Ag.No. 8.1 Lessons from 2017 exercise Intra-EU

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Presentation transcript:

Ag.No. 8.1 Lessons from 2017 exercise Intra-EU Doc.A64645/18/05(a) Ag.No. 8.1 Lessons from 2017 exercise Intra-EU Working Group on Articles 64 and 65 of the Staff Regulations Meeting in Luxembourg 21+22 March 2018

Content of this presentation JBLI Data compilation and processing STF and PEN: Integration of latest ECP survey results HICP updating Integration of estate agency rent survey results Integration of new Staff Housing Survey results Integration of new Family Budget Survey results Pensioner rent ratio adjustment Aggregation calculations and reporting Lessons learned See also Ag.Pt. 5 – Annual Report Overview

JBLI

BE HICP (rev. weights)

LU CPI (rev. weights)

JBLI - staff numbers (weights) Laspeyres-type index, therefore use staff numbers as at July 2016 (= December 2015 from PSEO), all institutions and agencies): Duty station No. % Brussels 35,212 81.6 Luxembourg 7,940 18.4 Total 43,152 100.0

Intra-EU CC for STAFF

Intra-EU staff CC values CC July 2017 Duty station 50 – 70 2 BG, RO 70 – 75 3 CZ, EL, SK 75 – 80 6 HR, CY, LV, LT, HU, PL 80 – 90 5 EE, ES, MT, PT, SI 90 – 100 DEBer, DEBon, DEKar, ITRom, ITVar 100 – 110 4 DEMun, NL, AT, UKCul 110 – 125 IE, FR, FI 125 – 145 DK, SE, UKLon Total 31 excluding BXL=LUX=100

Intra-EU staff PPP changes (AVG +1.7%) Duty station X < 0 2 ITRom, UKCul 0 ≤ X < 1.7 18 DK, DEBer, DEBon, DEKar, IE, EL, ES, FR, HR, ITVar, CY, MT, NL, AT, RO, SI, FI, UKLon 1.7 ≤ X < 3.4 5 DEMun, LV, PL, PT, SK 3.4 ≤ X 6 BG, CZ, EE, LT, HU, SE Total 31 excluding BXL=LUX

July 2016-17 global PPP STF change due to… Component Min % Avg % Max % ECP House and garden - +0.3 + ECP Transport; HoReCa HICP relative to BELU Rents -0.2 +0.7 NB. MIN% or MAX% may be different MS for each component…

Elements of 2016-17 PPP change for Intra-EU staff No change to basic calculation methodology Some standard elements: - Relative movement of consumer price indices - Replace 2x validated ECP consumer price surveys - Replace 1x validated rent survey (6 year average) Some one-off elements: - New SHS taper weights in 6 year model Not this year: - Education PPP, Healthcare PPP, - SHS dwelling weights, FBS expenditure weights

Rents = the main component this time AVG +0.7 % > +1.4% 5 = BG +1.7, LT +1.7, MT +1.9, PT +2.4, SE +1.6 < 0% 4 = ITRom -0.2, AT -0.2, SI -0.2, UKCul -0.2

Details of rent PPP calculation component impact (on global PPP) AVG ◄ EARS 2011 +0.3 ► EARS 2017 +0.1 Indexation New taper weights 0.0 Currency conversion (BG, HR, RO only) +0.2 ► total +0.7

Another factor = MS HICP relative to BE Average PPP impact +0.3%; Decrease (lower than BXL) in 23

New ECP survey data Component AVG < -0.5% > +0.5% +0.3 .. House and garden (18 BH, BXL WGT 11%) +0.3 .. DK+1.2, IE+1.0, EL+1.0, PT+1.6 ECP 2016-2 Transport; HoReCa (3 BH, BXL WGT 16%) IE+1.5, EL+1.0, HU+1.3 NB. Some BH are no longer covered by ECP surveys. These BH will be updated by the approved hierarchical estimation methodology in next year's PPP calculation (ie. July 2018).

