CELEX: 51978PC0187
Language: en
Date: 1978-05-03
Title: Proposal for a COUNCIL REGULATION (EURATOM, ECSC, EEC) adjusting the weightings applied to the remuneration and pensions of officials and other servants of the European Communities (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 187
Vol. 1978/0061
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 ---pagebreak---     COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                   COM(78)187 final.
                                                                   Brus s el s , 10 Kay 1978
                                    Proposal for a      "
                        COUNCIL REGULATION ( EURATOM, ECSC , EEC )
                 adjusting the weightings applied to the remuneration
                 and pensions of officials and other servants of the
                                 European Communities
                     ( submitted to the Council "by the Commission)
73 ) 187 final .
 ---pagebreak---                                                                  IX/848/ 78/EH
                             EXPLANATORY KEKORANHJM
Adjustment of remunerations of officials and other servants to the
increase in the cost of living
I.     Half-yearly ad justrient                            :
The Council has been making half–yearly adjustments to remunerations in
line with the increase in the cost of living since July 1971 on the
basis of the methods for calculating remunerations adopted on 23 March 1972
and 29 June 1976 respectively .                      ;
The Statistical Office of the European Communities , in agreement with the
statistical offices of the . Member States and the OECD , has prepared joint
indexes showing changes in the cost of living in the second half of 1977
in Brussels and in the various countries where staff are employed .
On 31 December' 1977 ( June 1977 - 100 ) the figures for the various countries
were as follows :
             Belgium''            1     , 102.3
                        2                "
             Denmark                       107.3
             Germany                       100.9
   '         Prance''                      103*6 .
           , Ireland '                 . 102.8           ■   '
             Italy2                        105.7 \ •           •
             Netherlands                   102.0 '
                             1
             United Kingdom           . 103*7
                      2
             Canada                        104*3
                    2          ,
             Japan                         100.6 •
             _  . .     . .2               .....
             Switzerland                   100.4
             USA                           102.4   '
         '            2                    ... ,       .
             Greece                        106.3       '
             Turkey                        126.8
 Joint index .
2„ . .
 National consumer price index .
 Reference period May-November 1977 *
 The Commission therefore proposes that the weightings applicable to the
 remuneration of officials in the various countries of employment be
 adjusted as indicated in the attached proposal for a regulation .
 ---pagebreak---                                 - 2 -                             IX/848/78/SÎT
                                                                                   J
II .  Correction of certain weightings
In addition to the adjustment to the increase in the cost of living in the
second hg,lf of 1977 this proposal contains an additional 5 % adjustment
to the weightings applied to the remuneration of officials employed in the
United Kingdom , Ireland and Italy .1            •
This one-off increase is justified -by the need to update the basis on which
the weightings are calculated . The most recent family budget survey is
fot ehe period 1965-67 . Increasing gaps between purchasing power parity and
monetary parity have emerged in 'recent years and have been corroborated by a
retrospective survey conducted by the Commission .
As a result of these gaps and in view of the fact that it is impossible
to bay the officials employed in these countries on the basis of monetary
parity , combined with the possible- distortions in . purchas ing power parities
caused by the outdated nature of the statistics used or by discrepancies
ih the movement of individual prices in the high-inflation countries , the
Commission has decided to carry out a detailed check on the validity of the
three weightings concerned .
                                                         (
The Statistical Office of the European Communities will thefrefore 'conduct a
new family budget survey among' members of staff and will update the list of
articles and the relevant prices in the main places of employment .
The final adjustment of the weightings will be based on the findings of the
 above investigations .                           1
'The 5 °/o increase' is therefore provisional pending . the outcome of the above
 surveys to be carried out by - the Statistical Office .
                                                                                 r
 ---pagebreak---                                        - 3 -
 HI -   I^e_thod_of in£orp£rati^rL^ we££^t£n£s_and_futur£ £n£r£a£es> i_n_salarv
        scales                                                            '
  The method approved "by "the Council on 26 June 1976 produced undesirable
  distortions .
  To remedy the situation , the' Commission , in connection with the annual
  review for 1977 , suggested a neutral formula which involved adjusting
  the amounts listed in Article. 4 of the tax regulation by the weighting
- to be incorporated or the percentage increase to be granted .
  The Council , however , asked that further enquiries be made before it
  formalized a decision for the period from 1 July 1977 to 30 June 1973 .
  The Working Party on the Staff Regulations investigated the matter on
  two occasions ( on 10–11 April and 24-25 April 1978 ).
  In the circumstances the Commission proposes that the . previous drawbacks
  be eliminated by the formal adoption of the incorporation formula set
  out in Annex II ., already put forward on 11 November 1 977 •
  The Commission sees no need to reconsider the basis of calculation
  previously adopted by the Council .
 ---pagebreak---                                                             I V 848/7 8-EN
                                                            ANNEX I
              COUNCIL REGULATION ( Euratom, ECSC , EEC ) No.../...
