COMMISSION STAFF WORKING PAPER 2013 Eurostat Report on the annual adjustment of remuneration and pensions of EU officials Accompanying the document Proposal for a Council Regulation adjusting with effect from 1 July 2013 the correction coefficients applied to the remuneration and pensions of officials and other servants of the European Union
Date: 2013-11-07
Institutions: European Commission
Subjects: European official, pension scheme, remuneration of work, servant (EU), wage determination














EUR-Lex - 52013SC0453 - EN











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52013SC0453

COMMISSION STAFF WORKING PAPER 2013 Eurostat Report on the annual adjustment of remuneration and pensions of EU officials Accompanying the document Proposal for a Council Regulation adjusting with effect from 1 July 2013 the correction coefficients applied to the remuneration and pensions of officials and other servants of the European Union /* SWD/2013/0453 final */









COMMISSION STAFF WORKING PAPER
2013 Eurostat Report on 
the annual adjustment of remuneration and pensions of EU officials
Accompanying the document
Proposal for a Council Regulation
adjusting with effect from 1 July
2013 the correction coefficients applied to the remuneration and pensions of
officials and other servants of the European Union
Contents
Executive Summary. 3
Introduction. 4
1........... Correction
coefficients for staff outside Belgium and Luxembourg. 6
1.1........ Adjustment of
remuneration and pensions outside Belgium and Luxembourg. 6
1.2........ Correction coefficients
for staff outside Belgium and Luxembourg. 6
2........... Correction
coefficients for pensioners outside Belgium and Luxembourg. 10
3........... Correction
coefficients for staff serving outside the European Union. 13
              Executive Summary
Annex XI of the Staff Regulations sets out
rules for implementing Articles 64 and 65 of the Staff Regulations. These are
supplemented by procedural manuals adopted by the Working Groups on Articles 64
& 65 of the Staff Regulations which meet periodically in Luxembourg, and
other applicable legislation and international agreements.
The version of Annex XI adopted in May 2004
expired with effect from 31 December 2012 although Articles 64 and 65 continued
to apply. Owing to the legislative void, the modalities to be followed for the Eurostat
report covering the period July 2012 – July 2013 were discussed at the meeting
of the Article 65 Working Group held in Luxembourg in March 2013 and at the
joint meeting of the Articles 64 & 65 Working Groups held in Luxembourg in
September 2013.
A new version of Annex XI was subsequently adopted
in October 2013. This takes effect from 1 January 2014, however the annual
adjustment of remuneration and pensions in Belgium and Luxembourg is
temporarily suspended by Article 65(3) which introduces an immediate two-year pay
freeze.
In these circumstances, this report
presents only the information required for the annual adjustment of
remuneration and pensions outside Belgium/Luxembourg, namely:
- correction
coefficients for staff working outside Brussels (Intra-EU and Extra-EU);
- correction
coefficients for pensioners living outside Belgium. 
The correction coefficients which apply to
remuneration outside Belgium and Luxembourg in order to maintain equality of
purchasing power, are provided in Tables 5 and 9 for staff serving in Intra-EU
and Extra-EU duty stations respectively.
The correction coefficients which apply to
pensions outside Belgium and Luxembourg in order to maintain equality of
purchasing power, are provided in Table 7.
              Introduction
In accordance with the Articles 64 and 65
and Annex XI of the Staff Regulations applicable to officials and other
servants of the European Union, Eurostat hereby presents its report for the
twelve months to July 2013.
Annex XI of the Staff Regulations describes
rules for implementing Articles 64 and 65 of the Staff Regulations, ie. the
method for the annual adjustment of remuneration and pension of European
officials. These rules are supplemented by procedural manuals adopted by the
Working Groups on Articles 64 & 65 of the Staff Regulations which meet
periodically in Luxembourg, and other applicable legislation and international
agreements[1].
The version of Annex XI adopted in May 2004[2] expired with effect from 31
December 2012 although Articles 64 and 65 continued to apply. Owing to the
legislative void, the modalities to be followed for the Eurostat report
covering the period July 2012 – July 2013 were discussed at the meeting of the
Article 65 Working Group held in Luxembourg in March 2013 and at the joint
meeting of the Articles 64 & 65 Working Groups held in Luxembourg in
September 2013.
