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COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 14.12.2006

COM(2006) 800 final

Proposal for a

COUNCIL REGULATION

laying down the weightings applicable from 1 July 2006 to the remuneration of officials,

temporary staff and contract staff of the European Communities serving in third

countries and of certain officials remaining in post in the two new Member States for a

maximum period of nineteen months after accession

(2)

EXPLANATORY MEMORANDUM

Regulation (Euratom, ECSC, EEC) No 3019/87 of 5 October 1987 amended the Staff

Regulations by adding an Annex X laying down special and exceptional provisions applicable

to officials of the European Communities serving in third countries.

Articles 11, 12 and 13 of Annex X deal with the remuneration of officials posted in countries

outside the European Union. Remuneration is payable in euros in Belgium but there is also

provision for all or part of an official's remuneration to be paid in the currency of the country

of employment. In that event, the portion paid in local currency is subject to a weighting.

The first paragraph of Article 13 of Annex X requires the Council to determine the weightings

for third countries every six months.

Council Regulation (ECSC, EEC, Euratom) No 2175/88 of 18 July 1988 laid down the initial

weightings applicable from 10 October 1987.

Since the new Staff Regulations entered into force on 1 May 2004 (Regulation (EC, Euratom)

No 723/2004 of 22 March 2004), this system also applies to contract staff.

The first paragraph of Article 13 of Annex X to the new Staff Regulations now requires the

Council to set the weightings applicable in third countries annually.

The most recent weightings were laid down by the Council in Regulation (EC, Euratom)

No 351/2006 of 27 February 2006, which took effect on 1 July 2005.

Article 27(4) of the Act concerning the conditions of accession of the two new Member States

created a legal basis for extending the application of Annex X to the Staff Regulations (rules

applicable to staff working outside the Community) to officials remaining in post in the new

Member States for a maximum period of nineteen months after accession. Weightings should

therefore be set for these new Member States not only in accordance with Annex XI but also

in accordance with Annex X to the Staff Regulations.

This proposal concerns the adjustment of weightings applicable from 1 July 2006 to the

remuneration of officials, temporary staff and contract staff of the European Communities

serving in third countries.

The budgetary impact is negligible compared with the total operating costs of the delegations.

The remuneration system for staff serving in countries outside the Community is based on

purchasing power parity of remuneration paid in local currency compared with that paid in

Brussels.

To apply this principle Eurostat calculates the economic parities. The weighting is the factor

obtained by dividing the economic parity by the exchange rate. This means that

implementation of the weighting system primarily involves calculating economic parities

between Brussels and other places of employment.

The exchange rates used are established in accordance with the detailed rules for the

implementation of the Financial Regulation and correspond to the date of application of the

weightings.

(3)

Table A sets out the new economic parities, the corresponding exchange rates and the

resulting weightings as at 1 July 2006 for all places of employment.

Table B shows the variation in percentage terms between the figures in Table A and those of

July 2005 for all places of employment.

(4)

ANNEX TO THE EXPLANATORY MEMORANDUM

TABLE A

PLACE OF EMPLOYMENT Economic parities

July 2006 Exchange rate July 2006 (*) Weighting July 2006 (**) (***) Afghanistan 0 0 0 Albania 101,6 122,795 82,7 Algeria 78,15 92,5334 84,5 Angola 115,4 101,686 113,5 Argentina 2,185 3,87270 56,4 Armenia 553,1 523,180 105,7 Australia 1,703 1,71800 99,1 Bangladesh 38,13 87,2663 43,7 Barbados 3,134 2,49327 125,7 Benin 605,3 655,957 92,3 Bolivia 4,861 10,0357 48,4

Bosnia and Herzegovina 1,519 1,95583 77,7

Botswana 4,812 7,75194 62,1 Brazil 2,142 2,81039 76,2 Bulgaria 1,494 1,95580 76,4 Burkina Faso 588,7 655,957 89,7 (***) Burundi 0 0 0 Cambodia 3658 5193,00 70,4 Cameroon 721,9 655,957 110,1 Canada 1,270 1,40250 90,6 Cape Verde 85,30 110,265 77,4

Central African Republic 787,7 655,957 120,1

Chad 860,5 655,957 131,2 Chile 526,7 687,680 76,6 China 7,683 10,0233 76,7 Colombia 2041 3230,00 63,2 Congo 855,3 655,957 130,4 Costa Rica 443,6 641,535 69,1 Côte d'Ivoire 717,8 655,957 109,4 Croatia 7,663 7,24500 105,8 (*) Cuba 1,216 1,25290 97,1

Democratic Republic of Congo 743,5 561,716 132,4

Djibouti 215,6 222,667 96,8 Dominican Republic 28,81 40,0738 71,9 (*) Ecuador 0,887 1,25290 70,8 Egypt 3,716 7,29045 51,0 (*) El Salvador 1,083 1,25290 86,4 Eritrea 9,721 19,6970 49,4 Ethiopia 9,417 10,9890 85,7 Fiji 1,580 2,21459 71,3

