WRITTEN QUESTION E-3061/02 by Herbert Bösch (PSE) to the Commission. Commission officials on leave.
Date: 2002-10-25
Institutions: European Parliament, Provisional data
Subjects: European Commission, European official, invitation to tender, regulations for civil servants, rules of procedure, unpaid leave

3.7.2003

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Official Journal of the European Union

C 155 E/83

Non-governmental organisations certainly have their place in projects for the development of democracy
and human rights in Russia. The management of actions financed under the TACIS Programme is a matter
for the Commission, which must abide by the TACIS Regulation but also by the Financial Regulation
applicable to the general budget of the European Communities, and in particular the principles of found
financial management, economy and profitability.

It is for the Commission to provide explanations concerning the rules governing such invitations to tender,
and in particular on the bank guarantees required.

(2003/C 155 E/095)

WRITTEN QUESTION E-3060/02

by Frank Vanhecke (NI) to the Council

(25 October 2002)

Subject: European Convention

In an interview published in the Financial Times on 7 October 2002, Valéry Giscard d’Estaing, chairman of
the Convention on the Future of Europe, which has a remit to draft a European Constitution, stressed that
he was opposed to any increase in the powers of the Commission and was in favour of
‘greater
cooperation between the governments’ of
the Member States, which must remain sovereign. This
unmistakably shows that the chairman of the Convention advocates a confederative model.

Does this confederationist approach espoused by Valéry Giscard d’Estaing coincide with the Council’s
approach?

What is the Council’s view of the suggestion by the chairman of the Convention that the name ‘European
Union’ could possibly be replaced with the name ‘United Europe’, which according to Valéry Giscard
d’Estaing would be ‘closer to the citizens’?

Reply

(20 February 2003)

The Council never comments on statements made to the press. It has not taken a view on the discussions
currently underway within the Convention, nor would it be appropriate for it to do so. The choice of a
model for a future Europe or the suggestion of a possible change to the name of the European Union were
put forward by the President of the Convention on his own initiative. The Council has neither discussed
nor taken a view on these issues.

(2003/C 155 E/096)

WRITTEN QUESTION E-3061/02

by Herbert Bösch (PSE) to the Commission

(25 October 2002)

Subject: Commission officials on leave

The Bulletin Quotidien Europe 8308 of 30 September 2002 contained a report on some Commission
officials who were granted leave of absence for ‘personal reasons’, only to end up working for a lobby
company. This same company was to have received a EUR 23 million contract from the Commission, but
this has been put on hold for the time being.

This case raises a number of questions:

(cid:1) Under what conditions is it possible to obtain leave for personal reasons at the Commission? Is it
possible in principle to be granted leave repeatedly and return to the Commission only for short
periods at a time?

(cid:1) How long do officials have a right to return to the Commission?

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3.7.2003

(cid:1) Do they continue to receive a salary, and what costs does the Commission incur as a result? Does this

lead to staff shortages or can these posts be filled?

(cid:1) How many Commission officials are currently on leave for ‘personal reasons’?

(cid:1) What precautions are being taken or are planned to avoid a conflict of interests, as in the above case?

Answer given by Mr Kinnock on behalf of the Commission

(15 January 2003)

In respect of the specific case mentioned by the Honourable Member, the company that employed officials
on personal
leave has since withdrawn from the contract and the officials have resigned from the
Commission.

On the more general issues raised by the Honourable Member’s question:

(cid:1) Leave on personal grounds is governed by Article 40 of the Staff Regulations of officials of the
European Communities. This provides that an established official may be granted unpaid leave on
personal grounds in exceptional circumstances and at his or her own request.

(cid:1) The Staff Regulations do not define the scope of

leaving
interpretation to the appointing authority. These circumstances could, however, be related to the
official’s family situation such as the bringing-up of a child, or to giving officials the opportunity to
further improve their professional qualifications. In the context of the Commission reform, emphasis
has been put on the need to enhance life-long learning by extending the possibilities of training
measures inside and outside the institution and to allow officials to broaden their professional
experience through internal and external mobility.

these ‘exceptional circumstances’,

(cid:1) The rules would not prevent the granting of further personal

leave to an official who has been
reinstated following such leave. A decision on this would be at the discretion of the appointing
authority.

(cid:1) On the expiry of such leave, the official must be reinstated in the first vacant post that corresponds to
his or her profile. The official retains the right to reinstatement if he or she declines the first post
offered. If the official declines a second time he or she may be required to resign after the Joint
Committee has been consulted.

