CELEX: 51975PC0053
Language: en
Date: 1975-02-19
Title: Proposal for a REGULATION OF THE COUNCIL adjusting the weightings applied to the remuneration and pensions of officials and other servants of the European Communities (submitted by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (75) 53
Vol. 1975/0020
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   COM(75)53 final
                                             Strasbourg , 19 February 1975
                                                                           S
                            Proposai for a
                        REGULATION OF THE COUNCIL
           adjusting the weightings applied to the remuneration
               and pensions of officials and other servants
                          of the European Communities
             ( submitted by the Commission to the Council )
 COM(75 ) 53 final
 ---pagebreak---                                EXPLANATORY MEMORANDUM
l « Article 63 of the Staff Regulations provides as follows :
    "An official 's remuneration shall "be expressed in Belgian francs .
    It shall be paid in the currency of the country in which the official
    performs his duties .
    Remuneration paid in a currency other than Belgian francs shall be
    calculated on the basis of the par values accepted by the International
    Monetary Fund which were in force on 1 January
    The remuneration received by an official should , as far as possible be
    such that all staff enjoy the > same purchasing power whatever their place
    of employment (Article 64 of the Staff Regulations ).
    the use of an exchange rate fixed on a given date , in this case
    1 January 1965 » guarantees this .   For the par value used to convert
    remuneration expressed in Belgian francs into the currency of the
    country of employment , provided it is constantly brought up to date
    by means of the regional weightings , ensures that at any one time all
    officials of the European Communities have the same purchasing power .
    Updating is particularly necessary at a time like the present when the
    cost of living is rising rapidly and at different rates in .different
    countries .
 2.     It is true that this system of adjustment is not unique . Other
    international organizations (United Nations , ILO) use updated exchange
    rates .   Their systems operate in such a way . however , that any
    readjustment of par value whether declared or not , immediately upsets
    purchasing power parity .   The staff , therefore , is in a state of .
    constant uncertainty which the organizations in question are powerless
    to remedy , in spite of the exceptional measures which they have repeatedly
    taken .
 ---pagebreak---                                          - 2 -
Another group of international organizations (OECD, NATO , WELL , etc )
has a system of multiple salary scales , each expressed in the currency
 of the country of employment .
 The geographic factors on which the differences between the scales are
based make it possible to compare the exchange \-atcs used by the European
 Communities and those used in respect of the staff, of these other
orgpjii zations .
A study carried out in January 1975 for Geneva showed that the two systems
produce almost identical purchasing power parities .        On 1 September 1974
the system \xsod by the coordinated organizations resulted in an exchange
rate of Bfrs . 100 - Sfrs . 8.19 .     Officials of the European Communities
employed in that town .receive remuneration expressed in Belgian francs
and converted into Swiss francs at the rate J      Bfrs 100 « Sfrs 8..75 «
The ratio between these two rates gives a rate of equivalence of
purchasing power of 93 - 6 while the weighting used by the European
Communities in September 1974 for Geneva was 93»4 «        Tiie difference
of 0.2fo is not significant and confirms the validity of the system
used by the Europecji Communities .
     In view of the present situation , where many countries have floating
exchange rates , the Commission has promised its staff to cai-ry out
periodic checks of individual weightings *       Thus , the weighting for the
United Kingdom was chocked by the Statistical Office of the European
Communities and corrected by the Council on 18 November 1974 ( see
OJ No L 31 1 /4 22 rovenbe:? 3-974 , p 4).   ^le difference between tho
tveighting in force and the result of the survey carried out by the
Statistical Office of the European Communities was 1.2$.
Another check of the weighting for Italy, following that carried out in
October 1972 , is currently being undertaken by tho Statistical Office
of the European Communities .                                           ■
 ---pagebreak---          For the reasons set out above and pursuant to Article 65(2 ) of the
   Staff Regulations , the Commission therefore proposes that the weightings
   bo adjusted with effect from 1 January 1975 in order to offset the rise
   in the cost of living during the second half of 1974 .      *
  An interim adjustment with effect from 1 October 1974 is however requested
  in respect of the weighting applied to the remuneration of staff employed
  in Italy .     The Commission considers that the rate at which prices have
  risen in Italy over recent months , fully justifies such a measure .