ECP survey E16-1 House and garden BH Bxl Wgt 22 Products for reg. maintenance 0.38 61 Games, toys and hobbies 0.26 33 Household appliances 0.93 63 Gardens, plants, flowers 0.36 35 Glassware, tableware, utensils 0.32 64 Pets and related 0.22 36 Tools and equipment 0.24 66 Cultural services 1.36 37 Non-durable household goods 0.44 67 Books 0.58 53 Telephone eqpt. and services 2.04 68 Newspapers and periodicals 54 Eqpt. for sound and pictures 0.70 69 Miscellaneous (leisure) 0.10 55 Photogr. and cinematogr. eqpt. 0.33 76 Products for personal care 0.75 56 Information processing eqpt. 0.76 57 Recording media 0.25   =18 total 10.38

ECP survey E16-2 Transport; HoReCa BH Bxl Wgt 40 Motor cars 3.81 41 Motor cycles and bicycles 0.34 42 Spare parts and accessories for personal transport 0.43 43 Fuels and lubricants for personal transport 1.52 72 Restaurants, cafés and the like 5.60 73 Canteens 3.15 74 Accommodation services 1.31 =7  total 16.16

BH no longer covered by ECP… Bxl Wgt 25 Refuse and sewerage collection; other dwelling services 0.50 31 Repair of furniture, furnishings and floor coverings 0.04 50 Combined passenger transport 0.15 59 Major durables for indoor and outdoor recreation 0.43 60 Maintenance and repair of other major durables 0.02 70 Package holidays 1.89 79 Insurance 2.25 80 Other services including financial services 0.51 =8  total 5.79

Intra-EU CC for PENSIONERS

Pensioner CC values CC value July 2017 Duty station 45 – 65 4 BG, HU, PL, RO 65 – 75 5 CZ, HR, LV, LT, SK 75 – 85 EE, EL, CY, PT, SI 85 – 100 3 ES, IT, MT 100 – 110 DE, FR, NL, AT 110 – 125 IE, FI, SE, UK 125 – 145 1 DK Total 26 excluding BXL=LUX=100

Pensioner PPP changes (AVG +2.5%) Duty station X < 0 0 ≤ X < 2.5 15 DK, IE, EL, FR, HR, IT, CY, MT, NL, AT, PL, RO, SI, SK, FI 2.5 ≤ X < 5.0 10 BG, CZ, DE, EE, ES, LV, HU, PT, SE, UK 5.0 ≤ X 1 LT Total 26 excluding BXL=LUX In bold = July 2016 or 2017 CC value > 100 ie. applied

Elements of 2016-17 PPP change for Pensioners No change to basic calculation methodology Some standard elements: - Movement in Staff PPP ie. relative movement of consumer price indices; replace 2x validated ECP consumer price surveys; replace 1x validated rent survey (6 year average); 2017: new SHS taper weights - Update capital/country rent ratios Aggregated using FBS expenditure weights (results of 2013 survey already integrated for the 2016 exercise)

July 2016-17 global PPP PEN change due to… Component Min % Avg % Max % ECP House and garden -0.6 +0.3 +3.7 ECP Transport; HoReCa -0.4 +0.2 HICP relative to BELU -1.9 +2.1 Rents +0.8 +2.2 Rent ratios -0.8 +0.9 +3.0 NB. MIN% or MAX% may be different MS for each component…

Main factors Component AVG < 0% > +1.5% +0.8 IT-0.4, UK-0.4 Update rent PPP (6 year model) +0.8 IT-0.4, UK-0.4 IE+1.9, MT+1.9, PT+2.2, SE+1.6 Update rent ratios +0.9 LT-0.8 EL+1.6, ES+2.1, UK+3.0

Other factors Component AVG < -0.2% > +0.8% +0.3 MT-0.3, UK-0.6 ECP 2016-1 House and garden (18 BH) +0.3 MT-0.3, UK-0.6 BG+0.9, IE+0.9, LT+3.7 ECP 2016-2 Transport; HoReCa (7 BH) +0.2 PT-0.4 BG+1.2, IE+0.9, LT+3.7 HICP updating DK-0.6, IE-1.9, CY-0.5, MT-0.7, PT-0.5, RO-0.9 BG+0.9, CZ+1.3, EE+1.5, LV+1.6, LT+2.1, HU+1.0, SK+0.9, UK+1.1

Lessons learned

Observations/lessons 2016-2017 No new CC duty stations added (but several queries) eg. Amsterdam, Barcelona, Frankfurt, Luxembourg Threshold to trigger intermediate CC not reached No unusual problems with data processing: ECP; non capital city duty stations (DE, IT); HICP; EARS (including new taper weights); PEN rent ratio cap:nat; …will be more to do in 2018 Some BH no longer covered directly by ECP ECP to monitor product labelling enquiry E.Europe No FBS integrated this year (see agenda point 8.3)

Thank you for your attention!