A new version of Annex XI was subsequently
adopted in October 2013[3].
This takes effect from 1 January 2014, however the annual adjustment of
remuneration and pensions in Belgium and Luxembourg is temporarily suspended by
Article 65(3) which introduces an immediate two-year pay freeze.
In these circumstances, the annual
adjustments shall accordingly be determined by the following factors:
·     
economic parities between Brussels and elsewhere
(correction coefficients) using the same calculation approach as 2003-2012
(current manual A64/11/27 for Intra-EU and A64/11/28 for Extra-EU).
Chapters 1 to 3 of this report examine
respectively:
·     
Economic parities between Brussels and other locations
outside Belgium and Luxembourg, for staff (intra-EU), 
·     
Economic parities between Brussels and locations
outside the European Union, for staff (extra-EU), and
·     
Economic parities between Belgium and other
member states, for pensioners.
All figures and calculations contained in
this report relating to intra-EU locations are based on data supplied by the
responsible authorities in the Member States with the exception of information
about the consumption patterns of EU officials, which is collected directly by
surveys. Information for extra-EU locations is compiled in collaboration with
the United Nations International Civil Service Commission and the International
Section on Remuneration and Prices of the Coordinated Organisations. More
information on methodology, detailed results and statistical analysis is
available in the appendices to this report and detailed procedural manuals[4]. 
For any information concerning this report,
please contact Eurostat in Luxembourg:
Eurostat, Unit C3 
Statistics for Administrative Purposes
BECH – A2/004, 
Bâtiment
Jean Monnet
L-2920 Luxembourg
Tel.: (352) 4301-34792
Email: estat-a64ia65@ec.europa.eu
1.            Correction coefficients for staff outside Belgium and Luxembourg
1.1.        Adjustment of remuneration and pensions outside Belgium
and Luxembourg
The value of the annual adjustment for duty
station locations outside Brussels (active staff) and places of residence
outside Belgium (pensioners) is equal to the product of the annual adjustment for
Brussels (active staff) or Belgium (pensioners) multiplied by the change in the
economic parities between Brussels and the duty station (active staff) or
Belgium and the country (pensioners). 
In accordance with Article 65(3) of the Staff
Regulations adopted in October 2013, the annual adjustment for Brussels (active
stafff) or Belgium (pensioners) is zero (ie. a pay freeze). 
However, in order to maintain equivalence of
purchasing power, it is still necessary to take into account changes in
economic parities between Brussels and elsewhere.
For the 2012-13 exercise it was agreed at the
meeting of the Article 65 Working Group held in Luxembourg in March 2013 and at
the joint meeting of the Articles 64 & 65 Working Group held in Luxembourg
in September 2013 to calculate economic parities between Brussels and elsewhere
using the same calculation method as for 2003-2012 (current manual A64/11/27
for Intra-EU and A64/11/28 for Extra-EU), with the change in the cost of living
in Brussels (Belgium) being measured by the Harmonised Index of Consumer Prices
for Belgium.
In accordance with Article 3(5) of Annex XI no
correction coefficient is applicable in Belgium or Luxembourg.
1.2.        Correction
coefficients for staff outside Belgium and
Luxembourg[5]
The object of the economic parities is to
compare the relative costs of living of EU officials in Brussels (reference
city) with each of the European capitals and other places of employment in the
European Union for which a correction coefficient has been set. The method used
is to compare the price of a "basket" of goods and services in
Brussels with the prices of similar goods and services in each of the other
places of employment. The weighted average of all the price ratios is the
"economic parity". The average consumption expenditure pattern of EU
officials are used as weights, identified by means of periodic surveys of
household expenditure. In places of employment outside Brussels with very few
officials, a common structure pooling all the questionnaires from similar locations
is derived instead.
The changes in the cost of living in the places
of employment outside Belgium and Luxembourg are measured by the implicit price
indices which are calculated as the product of the Harmonised Index of Consumer
Prices for Belgium (HICP) and the changes in the economic parities between
Brussels and those other places. Table 4 shows these changes for the year to
July 2013. 
