Proposal for a Council Regulation adjusting the weightings applicable to the remuneration and pensions of officials and other servants of the European Communities
Date: 2008-04-25
Institutions: European Commission
Subjects: European official, pay, pension scheme, ratio, regulations for civil servants, servant (EU)

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 25.4.2008 
COM(2008) 217 final 

Proposal for a 

COUNCIL REGULATION 

adjusting the weightings applicable to the remuneration and pensions of officials and 
other servants of the European Communities 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

BACKGROUND TO THE PROPOSAL 

•  Grounds for and objectives of the proposal 

In  accordance  with  Article  4  of  Annex XI  to  the  Staff  Regulations,  intermediate 
adjustments  of  remuneration  and  pensions  under  Article  65(2)  of  the  Staff 
Regulations are to be made, on the basis of information provided by Eurostat, in the 
event of a substantial change in the cost of living between June and December, with 
due allowance being made for the forecast of the change in purchasing power during 
the current annual reference period. 

Any  Commission  proposal  needed  is  to  be  sent  to  the  Council  not  later  than  the 
second half of April. 

•  General background  

In accordance with Article 6 of Annex XI to the Staff Regulations, adjustments are to 
be made for all places (including Brussels) if the sensitivity threshold is reached in 
Brussels. If that sensitivity threshold is not reached, adjustments are only to be made 
for those places where the threshold is exceeded. 

In accordance with Article 7 of Annex XI to the Staff Regulations, the amount of the 
adjustment is to be the Brussels International Index multiplied, where appropriate, by 
half of the specific indicator forecast if this is negative.  

The  specific  indicator  measures  changes  in  the  net  remuneration,  exclusive  of 
inflation, of national civil servants in Member States' central governments. Eurostat 
has  calculated  this  indicator  on  the  basis  of  the  information  supplied  by  the  eight 
Member States referred to in Article 1(4) of Annex XI. 

The Brussels International Index measures changes in the cost of living in Brussels 
for European Community officials. Eurostat has drawn up this index on the basis of 
the information provided by the Belgian authorities. 

The weightings are the ratio between the relevant economic parity and the exchange 
rate provided for in Article 63 of the Staff Regulations multiplied, if the adjustment 
threshold is not reached for Brussels, by the amount of the adjustment. 

The economic parities for remuneration establish the purchasing power equivalence 
of the remuneration paid in Brussels, as the reference city, with that paid in the other 
places  of  employment.  Eurostat  has  calculated  those  parities  in  agreement  with  the 
national statistical bodies. 

The economic parities for pensions establish the purchasing power equivalence of the 
pension  paid  in  Belgium,  as  the  reference  country,  with  that  paid  in  the  other 
countries  of  residence.  Eurostat  has  calculated  those  parities  in  agreement  with  the 
national statistical bodies. 

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•  Existing provisions in the area of the proposal 

This  proposal  is  in  addition  to  the  proposal  presented  each  year  for  adjusting 
remuneration and pensions. 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

Methods  of  consultation  used,  main  sectors  covered  and  general  profile  of 
respondents 

The  elements  of  the  proposal  have  been  discussed  with  the  staff  representatives  in 
accordance with the appropriate procedures. 

Summary of replies received and the way in which they have been taken into account 

The proposal takes account of the opinions of the parties consulted. 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

- The purpose of the proposal is to adjust remuneration and pensions in accordance 
with the legislation in force. 

- The legislation in force permits no alternative. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

In accordance with Article 4 of Annex XI to the Staff Regulations, the purpose of the 
proposed action is to adjust remuneration in those places in which there has been a 
substantial change in the cost of living. 

The change in the cost of living for Brussels, measured by the Brussels International 
Index, over the period June to December of the previous year, is 1,5%.  

Changes in the cost of living outside Belgium and Luxembourg during the reference 
period are measured by the implicit indices calculated by Eurostat. These indices are 
calculated  by  multiplying  the  Brussels  International  Index  by  the  change  in  the 
economic parity. 

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The sensitivity threshold is the percentage corresponding to 7% for a twelve-month 
period (3,5% for a six-month period). 

The implicit index applicable to remuneration exceeds the threshold in the following 
countries or places: 

–  Bulgaria 6,5% 

–  Estonia 5,6% 

–  Latvia 5,9% 

–  Lithuania 9,1% 

–  Romania 3,8%. 

