Explanatory Memorandum to COM(2010)678 - Adjustment with effect from 1 July 2010 of the remuneration and pensions of officials and other servants of the EU and the correction coefficients applied thereto - Main contents
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| dossier | COM(2010)678 - Adjustment with effect from 1 July 2010 of the remuneration and pensions of officials and other servants of the EU and the ... |
|---|---|
| source | COM(2010)678  |
| date | 18-11-2010 |
Grounds for and objectives of the proposal As is the case each year, under Article 3 of Annex XI to the Staff Regulations, the Council, acting on a Commission proposal based on the Eurostat report, must take a decision before the end of the year adjusting remuneration and pensions, with effect from 1 July.
General context In accordance with Article 3 of Annex XI to the Staff Regulations, the adjustment to remuneration and pensions derives directly from changes in the purchasing power of salaries in national civil services (specific indicator), changes in the cost of living in Brussels (International Index), and economic parities determined by Eurostat. The specific indicator measures changes in the net remuneration, exclusive of inflation, of national civil servants in Member States’ central governments. Eurostat has calculated this indicator on the basis of information supplied by the eight Member States referred to in Article 1 i of Annex XI. The Brussels International Index measures changes in the cost of living in Brussels for EU officials. Eurostat has drawn up this index on the basis of information provided by the Belgian authorities. The economic parities for remuneration establish the purchasing power equivalence of the remuneration paid in Brussels, as the reference city, with that paid in the other places of employment. Eurostat has calculated those parities in agreement with the national statistical bodies. The economic parities for pensions establish the purchasing power equivalence of the pension paid in Belgium, as the reference country, with that paid in the other countries of residence. Eurostat has calculated those parities in agreement with the national statistical bodies.
Existing provisions in the area of the proposal A proposal is presented each year for adjusting remuneration and pensions.
Consultation of interested parties
Methods of consultation used, main sectors covered and general profile of respondents The elements of the proposal have been discussed with the staff representatives in accordance with the appropriate procedures.
Summary of replies received and the way in which they have been taken into account The proposal takes account of the opinions of the parties consulted.
There was no need for external expertise.
Impact assessment - The purpose of the proposal is to adjust remuneration and pensions in accordance with the legislation in force. - The legislation in force permits no alternative.
Contents
Summary of the proposed action In accordance with Article 1 of Annex XI to the Staff Regulations, Eurostat has drawn up a report on changes in the cost of living in Brussels, changes in the purchasing power of remuneration in national civil services, and the economic parities from which the various weightings derive. 3.1. ADJUSTMENT TO REMUNERATION AND PENSIONS IN BELGIUM AND LUXEMBOURG The average change in the purchasing power of national civil servants’ remuneration in the reference period measured by the specific indicator is equal to -2.0%. The change in the cost of living in Brussels in the reference period, as measured by the Brussels International Index calculated by Eurostat is equal to 2.4%. According to Article 3 i of Annex XI to the Staff Regulations, the amount of the adjustment is obtained by multiplying together the specific indicator and the Brussels International Index calculated by Eurostat. The proposed adjustment to remuneration and pensions in Belgium and Luxembourg is therefore 0.4%. Under Article 3 i of Annex XI, no weighting is applicable in Belgium or Luxembourg. 3.2. ADJUSTMENT TO REMUNERATION AND PENSIONS OUTSIDE BELGIUM AND LUXEMBOURG Outside Belgium and Luxembourg, the adjustment to remuneration and pensions is obtained by multiplying the adjustment in Belgium and Luxembourg by the change in weightings and in the exchange rate. The weightings applicable to remuneration, pensions and transfers of part of remuneration as set out in the Regulation have been calculated as follows: - Weightings for OFFICIALS outside Belgium and Luxembourg: Eurostat has calculated, in agreement with the national statistical bodies, the economic parities which establish the purchasing power equivalence of the remuneration paid in Brussels with that paid in the other places of employment as at 1 July. The weightings applicable to the remuneration of officials and other servants employed in the Member States other than Belgium and Luxembourg are determined by the ratios between these economic parities and the exchange rates applicable as at 1 July. - Weightings for PENSIONS outside Belgium and Luxembourg and weightings for TRANSFERS: Eurostat has calculated, in agreement with the national statistical bodies, the economic parities which establish the purchasing power equivalence of the pension paid in Brussels with that paid in the other countries of residence as at 1 July. The weightings calculated for the pensions of individuals living outside Belgium and Luxembourg in the various countries are determined by the ratios between these economic parities and the exchange rates applicable as at 1 July. Under Article 17 of Annex VII to the Staff Regulations, these weightings are directly applicable to transfers made by officials and other servants. Under Article 20 of Annex XIII to the Staff Regulations, the weightings apply only to the part of the pension corresponding to pension rights acquired before 1 May 2004. - Date on which the weightings enter into effect: These weightings take effect on 1 July for all places except those with a high cost-of-living increase, for which the weighting enters into effect on 16 May if the increase in the cost of living is greater than 6.3%, or 1 May if it is greater than 12.6%. Changes in the cost of living outside Belgium and Luxembourg are measured by the change in the implicit indices. These indices are calculated by multiplying the Brussels International Index by the change in the economic parity. The date of entry into force of this adjustment is earlier for the places referred to in the Regulation.
Legal basis The Staff Regulations, and in particular Annex XI thereto, constitute the legal basis. The legality of Council Regulation (EU, Euratom) No 1296/2009 of 23 December 2009 adjusting with effect from 1 July 2009 the remuneration and pensions of officials and other servants of the European Union and the correction coefficients applied thereto is contested by the European Commission and the European Parliament, and is subject to an action for annulment before the Court of Justice. However, due to the fact that according to established case-law Union legal acts enjoy the presumption of legality as long as they are not declared void by the Court of Justice, the Commission used the above Council Regulation as the basis for the 2010 annual adjustment. Should the Court of Justice uphold the Commission’s action, the proposed Regulation will have to be subsequently revised in accordance with Article 266 of the Treaty on the Functioning of the European Union.
Subsidiarity principle The proposal concerns an area that falls within the exclusive competence of the Union. The principle of subsidiarity does not therefore apply.
Proportionality principle The proposal is consistent with the principle of proportionality for the following reasons:
- Annex XI to the Staff Regulations provides for a Council Regulation.
- The financial burden results directly from the application of the adjustment method provided for in the Staff Regulations.
Proposed instrument: Regulation.
Other instruments would be inappropriate for the following reasons: - Annex XI to the Staff Regulations provides for a Council Regulation.
The impact of the adjustment to remuneration and pensions on administrative expenditure and on revenue is detailed in the financial statement annexed hereto.