The correction coefficients applicable to the
salaries of the European institution officials working in the capitals and
places of employment other than Brussels and Luxembourg are determined on the
basis of the relationships between the economic parities and the exchange rates
for the month of July. 
The correction coefficient operates as a
percentage adjustment to salaries to take account of the cost of living
differences between Brussels and the various duty stations. 
Table 5 shows the calculation of the correction
coefficients at July 2013 for places of employment situated in the European
Union territory for which correction coefficients have been set.
2.           Correction coefficients for pensioners outside Belgium
and Luxembourg
The Staff Regulations which are in force since
1 May 2004 stipulate the creation of correction coefficients for pensioners
separate from those used for staff remuneration. The difference is that instead
of being based on capital city price comparisons they relate to national
comparisons, with Belgium as the base country.
Their use is subject to specific rules set out
in the Staff Regulations.
This section presents the calculated values of
the economic parities and the correction coefficients for pensioners. The
changes in the cost of living in Member States other than Belgium and
Luxembourg are measured by the implicit indices which are calculated as the
product of the Harmonised Index of Consumer Prices (HICP) for Belgium and the
changes in the economic parities between Belgium and the Member States. 
Table 6 shows these changes for the year to
July 2013.
Table 7 shows the correction coefficients for
all member States (relative to Belgium) calculated for the pensioners at July
2013. 
3.           Correction
coefficients for staff serving outside the European Union
Since 1989 the Staff Regulations also stipulate
the creation of correction coefficients for staff serving in duty stations
outside the European Union. An important difference is that expenditure on
housing, on education, and on healthcare is not taken into account as specific
arrangements are made for these. Price data for remaining expenditure items is
taken from “place-to-place” surveys undertaken in collaboration with the United
Nations International Civil Service Commission and the International Section on
Remuneration and Prices of the Coordinated Organisations, rather than from surveys
run directly by national authorities. This is used to establish economic
parities with Brussels, which are subsequently updated using published national
consumer price indices (relative to the harmonised index of consumer prices for
Belgium). Another important difference is that in accordance with Annex X of
the Staff Regulations, correction coefficients are only applied at the specific
request of the EU official, irrespective whether they are above or below 100. 
This section presents the calculated values of
the economic parities and the correction coefficients for extra-EU staff. Information
is compiled for a list of 143 duty stations, however economic parities are not
presented where data is unavailable or unreliable due to local instability or
other reasons. The total changes in the cost of living are measured by the
implicit indices which are calculated as the product of the Harmonised Index of
Consumer Prices for Belgium (HICP) and the changes in the economic parities
between Brussels and the duty station concerned. 
Table 8 shows these changes for the year to
July 2013.
Table 9 shows the correction coefficients for
all extra-EU duty stations (relative to Belgium) calculated at July 2013. 
Appendix 1 to the 
Eurostat Report on the
Annual Adjustment of Remuneration and Pensions 
Explanations and statistical analyses
Reference period:
Year to 1 July 2013
CONTENTS
1.     Equivalence of purchasing
power of EU officials in the Member States   3
1.1.       Economic
parities and correction coefficients. 3
1.2.       Rents
and rent parities. 4
1.3.       Purchasing
power parities - analysis of results. 14
1.3.1.     Major
changes in the economic parities from 2012 to 2013. 14
1.3.2.    
The impact of rent parities on the overall parities. 18
2.     Equivalence of purchasing
power of EU pensioners in the Member States   22
2.1.       Economic
parities and correction coefficients for pensioners. 22
2.2.       Purchasing
power parities for pensioners – analysis of results. 28
2.3.       Comparison
of correction coefficients for staff and pensioners. 31
3.     Equivalence of purchasing
power of EU staff outside the European Union   33
Introduction
This document is an appendix to the 2013 Eurostat
report on the annual adjustment of remuneration and pensions. While the
principal results concerning correction coefficients for staff and pensioners
are presented in the main report, the purpose of this appendix is to give some
explanations and statistical analyses of the results as well as detailed tables
with statistical information.
Chapters 1, 2 and 3 of this document examine respectively:
·      
the economic parities
and correction coefficients for staff (Intra-EU);
·      
the economic parities
and correction coefficients for pensioners;
·      
the economic parities
and correction coefficients for staff (Extra-EU).
