Commission unveils 'austerity' package for EU officials - Main contents

EUOBSERVER / BRUSSELS - The European Commission has proposed to get rid of 5 percent of EU officials and to make remaining staff work longer in a show of fraternal feeling with crisis-hit member states.

The proposals come as part of Brussels' blueprint for the EU budget for the 2012 to 2020 period, out on Wednesday (29 June).

Commenting on the plan commission head Jose Manuel Barroso i said: "European institutions should ... show solidarity with European citizens, in an era where rigorous cost savings and maximum efficiency are demanded at all levels."

The 5 percent cut would see around 2,500 fonctionnaires pensioned off or let go when their contracts expire from 2013 onward. The other 47,500-or-so staff will be made to work at least 40 hours per week instead of the current 37.5 hours with no extra pay. Their retirement age will also go up from 63 to 65 years.

The commission proposal is a launching pad for talks with member states which normally take over a year to reach agreement.

EU officials expect capitals to push for a 10 percent or more reduction in EU staff. Some believe this would force the EU to close peripheral institutions, like the Committee of the Regions. But others say there is enough general flab to remove. "We could get rid of 10 percent or even more without really affecting the way parliament works," a European Parliament contact said.

Press literature accompanying the budget proposal attacked "myths" about the EU, such as the notion that "the EU costs too much."

"Salaries are paid to staff delivering and managing valuable EU policies that have a direct positive impact on citizens. Think of air traffic liberalisation, passenger rights or cheaper roaming charges," it said.

Senior EU civil servants can trouser over €16,000 a month while paying just over 5 percent in an internal "tax."

But trade unions note that many junior staff earn just €1,400 or less and work on short-term contracts, with EU jobs becoming less and less appealing to top talent in member states.

The commission on Wednesday said EU administration costs, including the cost of running and leasing EU buildings, will be €62.6 billion in 2011. Just over €10 billion will go on pensions for retired officials and €1.3 billion or so will pay for European schools, which educate children of EU staff.