CELEX: 52004PC0215
Language: en
Date: 2004-03-31
Title: Proposal for a Council (EC, Euratom) Regulation fixing from 1 May 2004 the correction coefficients applying to the remuneration of officials and other servants of the European Communities in the new Member States

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                      Brussels, 31.3.2004
                                                      COM(2004) 215 final
                                       Proposal for a
                      COUNCIL (EC, EURATOM) REGULATION
   fixing from 1 May 2004 the correction coefficients applying to the remuneration
   of officials and other servants of the European Communities in the new Member
                                          States
                              (presented by the Commission)
EN                                                                                 EN
 ---pagebreak---                         EXPLANATORY MEMORANDUM
1.       PREAMBLE
In accordance with Article 64 of the Staff Regulations, the Council fixes the
correction coefficients applicable to the remuneration of officials and other servants
of the European Communities.
Outside the European Union, by virtue of Article 11 of Annex X to the Staff
Regulations (Serving in a third country), unless the official requests otherwise, the
correction coefficient applicable to the remuneration is that for Belgium (100%).
Following enlargement on 1 May 2004, the correction coefficient applicable to
remuneration in the new Member States will be that calculated in accordance
with Annex XI to the Staff Regulations.
Article 33(4) of the Act of Accession, however, allows the period of application of
Annex X to the Staff Regulations to be extended by up to 15 months after accession in
the case of officials who remain in service in the new Member States.
Consequently, the correction coefficients will apply to officials and other servants
who are assigned to the new Member States from 1 May 2004.
2.       CALCULATION OF THE CORRECTION COEFFICIENTS
In accordance with the first indent of Article 1(3), point (a) of Annex XI to the Staff
Regulations, Eurostat has determined the economic parities which fix purchasing
power parities on 1 July 2003 between the remuneration paid by the European
Communities in capital cities and that paid in the reference city, i.e. Brussels.
The correction coefficients in the various countries are directly determined by the
ratios between these economic parities and the conversion rates applicable
on 1 July 2003.
The economic parities, conversion rates and correction coefficients are set out in the
table below.
                                                2
 ---pagebreak---                           Correction Coefficients
                         calculated as at 1 July 2003
                               Economic parity Conversion rate Correction coefficient
   Country      Capital city       (€1 =)          (€1 =)               (%)
       (1)           (2)             (3)             (4)                 (5)
      CY          Nicosia          0,516          0,5863               88,0
      CZ          Prague          28,062          31,600               88,8
      EE          Tallinn         12,132         15,6466               77,5
      HU        Budapest         218,000         266,250               81,9
      LV           Riga            0,493          0,6476               76,1
      LT          Vilnius          2,678          3,4528               77,6
      MT          Valletta         0,375          0,4264               88,0
      PL         Warsaw            3,234          4,4700               72,4
       SI        Ljubljana       198,480         233,865               84,9
      SK        Bratislava        34,938          41,690               83,8
(5) = (3) / (4)
                                          3
 ---pagebreak---                                        Proposal for a
                      COUNCIL (EC, EURATOM) REGULATION
  fixing from 1 May 2004 the correction coefficients applying to the remuneration
 of officials and other servants of the European Communities in the new Member
                                          States
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community,
Having regard to the Protocol on the privileges and immunities of the European
Communities, and in particular Article 13 thereof,
Having regard to the Staff Regulations of Officials and the Conditions of Employment
of Other Servants of the European Communities, as laid down by Regulation (EEC,
Euratom, ECSC) No 259/681, as last amended by Regulation (EC, ECSC, Euratom)
No …2, and in particular Articles 63, 64, 65, 65a and 82 of and 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:
(1)      The accession of the new Member States on 1 May 2004 means that correction
         coefficients applying to the remuneration of officials and other servants of the
         European Communities must be calculated for those Member States in
         accordance with Annex XI to the Staff Regulations,
HAS ADOPTED THIS REGULATION:
                                         Article 1
With effect from 1 May 2004 the correction coefficients applying to the remuneration
of officials and other servants serving in one of the countries or places of employment
listed below shall be as follows:
1
         OJ L 56, 4.3.1968, p. 1.
2
         OJ
                                                 4
 ---pagebreak---                                CY   Cyprus              88,0
                               CZ   Czech Republic      88,8
                               EE   Estonia             77,5
                               HU   Hungary             81,9
                               LV   Latvia              76,1
                               LT   Lithuania           77,6
                               MT   Malta               88,0
                               PL   Poland              72,4
                               SI   Slovenia            84,9
                               SK   Slovakia            83,8
                                       Article 2
This Regulation shall enter into force on the day following its publication in the
Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member
States.
Done at Brussels,
                                             For the Council
                                             The President
                                               5
 ---pagebreak---              FINANCIAL STATEMENT
                                                                                           DATE: 6.1.2004
1.     BUDGET HEADING:                                                                     APPROPRIATIONS:
       A11 – Staff in active employment
       Part B – Administrative expenditure and receipts for research and agencies
2.     TITLE:
       Correction coefficients for the new Member States
3.     LEGAL BASIS:
       Article 64 of the Staff Regulations
4.     AIMS:
       To fix the correction coefficients applicable in the new Member States
5.     FINANCIAL IMPLICATIONS                              PERIOD OF          CURRENT            FOLLOWING
                                                           12 MONTHS         FINANCIAL           FINANCIAL
                                                                                  YEAR               YEAR
                                                                                   2004              2005
                                                             (€million)         (€million)         (€million)
5.0    EXPENDITURE                                              -1,4               -0,9               -1,7
       - CHARGED TO THE EC BUDGET
       (REFUNDS/INTERVENTION)
       - NATIONAL AUTHORITIES
       - OTHERS
5.1    REVENUE                                                  -0,2               -0,1               -0,3
       - OWN RESOURCES OF THE EC
       (LEVIES/CUSTOMS DUTIES)
       - NATIONAL
                                                              2006        2007           2008          2009
5.0.1 ESTIMATED EXPENDITURE                                   -2,7         -3,7          -3,7           -3,7
5.1.1 ESTIMATED REVENUE                                       -0,4         -0,5          -0,5           -0,5
5.2    METHOD OF CALCULATION:
       Difference between the remuneration with and without correction coefficient
6.0    CAN THE MEASURE BE FINANCED FROM APPROPRIATIONS ENTERED IN
       THE RELEVANT CHAPTER OF THE CURRENT BUDGET?                                                     N/A
6.1    CAN THE MEASURE BE FINANCED BY TRANSFER BETWEEN CHAPTERS
       OF THE CURRENT BUDGET?                                                                          N/A
6.2    WILL A SUPPLEMENTARY BUDGET BE NECESSARY?                                                       NO
6.3    WILL FUTURE APPROPRIATIONS BE NECESSARY?                                                        NO
COMMENTS:
The correction coefficients are not applicable to the remuneration of RELEX officials who stay on for reasons
of service. The calculations are accordingly based on forecasts for the assignment of officials.
                                                          6