All figures and calculations contained in this report
relating to Intra-EU locations are based on data supplied by the responsible
authorities in the Member States, with the exception of information about the
consumption patterns of EU officials, which is collected directly by surveys. Information
for Extra-EU locations is compiled in collaboration with the United Nations
International Civil Service Commission and the International Section on
Remuneration and Prices of the Coordinated Organisations. More information on
methodology is available in detailed procedural manuals[6].
For any information concerning this appendix, please
contact Eurostat in Luxembourg:
Eurostat, Unit C3
BECH – A2/004
Bâtiment Jean Monnet
L-2920 Luxembourg
tel.: (+352) 4301-34792
Email: estat-a64ia65@ec.europa.eu
 Equivalence of purchasing
power of EU officials in the Member States
o                                           
Economic parities
and correction coefficients 
The object of the
economic parities is to compare the relative cost of living of European
officials in Brussels (reference city) and in each of the capitals and other
places of employment for which a correction coefficient has been set. The
method used is to compare the price of a "basket" of goods and
services purchased by the average official in Brussels with the price of the
same basket in each of the other places of employment. The average of all the
price ratios is the "economic parity".
The system works
as follows: the total range of goods and services constituting the consumption
of the average European institution official is divided into 80 basic headings
(such as meat, footwear, motor cars, books). A price ratio between the place of
employment and Brussels is established for each of these headings; this is
called the basic parity. Price surveys are conducted on products selected to
represent the basic heading and specified in the necessary detail to enable
prices in a sufficiently narrow range to be collected.
The Staff
Regulations require each basic parity to be checked by direct survey at least
once every five years. In practice checks are carried out at shorter intervals
as part of the European Comparison Programme (ECP). At each annual salary
review around one third of the basic price parities are replaced by new
parities produced by the latest price surveys.
For the 2013 annual review, new parities obtained from price surveys
have been integrated for the following groups:
·   Food, Drink and Tobacco (survey 2012-1)
·   Personal appearance (survey 2012-2)
The 80 basic
parities are then updated using the price index ratio between the place of
employment and Brussels.
Housing is dealt
with differently. Special rent surveys of estate agents are carried out each
year at each place of employment, including Brussels, to calculate an
economic parity for the basic heading "accommodation costs for
tenants". The calculation follows a methodology that has been developed by
Eurostat in collaboration with the national statistical institutes of the
Member States, based on the principle that the parity used should be calculated
in such a way to allow European institution officials outside Brussels to live
in dwellings of comparable quality to those occupied by European institution
officials in Brussels. The basic parity "accommodation costs of owner-occupiers"
is calculated by reference to the rent the owner-occupiers would pay if they
were tenants (these are known as "imputed rents").
In order to
calculate the overall economic parities weights have to be applied to each
basic heading according to its relative importance in the consumption basket.
These weights are calculated directly from the results of the special family
budget surveys conducted among European and international civil servants every
five to seven years. The resulting structure reflects the consumption of the
average international civil servant in Brussels and in each country or place of
employment. 
Using the 80 basic
parities and the specific weights the overall parity is calculated in two ways:
the first uses the consumption pattern for the reference city (Brussels) (this
is a type of Laspeyres index); the second uses the consumption pattern for the
place of employment (this is a type of Paasche index). In accordance with the
standard practice for international comparisons both types of index are
calculated and the geometric mean of the results (the Fisher index) is used as
the economic parity.
The correction
coefficients applicable to the salaries of the European institution officials
working in the capitals and places of employment other than Brussels and
Luxembourg, which are calculated for the month of July, are determined on the
basis of the relationships between the economic parities and the exchange rates
fixed by the Commission and specified in the Staff Regulations for the relevant
countries. The correction coefficient operates as a percentage adjustment to
salaries to take account of the cost of living differences between Brussels and
the various duty stations. 
The details of the
economic parities calculation, at the level of 12 main consumption groups, are
shown in table 3.1 for all capitals and other places apart from Brussels and
Luxembourg. This table also includes information about the consumption weights
by country and by expenditure groups.
o                                           
Rents and rent
parities
Changes in the rent parities are provided in the Table
3.2 which shows also the average rents by type of dwelling on which the
calculation is based. The average rents used to compute the rent parities are
in fact weighted moving averages, based on a six-year model, to take into
account the average occupancy length, which is estimated to be six years. Any
annual updating of rents during the life of the typical lease is included in
the model by using the appropriate adjustment indices.