  Since the joint index provided for in Article 65 of the Staff Regulations
  is available for Belgium only , the Commission proposes that the Council
. t?Jce as a basis for the other places of employment the trend of prices
  to the private consumer over the same period.       Any corrections to be
  made with effect from 1 July 1975 can be carried out at the next annual
  review of remuneration on the basis of the joint indexes ,
  The rises in the cost of living recorded between 1 July and 31 December 1974
  in the various countries are as follows :
  Bolgium                             107
  Denmark                             1 07
  Germany                             102.3
  Prance                              106 . 3
  Ire 1 and:                    108.6
                                ,
  Italy                               112,3 ( 107.3 on 30.9*74 )
  Luxembourg .
 Netherlands                          105
 United ICingdom                      107.5
  Switzerland                         105-3
 USA                                  105.7
  The weightings applied to the remuneration of officials employed in the
  above countries are adjusted accordingly (see the draft Regulation
  attached hereto ).
   ( 1 ) For Ireland the period covered is May to November 197*+
 ---pagebreak---                                        Proposal for a
                               REGULATION OF THE COUNCIL
             adjusting the weightings applied to the remuneration
                 and pensions of officials and other servants
                              of the European Communities
THE COUNCIL OP THE EUROPEAN COTMUNITIES ,
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 259/66 1 , as last amended by Regulation
                                  ?
( EEC , Euratom , EOSC ) No 2/74 ; and in particular Articles 64 , 65(2 ) and 82
of the said Staff Regulations and the first paragraph of Article 20 and
Article 64 of the said Conditions of Employment ;
Having regard to the proposal from the Commission ;
Whereas , by reason of the substantial rise in the cost of living which
has taken place during the second half of 1974 in Italy , in Belgium and
in the other countries where officials and other servants of the European
Communities are employed , the weightings applied to the remuneration and
pensions of officials and other servants should be adjusted ;
Whereas the adjustment to remuneration and pensions provided for by this
Regulation is made by way of advance on the adjustment to be made by the
Council for the reference period running from 1 July 1974 "to 30 June 1975
following the annual review of remuneration in September pursuant to
Article 65(1 ) of the Staff Regulations ;          ,
HAS ADOPTED THIS REGULATION :
1
  0J No L 56 , 4 March 1968 , p „ 1 „
2
  0J No L 2 , 3 Jr-uiur.ry 1974 » p. 1 .
 ---pagebreak---                                     - 2 -
                                 Article 1
1.  With effect from 1 October 1974 the weighting applicable to the
remuneration of officials employed in Italy shall be 151 » 9 *
2.  With effect from 1 October 1974 the weighting applicable to pensions
under the second, subparagraph of Article 82(1 ) of the Staff Regulations
shall , where the person entitled to the pension declares his home to be
in Italy , be 1 51 - 9 *
                                 Article 2
1.  With effect from 1 January 1975 the weightings applicable to the
remuneration of officials employed in the countries listed below shall
be as follows :
       Belgium                                      141 .6
       Denmark                                      182.5
       Germany                                      124.4
       France                                       169.3
       Ireland                                      164.2
       Italy                                        159.0
       Luxembourg                                   141.6
       Netherlands                                  135.8
       United Kingdom                               162.0
       Switzerland                                  130.2
       USA                                          194.8
2.  With effect from 1 January 1975 » "the weightings applicable to pensions
under the second subparagraph of Article 82(1 ) of the Staff Regulations
shall be as shoxm below for the Community country in which the person
entitled to the pension declares his homo to be :                   1
 ---pagebreak---              Belgium                                  141 .6
             Denmark                                  132.5
             Germany                                  124.4
             France                                   169.3
             Ircland                                  164.2
             Italy '                                  159-0
             Luxembourg                               141.6
             Netherlands                              135.8
             United Kingdom                           162.0
If a person entitled to a pension declares his home to "be in a country
other than those listed above , the weighting applicable to the pension
shall be that for Belgium .
                                 Article 3
Article 5 of Regulation (EEC , Euratom , ICCSC ) No 3191 /74 i s repealed with
effect from 1 January 1975 » except for the entry " Italy 141 * 6" in both
paragraphs of that Article , which is repealed with effect from 1 October 1 974 »
                                 Article 4
This Regulation shall enter into force on the day following its publication
in the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
Done at Brussels ,                                             For the Council
                                                                 The Président