1. Ag.10 Annual Adjustment 2012-2013 (Intra-EU)
Doc.A64/14/09
+ supporting docs.
Ag.10 Annual Adjustment (Intra-EU)
Working Group on Article 64 and Article 65 of the Staff Regulations
Meeting in Luxembourg 24th & 25th March 2014

2. Content of this presentation
Doc. SWD(2013)453
Multiple supporting documents
Content of this presentation
Reminder of timeline for Eurostat report (intra-EU part)
Summarise CC/ER/PPP for Intra-EU staff + Pensioners
Summarise 12-month changes in PPP/ER
Analyse reasons for 12-month change in Staff PPP
ECP surveys introduced ; HICP indexation ; EARS ; expenditure weights
Reminder who is affected by July 2013 CC

3. Reminder of timeline Intra-EU content
Eurostat Report finalised  DG.HR
Tenth under Staff Regs adopted May 2004
First since Annex XI expired Dec. 2012
Just A64 content (but adding Extra-EU)
Formal Commission Communication , SWD(2013)0453
Regulation 1416/2013 adopted on

4. Outline of the 2013 report, continued
Doc. SWD(2013)453
Outline of the 2013 report, continued
Report Short (20p); key tables (4); main results for staff and for pensioners.
Annex 1 Longer (28p); explanations, analyses, detailed tables (11).
(Part of) Annex 3 – time series for A64

5. July 2013 intra-EU Staff ranked by CC
> 100
July 2013 intra-EU Staff ranked by CC
BE/LU IT
UK-Cul
DE-Mun AT NL IE FR FI SE DK UK
PPP
1.000
1.044
0.918
1.082
1.083
1.089
1.130
1.174
1.237
11.64
10.06
1.188
Ex. Rate
0.853
8.756
7.459 CC
100.0
104.4
107.6
108.2
108.3
108.9
113.0
117.4
123.7
132.9
134.8
139.2
1 PPP = ??? Local
1 EUR = ??? Local
CC = (PPP ÷ XR) x100
Summary
11 >100, 20<100, Bxls=Lux=100,
range (UK) to 57.5 (BG)

6. July 2013 intra-EU Staff ranked by CC
< 100
July 2013 intra-EU Staff ranked by CC
BE/LU BG RO LT PL LV HU EE CZ HR SK
PPP
1.000
1.125
3.107
2.484
3.154
0.534
224.4
0.789
20.72
5.961
0.802
Ex. Rate
1.956
4.452
3.453
4.320
0.702
295.0
25.89
7.454 CC
100.0
57.5
69.8
71.9
73.0
76.1
78.9
80.0
80.2
BE/LU PT CY MT SI EL
IT -Var
DE-Kar
DE-Bon ES DE
PPP
1.000
0.831
0.837
0.844
0.854
0.912
0.928
0.949
0.963
0.968
Ex. Rate CC
100.0
83.1
83.7
84.4
85.4
91.2
92.8
94.9
96.3
96.8

7. July 2013 intra-EU Pensioners rank by CC
> 100
July 2013 intra-EU Pensioners rank by CC
BE/LU AT NL IE FR UK FI SE DK
PPP
1.000
1.048
1.056
1.058
1.092
0.968
1.149
10.893
9.862
Ex. Rate
0.853
8.756
7.459 CC
100.0
104.8
105.6
105.8
109.2
113.5
114.9
124.4
132.2
Summary
8 >100, 18<100, Bxls=Lux=100,
range (DK) to 56.8 (BG)
1 PPP = ??? Local
1 EUR = ??? Local
CC = (PPP ÷ XR) x100

8. July 2013 intra-EU Pensioners rank by CC
< 100
July 2013 intra-EU Pensioners rank by CC
BE/LU BG RO PL HU LT SK LV CZ HR
PPP
1.000
1.112
2.780
2.851
197.8
2.454
0.732
0.5176
19.36
5.590
Ex. Rate
1.956
4.452
4.320
295.0
3.453
0.7021
25.89
7.454 CC
100.0
56.8
62.4
66.0
67.0
71.1
73.2
73.7
74.8
75.0
BE/LU EE SI MT PT CY ES EL DE IT
PPP
1.000
0.792
0.806
0.845
0.851
0.869
0.913
0.917
0.965
0.979
Ex. Rate CC
100.0
79.2
80.6
84.5
85.1
86.9
91.3
91.7
96.5
97.9