Purchasing power parities - analysis of results

   Major changes in the economic parities from 2012 to 2013

The calculation of
correction coefficients used for salary adjustment in places other than
Brussels and Luxembourg involves the revision of some elementary parities each
year. Changes in the global parities from one year to the next come mainly from
survey prices and rent revisions, but may also be affected by the trend in the
price indices used to update the elementary parities at the date of the
adjustment and by changes in the consumption structures. Details of the changes
in the economic parities from 2012 to 2013, including a decomposition of all
the effects, are given in table 3.3. 
The six biggest increases in global economic parities
during the period under review can be observed in The Hague (+3.4%), Dublin
(+2.2%), Vienna and Zagreb (+1.8%), Munich and Tallinn (+1.7%). 
The six biggest decreases in the parities can be
observed in London (-5.8%), Culham (-4.4%), Budapest (-2.8%), Riga (-1.9%),
Varese and Warsaw (-1.6%). 
For the 2013
salary adjustment two new price surveys have been incorporated: Food, drink and
tobacco (conducted in Spring 2012), and Personal appearance (conducted in
Autumn 2012). The introduction of new prices from these latest consumer price
surveys affects 23 elementary parities out of the 80 basic heading
classification (15 and 8 respectively), which together account for about 23% of
the EU average consumption weight (15% and 8% respectively).
The introduction
of the Spring 2012 survey results has led to an increase in the overall parity
for 27 locations and a decrease in the parity for 4 locations, with the impact
ranging between -2.4% (Karlsruhe) and +1.3% (Bucharest). The introduction of
the Autumn 2012 survey results has generated an increase in the overall parity
for 29 locations and a decrease for 2 locations, with the impact ranging
between -0.2% (Munich) and +1.0% (Dublin, Vilnius, Warsaw).
Rent surveys are
carried out every year in all Member States. A six-year moving average model is
used for calculating rent parities: the rent parities for 2013 are based on the
relative trend in the real-estate markets in Brussels and other places of
employment between 2008 and 2013. These parities are, therefore, affected by
the following factors:
·        
introduction of rent
data for year 2013,
·        
deletion of the rent
data for 2007,
·        
price indices used for
updating the rents for 2008 - 2012 to price of 2013.
It should be noted
that for Greece, Spain, France, Italy and Netherlands price data for houses is
now incorporated alongside the price data for apartments. 
Details of the
changes in the rent parities from 2012 to 2013, including a decomposition of
all the effects, are given in table 3.4. The largest increases in the rent
parity could be observed in Paris (+20.4%), Athens (+13.8%), Zagreb and Dublin
(+11.9%). The largest decreases in the rent parity were recorded in Madrid
(-14.1%), Sofia (-11.4%), Ljubljana (-7.8%), and Budapest (-6.9%). 
The introduction
of the new rent parities has led to an increase in the overall parity for 12
locations and a decrease for 19 locations, with the impact ranging between
-2.5% (Sofia) and +1.4% (Athens).
As regards price
indexation, the impact of applying official indices for the year to July 2013
at the level of total consumption was lower than Brussels in 12 places and
higher than Brussels in the remaining 19 places. Here it should be recalled
that there are important differences between HICP and PPP methodologies (e.g.
use of different weights for aggregation purposes). For this reason, the
"price updating effect" presented in the table cannot be directly
compared with the relative movement of the all-items HICP published separately
on the Eurostat website – although other things being equal that movement does give
an indication of the likely magnitude and direction of change.
The weighting
structure used to aggregate the parities has not been updated except for
UK-London, where finalised results from the survey which was conducted there in
2011 have been applied. The periodicity of SHE ("Survey of Household
Expenditures") is set by Article 64 Working Group decision at five to
seven years. 


1.3.2    The
impact of rent parities on the overall parities
The rent and
imputed rent parities, due to their associated high consumption weights (around
22% on average across the EU) influence in a quite significant way the global
parities and consequently the correction coefficients. The analysis of
correction coefficients calculated with and without the rent element for the
same place of employment makes it easier to isolate the effect of rent
differences separately from differences arising from other causes.