The  implicit  index  applicable  to  pensions  exceeds  the  threshold  in  the  following 
countries or places: 

–  Bulgaria 6,3% 

–  Estonia 4,5% 

–  Latvia 5,4% 

–  Lithuania 6,0% 

–  Romania 3,9%. 

The  intermediate  adjustment  is  the  Brussels  International  Index  multiplied,  where 
appropriate, by half of the specific indicator forecast if this is negative. 

The  specific  indicator  forecast  is  -1,1%,  and  thus  the  amount  of  the  intermediate 
adjustment is 1,0%. 

The weightings are the ratio between the relevant economic parity and the exchange 
rate multiplied, if the adjustment threshold is not reached for Brussels, by the amount 
of the intermediate adjustment. 

These  weightings  take  effect  on  1  January.  However,  for  those  countries  or  places 
whose  implicit  index  is  greater  than  6,3%,  they  take  effect  on  16  November.  For 
those countries or places whose implicit index is greater than 12,6%, they take effect 
on 1 November. 

As  a  result,  with  effect  from  16  November  2007,  the  weightings  applicable  to 
remuneration for those countries or places exceeding the threshold are: 

–  Bulgaria 69,7 

–  Lithuania 77,4. 

As  a  result,  with  effect  from  1  January  2008,  the  weightings  applicable  to 
remuneration for those countries or places exceeding the threshold are: 

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–  Estonia 83,6 

–  Latvia 83,6 

–  Romania 78,8. 

As a result, the weightings applicable to transfers by officials and other servants to 
those countries or places exceeding the threshold are: 

–  Bulgaria 61,4 

–  Estonia 80,8 

–  Latvia 78,8 

–  Lithuania 71,5  

–  Romania 72,9. 

According  to  the  second  subparagraph  of  Article  20(1)  of  Annex  XIII  to  the  Staff 
Regulations  the  minimum  applicable  correction  coefficient  for  pensions  is  100. 
Therefore, the weightings applicable to pensions remain unchanged. 

•  Legal basis 

The Staff Regulations, and in particular Annex XI thereto, constitute the legal basis. 

•  Subsidiarity principle 

The  proposal  concerns  an  area  that  falls  within  the  exclusive  competence  of  the 
Community. The principle of subsidiarity does not therefore apply. 

•  Proportionality principle 

The  proposal  is  consistent  with  the  principle  of  proportionality  for  the  following 
reasons: 

- Annex XI to the Staff Regulations provides for a Council Regulation. 

- The financial burden results directly from application of the method of adjustment 
provided for in the Staff Regulations. 

•  Choice of instruments 

Proposed instrument(s): Regulation. 

Other instruments would have been inappropriate for the following reasons: 

- Annex XI to the Staff Regulations provides for a Council Regulation. 

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4. 

BUDGETARY IMPLICATIONS 

The  impact  of  the  adjustment  of  remuneration  and  pensions  on  administrative 
expenditure and revenue is detailed in the financial statement annexed hereto. 

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Proposal for a 

COUNCIL REGULATION 

adjusting the weightings applicable 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 the European Community, 

Having  regard  to  the  Protocol  on  the  Privileges  and  Immunities  of  the  European 
Communities, and in particular Article 13 thereof, 

Having regard to the Staff Regulations of officials of the European Communities and to the 
Conditions of employment of other servants of the European Communities, as laid down by 
Council  Regulation  (EEC,  Euratom,  ECSC)  No  259/681,  and  in  particular  Articles  63,  64, 
65(2)  and  82  of  the  Staff  Regulations  and  Annexes  VII,  XI  and  XIII  thereto,  and  the  first 
paragraph of Article 20, Article 64 and Article 92 of the Conditions of employment of other 
servants, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

There  was  a  substantial  increase  in  the  cost  of  living  in  Bulgaria,  Estonia,  Latvia, 
Lithuania and Romania in the period June to December and the weightings applied to 
the remuneration of officials and other servants should therefore be adjusted. 

HAS ADOPTED THIS REGULATION: 

Article 1 

With effect from 16 November 2007, the weightings applicable, under Article 64 of the Staff 
Regulations, to the remuneration of officials and other servants employed in the countries and 
places listed below shall be as follows: 

–  Bulgaria 69,7 

–  Lithuania 77,4. 

