WRITTEN QUESTION P-0486/00 by Raffaele Costa (PPE-DE) to the Commission. Remuneration of officials of the European Investment Bank (EIB).
Date: 2000-02-15
Institutions: European Parliament, Provisional data
Subjects: European Investment Bank, confidentiality, decision-making body (EU), pay cut, remuneration of work, tax on income, wage cost

24.10.2000

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Official Journal of the European Communities

C 303 E/197

(2000/C 303 E/225)

WRITTEN QUESTION E-0473/00

by Olivier Dupuis (TDI) to the Commission

(24 February 2000)

Subject: Albania(cid:146)s membership of the WTO

In his answer 2526/99 (1) to the written question on Albania(cid:146)s membership of the WTO, Commissioner
Lamy gave evasive information on the progress made in applying WTO consistent rules and maintained
that Albania(cid:146)s membership of the WTO was in its final stages of preparation.

However Commissioner Lamy failed to reply to the main question the Commission was asked, in particular
whether it could confirm or deny the information that Albania(cid:146)s membership of the WTO was hostage to
a dispute between France and another member country of the WTO, a dispute unrelated to the strict
question of Albania(cid:146)s membership of the WTO.

If this is the case, what action has the Commission taken or does it intend to take so that, in accordance
with the decision taken by the Union, Albania can quickly become a full member of the WTO?

(1) OJ C 219, 1.8.2000, p. 177.

Answer given by Mr Lamy on behalf of the Commission

(20 March 2000)

The Commission is sorry if the Honourable Member thought the previous answer was evasive. The fact of
the matter is that the Community was not able to accept the commitments proposed by Albania for audio-
visual services. These commitments, if implemented, would hamper the development of the future relations
of Albania with the Community in the field of audio-visual policy, and risked excluding Albania from the
possibility of participating in various Community programmes like Media.

These commitments were proposed when almost all the bilateral negotiations on Albanian accession to the
World trade organisation (WTO) had been concluded, and at the request of the United States. Given the
limited market interests of the US industry in Albania, the American requests risked being counter-
productive as they may delay the further integration of Albania in Europe which is at the heart of the
Community strategy for the Balkans.

The Commission is therefore actively engaged in negotiations with the interested parties so that the
accession of Albania to the WTO, which the Community strongly favours, can be swiftly completed.

(2000/C 303 E/226)

WRITTEN QUESTION P-0486/00

by Raffaele Costa (PPE-DE) to the Commission

(15 February 2000)

Subject: Remuneration of officials of the European Investment Bank (EIB)

The budget of the European Investment Bank (EIB) makes provision for around ECU 129 million to cover
the salaries of its staff of around 1 000 (998 to be exact). This figure includes not only senior managers, on
whom expenditure is in the region of ECU 260 000 per year, but also ordinary administrative staff.

Can the Commission answer the following:

1. What is the composition of the EIB(cid:146)s management bodies?

2. Will the Commission give details of salaries and taxation (gross and net salaries including benefits)?

3. What is the average overall remuneration of senior managers (EIB employees)?

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Official Journal of the European Communities

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4.

Is it true that expenditure on the bank(cid:146)s 1 000 employees (calculated on the basis of the average
remuneration paid at each level
including remuneration and charges borne by the institution (cid:129)
amounts to around EUR 130 million per year, in other words, equal to double the European average
salary for bank employees, which is less than EUR 52 000 per year?

5.

Is it true that members of the bank(cid:146)s management committee are paid 50 million lire net per month
overall?

6.

Is it true that Directors-General are paid 40 million lire net per month?

7.

Is it true that only salaries up to the level of head of division are made public?

8.

Is it true that some administrators in various capacities receive incomes from the institution of EUR
500 000 per year?

9. Does it believe that there should be a 30 % reduction in the abovementioned salaries with effect from

1 January 2000?

10. What was the total amount paid to all administrators and all employees of the EIB during 1998?

Answer given by Mr Solbes Mira on behalf of the Commission

(13 March 2000)

In view of the specific nature of the Honourable Member(cid:146)s question, the Commission forwarded it to the
European Investment Bank (EIB), which replied as follows.

The EIB(cid:146)s management bodies comprise (1) the Board of Governors, consisting of one Minister by
Member State, usually the Finance Minister, (2) the Board of Directors, consisting of 25 members and
13 alternates, (3) the Management Committee, the resident executive body, consisting of the Bank(cid:146)s
President and seven Vice-Presidents, and (4) the Audit Committee, the Bank(cid:146)s external audit body,
consisting of four leading figures from the external public or private finance audit offices in the
European Union.