The correction
coefficient for rents (compared to Brussels =100) is very high in London
(311.6), Paris (176.0), Stockholm (175.5), and Copenhagen (158.1), whereas they
are quite low in Sofia (44.3), Nicosia (56.9), Lisbon (73.3), Tallinn (74.4)
and Valletta (75.3).
For the overall
correction coefficient, however, the range is smaller: London (139.2),
Copenhagen (134.8), and Stockholm (132.9) compared to Sofia (57.5), Bucharest
(69.8) and Vilnius (71.9).
When rents are added
to the computation, the correction coefficient is increased by 10% or more in
London (+33.6%), Paris (+13.4%), Bucharest (+11.5%), Warsaw and Budapest
(+10.8%).
By contrast the
impact is negative in Nicosia (-9.6%), Sofia (-6.8%), Varese (-3.9            %),
Lisbon (-3.8%), Valletta (-3.3%), Bonn (-2.9%), and Karlsruhe (-2.7%), and the
impact is near zero in Berlin.
More details on
the effect of rent on the 2013 correction coefficients are given in table 3.5.
·              
Equivalence
of purchasing power of EU pensioners in the Member States
o                                           
Economic parities
and correction coefficients for pensioners
The correction coefficients for pensioners
with a reference date of 1 July 2013 have been calculated in accordance with
the agreed methodology on the basis of the following information:
Ø     
Parities for all goods
and services, except for rents, as used for the calculation of the correction
coefficients for active staff. These parities are based on bilateral comparison
of prices of about 3000 goods and services between different capital cities and
Brussels (for more details see point 1.1 above).
Ø     
Country rent parities:
For calculating country rent parities the following procedure has been applied
in most of the countries. Calculate a spatial adjustment factor in the form of
national/capital ratio of market rents derived from an official database like
CPI, household budget survey, housing register, etc. With the help of this
adjustment factor transform the capital city rent parity from Article 64 estate
agency rent surveys to the country rent parity. The following exceptions to
this general rule were agreed with the respective NSIs:
1.      
Netherlands: No such
adjustment factors were available for Netherlands, for which average country
rents were compared directly with the average rents in Belgium (all derived
from ECP-PPP rent surveys).
2.      
Germany: As information
on rents for four German cities (Berlin, Bonn, Karlsruhe and Munich) is
available the ratio between the average of those cities and Berlin is used.
3.      
Denmark: Due to the
specificities of the rental market in Copenhagen, which is completely different
from the market in the rest of the country, an estimate of the Copenhagen rent
parity different from the one for staff is used as basis for the spatial
adjustment factor. The new estimate is obtained averaging the staff rent parity
with a rent ratio for the general population obtained from the NSI. In the
absence of updated information, a similar approach as for the Netherlands is
used.
4.      
Malta and Estonia: As
no reliable information on the adjustment factors were available for Malta and
Estonia a ratio equal 1 was used.
5.      
A similar approach as
for the Netherlands is authorised in Bulgaria, Ireland, Greece, Portugal,
Romania, Slovakia.
Each National Statistical Institute is requested each
year to check and, if possible, to update their spatial adjustment factor. For
2013, fresh information/confirmations were received from CZ, ES, HR, IT, LV,
LT, HU, PL, FI, SE, UK. Same factor used for 2012 was re-applied in 2013 for
BE, FR, CY, AT, SI.
Ø     
Consumption weights for
the pensioners calculated on the basis of a wide scale family budget survey
carried out in 2002[7].
Consumption weights for Croatia have been estimated as the average of the
values for duty stations outside Brussels, adjusted for rents (this is a
similar method to the estimation of values for staff duty stations with
insufficient individual sample response).
The details of the economic parities
calculation, at the level of 12 main consumption groups, are shown in table 4.1
for all countries apart from Belgium and Luxembourg. This table also includes
information about the consumption weights by country and by expenditure groups.
Table 4.2 presents the rent ratios used in 2011 and 2012.