                         of.......'
                adjusting the weight ings applied to the
                remuneration and pensions of officials and
                other servants of the European' Communities
THE COUNCIL CP THE EUROPEAN COMMUNITIES,
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\ as last amended
by Regulation ( ECSC , EEC , Euratom ) No 2859/ 77 , anc*   particular
Articles 64, 65(2 ) and 82 of 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 , 'by reason of the substantial rise in the cost of living which
took place during the second half of 1977         a number of countries where
officials and other servants of the European Cc^imunities are employed ,
the weightings applied - to the remuneration and pensions of officials
and other servants should be adjusted with effect from 1 January 1978 ,
HAS ADOPTED THIS REGULATION:
                                                \
                               Article 1
 i*  With effect from 1 January 1978 , "the weightings applicable to the
remuneration of officials employed in the countries listed below shall
be as follows :
( 0J No L 56, 4 March 1968, p . 1 .
¿ 0J No L 330. 23 December 1977 , p. 1 .
 ---pagebreak---                                              - 2 ~
Belglum       ~                     10-'.. 3
Eerusark                            134.7
Cerr.any                             79-9  /
France                              128.2
l'raland                            l /]4,8
Itaiy                               144.5      '
Luxembourg                          102.3
ÀTetnerland.s                        94.6
United Kingdom                      147*0
Switzerland.             • '         73.3
USA                                 130,0
Canada.                             131*7
Jaoan                               146.3'
Greece     ' '                      160.2
Turkey                              293.0
2.    With effect from 1 January 1978 the weighting applicable to pensions
in. accordance with the second subparagraph of Article 82(1 ) of the
Staff Regulations shall be as shown below for the Com^-~' :.;v <-,.; vi>jrrtry in
which the parson entitled to the pension declp "^ > Y * 1 ome to be:
Belgium                             102.3
Denmark                             134*7
Gôraany     - ^                      79 . 9
Pracca                              128*2
    Ireland                          144*8
    Italy        '              ' ' 144*5 - •
    Luxembourg                          102.3
    Netnerlands                           94. 6                           .
    United Kingdom                      147*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 2
    A coefficient of IO0 . O84 shall apply to the anounts listed in Article 4
    of Regulation ( ESC, Euratom, BCSC ) No 260/6&1 .
             1» 5®» 4 E&rcL Vj'Jô . p. 6 .
 ---pagebreak---                                  Article 3
Article 50 ) an(l ( 2 ) and Article 9 of Regulation ( ECSC , EEC , Euratom)
No 28q9/ TJ are repealed with effect from 1 January 1978 *
                                 Article 4
Thi3 Regulation 3hall enter into fores 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 .
                   I
Done at Brussels ,
                                             For -the Council
                                             The President
 ---pagebreak---                                                              Ity 848/7 8-Elî
                                                             ANMEX II
 Item 11.6(b ) and ( c ) to be replaced by the following:
                 Γ'                     -
 "( b ) . The Council shall determine remuneration adjustments in net terms .
 Such adjustments may be expressed as an identical , across-the-board •         -
 percentage or in a non-proportional manner . The adjustment may therefore
 be expressed as :
     a percentage ;  ,
     and/or a specific amount . .
 ( c ) The net rate of adjustment thus fixed and the weightings applicable
 to officials in Belgium and Luxembourg shall be incorporated, in 1 '
 accordance with the following method, in the salary scales given in
 Article 66 of the Staff Regulations and in Articles 20 and 63 of the
        Λ                                                 .                   ι
 Conditions of Employment of Other Servants ;.
    the net remuneration with a weighting of 100 attaching to each step of each
    grade of official and to each class in every group of other servants shall be
    increased by the above weighting and "by the net rate of adjustment
    determined in accordance with ( b ) above, whether it is given as a
    percentage or as a specific amount ;   .
    the new scale of basic salaries in gross terms shall be drawn up by
    calculating for each step or class the gross amount which, after
    deduction of tax ( having regard to ( d) elow) and compulsory contributions,
    gives the new net amount referred to above;
    this conversion of net amounts into gross amounts shall be based on the
    situation of an unmarried official who does not receive the various
    allowances ;
    the weighting for Belgium and Luxembourg shall be fixed at 100;
    the weightings for other countries of employment shall be adjusted on the
    basis of the ratio between the cost -of-living index numbers in these
    countries and the cost–of–living index number in Brussels/Luxembourg.
( d) For the purpose of applying Regulation ( EEC , Euratom, ECSC ) No 260/68
concerning Community tax to remunerations paid in accordance with the scale
of basic salaries worked out in accordance with the first indent , the
amounts in Article 4 of the Regulation shall be multiplied by a factor
composed of :
, the weighting applicable before incorporation to the remunerations of
   ■officials in Belgium and Luxembourg;
 ---pagebreak---                                     - 2 -
  -the net adjustment in - remunerations referred, to at (b) aoove; and./or,
   if the adjustment is made in the form of a specific amount , the
   equivalent average percentage .
   Each time the scale of basic salaries is adjusted, the new multiplier
   shall be obtained by multiplying the former multiplier by the figures
   for the new reference period."
The old paragraph ( d) is renumbered ( e)..        , v