Brussels, 02/07/2013 (Agence Europe) - Staff costs in the EU institutions will be reduced by €2.7 billion by 2020, plus €1.5 billion a year over the long-term, according to EU staff regulation reform ratified on Tuesday 2 July by the European Parliament (EP). By adopting the report (522 votes to 150, with 39 abstentions) of Dagmar Roth-Behrendt (S&D, Germany) on the draft regulation amending the staff regulations and the system applicable to the European Union agents, the EP approved the compromise reached between the three EU institutions (see EUROPE 10878).
In order to guarantee European Union officials and other agents purchasing power in line with national civil servants in central government in member states, the principle of a multiannual salary updating mechanism (that “method”) will be maintained until the end of 2023. A review is planned for this at the beginning of 2022. The new method will be based on the one determined by 11 member states for their own respective national civil servants, rather than on one that is indexed linked to inflation. This method will take effect in 2015. To rectify the difficulties provoked in the past by the application of the method, an “automatic crisis clause” is planned. This will allow for wage rises to be partially suspended in the event of negative macro-economic indicators.
The following is also planned: - a two-year freeze on wages and pensions; - an increase in the working week from 37.5 hours to 40 (without financial compensation); - raising the retirement age from 63 to 66 for new civil servants and 65 for officials who are already in their posts (it will be made easier for civil servants to work up to the age of 70); - a new “solidarity tax” will apply, in addition to the tax on existing income (most officials pay a 6% tax but those who are in the two highest grades in the hierarchy and commissioners will pay up to 7%). Establishing a clear link between grade and responsibility and reducing promotion rates means that end-of-career salaries will be lower (-22%) for a significant number of administrative and assistant grade officials. Wages for administrative staff and secretaries will also be reduced. The new rules will take effect from the beginning of 2014. (LC/transl.fl)