CELEX: 51998PC0455
Language: en
Date: 1998-07-17
Title: Proposal for a Council Regulation (EC, ECSC, Euratom) adjusting the daily subsistence allowance rates for officials on mission within the European territory of the Member States of the European Union laid down in Article 13 of Annex VII to the Staff Regulations of Officials of the European Communities

COMMISSION OF THE EUROPEAN COMMUNITIES
                                              Brussels, 17.07.1998
                                              COM(1998) 455 final
                               Proposal for a
               COUNCIL REGULATION (EC, ECSC, Euratom)
ADJUSTING THE DAILY SUBSISTENCE ALLOWANCE RATES FOR OFFICIALS ON MISSION
WITHIN THE EUROPEAN TERRITORY OF THE MEMBER STATES OF THE EUROPEAN
UNION LAID DOWN IN ARTICLE 13 OF ANNEX VII TO THE STAFF REGULATIONS OF
OFFICIALS OF THE EUROPEAN COMMUNITIES
                      (presented by the Commission)
 ---pagebreak---  ---pagebreak---                                   EXPLANATORY MEMORANDUM
1.    BACKGROUND
  (1)      Under Article 13 of Annex VII the daily subsistence allowance rates for
           officials on mission within the European territory of the Member States of the
           European Union may be adjusted by the Council acting by qualified majority
           on a Commission proposal
  (2)      The current allowances were set by the Council on 22 July 1991 (Regulation
           No 2232/91) following a survey of hotel rates and restaurant prices.
  (3)      The scales fixed then no longer reflect prevailing economic conditions and
           this, compounded by the accession of three new Member States, means that
           the daily subsistence allowance rates and the ceilings for the reimbursement of
           hotel expenses for missions within the Member States urgently need revision.
  (4)      On 23 September 1996, the Commission sent the Council a proposal,1 which
           set out to:
           (a)      bring allowances for the twelve Member States already covered by the
                    Staff Regulations into line2 with levels applied by Parliament since
                     1996;
           (b)      (i) bring the daily allowances for Austria, Finland and Sweden within
                    the scope of the Staff Regulations and (ii) update them at the same
                    time;
           (c)      extend the scales for A4-A8 and category B officials to category C and
                    D officials for missions to headquarters;
    C0M(96) 451 final 96/0232(CNS)
    on the basis of Eurostat's consumer price indices for the hotel and catering industries and the exchange
    rates applied from 1990 to 1996.
 ---pagebreak---            (d)      introduce a simple automatic annual adjustment procedure, whereby the
                    Commission takes the decision to adjust the rates and informs the other
                    institutions.
  (5)      Annex VII to the Staff Regulations gives the Council the power to adjust
           allowances by adopting a decision on the basis of a Commission proposal,
           without the need for consultation. However, it must seek the opinion of the
           other institutions for amendments to the Staff Regulations3 (points b, c and d).
  (6)      The Court of Auditors and Court of Justice had no comments to make in
           response to the Council's letter of 21 October 1996, but on 12 March 1997,
           Parliament adopted the Tappin report4 calling for seven amendments to the
           Commission proposal.
  (7)      On 31 July 1997, the Commission sent the Council an amended proposal5
           incorporating some of Parliament's amendments and brining the scales in line
           with those most recently adopted by Parliament6 (on 4 February 1997).
  (8)      The Council's Staff Regulations working party examined the proposal on
           8 March 1997 and the amended proposal on 8 July 1997, 7 October 19997 and
           18 November 1997. It transpired that:
           (a)      a qualified majority was prepared to accept adjustment based on the
                    indices for the hotel and catering industries and exchange rates, without
                    using Parliament's scale as a starting point;
           (b)      there would be no problems incorporating Austria, Finland and Sweden
                    into the Staff Regulations;
           (c)      most countries wanted the system to be revised in a way that reflected
                    different national practices (comparative study, use of averages for the
                    fifteen Member States, a single scale for all grades, reimbursement of
                    actual costs etc.);
           (d)      there was unanimous opposition to any form of annual adjustment
                    procedure.
3
    Article 24 of the Treaty establishing a single Council and Commission of the European Communities
4
    EP A4-0039/97
5
    COM(97) 429 final 96/0232(CNS)
6
    The proposal took the scale used by Parliament in 1997 as its starting point.
 ---pagebreak---   (9)      The chair of the Council's Staff Régulations working party asked the
           Commission to present a proposal which did not provide for any automatic
           adjustment or a "starting point".
2.    PROPOSED DECISION
      Consequently, the Commission has decided to remove the automatic adjustment
      procedure and the "starting point" from its proposal and, for procedural reasons, to:
      (1)      present, on the basis of Article 13 of Annex VII to the Staff Regulations, the
                attached proposal dealing solely with the adjustment of the scales for the
               twelve Member States already covered by the Staff Regulations (on the basis
               of price trends7 and exchange rates and without taking Parliament's scale as a
                starting point);
      (2)       present, on the basis of Article 24 of the Treaty, a second proposal to bring
               the scales for Austria, Finland and Sweden within the scope of the Staff
                Regulations, without adjusting them.
