1. 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 March 2018

2. 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

3. JBLI

5. BE HICP (rev. weights)

6. LU CPI (rev. weights)

7. 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

8. Intra-EU CC for STAFF

9. 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

10. 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

11. 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…

12. 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

13. 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

14. 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

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

16. 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
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).

17. ECP survey E16-1 House and gardenBH
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

18. ECP survey E16-2 Transport; HoReCaBH
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

19. 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

20. Intra-EU CC for PENSIONERS

21. 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

22. 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

23. 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)

24. 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…

25. 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

26. Other factors Component AVG < -0.2% > +0.8% +0.3 MT-0.3, UK-0.6
ECP
House and garden
(18 BH)
+0.3
MT-0.3, UK-0.6
BG+0.9, IE+0.9, LT+3.7
ECP
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

27. Lessons learned

28. 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)

29. Thank you for your attention!