Explanatory Memorandum to COM(1998)455 - 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 EU laid down in Article 13 of Annex VII to the Staff Regulations of Officials of the EC

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dossier COM(1998)455 - Proposal for a Council Regulation (EC, ECSC, Euratom) adjusting the daily subsistence allowance rates for officials on ...
source COM(1998)455 EN
date 17-07-1998
1. BACKGROUND

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

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.

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.

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;

(d) introduce a simple automatic annual adjustment procedure, whereby the Commission takes the decision to adjust the rates and informs the other institutions.

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).

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.

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).

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.

The chair of the Council’s Staff Regulations working party asked the Commission to present a proposal which did not provide for any automatic adjustment or a “starting point”.

2. PROPOSED DECISION

Contents

1.

Consequently, the Commission has decided to remove the automatic adjustment


procedure and the “starting point” from its proposal and, for procedural reasons, to:

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);

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);

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.

2.

PROPOSAL FOR A


COUNCIL REGULATION (EC, EEC, EURATOM) No...

OF.....

ADJUSTING I NK DAILY SUBSISTENCE ALLOWANCE RATES FOR OFFICIALS ON MISSION

WITHIN HIE EUROPEAN TERRITORY OF THE MEMBER STATES OF TIIE 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 259/68,9 as last amended by Regulation (EC, Euratom, ECSC) No 2591/97,10 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:

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)
Member States111III
Grades A1 - A3 and LA3Grades A4 - A8, LA4 - LA8 and category BOther categories
Belgium339160365586
Denmark369972326688
Germany299151274745
Greece266345664225
Spain277957005275
France292852564865
Ireland326566646161
Italy243452374845
Luxembourg330857885351
Netherlands315759585514
Portugal278057685337
United Kingdom350580367436

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

BFR4723forBelgium
BFR5974forDenmark
BFR3914forGermany
BFR4019forGreece
BFR5106forSpain
BFR3924forFrance
BFR5620forIreland
BFR4612forItaly
BFR4313forLuxembourg
BFR5315forNetherlands
BFR5038forPortugal
BFR6011forUnited Kingdom

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.

3.

Done at Brussels


For the Council The President

Proposed change in BFR terms (%)
B28,7%
DK18,2%
D21,3%
GR58,5%
E9,0%
F22,2%
IRL27,3%
1-6,7%
L30,5%
NL20,2%
P39,0%
UK39,6%
2122
1991 Staff Reg. amounts

BFR
1991 Staff Reg. amounts

National currencies
1998 Indexed amounts

National currencies
1998 indexed amounts

BFR
A1 to A3A1 to A3A4 to A8 andBOther

grades
Exchange rate to BFRA1 to A3A1 to A3A4 to A8 andBOther

grades
Hotel and catering CPIA1 to A3A1 to A3A4toA8

andB
Other

grades
Exchange rate to BFRA1 to A3A1 to A3A4 to A8 andBOther

grades
Daly allow, not ind. hotelCeiling

hotel
Daily

allow, ind. hotel
Defy allowance ind. hotelOct-90Daily allow, not ind. hotelCeiling

hotel
Daly

allow, ind. hotel
Daily

alow. ind. hotel
Oct90-

Nov97
Daily allow not

ind hotel
Ceding

hotel
Daily

allow, ind. hotel
Daily

allow, ind. hotel
Nov-97Daily allow, not ind. hotelCeiling

hotel
Daily

allow ind. hotel
Daily

allow, ind. hotel
B263536704690434012635,03670,04690,04340,028,7%3391,24723,36036,05585,613391472360365586
DK31305055612056605,3912580,6937,61135,21049,917,6%682,81102,71335,01234,65,41733699597472326688
D246532254225391020,599119,67156,56205,11189,8221,2%145,04189,75248,59230,0620,6252991391451274745
GR16802535288026650.20915803312120^1377012742154,0%2040330786^4976323650,1305426634019„45664225
E25504685523048400,32874775714251159091472346,8%113872092123355216130,244082779510657005275
F23953210430039806,1532389,23521,68698,82646,8222,2%475,64637,49853,96790,416,15512928392452564865
IRL256544155235484055,28746,3979,8694,6987,5432,5%61,47105,81125,46115,9953,1133265562066646161
26104945561551950,0275179485017970720405618879222,3%1160022197822495602308930,0209842434461252374845
L253533054435410012535,03305,04435,04100,030,5%3308,24313,05787,75350,513308431357885351
NL262544204955458518,269143.69241,94271,22250,9720,1%172,57290,57325,74301,4218,2923157531559585514
P20003625415038400,23150863915659179271658759,3%137622494428557264240,201982780503857685337
UK251043055755532560,43341,5371,2495,2388,1143,2%59,48102,01136,37126,1858,9303505601180367436
1234567B910ii121314151617181920


4.

FINANCIAL STATEMENT FOR PROPOSAL TO ADJUST MISSION ALLOWANCES - 1998 - FUR 12


ANNEX2

I hilly mission allowances (nil giadcs) i hold expenses lor A I-A 1 (Parliament already grants ullovvimccs ol Ollieliilx 'ml oIIiit xlnlf higher or ci|iud value and is there lore mil included)

5.

