Explanatory Memorandum to COM(2013)896 - Adjustment with the effect from 1 July 2012 of the remuneration and pensions of the officials and other servants of the EU and the correction coefficients applied thereto - Main contents
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| dossier | COM(2013)896 - Adjustment with the effect from 1 July 2012 of the remuneration and pensions of the officials and other servants of the EU ... |
|---|---|
| source | COM(2013)896  |
| date | 10-12-2013 |
Grounds for and objectives of the proposal Following the judgment of the European Court of Justice of 19 November 2013 in Case C-63/12, the Commission must submit a new proposal on the basis of Article 10 of Annex XI to the Staff Regulations. According to this Article, the Commission is to submit appropriate proposals on which the European Parliament and the Council shall decide in accordance with Article 336 of the Treaty on the Functioning of the European Union. On 31 August 2012, the Commission submitted a Report to the Council on the exception clause (Article 10 of Annex XI to the Staff Regulations) (COM (2012) 476) and on 5 December 2012, the Commission submitted to the Council a Commission staff working document on the exception clause (SWD (2012) 428). The Court of Justice stated that when the assessments made by the Commission and the Council result in opposite conclusions, the Commission must submit to the European Parliament and to the Council appropriate proposals on the basis of that Article, in order to involve the European Parliament and to allow the legislators to decide on the appropriate measures to be taken with regard to the existing economic and social situation in the Union (paragraph 76). According to the judgment, the Commission has a margin of appraisal as regards the appropriate character of the proposals, given the economic and social data, as well as, where necessary, other factors to be taken into consideration, such as those that are relevant to human resources management and, in particular, the needs of recruitment (paragraph 74). The Commission reports mentioned above refer systematically to a stagnation and an ongoing crisis as well as a high level of unemployment rate and a high level of public deficit and debt in the European Union, though not concluding that the criteria set in Article 10 of Annex XI to the Staff Regulations are met. As the Court judged that the Commission has no margin to decide whether or not to trigger the exception clause with regard to these criteria, the procedure laid down in Article 10 of Annex XI to the Staff Regulations constitutes the only means of taking account of an economic crisis in the adjustment of remuneration and therefore of disapplying the criteria laid down in Article 3(2) of that annex. The Commission shall take this economic and social data into account in order to propose appropriate measures to derogate from the strict application of the method. At the same time, since 2011, there have been a number of relevant developments. The European Parliament and the Council have adopted a reform of the Staff Regulations which includes a suspension of adjustments of salaries, allowances and pensions in 2013 and 2014 leading to a freeze for two years and several significant changes to the working conditions of staff of the EU institutions such as measures with regard to weekly working time, career, pensions and leave days which lead to significant savings. Taking into account the result of the normal application of the method in 2012, the social and economic situation, the reform of the Staff Regulations as well as the situation with regard to recruitment and management of human resources observed over the last years, the Commission concludes that the present proposal as well as the proposal for the adjustment of 2011 would be appropriate measures to be taken by the legislator based on Article 10 of Annex XI to the Staff Regulations. Under Article 65 of the Staff Regulations the remuneration and pensions shall be updated before the end of each year. In this regard, the urgent implementation of the Judgment of the Court of Justice in Case C-63/12, issued on 19 November 2013, constitutes a due reason for adopting this Regulation rapidly. Elements of the new method determining the content of the Proposal The Eurostat report was submitted to the Council on 5 December 2012 (SWD (2012) 427). According to this report, the average change in the purchasing power of national civil servants’ remuneration in the reference period measured by the specific indicator is equal to -1.1%. The change in the cost of living in Brussels in the reference period is equal to 2.8%. 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 was therefore 1.7%. The amount of the adjustment must be corrected to take into account the above mentioned elements. The Commission considers therefore as appropriate to reduce the proposed adjustment to remuneration and pensions in Belgium and Luxembourg to 0.9% instead of 1.7% with regard to the strict application of the method.
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. With regard to the parallel proposal for 2011, the same approach would result in an adjustment of 0.9% instead of 1.7%. The new proposals for 2011 and 2012 would therefore in effect reduce the result of the normal application of the method in force in 2011 and 2012 by 47%.
Existing provisions in the area of the proposal Article 65, Article 10 of Annex XI and Article 19 of Annex XIII of the modified Staff Regulations.
Consultation of interested parties and impact assessment
|| 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.
The impact of the adjustment to remuneration and pensions on administrative expenditure and on revenue is detailed in the financial statement annexed hereto.