The correction coefficients applicable to
the EC pensioners are determined on the basis of the relationships between the
economic parities and the exchange rates fixed by the Commission and specified
in the Staff Regulations for the relevant countries. The correction coefficient
operates as a percentage adjustment to pensions (only for the pension rights
acquired before 1 May 2004; being the correction coefficient 100% for the
pension rights acquired from that date) to take account of the cost of living
differences between Belgium and the Member States, except Luxembourg where,
according to the Staff Regulations, a correction coefficient of 100% is
applied.
o                                           
Purchasing power
parities for pensioners – analysis of results
One of the main
differences in the calculation of Pensioner values by comparison to the values
for Staff arises from the aggregation using pensioner expenditure weights
rather than staff consumption patterns. This can affect the impact of the
individual components (introduction of new price surveys, price updating using
indices, new rents). A decomposition of the changes in the economic parities
for r the period June 2012-2013 is shown in Table 4.3 below.
In 2013, for 16
out of the 26 member states (i.e. excluding BE and LU), the rent correction
coefficient (ratio between the rent parity and the exchange rate) is under 100.
This means that the average rents are lower in these places than in Belgium.
For the remaining 10 countries, the rent correction coefficient is greater than
100.
Moreover, for 12
Member States, the rent correction coefficient is lower than the correction
coefficient without rent. This means that, for these places, the rents lead to
a reduction of the global correction coefficient.
o                                           
Comparison of
correction coefficients for staff and pensioners
Table
4.5 compares the pensioners’ correction coefficients with those for active
staff. Among all Member States, Denmark has the highest country-based CC,
London the highest capital-based CC. The biggest differences between capital
city CCs and country CCs can be observed in the United Kingdom, Hungary,
Finland, Sweden, France, Romania, and Ireland. By contrast, in Germany, Estonia, Greece, Lithuania and Malta the two
CCs are nearly at the same level. 
In
all countries except Estonia, Greece, Cyprus, Malta and Portugal the country
CCs are lower than the capital city CCs. Without rents, the two sets of CCs are
closer – and the country CC without rent is slightly higher than the capital
city CC in 15 out of the 26 Member States (ie. excluding BE and LU).
It should be mentioned that
the Staff Regulations set out specific rules for the application of the
pensioner CC.
·              
Equivalence
of purchasing power of EU staff outside the European Union
As at July 2013, correction coefficients
are compiled for a list of 143 Extra-EU duty stations. However, the application
of Extra-EU correction coefficients is only likely to be requested in practice
where the cost of living is higher than in Brussels. The following table shows
the places where the correction coefficient is greater than 100 at 1st
July 2013:
[1]  These include the Statistical Law (223/2009); the PPP Regulation
(1445/2007); the HICP Regulation (2494/1995 et seq); the GDP Regulation (ESA95:
2223/1996, ESA2010: 549/2013); the Transparency Regulation (1049/2001); the
2009 trilateral international memorandum of understanding (Eurostat / UN
International Civil Service Commission / International Section on Remuneration
and Prices of the Coordinated Organisations); the ILO 1973 Resolution on
household surveys; the LFS Regulation (577/1998); the SES and LCS Regulation
(530/1999).
[2] Council Regulation No.723/2004 of 22 March 2004 amending the Staff
Regulations of officials of the European Communities and the Conditions of
Employment of other servants of the European Communities. 
[3] The compromise text voted by European Parliament on 2.7.2013 was
adopted by the TTE Council on 10.10.2013; signature is anticipated during
Parliamentary Session in Strasbourg 21-25.10.2013; publication in Official
Journal is expected by 31.10.2013
[4] Document A64/11/27 describes the methodology for the calculation of
intra-EU correction coefficients (and the calculation of the Brussels
International Index); 
Document A64/11/28 describes the methodology for the calculation of
extra-EU correction coefficients.
[5] A separate chapter is prepared concerning correction coefficients
for duty stations outside the European Union, to which the additional
provisions of Annex X to the Staff Regulations also apply.
[6]    DocumentA64/11/27 describes the methodology for the calculation
of intra-EU correction coefficients (and the calculation of the Brussels
International Index);       
Document A64/11/28 describes the methodology for the calculation of extra-EU
correction coefficients.
[7] An updating survey was launched during 2012-13 and work has now
begun to process the results.