Annunl Hninunl in IIFR million

BudgetCom mission('ommissionCommissionCourt ofCourt ofTotal for all
headingsOperatingResearchSub-totalCouncilAuditorsJusticeESC-CoRinstitutions
Belgium47,60130,14677,7470,3959.1670,0270,02787,364
Denmark11,4274,37715,8040,2460,5470,0170,01716,630
A70IGermany27,09819,79346,8911,7831,6240,1230,12350.544
A1040Greece13,3054,35217,6570,1820,4880,0130,01318,353
sub-sectionSpain30,17220,59850,7701,1301,7810,0780,07853,837
B6 and
B21830,France64,22441,966106,1905,6472,1310,3890,389114,747
B43070Ireland19,2923,19622,4883,1300,7400,2160,21626,790
forItaly52,08137,09689,1782,4111,7150,1660,16693,636
the researchLuxembourg36,7814,12640,90814,7270,0101,0161,01657,675
budgetNetherlands19,5446,37725,9216,6110,4620,4560,45633,906
Portugal16,2054,22920,4340,4700,4870,0320,03221,456
United Kingdom35,69645,36381,0591,1941,7200,0820,08284,138
Total in IIFR million373,427221,620595,04737,92520,8722,6162,616659.075
Total in ECU million*9.25,414,60,90.50,10,116,2
AdjustmentTotal difference in IIFR million
Belgium.'8,7%13,6628,65222,3130,1132,6310,0080,00825.073
Denmark18,2%2,0800,7972,8760,0450.1000,0030,0033,027
(iermauy21,3%5,7724,2169.9880,3800,3460,0260,02610.766
(i recce58,5%7,7842,54610,3300,1070,2860,0070,00710,736
Spain9,0%2,7151,8544,5690,1020,1600,0070,0074,845
Fiance) > )%14,2589,31623,5741,2540.4730,0860,086.’5.474
behind27.1%5,2670,8726.1390,8540.2020.0590,0597,314
Italy-t.,7%-3,489-2.485-5,975-0.162-0,115-0,011-0.011-6.274
Luxembourg30,5%11,2181,25912,4774,4920,0030,3100,31017.591
Netherlands20,2%3,9481.2885,2361,3350,0930,0920,0926,849
Portugal39,0%6,3201,6497,9690,1830,1900,0130,0138,368
United Kingdot139,6%14,13617,96432,1000,4730,6810,0330,03333,319
Total in BFR million83,66947,928131,5979,1765,0500,6330,633147,088
Total in ECU million*2,11,23,20,20,10,00,03,6
♦Rate at 1.3.98 ECU 1 =BFR 40.7757

6.

Detached national experts Daily mission allowances

BudgetAnnual amount in ECU millionAdjustmentDifference in ECU million
headingsOperatingResearchTotalOperatingResearchTotal
A700318,50,018,50,35,30,05,3
Experts attending meetings Subsistence expenses
BudgetAnnuul amount in ECU millionAdjustmentDifference in ECU million
headingsOperatingResearchTotal(IperatingResearchTotal
A.’C’O0,05-10,0000,05433,5%0,0180,0000,018
A.’HO0,05t0,0000,0533.3,5%0.0180,0000.018
A25 1I0.0590,0000.059.13.5%0.0200,0000.020
A25600,0580,0000,05833,5%0,0200,0000,020
A70301,1320,0001,13233,5%0,3790,0000,379
A703I0,5000.0000,50033.5%0.1670,0000.167
A 703 20,6220,0000,62233,5%0,2080,0000,208
A70330,1150,0000,11533,5%0,0380,0000,038
B2I8300,0000,0180,01833,5%0,0000,0060,006
B430700,0000,0470,04733,5%0,0000,0160,016
B671110,0000,0110,01133,5%0,0000,0040,004
B671120,0000,0180,01833,5%0,0000,0060,006
B671130,0000,0280,02833,5%0,0000,0090,009
B672110,0000,0350,03533,5%0,0000,0120,012
B673110,0000,0100,01033,5%0,0000,0030,003
Total2,60,22,80,90,10,9
* 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 stall'3,6
Detached national experts5,3
Experts attending meetings- 0,9
Total cost of adjusting daily mission allowances in ECU million9,8

ISSN 0254-1475

COM i 455 final
DOCUMENTS

EN

01 06

Catalogue number : CB-CO-98-466-EN-C

ISBN 92-78-38320-1

7.

Office for Official Publications of the European Communities L-2985 Luxembourg


/o

1

COM i 451 final 96/0232(CNS)

2

on the basis of Eurostat’s consumer price indices for the hotel and catering industries and the exchange rates applied from 1990 to 1996.

3

Article 24 of the Treaty establishing a single Council and Commission of the European Communities

4

EP A4-0039/97

5

COM i 429 final 96/0232(CNS)

6

The proposal took the scale used by Parliament in 1997 as its starting point.

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.

9

OJL 56,4.3.1969

10

OJ L 351, 23.12.1997