               The purpose is simply to acknowledge the fact that they are now inside the
                Community, without changing the scales used, thus neutralising the impact
               on the budget. Nevertheless, the proposal requires a separate procedure: the
                Staff Regulations Committee and the other institutions must be invited to
               give their opinion for any amendment to the Staff Regulations);
       (3)       consider a comparative study into the situation in the Member States with a
                 view to a possible reform of the system.8
      The attached proposal sets out to adjust the daily subsistence allowance rates
      for the twelve Member States already covered by Article 13 of Annex VII to the
      Staff Regulations.
7
    as reflected in the harmonised price indices for the hotel and catering industries.
8
    Any such reform might for example, resurrect the idea of applying the scale for A and B grade staff to
    grades C and D, for missions to headquarters.
 ---pagebreak---                                           PROPOSAL FOR A
               C O U N C I L R E G U L A T I O N (EC, E E C , E U R A T O M ) N O ...
                                                OF
  ADJUSTING THE DAILY SUBSISTENCE ALLOWANCE RATES FOR OFFICIALS ON MISSION
  WITHIN THE EUROPEAN TERRITORY OF THE MEMBER STATES OF THE EUROPEAN
  UNION LAID DOWN IN ARTICLE 13 OF ANNEX VII TO THE STAFF REGULATIONS OF
  OFFICIALS 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 Regulation (EEC,
  Euratom, ECSC) No 259/68,' as last amended by Regulation (EC, Euratom, ECSC)
  No 2591/97,2 and in particular Article 13 of Annex VII to the Staff Regulations and
  Articles 22 and 67 of the Conditions of Employment,
  Having regard to the proposal from the Commission,
  Whereas the rates of daily subsistence allowance for officials on mission should be
  adjusted in order to take account of the changes in prices and exchange rates recorded
  in the different mission locations within the European Union since 1991;
  HAS ADOPTED THIS REGULATION:
1
    OJL 56,4.3.1969
2
    OJL 351, 23.12.1997
 ---pagebreak---                                           Article 1
  Article 13 of Annex VII to the Staff Regulations is amended as follows:
  1. The scale in paragraph 1(a) is replaced by the following:
                                                                    (Belgian francs)
                              1                      II                  III
Member States          Grades A1 - A3        Grades A4 - A8,
                          and LA3             LA4 - LA8 and      Other categories
                                                category B
Belgium                     3391                   6036                5586
Denmark                     3699                   7232                6688
Germany                     2991                   5127                4745
Greece                      2663                   4566                4225
Spain                       2779                   5700                5275
France                      2928                   5256                4865
Ireland                     3265                   6664                6161
Italy                       2434                   5237                4845
Luxembourg                  3308                   5788                5351
Netherlands                 3157                   5958                5514
Portugal                    2780                   5768                5337
United Kingdom              3505                   8036                7436
 2. The first sentence in paragraph 2 is replaced by the following:
      "2. In addition to the rates set out in Column I of the foregoing scale, the hotel
           bill covering room, service and taxes, but excluding breakfast, shall be
           reimbursed up to a maximum of
                    BFR    4723   for  Belgium
                    BFR    5974   for  Denmark
                    BFR    3914   for  Germany
                    BFR   4019    for  Greece
                    BFR    5106   for  Spain
                    BFR    3924   for  France
                    BFR    5620   for  Ireland
                    BFR   4612    for  Italy
                    BFR   4313    for  Luxembourg
                    BFR   5315    for  Netherlands
                    BFR   5038    for  Portugal
                    BFR   6011    for  United Kingdom
 ---pagebreak---                                        Article 2
This Regulation shall enter into force on the day following that of 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
 ---pagebreak---                                                                                 1998 daily subsistence allowances                                                                                                     Annex I
                   1991 Staff Reg. amounts                                  1991 Staff Reg. amounts                                1998 indexed amounts                                     1998 indexed amounts
                            BFR                                               National currencies                                   National currencies                                              BFR
                                                                                                               Hotel and
                               A4toA8      Other       Exchange                         A4toA8      Other      catering                       A4toA8     Other        Exchange                         A4toA8      Other
         A1toA3     A1IOA3     andB        grades     rate to BFR A1toA3     A1toA3     andB        grades       CPI     A1 to A3  A1 to A3   andB       grades      rate to BFR A1 to A3   A1toA3     andB        grades
         Daily                 Daily       Daly                   Daily                 Daily       Daily                Daily                Daily      Deity                   Daily                 Daily       Daily              Proposed
         allow, not Ceiling    allow, ind. allowance              allow, not Ceiling    allow, ind. aHow. ind.  Oct90-   allow not Ceding     allow ind. allow, ind.             allow, not Ceiling    allow, ind. allow, ind.      change in BFR
         ind. hotel hotel      hotel       ind. hotel    Oct-90   ind. hotel hotel      hotel       hotel       Nov97    ind hotel hotel      hotel      hotel          Nov-97   ind. hotel hotel      hotel       hotel              terms (%)
