CELEX: 51978PC0591
Language: en
Date: 1978-11-10
Title: PROPOSAL FOR A COUNCIL REGULATION (EURATOM, ECSC, EEC) CORRECTING THE WEIGHTING APPLIED TO THE REMUNERATION AND PENSIONS OF OFFICIALS AND OTHER SERVANTS OF THE EUROPEAN COMMUNITY EMPLOYED OR RESIDENT IN ITALY (Submitted by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 591
Vol. 1978/0225
 ---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,
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
               •  I            •                           I
                                                     COM(78)591 final
                                                     Brussels , 10 november 1978
                 PROPOSAL FOR A COUNCIL REGULATION (EURATOM , ECSC , EEC )
            CORRECTING THE WEIGHTING APPLIED TO THE REMUNERATION AND PENSIONS
            OP OFFICIALS AND OTHER SERVANTS OF THE EUROPEAN COMMUNITY
                              EMPLOYED OR RESIDENT IN ITALY
                    ( Submitted by the Commission to. the Council )
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C0M(78 ) 591 final
 ---pagebreak---                          EXPLANATORY MEMORANDUM
                           Italian weighting
In addition to the last salary adjustment for the rise in the cost of
living in the second half of 1977 "the Commission proposed a 5%
increase in the weighting for Italy. This, figure was put forward
provisionally, pending the findings of the statistical surveys to
he carried out by the Statistical Office at the Commission's
request * However, the Council deferred its decision until the
outcome of the surveys was known *
The SCEC*s report is now attached*
The Commission would stress that the working party set up "by
Mr Jenkins agreed that , if the method is to operate satisfactorily,
there must he provision for updating the basic statistical material
to make periodic checks on weightings* In fact the method chosen »
                    Φ
will make it possible to draw as much of the information produced by
the five-year price survey conducted by the SCEC in connection with
national accounts *
In its check on the first application of the method to the Italian
weighting the working party used the latest figures available ( 1975
national accounts survey)*
The Commission would also point out that the use of a single
weighting for each country of employment , worked out for the capital ,
places staff working in Ispra at a slight disadvantage * The statistics
available show that the cost of living in Rome has risen less rapidly
than in the Varese area, from which it may reasonably be assumed that
 ---pagebreak---                                     mm 2 mm
prices in Roma are now lower than in Varese *  This existence of
 lower prices in the capital than elsewhere is the exception rather
than the rule in the Nine *  In view of the number of staff employed
 in Ispra a special looal price survey would appear justified*
However, the Commission feels that it would be wiser not to innovate
in this direction and to abide by the Council Decision of 1963, which
provides specifically for the use of the price indexes relating to
the capital .
T£e weighting for Italy (Rome ) has therefore been recalculated*
The calculations are set out in detail in the SGEC report referred
to above *
The result is a wei^rting of 143*2 as at 1 January 1973 (where
Brussels - 100 ) or 146*4 (where Brussels - 102*3 )* The figure
decided on by the Council with effect from 1 January 1978 vas
137*6 (Brussels ■ 102*3 )* An inorease of 6*4$ is therefore called
for *                                                           ,
The Commission is accordingly proposing that the Council fix the
Italian weighting at 146*4 with effect from 1 January 1978
The Commission must also inform the Council that the staff
representatives have asked that the new weighting be applied from a
date earlier than 1 January 1978 *
 ---pagebreak---                 STATISTICAL OFFICE OF THE EUROPEAN COMMUlaTIES
                Calculation of the weighting for Italy ( Rome )
1 . The current weighting for Italy is worked out on the basis of 196?
    calculations updated by means of the joint index.
    The inflation in Italy over the last few years has made it necessary
    to recalculate the weighting.
2.  The method used is the same as before , namely the "Fisher" method.
3.  Basic material
    She working party decided to make use of the basic statistics already
                      Φ
    available at the Statistical Office .
    Price calculations were based on the Community survey conducted in
    October 1975 and the relevant weights were worked out on the basis of
    the survey of civil servants * family budgets conducted in Brussels
    and Ispra in 1967 .
 ---pagebreak--- 4.   Use of basic material                       (    ,
                                  '                 1
                                      •
Prices
Prom the list used, in the Community survey of October 1 975 » 601 items were
selected in accordance with the following criteria :
( a) the October 1975 prices had to be available for both capital cities
      ( Brussels and'Rome );
(b ) the item had to appear on the nomenclature of weights used in 1967-
Ten new items were added ( third-party liability premiums for two cars and
eigfrt television sets ).
As there were no figures available showing rents for Rome , calculations
were based on the national average , likewise used for the Italian national
accounts .