9. Changes in exchange ratesHR SE BG LT RO CZ DK PL LV HU UK
UK-Cul
Rate
7.517
8.801
1.956
3.453
4.451
25.81
7.433
4.287
0.696
287.8
0.799
Rate
7.454
8.756
4.452
25.89
7.459
4.320
0.702
295.0
0.853
Chang
(%)
-0.8
-0.5
0.0
0.3
0.4
0.8
2.5
6.8
LV adopted € on 1.Jan 2014
Except UK and DK (opt-outs) will all eventually join
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

10. Change in aggregate PPP Staff 2012-13
BE/LU BG LV
DE-Kar PL ES
IT-Var CY PT HU CZ FR
Parity
1.000
1.143
0.540
0.938
3.180
0.971
0.934
0.841
0.835
225.3
20.80
1.177
Parity
1.125
0.534
0.928
3.154
0.963
0.837
0.831
224.4
20.72
1.174
Change (%)
0.0
-1.6
-1.2
-1.0
-0.8
-0.6
-0.5
-0.4
-0.2
Implicit index
1.5
-0.1
0.3
0.4
0.7
0.8
1.0
1.1
1.2
Summary: negative, 20 positive
range -1.6 (BG) to +3.4 (NL)
Simple avg. +0.5%

11. Change in aggregate PPP Staff 2012-13
BE/LU DK SI SE IT SK UK LT EL HR
DE-Bon
Parity
1.000
10.06
0.853
11.61
1.042
0.797
1.181
2.467
0.905
5.911
0.941
Parity
0.854
11.64
1.044
0.802
1.188
2.484
0.912
5.961
0.949
Change (%)
0.0
0.1
0.2
0.6
0.7
0.8
0.9
Implicit index
1.5
1.6
1.7
2.1
2.2
2.4
BE/LU DE MT FI RO EE
DE-Mun AT IE
UK-Cul NL
Parity
1.000
0.958
0.833
1.221
3.064
0.776
1.064
1.106
0.899
1.053
Parity
0.968
0.844
1.237
3.107
0.789
1.082
1.083
1.130
0.918
1.089
Change (%)
0.0
1.0
1.3
1.4
1.7
1.8
2.1
3.4
Implicit index
1.5
2.5
2.8
2.9
3.2
3.3
3.7
5.0

12. Changes in Staff CC
See also time series in report "Appendix 3“
E12-1 "Food, drinks and tobacco": impact -2.4 (DE-KA) to (RO) …28 positive, 3 negative
E12-2 "Personal Appearance": impact -0.2 (DE-MN) to +1.0 (IE, LT, PL)…29 positive, 2 negative
HICP: impact -1.7 (EL) to +1.8 (EE)…19 positive, 12 negative
Rent: impact -2.5 (BG) to +1.4 (EL)…12 positive, 19 negative
Dwelling weights (SHS): no changes
Aggregation weights (SHE 2011): updated UK-L… impact -1.9%
XR: impact -0.8 (HU) to +6.8 (UK-L)…9 positive, 2 negative, 20=EURO
TOTCC: vary -5.8 (UK) to +3.4 (NL)…17 positive, 14 negative

13. Component in –ve change of PPP StaffBG LV
DE-Kar PL ES
IT-Var CY PT HU CZ FR
E12-1
0.7
0.2
-2.4
0.8
-0.6
0.4
0.5
0.6
E12-2
0.9
1.0
0.0
-0.1
0.1
HICP
-1.4
0.3
-1.3
-0.7
-0.8
-0.2
Rents
-2.5
-1.0
-2.2
-1.1
-0.5
Total (%)
-1.6
-1.2
-0.4
E12-1 Food, drinks and tobacco
E12-2 Personal appearance
Rents (integrate new dwelling types for 5 locations)

14. Component in +ve change of PPP StaffDK SI SE IT SK UK LT EL HR
DE-Bon
E12-1
1.1
0.3
0.7
0.6
-1.3
0.9
0.1
E12-2
0.2
0.5
0.0
0.4
1.0
HICP
-1.0
-1.1
-1.7
Rents
-0.3
-1.4
-1.5
-0.6
-1.6
1.4
-0.8
Total (%)
0.8 DE MT FI RO EE
DE-Mun AT IE
UK-Cul NL
E12-1
0.3
1.2
0.6
1.3
0.4
0.7
1.1
E12-2
0.1
0.5
0.2
-0.2
0.0
1.0
HICP
-0.4
1.5
1.8
-1.2
0.8
1.6
Rents
-2.0
-0.7
0.9
Total (%)
1.4
1.7
2.1
3.4

15. The 2012-13 CC will affect: Remuneration of:
Pensioners
Active EU staff (Permanent officials, Temporary agents, Contract agents)
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

16. Next steps Input to mission expense estimates (…done)
Intermediate Report for July December (…this meeting)

17. Thank you for your attention!