    B       2635      3670        4690        4340          1      2635,0     3670,0 4690,0          4340,0 28,7% 3391,2 4723,3 6036,0 5585,6                              1        3391      4723        6036        5586     B      28,7%
    DK      3130      5055        6120        5660      5,3912      580,6      937,6 1135,2          1049,9 17,6% 682,8 1102,7 1335,0 1234,6                           5.4173       3699      5974        7232        6688     DK     18,2%
    D       2465      3225        4225         3910     20,599 119,67         156,56 205,11          189,82 21,2% 145,04 189,75 248,59 230.06                          20.625       2991      3914        5127        4745     D       21,3%
    GR      1680      2535        2880        2665     0.20915 8033            12120^13770            12742 154,0% 20403 30786 3^976 32365                            0,13054       2663      4019 _ w 4566           4225     GR      58,5%
    E       2550      4685        5230        4840     0,32874 7757            14251 15909            14723 46,8% 11387 20921 23355 21613                             0,24408       2779      5106        5700        5275     E       9,0%
    F       2395      3210        4300         3980     6,1532 389,23         521,68 698,82          646,82 22,2% 475,64 637,49 853,96 790,41                          6,1551       2928      3924        5256        4865     F      22,2%
    IRL     2565      4415        5235         4840     55,287 46,39           79,86 94,69            87,54 32,5% 61,47 105,81 125,46 115,99                           53,113       3265      5620        6664        6161     IRL    27,3%
    I       2610      4945        5615         5195   0,027517 94850          179707 204056          188792 22,3% 116002 219782 249560 230893                        0,020984       2434      4612        5237        4845     i      -6,7%
°Ç> L       2535      3305        4435         4100         1       2535,0    3305.0 4435,0          4100,0 30,5% 3308,2 4313,0 5787,7 5350.5                              1        3308      4313        5788        5351     L      30,5%
    NL      2625      4420        4955         4585     18,269 143.69         241,94 271,22          250,97 20,1% 172,57 290,57 325.74 301.42                          18,292       3157      5315        5958        5514     NL     20,2%
    P       2000      3625        4150         3840    0,23150 8639            15659 17927            16587 59,3% 13762 24944 28557 26424                             0,20198       2780       5038       5768        5337     p      39,0%
    UK      2510      4305        5755         5325     60,433 41,53           71,24 95,23            88,11 43,2% 59,48 102,01 136,37 126,18                           58,930       3505       6011       8036        7436     UK     39,6%
                          3          4           5          6           7          e          9          10       11          12       13          14         15           16         17         18         19          20       21      22
       1       2
 ---pagebreak---                       INAN< IAI- SiA I I;MI:N T FOR PROPOSAI. TO ADJUST MISSION AIJ.OWANCK.S - 1098 - K1IK 12                                                 ANNKX 2
                                           I hilly ttiiNsioti allowances (nil punies) i hotel expenses lor A I- A 1 (I'nrliuiuunl ulrcudy grunts allowances ol
Ollieials mill oilier iliill                                               higher or c(|iinl vnltie mid is Ihcrclorc mil included)
                                                                                              Annual amount in BFR million
Budget                                       Commi.ssion           Commission      Commission                               Court of   Court o f               Total for all
headings                                       Operating            Research         Sub-lolal             Council         Auditors     Justice    ESC-CoR     institutions
                  Belgium                               47,601           30,146             77,747                0,395         9.167       0,027      0,027          87,364
                  Denmark                               11,427            4,377             15,804                0,246         0,547       0,017      0,017           16,630
A70I             Germany                                27,098           19,793            46,891                  1,783         1,624      0,123      0,123          50.544
A1040            Greece                                 13,305            4,352             17,657                0,182         0,488       0,013      0,013           18,353
sub-section      Spain                                  30,172           20,598             50,770                1,130          1,781     0,078       0,078          53,837
B6and
B21830,           France                                64,224           41,966           106,190                 5,647         2,131      0,389       0,389         114,747
B43070            Ireland                               19,292            3,196            22,488                 3,130         0,740      0,216       0,216          26,790
for               Italy                                 52,081           37,096             89,178                2,411         1,715      0,166       0,166          93,636
the research      Luxembourg                            36,781            4,126            40,908                14,727         0,010       1,016      1,016          57,675
budget            Netherlands                           19,544            6,377            25,921                 6,611         0,462      0,456       0,456          33,906
                  Portugal                              16,205            4,229            20,434                 0,470         0,487      0,032       0,032          21,456
                  United Kingdom                        35,696          45,363             81,059                 1,194          1,720     0,082       0,082          84,138
Total in BFR m llion                                   373,427         221,620            595,047                37,925        20,872      2,616       2,616         659.075
 Total in ECU in illion*                                     9.2             5,4               14,6                  0,9           0,5         0,1        0,1             16,2
                        Adjustment                                                             Total difference in BFR million