Members of the Board of Directors and the Audit Committee are appointed by the Board of
Governors. The composition and responsibilities of the management bodies of the EIB are set out in
the Bank(cid:146)s Annual Report, to which the Honourable Member can refer.

EIB staff costs amount to €126 359 million, as set out in the Annual Report (1). This covers staff at the
Bank (998 posts) and eight members of the Management Committee. Only 70 % of this amount
(€ 88,5 million)
the balance (€ 37,589 million) goes on welfare
expenditure. Unlike the other Union institutions, the EIB is directly responsible for expenditure on
health insurance, pensions, the crŁche and child-minding facilities, and subsidies for staff catering
services.

is allocated to remuneration;

As for the remuneration of the Bank(cid:146)s management staff, it should be noted that by decision of the
Board of Governors members of the Management Committee are on the same salary scale as the
President and Vice-Presidents of the Commission. Similarly, Directors-General of the Bank receive the
same salaries as their counterparts in the other European institutions. Consequently, the figure of
LIT 40 million (€ 20 658,28) net per month for Directors-General at
the Bank quoted by the
Honourable Member overstates the actual salaries drawn by more than 35 %.

Members of the Board of Directors, which meets 11 times a year, do not receive any remuneration
from the Bank. They are paid a flat-rate sum of €50 to cover the costs of attendance at Board
meetings. This has remained unchanged since 1958. Members of the Board of Governors do not
receive a remuneration or a meetings allowance from the Bank.

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Official Journal of the European Communities

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The structure of the basic salaries of EIB staff is largely similar to that of Community officials and
other servants. The breakdown is as follows:

Basic salaries of the EIB (1998)

Category

Executive staff

Administrative staff

Management staff

Minimum

1 891,48

3 715,03

7 466,13

(in euro)

Maximum

4 950,88

10 651,64

14 610,10

These figures show that the ratio between the lowest and highest possible salaries is 1:7.7, a difference
considerably lower than the norm in the banking sector in Europe. Further, to date no member of the
EIB management staff has received the maximum salary shown in the table. All salaries are subject to
Community tax; the maximum rate is 45 % and the proceeds from it are paid into the Community
budget.

Certain factors peculiar to the EIB should be taken into account when assessing the above data:

(cid:129) Unlike the other Union institutions, the Bank(cid:146)s Statute requires it to be self-financing and to cover
its administrative costs out of the gains it makes as an intermediate bank. In other words, the EIB
provides for its own operation without drawing on the budgetary resources of the Community or
of the Member States.

(cid:129) Also unlike the other institutions the employment relationship between the Bank and its staff is
governed by contract rather than by conditions of service; in addition, the Bank still works a 40-
hour week. These two factors combined with the banking nature of EIB activities, which is
reflected in the preponderance of administrative and management staff
the staff
complement), should be taken into account when assessing the average salaries of Bank staff.

(55 % of

(cid:129) Finally,

in accordance with banking custom, the salaries of Bank staff are established on an
individual basis and form part of the employer-employee relationship. That said, staff are familiar
with the minimum and maximum salary for their category.

To conclude, the amount actually allocated to the remuneration of Bank staff (€88,5 million out of the
€126 359 million which goes on staff costs) is 30 % less than the figure quoted by the Honourable
Member.

Finally, the Commission would point out that the EIB is an independent institution owned directly by the
Member States and operating under guidelines established by its Governors. For any further clarification on
the remuneration of the officials of the EIB, the Governors or the Bank should be approached direct.

(1) Profit and Loss account, EIB 1998 Annual Report, p. 74. As the figures cited by the Honourable Member are for
1998, the figures in this answer refer to the same year, which is the last year for which the accounts have been
certified.

(2000/C 303 E/227)

WRITTEN QUESTION P-0498/00

by Luciana Sbarbati (ELDR) to the Commission

(17 February 2000)

Subject: Measures to assist persons suffering from neurodegenerative diseases

As people start to live longer, age-related health problems are generally increasing. Enabling the elderly to
retain their independence for as long as possible, through preventive treatment, assistance and structures to
provide information on diseases, is one of the priorities for the European Union(cid:146)s social policy.