Weights
The weights used to produce the 1967 joint cost-of-living index for Brussels
and Ispra (Documents 2352/66 and 2353/66 ) were extrapolated for the period .
                                    '                                 i
covering 1 967 to 1975 taking into account the changes in the relative shares
of the function groups ( one-digit code ) of the national accounts over the
                      «
reference period .
In order to correlate the 1967 weights nomenclature and the list of items
used in the October 1975 survey it was necessary to regroup some headings
and break down others *
                            I                                           *• '
This produced weights in respect of 156 basio headings for which there are
one or more items the prioes of which were available for both oount riea .
 ---pagebreak---                                - 3 -
5.  Calculations
For each produot the ratio between the Rome price (piR) and the
Brussels price (piB) was calculated :
                      piR^piB          (i * 1 ,    611 )
The price ratios for products included under a basic heading were
aggregated by calculating the non-weighted geometric average .
WherePj^g represents the parity of the basio heading s and n^ the
number of products included under the heading, the formula was as
follows :
                  4    Γ ***              ΐΐ
              %4 - L ^           Pis Jp                             ··*/
The parities of the 156 basic headings were aggregated using the
Laspeyres index (L^^) and the Faaoche index
Where c< ° andi< ® represent the weighting coefficients ( i.e. the
relative spending on heading s in Rome ( R) and in Brussels ( B ) , the
formulae adopted can be set out as follows :                     - .
                                               6
                                                               9
                                   iÇ(t ■        A   4
                                 f< ^ 1'
Hie Pisher index is therefore the geometric average of the two
results :
                                           \IjS3
                               t/8     -
                                           v'i
 ---pagebreak--- 6*  Adjustment
The Ootober 1975 Community price survey was conducted in the capitals of
the Nine over a period of two and a half months . The Brussels operation
took plaoe in late October and the Rome operation in late November.
In order to work out the October 1975 parity between the two capitals
allowance had to be made for the 1.1$ rise in prices in Rome between
October and November .
7•  Updating
The results produced ape for October 1975 *
In order to obtain the present purchasing power parity between Rome and
Brussels it was neoessary to extrapolate the Ootober 1975 results using the
joint index for . the two cities .
                         /
Updating will continue along these lines until 19dO t when the next .five–year
Community survey will provide the data to work out the new weighting.     - \ ■
 ---pagebreak---                                   - 5 -
8*   Results
Situation as at October 1975
Pisher                                      Lit 14*9 per Bfr
Commission rate                             Lit 1 2.50 per Bfr
Weighting with effect from July 1975
( Brussels ■ 100 )                          11'9
Price movement "between July 1975 and December 1977
Brussels                       \            122.5
Rome •                                      147*2
Situation early 1978
                       Φ ·
Fisher extrapolated                        Lit 1 7.9 per Bfr
Commission rate                            Lit 12.50 per Bfr
Weighting
( Brussels - 100 )                         143.2
 ---pagebreak---                                                   IX/l 839/78 - EN
                         PROPOSAL FOR A
          COUNCIL REGULATION ( Euratom , ECSC , EEC ) No
              of                       ,
          correcting the weighting applied to the remuneration
          and pensions of officials and other servants of the
          European Communities employed or resident in Italy
THE COUNCIL OP 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 Offioials 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
                                                p
by Regulation (ECSC , EEC , Euratom) No 914/78 , and in particular
                                                    «
Articles 64 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 the weighting for Italy should be corrected in line with the
findings of the statistical surveys carried out by the Statistical
Office of the European Communities ,
HAS ADOPTED THIS REGULATION 1
                             Article 1                                ,
1 . With effeot from 1 January 1978 , the weighting applicable to the
remuneration of officials employed in Italy shall be 146.4 *       •
  OJ No L 56 , 4 March 1968 , p.1 «
20J No L 119, 3 May 1978, p.8.
 ---pagebreak---                                      - 2 -
/           •
       2.  With effect from 1 January 197° the weighting applicable to pensions
       in acoordance with the seoond subparagraph of Article 82(l ) of the
/     Staff Regulations shall be 146.4 where the person entitled to the pension
       deolares his home to be in Italy*                                       •
                                   Article 2
      The weighting for Italy in Articles 1 and 2   of Council Regulation
      (Euratom, ECSC , EEC) No 1461/78^ is repealed with effect from
  •    1 January 1978 .
                                  Article 3
      This Regulation shall enter into force on the day following its
      publication in the Official Journal of the European Communities .
                         Φ
      This Regulation shall be binding in its entirety and directly applicable
      in all Member States .
                                                      ι
      Done at
                                                    For the Council       ,
    /                                               The President
       OJ No L 176 , 30 June 1978 - p.1 *