Explanatory Memorandum to COM(1985)204 -

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dossier COM(1985)204 - .
source COM(1985)204 EN
date 30-04-1985
1. Since July 1971 the Council has made interim cost-of-living adjustments on the basis of Article 65(2) of the Staff Regulations and the salary adjustment methods adopted on 23 March 1972 and 29 June 1976. The salary adjustment method adopted on 15 December 1981 confirms and clarifies the detailed rules for interim adjustments.

2. From statistics for the reference period the Commission departments responsible, in conjunction with the Associated Organizations and the UN Statistical Office and in agreement with the Statistical Office of the European Communities, have established the cost-of-living index numbers for 31 December 1984 (June 1984 = 100) for the various countries of employment (see column A of Table I below).

Because of the substantial rise in the cost of living in several countries of employment and the consequent drop in purchasing power, weightings now need adjusting. Without these adjustments, the equivalence of purchasing power to which all officials are entitled under Article 64 of the Staff Regulations would be severely jeopardized.

3. The sensitivity threshold for the relevant period (fixed under the method at 55% of the average change in the cost of living in the Community) is 1.3% This is below the lower limit of 2.75% laid down in the fourth paragraph of Section II.6 of the method; the latter figure is therefore the threshold for

1.

adjustments. Since this threshold has not been reached in Belgium, only


COUNCIL REGULATION (EURATOM, ECSC, EEC) No /85

Of 1985

adjusting the weightings applicable to the remuneration and pensions of officials and other servants of the European Communities

THE COUNCIL OF 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 Regulation (EEC, Euratom, ECSC) No 259/68,(1) as last amended

by Regulation (EEC, Euratom, ECSC) No 420/85,(2) and in particular Articles 63, 64, 65 and 82 of the Staff Regulations and the first paragraph of Article 20 and Article 64 of the Conditions of Employment,

Having regard to Council Decision 81 /1061 /Euratom,- EEC,* ECSC of 15 December 1981 amending the.method of adjusting the remuneration of officials and other servants of the Communities (3),

Having regard to the proposal from the Commission,

Whereas, since the cost of living increased substantially in several countries in which officials and other servants of the Communities are employed in the second half of 1984, the weightings applicable pursuant to Council Regulation (EEC, Euratom, ECSC)420/85 to the reluneration and pensions of officials and other servants should be adjusted with effect from 1 January 1985’or from 1 November or 16 November 1984 in certain countries where the increase in the cost of living was particularly high;

(D 0J L 36, 4.3.19,68, p.1.

(2) 0J L 51, 21. 2.1985, p.6.

0J L 361, 24.12.1981, p.1.

2.

' - 3 - "


TABLE I Trend of the index for the reference period 1 July 1984 to 31 December 1984
Country of .employment(A)

Cost-of-living index 1 July 1984 —

31 December 1984
(B)

Proposed increase after deduction of 0.3%
(C)

Effective date
Belgium102,3(1)--
Denmark101,9“ ■••
Germany100.7(1)-
France103,1(1)102.81. 1.1985 (5)
Greece106,6106,316.11.1984
Ireland102,0(2)--
Italy (except Varese)104.3(1)104,01. 1.1985
Italy (Varese)103.6103,31. 1.1985
Luxembourg102,3(1)- '
Netherlands101.1(1)-
United Kingdom101,9(1)-■ -
Switzerland101,3-
USA101,5-
Canada101,6--
Japan101 -3--
Turkey120,4120,01.11.1984
Spain104,3104-01. 1.1985
Portugal109.010§,716.11.1984
Venezuela110-8110,516.11.1984
Austria101.1--
Thailand100,5--
Chi le115,5115,21.11.1984
Australia102.7(2)■ --
Yugoslavia-(4)- ■-
Algeria-(4)- •-
Morocco "104,5(3)104.21. 1.1985
Tunisia105,5105.21. 1.1985
Egypt-(4)--
Syria-(4)--
Jordan104,6104.31. 1.1985
Lebanon• -(4)' - '-
Israel244,9244,21.11.1984
India105,1104.81. 1.1985
Brazi l127,3(3)• 126,9

L
1.11.1984
(1) Joint Index.

Quarterly index.

Provisional figures.

Index not yet available.

15) Effective dates other than 1 January 1985 have been calculated with reference to the lower limit of the sensitivity threshold (2.75%).

4. The weightings applicable to pensions shall be determined in accordance with Article 82 i of the Staff Regulations.

3.

Article 2


4.

1. With effect from 1 January 1985, the weightings applicable to the pensions and allowances paid to persons covered by Article 2


i

5.

of Regulation (EEC, Euratom, ECSC) No 160/80 shall be as follows


France 144.0

Italy 147.6

Article 3

This Regulation shall enter into force 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.

6.

Done at Brussels, For the Council


The President

10J L 20, 26.1.1980, p.1.

HAS ADOPTED THIS REGULATION:

7.

Article 1


1. With effect from 1 November 1984 the weightings applicable to the remuneration of officials and other servants employed in the countries listed below shall be as follows:

Brazil109.4 (1)
Chile ,179.7
Israel .416.8
Turkey97.4
2. With effect from 16 November 1984, the
weightings applicable to
the remuneration of officials and other servants employed in the
countries listed below shall be as follows:
Greece102.0
Portugal88.8
Venezuela93.8
3. With effect from 1 January 1985, the weightings applicable to the

remuneration of officials and other servants employed in the countries
listed below shall be as follows:
France105.8
Italy (except Varese)102.8
Varese105.1 (1)
Spain105.0
India157.2
Algeria158.7 (1)
Morocco116.3 (1)
Tunisia124.6
Egypt326.4 (1)
Syria154.4 (1)
Jordan221.3
Lebanon165.1

Provisional figure.

8.

Estimate of the budgetary implications of the interim adjustment of the remuneration and pensions of officials and other servants in the first half of 1985


million.....ECU
InstitutionAdministrative .Research and investmentTotal
ExpenditureRevenueTotalExpen

diture
RevenueTotalExpend-

diture
RevenueTotal
Commission (1)0-7410.1000,6411,2750,1641 .1112,0160,2641 .752
Parliament (1)0.0240.0030.0210,0240,0030,021
Court of Auditors-• --
Counci l---
Court of Justice---
Economic and Social Committee---
TOTAL0.7650,1030,6621,2750-1641,1112,040


0,2671 .773

* 1 ECU = Bfrs 44.9682 Method of calculation

Simulation of the adjustment on actual computerized files between 1 November 1984 and 30 April 1985.

The figures for May and June 1985 repeat the values for April 1985. Estimate produced on 3 April 1985.