Ares(2015)6009670 Ag21 Mission expenses Working Group on Article 64 and Article 65 of the Staff Regulations Meeting in Luxembourg 21st & 22nd March 2016

Content of this presentation Context and history Daily subsistence allowances (DSA) Intra-EU Extra-EU Hotel ceilings (HC) Next steps…

Context Operational budget for costs incurred on official business away from place of employment NOT incentive / compensation for inconvenience Transport = arranged directly by employer or 100% reimbursement (if prior agreement) Hotels = arranged directly by employer or 100% reimbursement (if prior agreement) Derogation required if vary from target ceilings Daily allowance = flat rate amount to cover meals, local transport (from departure point + to arrival point) and other necessary costs (eg. photocopies, telephone charges, force majeure) Exceed allowance? 100% reimbursement (if prior agreement)

History Date current values established: Extra-EU: Commission Decision C(2002)98 Intra-EU: Regulation 1066/2006 (EU25) and Regulation 337/2007 (BG, RO) Reproduced as Appendices to the "Missions Guide": Commission Decision C(2008)6215 Staff regulations Annex VII Article 13 (as amended by Regulation 1023/2013): Commission shall review every two years, on the basis of an Eurostat report on price indices of hotels, restaurants

Previous calculations/reports Under staff regulations in force from 2004 Methodology already broadly agreed Improving data availability for Extra-EU Reference Intra (daily) Intra (hotels) Extra (daily) Extra (hotels) 1 Jan 2005 SEC(2006)397 - 1 Jan 2009 internal 1 Jan 2010 A64/10/17 A64/10/18 1 Jul 2011 1 Jul 2012

Since 10/2013 change to Staff Regs Eurostat calculations: Presentation of test figures for July 2013 at A6465WG meeting, March 2014 (Doc.A6465/14/73) Presentation of test figures for July 2014 at A6465WG meeting, March 2015 for 1st time, new proposal included data for Extra-EU (hotels) ► Written consultation (Doc.A6465/15/11), June 2015 Analysis using data for July 2015, summer/autumn 2015 ► Updated report Ares(2015)6009670, December 2015

Reminder of technical approach Ares(2015)6009670 Reminder of technical approach Daily subsistence allowances (Intra-EU) BXL-DA 2015 = BXL-DA 2005 * BE-HICP 2005-2015 DS-DA 2015 = BXL-DA 2015 * DS-CC 2015 4 possibilities (2 indices, 2 periods): BE-HICP DS-PPP Inflation period 1 All items excl. Housing rent 2004m12-2015m6 1' 2004m12-2010m6, 2014m6-2015m6 2 75% : 25% Restaurants : all items excl. Hsg 2' REC

Reminder of technical approach Ares(2015)6009670 Reminder of technical approach Daily subsistence allowances (Extra-EU) BXL-DA 2015 = BXL-DA 2005 * BE-HICP 2005-2015 DS-DA 2015 = BXL-DA 2015 * DS-CC 2015 2 possibilities (2 indices, 1 period): +1 alternative data source: UN.ICSC DS-DA 2015 = UN DSA 07/2015 * ( 1 – room rate ) BE-HICP DS-PPP Inflation period 1 All items excl. Housing rent 2004m12-2015m6 2 75% : 25% Restaurants : all items excl. Hsg REC

Reminder of technical approach Ares(2015)6009670 Reminder of technical approach Hotel ceilings (Intra-EU) BXL-DA 2015 = BXL-DA 2005 * BE-HICP 2005-2015 DS-DA 2015 = BXL-DA 2015 * DS-CC 2015 6 possibilities (1 index, 2 periods, 3 decision rule): BE-HICP DS-PPP Inflation period 90% ceiling 1a Hotels 2004m12-2015m6 - 1a * 2004m12-2010m6, 2014m6-2015m6 1b If lower… 1b * 1b' If higher… 1b' * REC

Reminder of technical approach Ares(2015)6009670 Reminder of technical approach Hotel ceilings (Intra-EU) +3 alternatives (1 index, 3 decision rule): DS-DA 2015 = DS-DA 2005 * DS-HICP 2005-2015 DS-HICP directly Inflation period 90% ceiling 2a Hotels 2004m12-2015m6 - 2b If lower… 2b' If higher…

Reminder of technical approach Ares(2015)6009670 Reminder of technical approach Hotel ceilings (Extra-EU) 3 possibilities : 1a and 2a same as for Intra-EU 3a uses data from UN.ICSC DS-DA 2015 = UN DSA 07/2015 * ( room rate ) * 130% (in absence of expenditure data, cannot evaluate 90% decision rule) Hotels index Inflation period 90% ceiling 1a BE-HICP, DS-PPP 2004m12-2015m6 - 2a DS-HICP 3a UN-DSA 2015m6 REC

Daily allowances (Intra-EU): 28 MS Ares(2015)6009670 Daily allowances (Intra-EU): 28 MS In force Apply PPP 75:25 ReCa:Glob % chg Brussels 92€ 119€ +28.9 Min. value 52€ RO-Buc 52€ BG-Sof 0.0 Max. value 120€ DK-Cop 156€ DK-Cop +29.9 Avg. value 84€ 98€ +16.7 Min. chg. - -18.5 CZ-Pra Max. chg. +50.7 SE-Sto Avg. chg. +15.3 Option 2 Reference date: 07/2015

Daily allowances (Extra-EU): 144 places Ares(2015)6009670 Daily allowances (Extra-EU): 144 places In force Apply PPP 75:25 ReCa:Glob % chg Brussels 92€ 119€ +28.9 Min. value 50€ =54 places 34€ Lesotho -31.3 Max. value 130€ Japan 257€ Bangladesh +97.7 Avg. value 63€ 97€ +53.9 Min. chg. - -48.6 Belarus Max. chg. +414.5 Bangladesh Avg. chg. +58.3 Option 2 Reference date: 07/2015

Hotel ceilings (Intra-EU): 28 MS Ares(2015)6009670 Hotel ceilings (Intra-EU): 28 MS In force Apply PPP 75:25 ReCa:Glob % chg Brussels 140€ 165€ +18.0 Min. value 110€ EE-Tal, SI-Lju 111€ EE-Tal +0.9 Max. value 175€ UK-Lon 273€ UK-Lon +55.8 Avg. value 164€ +17.1 Min. chg. - -7.7 BG-Sof Max. chg. +55.8 UK-Lon Avg. chg. +16.9 Option 1b' Reference date: 07/2015

Hotel ceilings (Extra-EU): 144 places Ares(2015)6009670 Hotel ceilings (Extra-EU): 144 places In force Apply UN-DSA +30% % chg Brussels 140€ 168€ +20.1 Min. value 75€ = 5 places 64€ Somalia -14.7 Max. value 275€ Japan 326€ Russia +18.5 Avg. value 144€ 164€ +13.9 Min. chg. - -48.6 Somalia Max. chg. +167.7 Uzbekistan Avg. chg. Option 3a Reference date: 07/2015

Next steps DGHR launch formal Commission proposals: Delegated Act (Intra-EU) Commission Decision (Extra-EU) New missions guide…