1 

OJ L 56, 4.3.1968, p. 1. Regulation as last amended by Regulation (EC, Euratom) No 2104/2005 (OJ L 
337, 22.12.2005, p. 7).  

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Article 2 

With  effect  from  1  January  2008,  the  weightings  applicable,  under  Article  64  of  the  Staff 
Regulations, to the remuneration of officials and other servants employed in the countries and 
places listed below shall be as follows: 

–  Estonia 83,6 

–  Latvia 83,6 

–  Romania 78,8. 

Article 3 

With effect from the first day of the month following that of the publication of this Regulation 
in the Official Journal of the European Union, the weightings applicable under Article 17(3) 
of Annex VII to the Staff Regulations to transfers by officials and other servants shall be as 
follows: 

–  Bulgaria 61,4 

–  Estonia 80,8 

–  Latvia 78,8 

–  Lithuania 71,5  

–  Romania 72,9. 

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

Article 4 

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

Done at Brussels,  

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

NAME OF THE PROPOSAL: 

COUNCIL REGULATION (EC, EURATOM) adjusting the weightings applicable to 
the  remuneration  and  pensions  of  officials  and  other  servants  of  the  European 
Communities. 

2. 

ABM / ABB FRAMEWORK 

Policy Area(s) concerned and associated Activity/Activities: 

All areas and activities are potentially concerned. 

3. 

BUDGET LINES 

3.1. 

Budget  lines  (operational  lines  and  related  technical  and  administrative 
assistance lines (ex- B..A lines)) including headings: 

Expenditure: XX.01.01.01 Commission and Chapter 11 Other institutions. 

Revenue: 400 - Proceeds of the tax on the salaries, wages and allowances of officials, 
other  servants and persons  in receipt of a  pension,  404  -  Proceeds  from  the  special 
levy  on  the  salaries  of  members  of  the  institutions,  officials  and  other  servants  in 
active employment, 410 - Staff contributions to the pension scheme. 

3.2. 

Duration of the action and of the financial impact: 

Indefinite 

3.3. 

Budgetary characteristics: 

Budget 
line 

Type of expenditure 

New 

EFTA 
contribution 

Contributions 
from applicant 
countries 

Heading in 
financial 
perspective 

XX.01.
01.01 
and 
Chapter 
11 

Non-
compuls
ory 
expendit
ure 

Non-
diff2 

NO 

NO 

NO 

No [5] 

2 

Non-differentiated appropriations hereafter referred to as NDA 

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4. 

SUMMARY OF RESOURCES 

4.1. 

Financial Resources 

4.1.1. 

Summary of commitment appropriations (CA) and payment appropriations (PA) 

EUR million (to 3 decimal places) 

Expenditure type 

Section 
no. 

n + 1

n + 2

n + 3

n + 4 

Year 
n 

n + 5 
and 
later 

Total 

Operational expenditure3 

Commitment Appropriations 
(CA) 

8.1. 

Payment 
(PA) 

Appropriations 

a 

b 

Administrative expenditure within reference amount4 

Technical  &  administrative 
assistance (NDA) 

8.2.4. 

c 

TOTAL REFERENCE AMOUNT 

Commitment 
Appropriations 

Payment Appropriations 

a+c

b+c

Administrative expenditure not included in reference amount5 

Human 
associated 
(NDA) 

resources 

and 
expenditure 

Administrative  costs,  other 
than  human  resources  and 
not 
associated 
included 
reference 
in 
amount (NDA) 

costs, 

8.2.5. 

d 

0,207  0,192 

0,192 

0,192 

0,192 

0,192 

8.2.6. 

e 

Total indicative financial cost of intervention 

TOTAL CA including cost 
of Human Resources 

TOTAL  PA  including  cost 
of Human Resources 

a+c
+d
+e 

b+c
+d
+e 

0,207  0,192 

0,192 

0,192 

0,192 

0,192 

0,207  0,192 

0,192 

0,192 

0,192 

0,192 

Not 
avail-
able 

Not 
avail-
able 

Not 
avail-
able 

3 
4 
5 

Expenditure that does not fall under Chapter xx 01 of the Title xx concerned. 
Expenditure within article xx 01 04 of Title xx. 
Expenditure within chapter xx 01 other than articles xx 01 04 or xx 01 05. 

