CELEX: 51997PC0269
Language: en
Date: 1997-06-03
Title: Proposal for a Council Regulation (ECSC, EC, Euratom) adjusting the weighting applicable in Greece to the remuneration and pensions of officials and other servants of the European Communities

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  Brussels, 03.06.1997
                                                  COM(97)269 final
                                       Proposal for a
                 COUNCIL REGULATION ÏECSC. EC. EURATOM)
adjusting the weighting applicable in Greece to the remuneration and pensions of officials
and other servants of the European Communities
                           (presented by the Commission)
 ---pagebreak---  ---pagebreak---                    EXPLANATORY MEMORANDUM
 Preamble
 Article 4 of Annex XI to the Staff Regulations states that interim adjustments of
remuneration pursuant to Article 65 are to take effect on 1 January and are to be
made in the event of a substantial change in the cost of living, due allowance being
made for the forecast of the change in purchasing power during the current annual
reference period.
Article 6 of Annex XI stipulates that adjustments are to be made for all places of
employment (including Brussels) if the sensitivity threshold is reached in Brussels.
If this threshold is not reached, adjustments are to be made only for those places
where the threshold has been exceeded.
Article 5 of Annex XI provides that the Statistical Office of the European
Communities (Eurostat) is to calculate the joint index and economic parities and is
to make a forecast of changes in purchasing power on the basis of the information
supplied by the Member States.
 ---pagebreak---    Changes in the cost of living in Brussels
   The joint index measuring the cost of living in Brussels rose by 0,9% between
    1 July 1996 and 31 December 1996.
   Economic parities
   The economic parities which establish the equivalence of purchasing power on
    1 January 1997 between Brussels (the reference city) and the other places of
   employment are shown in the table below (column 3).
   The implicit index measuring the change in the cost of living over the reference
   period (column 4) is obtained indirectly by multiplying the joint index for Brussels
   (0,9%) by the change in the economic parity of the place of employment in question
   (Article 3(6) of Annex XI).
   Specific indicator
   The specific indicator reflects changes in purchasing power over the annual
   reference period. It is forecast by Eurostat on the basis of the data supplied by
   national experts at the annual meeting of the "Working Party on Article 65", which
   met this year on 10.3.97. The forecast specific indicator is 0,2%.
5. Calculation of the adjustment
   As required by Article 7 of Annex XI, the amount of the adjustment is the joint
   index for Brussels (0,9%) multiplied, where appropriate, by half the forecast
   specific indicator if this forecast is negative. The adjustment is therefore 0,9%
   (100,9% x 100,0% = 100,9%). This figure is used to adjust the weightings for those
   places where the threshold has been exceeded.
 ---pagebreak---    Sensitivity threshold
   If exceeded, the sensitivity threshold triggers an adjustment. Article 6 of Annex XI
   sets this threshold at 0,4% (55% of the average change in the cost of living in the
   Community over the period in question), subject to upper and lower limits of 5%
   and 2.75% respectively. Therefore, the value of the threshold is set at 2.75%.
   Since this threshold has not been reached in Belgium, only the weightings for the
   countries/places of employment where inflation exceeds this threshold, i.e. Greece,
   need to be adjusted.
7. Adjustment of weightings
   The substantial increase in the cost of living in Greece, which has meant a
   deterioration in purchasing power over the period concerned, necessitates an
   adjustment of the relevant weighting.         Otherwise the principle of equivalent
   purchasing power for all officials (as laid down in Article 64 of the Staff
   Regulations) would be seriously compromised.
   As required by Article 7 of Annex XI, the weighting for the place concerned will be
   the amount of the adjustment multiplied by the relationship between the relevant
   economic parity and the exchange rate.
 ---pagebreak--- Effective date
The effective date for the adjustments obtained under the method will be
1 January 1997, except in countries with high rates of inflation, where the date will
be earlier so as to obtain a loss of purchasing power which matches the 2.75%
threshold (see column 6 of the table). This year no earlier payments are required.
Conclusion
The attached proposal sets the new weightings applicable as from 1 January 1997 in
the following countries/places :
Greece                 89,2.
