1. Ag.7a) Annual Adjustment 2011-2012
Doc.A64/13/04
+ supporting docs.
Ag.7a) Annual Adjustment
Working Group on Art 64 & Art 65 of the Staff Regulations
Meeting in Luxembourg on 27 September 2013

2. Content of this presentation
Reminder of timeline
Outline of the 2012 report (similar as A65WG)
Specific review A64 elements
Next steps
Doc. A64/13/04
Doc. SWD(2012)427
Multiple supporting documents
(../05 to ../13 and Exception Clause reports)

3. Reminder of timeline Eurostat Report finalised 31.10.2012  DG.HR
Formal Commission Communication , SWD(2012) 427
with proposed Regulation COM(2012) 754
Commission Communication on Exception Clause, COM(2012) 476 and update SWD(2012) 428

4. Reminder of timeline, continued
Council Groupe Statut discussions
CoRePer discussion
Council meeting  No Council decision taken by
Commission launched court case

5. Outline of the 2012 report Ninth annual report since SR of 01 May 2004
Doc. SWD(2012)427
Outline of the 2012 report
Ninth annual report since SR of 01 May 2004
Last one before Annex XI expired at end of 2012
All the information to support proposed Regulation
Similar structure to report for 2011 and previous years

6. Outline of the 2012 report, continued
Doc. SWD(2012)427
Outline of the 2012 report, continued
Report Short (16p); key tables (7); main results for staff and for pensioners.
Annex 1 Longer (35p); explanations, analyses, detailed tables (24).
Annex 2 Long; detailed remuneration tables; control indicators;
Annex 3 Moderate (35p); time series analysis
Doc. A65/13/09 & /10
Doc. A65/13/07

7. Executive summary For the period July 2011 – July 2012:
Doc. SWD(2012)427
Executive summary
For the period July 2011 – July 2012:
The global specific indicator (average change in real net remuneration of national civil servants) is 98.9 (-1.1%)
The Brussels International Index (cost of living for the EC officials) is (+2.8%).

8. Executive summary, continued
Doc. SWD(2012)427
Executive summary, continued
Therefore the adjustment of nominal net remuneration and pension of EC officials in Belgium and Luxembourg, necessary to maintain a parallel development of purchasing power with national civil servants, is +1.7%. (101.7)
x =

9. July 2012 intra-EU CC, ranked (a)
Doc. A64/13/10, page 2
July 2012 intra-EU CC, ranked (a)
11 >100, 19<100, Bxls=Lux=100,
range (DK) to 58.4 (BG)
1 PPP = ??? Local
1 EUR = ??? Local
CC = (PPP ÷ XR) x100

10. July 2012 intra-EU CC, ranked (b)
Doc. A64/13/10, page 2
July 2012 intra-EU CC, ranked (b)

11. Changes in exchange rates
Doc. A64/13/10, page 6
Changes in exchange rates
EE adopted € on 1.Jan 2011
NB. As salaries are expressed in € then converted to local currency using XR, and CC are simply PPP divided by XR, it is clear that XR effect cancels out and focus should be on PPP change.
Source: InforEuro

12. Change in aggregate PPP 2011-12 (a)
Doc. A64/13/10, page 4
Change in aggregate PPP (a)
8 negative, 22 positive
range -3.6 (BG) to +6.0 (DE-M)
Simple avg. +0.8%

13. Change in aggregate PPP 2011-12 (b)
Doc. A64/13/10, page 4
Change in aggregate PPP (b)

14. Changes in CC 2011-2012 See also time series in report "Appendix 3"
Doc. A64/13/10, page 7
Changes in CC
See also time series in report "Appendix 3"
E11-1 "Services": impact -0.5 (PL) to (LV) …28 positive, 2 negative
E11-2 "Furniture/Health": impact (MT) to +0.9 (IE)…17 positive, 13 negative
HICP: impact -1.3 (IE) to +1.5 (MT)…17 positive, 13 negative
Rent: impact -3.0 (BG) to +1.2 (UK-L)…11 positive, 19 negative
Dwelling weights (SHS): no changes
Aggregation weights (SHE): no changes
XR: impact -7.3 (HU) to (UK-L)…6 positive, 4 negative, 20=EURO
TOTCC: vary -3.6 (BG) to +3.1 (DE-M)…19 positive, 11 negative

15. Comparison with other sources
Quantity and quality of price data.
Pertinence of weightings data.
Sophistication of calculation formulae.
Reference basis.
Nature of validation process.
→ The Eurostat figures represent a “gold standard”
A selection of alternative sources:
- ECA city ranking
- Mercer worldwide cost of living survey
- Airinc
- United Nations post adjustment index
Due to the differences in methodology and data sources, the magnitude and direction of change which these alternative sources report may differ from EU values

16. Reminder: differences between PPP (spatial) and HICP (temporal) measures
PPP focus on a particular duty station city relative to another, HICP focus on country.
HICP aim to price identical product in same location repeatedly over time; PPP aim to simultaneously price similar products in different locations once.
Specific rent price surveys are conducted to establish PPP; a different approach is taken for HICP.
Specific consumption weights are used to aggregate basic heading PPPs; national patterns are used to aggregate HICP subindices.
Some specific methodology and procedural differences (eg. formulae at elementary/aggregate level; outlet selection; treatment of sales prices)

17. The 2011-12 adjustment will affect:
Remuneration of:
Pensioners
Active EU staff (Permanent officials, Temporary agents, Contract agents) + European School Teachers
Intra-EU Correction Coefficients:
EU staff in JRC, EU representations, EU Agencies
European School Teachers, Researchers under FP7, Education exchange (LdV, Comenius)
Similarly, by collaboration:
Staff of Coordinated Organisations, EPO, EuroControl, CERN, ESO

18. Next steps Court case Input to mission expense estimates (…done)
Intermediate Report for July December (…done)
Annual Report for July July (…this meeting)

19. Thank you for your attention!