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Co-financing details 

If  the  proposal  involves  co-financing  by  Member  States,  or  other  bodies  (please 
specify  which),  an  estimate  of  the  level  of  this  co-financing  should  be  indicated  in 
the table below (additional lines may be added if different bodies are foreseen for the 
provision of the co-financing): 

EUR million (to 3 decimal places) 

Year 
n 

n + 1

n + 2

n + 3

n + 4 

n + 5 
and 
later 

Total 

Co-financing body 

…………………… 

TOTAL  CA  including  co-
financing 

f 

a+c
+d
+e
+f 

4.1.2.  Compatibility with Financial Programming 

X 

Proposal is compatible with existing financial programming. 

(cid:133) 

(cid:133) 

Proposal  will  entail  reprogramming  of  the  relevant  heading  in  the  financial 
perspective. 

Proposal  may  require  application  of  the  provisions  of  the  Interinstitutional 
Agreement6 (i.e. flexibility instrument or revision of the financial perspective). 

4.1.3.  Financial impact on Revenue 

(cid:133) 

Proposal has no financial implications on revenue 

X 

Proposal has financial impact – the effect on revenue is as follows: 

Budget line 

Revenue 

EUR million (to one decimal place) 

Prior to
action 
[Year 
n-1] 

[Yea
r n] 

Situation following action 

[n+1] [n+2]  [n+3

[n+4] [n+5]

] 

7 

410 Pension 
contribution 

a) Revenue in absolute terms 

0,376

0,397  0,396  0,396  0,396  0,396  0,396 

b) Change in revenue 

 ∆ 

0,021  0,020  0,020  0,020  0,020  0,020 

400 Tax 

a) Revenue in absolute terms 

0,216

0,228  0,228  0,228  0,228  0,228  0,228 

6 
7 

See points 19 and 24 of the Interinstitutional agreement. 
Additional columns should be added if necessary i.e. if the duration of the action exceeds 6 years 

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b) Change in revenue 

 ∆ 

0,012  0,012  0,012  0,012  0,012  0,012 

404 Special levy 

a) Revenue in absolute terms 

0,025

0,026  0,026  0,026  0,026  0,026  0,026 

b) Change in revenue 

 ∆ 

0,001  0,001  0,001  0,001  0,001  0,001 

4.2. 

Human Resources FTE (including officials, temporary and external staff) – see 
detail under point 8.2.1. 

Annual requirements 

Year n 

n + 1 

n + 2 

n + 3 

n + 4 

n + 5 
and 
later 

Total  number  of  human 
resources 

5. 

CHARACTERISTICS AND OBJECTIVES 

5.1. 

Need to be met in the short or long term 

Obligation under the Staff Regulations. 

5.2. 

Value-added  of  Community  involvement  and  coherence  of  the  proposal  with 
other financial instruments and possible synergy 

Not applicable. 

5.3. 

Objectives, expected results and related indicators of the proposal in the context 
of the ABM framework 

Not applicable. 

5.4.  Method of Implementation (indicative) 

(cid:133)  Centralised Management 

X 

directly by the Commission: PMO 

(cid:133) 

indirectly by delegation to: 

(cid:133) 

executive Agencies 

(cid:133) 

bodies set up by the Communities as referred to in art. 185 of the 
Financial Regulation 

(cid:133) 

national public-sector bodies/bodies with public-service mission 

(cid:133) 

Shared or decentralised management 

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(cid:133)  with Member states 

(cid:133)  with Third countries 

(cid:133) 

Joint management with international organisations (please specify) 

Relevant comments: 

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6. 

MONITORING AND EVALUATION 

6.1.  Monitoring system 

Not applicable. 

6.2. 

Evaluation 

6.2.1.  Ex-ante evaluation 

Not applicable. 

6.2.2.  Measures taken  following  an intermediate/ex-post evaluation (lessons learned from 

similar experiences in the past) 

Not applicable. 

6.2.3.  Terms and frequency of future evaluation 

Evaluation at the end of the fourth year counting from July 2004. 

7. 

ANTI-FRAUD MEASURES  

Not applicable. 

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8. 

