8 2011 and 2012 salary and pension adjustments
for EU staff
| (35643)
17622/13
COM(13) 895
(35644)
17625/13
COM(13) 896
| Draft Regulation adjusting with the effect from 1 July 2011 the remuneration and pension of the officials and other servants of the European Union and the correction coefficients applied thereto
Draft Regulation adjusting with the effect from 1 July 2012 the remuneration and pensions of the officials and other servants of the European Union and the correction coefficients applied thereto
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| Legal base | Article 10 of Annex XI of the Staff Regulations; QMV; co-decision
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| Document originated | 10 December 2013
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| Deposited in Parliament | 31 December 2013
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| Department | HM Treasury
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| Basis of consideration | EM of 8 January 2014
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| Previous Committee Report | None
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| Discussion in Council | No date foreseen
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| Committee's assessment | Legally and politically important
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| Committee's decision | Not cleared; further information requested
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The documents
8.1 This Report covers two proposals relating to
the remuneration and pension of EU officials.
2011 SALARY AND PENSION PROPOSAL
8.2 This is a revised Commission proposal for the
adjustment, with effect from 1 July 2011, of the remuneration
and pension of European Union officials. It was submitted by the
Commission following the judgment of the Court of Justice of the
EU in case C-63/12, Commission v Council, on 19 November
2013. The court decided that when the Council invokes the "exception
clause", identifying that there is a serious and sudden deterioration
in the economic and social situation within the EU, the Commission
must submit a revised proposal taking into account the factors
identified.
8.3 The original Commission proposal for the 2011
adjustment was 1.7%. Following the court's ruling the Commission
has now reduced the proposed adjustment to 0.9%.
8.4 The Commission's explanatory memorandum explains
how the adjustment figure is calculated and the data on which
it is based. It includes an updated salary table following the
adjustment, and a table demonstrating the correction coefficients
for other locations outside Belgium and Luxembourg. It also shows
how allowances to which an EU official is entitled will change,
in line with the adjustment.
8.5 If adopted, the Commission estimates the financial
impact of this proposal in expenditure terms will be €129
million (£108 million) for the year 2013 and €52 million
(£43 million) for subsequent years. The financial impact
in revenue terms will be €24 million (£20 million) for
the year 2013 and €10 million (£8 million) for subsequent
years.
2012 SALARY AND PENSION PROPOSAL
8.6 This is the revised Commission proposal for the
adjustment, with effect from 1 July 2012, of the remuneration
and pension of European Union officials.
8.7 The Court of Justice has yet to rule in case
C-86/13 and case C-248/13, both of which concern the original
Commission proposal for the 2012 adjustment. However, the Commission
states that it has decided to submit this revised proposal following
the court's ruling in case C-63/12.
8.8 The original Commission proposal for the 2012
adjustment was 1.7%. The Commission has now reduced the proposed
adjustment to 0.9%.
8.9 If adopted, the Commission estimates the financial
impact of this proposal in expenditure terms will be €80
million (£66 million) for 2013 and €53 million (£44
million) in subsequent years. The financial impact in revenue
terms will be €15 million (£13 million) for the year
2013 and €11million (£9 million) for subsequent years.
The Government's view
8.10 In an Explanatory Memorandum dated 8 January
2014 the Economic Secretary at HM Treasury (Nicky Morgan) says
the Government does not support the revised remuneration and pensions
adjustments proposed by the Commission. The Government believes
that the EU institutions should not be immune from savings —
there must be very substantial reductions in administration spending
across the EU institutions.
Conclusion
8.11 We note that the reduction proposed by the
Commission following the Court of Justice's ruling in case C-63/13
does not meet the Government's policy of seeking "very substantial
reductions" in administrative spending in the EU institutions.
8.12 From informal communication with the Minister's
officials we are aware that the Presidency is currently seeking
a mandate for trilogue negotiations with the European Parliament;
but that, at present, there is a blocking minority in the Council
on the revised proposals, although it is not clear how long this
will hold. We are also aware that the Government will vote in
COREPER against a mandate agreeing to the reduction proposed by
the Commission (as reported above) but if the trilogue mandate
represents a further reduction, it may vote in favour. We thank
the Government for keeping us informed of these developments.
8.13 We support the Government's stance in seeking
a further reduction on the 2011 and 2012 adjustments, and ask
the Minister to write back once COREPER has agreed a negotiating
mandate.
8.14 In the meantime, both documents remain under
scrutiny.
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