Brussels, 10/10/2013 (Agence Europe) - On Thursday 10 October, the EU Council of Ministers adopted without debate a compromise deal on the regulation amending the terms and conditions of European officials and the terms and conditions for other people working for the European Union, which will reduce staffing costs at the European institutions by €2.7 billion by 2020.
Five member states voted against the regulation - the United Kingdom, the Netherlands, the Czech Republic, Austria and Denmark. A statement signed by these countries (apart from Austria) says that the changed terms and conditions provided an opportunity to update public service in the EU and rein in administrative spend. “Unfortunately, after nearly two years of intensive work by all parties, and despite broad agreement for those objectives, our delegations felt that the compromise presented did not match the comprehensive reforms which many member states are already delivering in their domestic civil services. All of our public services are changing and the EU civil service will be left behind at its peril.'
The European Parliament decided on its view on the draft regulation in first reading on 2 July, adopting an amendment to the Commission's proposals. The European Parliament vote reflected the compromise reached among the EU institutions (see EUROPE 10879).
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 (the “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 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)