(cid:1) Normally, the institution does not incur any costs for the duration of the official’s leave. During the
leave, the official does not receive a salary; furthermore, he or she is not entitled to advancement to a
higher step or to promotion in grade. The official’s membership of the sickness and the accident
insurance is suspended. Where, however, an official provides evidence that he or she cannot be
covered by any other public scheme of insurance against these risks, the official may apply to
continue to be covered by the scheme, provided that he or she bears half the cost of the contributions
for the first year of the leave on personal grounds and the full cost during the remainder of the leave.

(cid:1) Furthermore, the official who proves that he or she cannot acquire pension rights for another pension
scheme may apply to continue to acquire further pension rights for a maximum of one year.
However, in this case the official has to bear the full cost of the contribution, and must therefore
contribute at three times the rate he or she would be obliged to pay if in active service.

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(cid:1) The number of officials currently on leave on personal grounds is 566 (on 10 December 2002). It does
not give rise to staff shortages because other persons may be appointed to the posts formerly occupied
by the officials on personal leave. The Commission allows an official’s post to be filled where leave has
been granted for a period of more than six months. Of the 566 officials, on the basis of analysis
relating to 400 of them so far, 10 % are engaged in professional activities and the other 90 % are on
leave for family reasons, educational activities, etc. A full analysis will be completed shortly and the
results will be sent to the Honourable Member.

(cid:1) It is important to emphasise that officials on Personal Leave continue to be subject to the provisions
of Article 12 of the Staff Regulations which require officials to obtain permission before engaging in
any outside activity, and which allow for refusal of permission or imposition of conditions where it is
considered that the activity would otherwise be ‘detrimental to the work of the Communities’. The
Commission would, of course, interpret the creation of conflicts of interests as being ‘detrimental’ to
the Community, and would thus take appropriate action to prevent conflicts arising.

(cid:1) Article 17 meanwhile requires officials (cid:1) whether in work or on leave (cid:1) not

to disclose to
unauthorised persons ‘information not already made public’. If an official who was working in the
private sector did make use of such privileged information, he or she would certainly face disciplinary
proceedings.

(cid:1) The Staff Regulation rules governing leave on personal grounds will be clarified by the reform
amendments proposed by the Commission, which are currently before the Council. In addition, the
Commission is examining ways to provide more detailed guidance to officials and to potential
employers in order to reinforce understanding of the need to ensure that the objectives of allowing
exchange between the Commission and other bodies are fulfilled while protecting the integrity and
security of the Commission.

(2003/C 155 E/097)

WRITTEN QUESTION E-3062/02

by Cristiana Muscardini (UEN) to the Commission

(25 October 2002)

Subject: Global banking crisis

In the second week of October the leading stock market indices plummeted to their lowest levels for six
years. The fall in the financial markets, the increase in company bankruptcies and insolvencies in the
foreign debt of many countries have had a devastating effect on bank balance sheets. The total loss in the
German banking sector over the past two and a half years has reached alarming levels. Commerzbank
shares have collapsed from EUR 44 in 2000 to EUR 5,3 on 8 October. The bank’s capitalisation has fallen
from EUR 24 billion to 3 billion. Other shares in the DAX-30 have suffered huge losses: Bayerische Hypo
Vereinsbank −84 %, Deutsche Bank −64 %, Allianz/Dresdner Bank −83 %, Münchener Rück −75 %, MLP
−96 %. The combined market capitalisation of these six banks fell from EUR 300 to EUR 71 billion
between 2000 and the start of October 2002. The ECB’s chief economist has admitted that on the stock
market front the banking situation is critical. Company bankruptcies have reached new records in the
USA, Japan and Germany. Defaults on company debentures reached USD 140 billion in the first nine
months of this year. 28 countries are unable to meet their debt servicing obligations. In the USA and
Europe investment banks will write off more than USD 130 billion. The largest American bank, which
boasts a balance sheet of USD 713 billion has been downgraded by the rating agencies. The market
capitalisation of Morgan Chase has fallen from USD 105 billion to USD 33 billion (down 69 %). Charles
Schwab has lost 82 %, Morgan Stanley 72 %, Merrill Lynch 60 %, Goldman Sachs 54 %, Citigroup 50 %,
Lehman Brothers 48 % and Bearn Stern 45 %. Even greater risks are emerging in terms of insolvencies. The
huge US real estate bubble involves USD 5 trillion in risk bonds. The derivatives bubble, with operations
amounting to USD 26 trillion at Morgan Chase and USD 11 trillion at Deutsche Bank, could be another
bomb waiting to go off.