DETAILS OF RESOURCES 

8.1. 

Objectives of the proposal in terms of their financial cost 

Commitment appropriations in EUR million (to 3 decimal places) 

Type of output 

Av. 
cost 

Year n 

Year n+1 

Year n+2 

Year n+3 

Year n+4 

Year n+5 and 
later 

TOTAL 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

of 

(Headings 
Objectives, 
and 
actions 
outputs should be 
provided) 

OPERATIONAL 
OBJECTIVE  No.1 
8……… 

Action 
1………………. 

- Output 1 

- Output 2 

Action 
2………………. 

- Output 1 

Sub-total 
Objective 1 

OPERATIONAL 
OBJECTIVE  No.2 
1……… 

8 

As described under Section 5.3 

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Action 
1………………. 

- Output 1 

Sub-total 
Objective 2 

OPERATIONAL 
OBJECTIVE  No.n 
1 

Sub-total 
Objective n 

TOTAL COST 

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8.2. 

Administrative Expenditure 

8.2.1.  Number and type of human resources 

Types of post 

Staff to be assigned to management of the action using existing and/or 
additional resources (number of posts/FTEs) 

Year n 

Year n+1  Year n+2  Year n+3  Year n+4  Year n+5 

Officials or 
temporary 
staff9 (XX 01 
01) 

A*/AD 

B*, 
C*/AST 

Staff  financed10  by  art. 
XX 01 02 

Other  staff11  financed by 
art. XX 01 04/05 

TOTAL 

8.2.2.  Description of tasks deriving from the action 

8.2.3. 

Sources of human resources (statutory) 

(cid:133) 

(cid:133) 

(cid:133) 

(cid:133) 

(cid:133) 

Posts currently allocated to the management of the programme to be replaced 
or extended 

Posts pre-allocated within the APS/PDB exercise for year n 

Posts to be requested in the next APS/PDB procedure 

Posts  to  be  redeployed  using  existing  resources  within  the  managing  service 
(internal redeployment) 

Posts required for year n although not foreseen in the APS/PDB exercise of the 
year in question 

9 
10 
11 

Cost of which is NOT covered by the reference amount 
Cost of which is NOT covered by the reference amount 
Cost of which is included within the reference amount 

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8.2.4.  Other  Administrative  expenditure  included  in  reference  amount  (XX  01  04/05  – 

Expenditure on administrative management) 

Budget line 

(number and heading) 

EUR million (to 3 decimal places) 

Year 
n 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year 
n+5  

and 
later 

TOTAL 

Technical 

1 
and 
assistance (including related staff costs) 

administrative 

Executive agencies12 

Other 

technical 

and 

administrative 

assistance 

- intra muros  

- extra muros 

Total  Technical  and  administrative 
assistance 

8.2.5.  Financial cost of human resources and associated costs not included in the reference 

amount 

EUR million (to 3 decimal places) 

Type of human resources 

Year n 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year 
n+5 

and later 

Officials  and  temporary  staff 
(XX 01 01) 

Staff  financed  by  Art  XX  01 
02  (auxiliary,  END,  contract 
staff, etc.) 

(specify budget line) 

cost 

Total 
of  Human 
Resources  and  associated 
costs 
in  reference 
amount) 

(NOT 

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Reference should be made to the specific legislative financial statement for the Executive Agency(ies) 
concerned. 

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Calculation– Officials and Temporary agents 

Calculation– Staff financed under art. XX 01 02 

8.2.6. Other administrative expenditure not included in reference amount 

EUR million (to 3 decimal places)

Year 
n 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year 
n+5 

and 
later 

TOTAL 

XX 01 02 11 01 – Missions 

XX 01 02 11 02 – Meetings & Conferences 

XX 01 02 11 03 – Committees13  

XX 01 02 11 04 – Studies & consultations 

XX 01 02 11 05 - Information systems 

2 

Total 

Other  Management 

Expenditure (XX 01 02 11) 

3  Other 

expenditure 

administrative 
including reference to budget line) 

nature 

of 

an 
(specify 

expenditure, 
than  human  resources  and 
in 

Total  Administrative 
other 
associated  costs  (NOT 
reference amount) 

included 

Calculation - Other administrative expenditure not included in reference amount 

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Specify the type of committee and the group to which it belongs. 

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