346 

0,286 

0,160 

0.473 

0.202 

0,027 

0,017 

0,123 

0,013 

0,078 

0,389 

0,216 

0,166 

1,016 

0,456 

0,032 

0,082 

2,616 

0,1 

0,008 

0,003 

0.026 

0,007 

0,007 

0,086 

0.059 

0,027 

0,017 

0,123 

0,013 

0,078 

0,389 

0,216 

0,166 

1,016 

0,456 

0,032 

0,082 

2,616 

0,1 

0.008 

0,003 

0,026 

0,007 

0,007 

0,086 

0,059 

-0.162 

-0.115 

-0,011 

-0.01  1 

4,492 

1,335 

0,183 

0,473 

9,176 

0,2 

0,003 

0,093 

0,190 

0,681 

5,050 

0,1 

0,310 

0,092 

0,013 

0,033 

0,633 

0,0 

0,310 

0,092 

0,013 

0,033 

0,633 

0,0 

22,313 

2.876 

9,988 

10,330 

4,569 

23.574 

6.139 

-5,975 

12,477 

5,236 

7,969 

32,100 

131,597 

3,2 

87,364 

16,630 

50.544 

18,353 

53,837 

114,747 

26,790 

93,636 

57,675 

33,906 

21,456 

84,138 

659.075 

16,2 

25.073 

3,027 

10.766 

10,736 

4,845 

25.474 

7,314 

-6.274 
17.591 

6,849 

8,368 

33,319 

147,088 

3,6 

Detached  national experts 

Daily mission allowances 

Budget 
headings 
A7003 

Annual amount in ECU million 

Adjustment 

Operating 

Research 

Total 

Difference  in ECU million 
|  Research 

Operating 

Total 

18,5 

0,0 

18,5 

0,3 

5,3| 

0,0 

5,3 

Kxpcrts attending meetings 

Subsistence expenses 

ion 

ion 

Total 

Tolal 

Research 

Research 

()peruting 

Operating 

Adjustment 

Difference  in ECU mil 

Annual amount in ECU mil 

Budget 
headings 
A2VMI 
A."H0 
A25H 
A2560 
A703O 
A70H 
A 703 2 
A7033 
B2I830 
B43070 
B67111 
B67112 
B67113 
B67211 
B67311 
Total 
' The difference with the adjustment in BFR terms (28.7%) results of changes in the ECU-BFR exchange rate, from 42.2812 on  1/8/91 to 40.7757 on  1/3/98. 

0,05-1 
0.05 1 
0.059 
0,058 
1,132 
0,500 
0,622 
0,115 
0,000 
0,000 
0,000 
0,000 
0,000 
0,000 
0,000 
2,6 

33,5% 
33.5% 
33.5% 
33.5% 
33.5%, 
33.5% 
33,5% 
33,5% 
33,5% 
33,5% 
33,5% 
33,5% 
33,5% 
33,5% 
33,5% 

0,054 
0,053 
0.059 
0,058 
1.132 
0,500 
0,622 
0,115 
0,018 
0,047 
0,011 
0,018 
0,028 
0,035 
0,010 
2,8 

0,000 
0.000 
0,000 
0,000 
0,000 
0.000 
0,000 
0,000 
0,018 
0,047 
0,011 
0,018 
0,028 
0,035 
0,010 
0,2 

0,000 
0.000 
0,000 
0,000 
0,000 
0,000 
0,000 
0,000 
0,006 
0,016 
0,004 
0,006 
0,009 
0,012 
0,003 
0,1 

0,018 
0.018 
0.020 
0.020 
0.379 
0.167 
0,208 
0,038 
0,006 
0,016 
0,004 
0,006 
0,009 
0,012 
0,003 
0,9 

0,018 
0.018 
0.020 
0,020 
0,379 
0.167 
0,208 
0,038 
0,000 
0,000 
0,000 
0,000 
0,000 
0,000 
0,000 
0,9 

Summary 

Officials  and  other  staff 

Detached  national experts 

Experts  attending meetings 

Total  cost of adjusting  daily  mission allowances in  ECU  million 

9,8 

ISSN 0254-1475 

COM(98) 455 final 

DOCUMENTS 

EN 

01  06 

Catalogue  number  :  CB-CO-98-466-EN-C 

ISBN  92-78-38320-1 

Office  for Official  Publications of the European Communities 

L-2985  Luxembourg 

/o