 ---pagebreak---                                     TABLE OF ECONOMIC PARITIES AND
                                        CALCULATION OF WEIGHTINGS
                                                         ON 1.1.97
Adjustment = Brussels joint index x Effect of forecast specific indicator =                                0,9 %
                                                 100,9% x100% =100,9%
                                                                Brussels     Rate for         Weighting
 Country/Place Former parity at New parity at joint index remuneration                        for places
 of employment              1.7.96                1.1.97            and        1.7.96           where        Effective
                       (BFR 1 in nat. (BFR 1 in nat. implicit (BFR 1 in nat. implicit index                    date
                         currency)             currency)          indices   currency)          > 2.75 %
        (1)                   (2)                   (3)              (4)        (5)               (6)           (7)
Belgium                        1                     1              0,9           1
Denmark                   0,23493              0,23484              0,9      0,18733
Germany (a)              0,054169             0,053845              0,3     0,048596
              Bonn       0,048967             0,048771              0,5     0,048596
      Karlsruhe          0,048101             0,047898              0,5     0,048596
           Munich        0,053657             0,053425              0,5     0,048596
Greece                    6,6570                 6,8037             3,1       7,6970            89,2          1.1.97
Spain                      3,7318                3,7447             1,2      4,0891
France                    0,19132              0,19036              0,4      0,16443
Ireland                  0,018532             0,018417              0,3     0,020113
Italy (b)                 47,517                 48,188             2,3       48,998
          Va res e        45,406                 45,472             1,0      48,998
Netherlands              0,057138             0,057094              0,8     0,054487
Austria                   0,39219               0,39333             1,2      0,34202
Portugal                  4,2001                 4,1843             0,5       5,0010
Finland                   0,17305              0,17195              0,3      0,14789
Sweden                    0,24924              0,24642             -0,2      0,21188
UK(c)                    0,023872             0,023937              1,2     0,020710
         Culham          0,018950             0,019013              1,2      0,02071
(1) (a) Germany except Bonn, Munich and Karlsruhe
(1) (b) Italy except Varese
(1) (c) United Kingdom except Culham
(3) Exchange rate for the implementation of the EC general budget at 1.07.96 (Art63 of Staff Regulations)
(4) Implicit index = Brussels joint index x parity 1.01.97 / parity 1.07.96
(6) Interim weighting = Adjustment x PPP/Exchange rate (for places where the implicit index exceeds 2.75%)
 ---pagebreak---                   COUNCIL REGULATION (ECSC, EC, EURATOM) N°                       /97
     adjusting the weighting applicable in Greece 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 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 Council Regulation (EEC,
     Euratom, ECSC) No 259/68,1 as last amended by Regulation (Euratom, ECSC, EC)
     No 2485/962 and in particular Articles 63, 64, 65, 65a and 82 of the Staff Regulations,
     Annex XI to the Staff Regulations and the first paragraph of Article 20 and Article 64 of the
      Conditions of Employment,
      Having regard to the proposal from the Commission,
      Whereas in the second half of 1996 the cost of living increased substantially in Greece,
      Member State where officials and other servants of the European Communities are
      employed; whereas, therefore, the weighting applicable to the remuneration and pensions of
     these officials and other servants pursuant to Regulation (Euratom, ECSC, EC)
     No 2485/96should be adjusted with effect from 1 January 1997,
1
  OJ No L 56, 4.3.1968, p. 1.
2
  OJL338, 28.12.1996, p. 1.
 ---pagebreak---       HAS ADOPTED THIS REGULATION:
                                                 Article 1
       1.     With effect from 1 January 1997, the weightings applicable to the remuneration of
              officials and other servants employed in the countries/places referred to below shall
              be as follows:
              Greece                          89,2
      2.      The weightings applicable to pensions shall be determined in accordance with
              Article 82(1) of the Staff Regulations.
              Articles 3 to 10 of Regulation (ECSC, EEC, Euratom) No 2175/88 3 shall continue
              to apply.
                                                 Article 2
      This Regulation shall enter into force on the day followmg 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 President
3
  OJ No L 191, 22.7.1988, p. 1.
 ---pagebreak---                            FINANCIAL STATEMENT
ESTIMATE OF THE BUDGETARY IMPLICATIONS FOR 1997 OF THE ADJUSTMENT OF THE
WEIGHTING APPLICABLE IN GREECE TO THE REMUNERATION AND PENSIONS OF
OFFICIALS AND OTHER SERVANTS
                               Administrative budget
                                 Unit: thousand ecus
                      Institution           Budgetary implications
                     Commission                      50
                     Parliament                      20
                         Total                       70
                      Rate: ECU = BFR 40,2459 at 1.4.1997
 ---pagebreak---  ---pagebreak---                                                                   ISSN 0254-1475
                                                           COM(97) 269 final
                                             DOCUMENTS
EN                                                                            01
                                    Catalogue number : CB-CO-97-255-EN-C
                                                             ISBN 92-78-20692-X
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