Belgium                           28,7%                 13,662            8,652             22,313                0,113         2,63 1     0,008       0.008          25.073
Denmark                           18,2%                  2,080            0.797              2.876                0.045         0.100      0,003       0,003            3,027
Germany                          21.3%                   5,772            4.216              9,988                0,380         0,346      0.026       0,026           10.766
(jrecce                           58,5%                  7,784            2,546             10,330                0.107         0,286      0,007       0,007           10,736
Spain                               9,0%                 2,715             1,854             4,569                0,102         0,160      0,007       0,007            4,845
Fiance                            " ">"/«               14.258            9,116             23.574                 1.254        0.473      0,086       0,086          25.474
licland                           27.1%                   5.267           0.872              6.139                0,854         0.202      0.059       0,059            7,314
Italy                             -6,7%                 -3,48"           -2.485             -5,975               -0.162        -0.115     -0,011      -0.01 1          -6.274
Luxembourg                       30,5%                  11,218            1,259             12,477                4,492         0,003      0,310       0,310          17.591
Netherlands                       20,2%                  3,948            1,288              5,236                1,335         0,093      0,092       0,092            6,849
Portugal                         39,0%                   6,320            1,649              7,969                0,183         0,190      0,013       0,013            8,368
United Kingdor i                  39,6%                 14,136           17,964            32,100                 0,473         0,681      0,033       0,033          33,319
Total in BFR m    llion                                 83,669          47,928            131,597                 9,176         5,050      0,633       0,633         147,088
Total in E C U nnillion*                                     2,1              1,2               3,2                  0,2           0,1         0,0        0,0              3,6
•Rate at 1.3.98 ECU 1 =BFR 40.7757
Detached national experts                 Daily mission allowances
Budget                         Annual amount in ECU million                        Adjustment                 Difference in ECU million
headings                 Operating             Research              Total                              Operating        | Research     Total
A7003                                18,5                    0,0            18,5                0,3                  5,3|          0,0         5,3
Kxpcrts attending meetings                Subsistence expenses
Budget                         Annual amount in ECU mil ion                        Adjustment                 Difference in ECU mil ion
headings                 Operating              Research             Tolal                               ()peruting        Research      Total
A2VMI                              0,05-1                0,000            0,054       33,5%                       0,018         0,000      0,018
A."H0                              0.05 1                0.000            0,053       33.5%                       0.018         0.000      0.018
A25H                               0.059                 0,000            0.059       33.5%                       0.020         0,000      0.020
A2560                              0,058                 0,000            0,058       33.5%                       0,020         0,000      0.020
A703O                              1,132                 0,000            1.132       33.5%,                      0,379         0,000      0.379
A70H                               0,500                 0.000            0,500       33.5%                       0.167         0,000      0.167
A 703 2                            0,622                 0,000            0,622       33,5%                       0,208         0,000      0,208
A7033                             0,115                  0,000            0,115       33,5%                       0,038         0,000      0,038
B2I830                            0,000                  0,018            0,018       33,5%                       0,000         0,006      0,006
B43070                            0,000                  0,047            0,047       33,5%                       0,000         0,016      0,016
B67111                             0,000                 0,011            0,011       33,5%                       0,000         0,004      0,004
B67112                            0,000                  0,018            0,018       33,5%                       0,000         0,006      0,006
B67113                            0,000                  0,028            0,028       33,5%                       0,000         0,009      0,009
B67211                            0,000                  0,035            0,035       33,5%                       0,000         0,012      0,012
B67311                            0,000                  0,010            0,010       33,5%                       0,000         0,003      0,003
Total                                 2,6                   0,2              2,8                                     0,9           0,1         0,9
 ' The difference with the adjustment in BFR terms (28.7%) results of changes in the ECU-BFR exchange rate, from 42.2812 on 1/8/91 to 40.7757 on 1/3/98.
Summary
Officials and other staff
Detached national experts
Experts attending meetings
                 Total cost of adjusting daily mission allowances in ECU million                                                               9,8
 ---pagebreak---  ---pagebreak---                                                                    ISSN 0254-1475
                                                            COM(98) 455 final
                                              DOCUMENTS
EN                                                                     01 06
                                    Catalogue number : CB-CO-98-466-EN-C
                                                             ISBN 92-78-38320-1
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