(5)

PLACE OF EMPLOYMENT Economic parities July 2006 Exchange rate July 2006 (*) Weighting July 2006 (**)

Former Yugoslav Republic of Macedonia 42,75 61,3321 69,7

Gabon 765,0 655,957 116,6 Gambia 19,57 35,1000 55,8 Georgia 2,115 2,22390 95,1 Ghana 9161 11465,0 79,9 Guatemala 7,687 9,53244 80,6 Guinea 3630 6436,00 56,4 Guinea-Bissau 660,3 655,957 100,7 Guyana 153,5 253,186 60,6 Haiti 56,62 51,6861 109,5 Honduras 17,80 23,7567 74,9 Hong Kong 9,859 9,73260 101,3 India 26,18 57,8000 45,3

(***) Indonesia (Banda Aceh) 0 0 0

Indonesia (Jakarta) 9842 11734,7 83,9 (***) Iraq 0 0 0 Israel 6,169 5,62610 109,6 Jamaica 74,85 82,0104 91,3 Japan (Naka) 166,0 146,000 113,7 Japan (Tokyo) 175,1 146,000 119,9 Jordan 0,642 0,88831 72,3 Kazakhstan (Almaty) 188,1 150,250 125,2 (***) Kazakhstan (Astana) 0 0 0 Kenya 72,91 93,6852 77,8 Kyrgyzstan 40,48 50,3979 80,3 Laos 9127 12808,0 71,3 Lebanon 1715 1888,75 90,8 Lesotho 5,674 9,17590 61,8 (***) Liberia 0 0 0 Madagascar 1988 2749,04 72,3 Malawi 122,3 173,817 70,4 Malaysia 3,456 4,61900 74,8 Mali 598,2 655,957 91,2 Mauritania 228,6 337,460 67,7 Mauritius 27,45 38,8135 70,7 Mexico 10,03 14,2898 70,2 Moldavia 8,770 16,6648 52,6 (***) Montenegro 0 0 0 Morocco 9,591 11,0440 86,8 Mozambique 22208 32066,2 69,3 Namibia 6,679 9,17590 72,8 Nepal 64,04 93,0900 68,8 New Caledonia 160,5 119,332 134,5 New Zealand 1,878 2,10930 89,0

(6)

PLACE OF EMPLOYMENT Economic parities July 2006 Exchange rate July 2006 (*) Weighting July 2006 (**) Nicaragua 13,39 22,0636 60,7 Niger 585,7 655,957 89,3 Nigeria 150,0 158,464 94,7 Norway 10,38 7,88250 131,7 Pakistan 39,07 74,8542 52,2 (***) Panama 0 0 0

Papua New Guinea 2,937 3,88500 75,6

Paraguay 4917 6942,50 70,8 Peru 3,209 4,09510 78,4 Philippines 40,36 67,0930 60,2 Romania 2,250 3,58630 62,7 Russia 40,96 33,9480 120,7 Rwanda 604,5 693,992 87,1 Saudi-Arabia 4,281 4,82250 88,8 Senegal 529,1 655,957 80,7 Serbia 52,81 86,4900 61,1 Sierra Leone 2805 3733,32 75,1 Singapore 2,072 2,00310 103,4 Solomon Islands 8,078 9,10305 88,7 (***) Somalia 0 0 0 South Africa 5,495 9,17590 59,9 South Korea 1353 1203,54 112,4 Sri Lanka 72,04 129,990 55,4 Sudan 142,4 273,215 52,1 Suriname 1,810 3,48500 51,9 Swaziland 5,745 9,17590 62,6 Switzerland 1,820 1,56440 116,3 Syria 41,88 63,9550 65,5 Taiwan 36,74 40,8600 89,9 Tajikistan 2,886 4,11014 70,2 Tanzania 930,1 1581,25 58,8 Thailand 29,07 48,1990 60,3 (***) Timor Leste 0 0 0 Togo 605,8 655,957 92,4

Trinidad and Tobago 5,532 7,85410 70,4

Tunisia 1,206 1,67920 71,8

Turkey 1,683 2,01150 83,7

Uganda 1302 2345,10 55,5

Ukraine 6,607 6,31351 104,6

United States (New York) 1,313 1,25290 104,8

United States (Washington) 1,259 1,25290 100,5

Uruguay 21,84 29,9443 72,9

(7)

PLACE OF EMPLOYMENT Economic parities July 2006 Exchange rate July 2006 (*) Weighting July 2006 (**) Vietnam 10907 20119,4 54,2

West Bank - Gaza Strip 5,215 5,62610 92,7

Yemen 168,7 247,249 68,2

Zambia 3018 4354,87 69,3

Zimbabwe 59735 126496 47,2

(*) EUR 1 = local currency (Cuba, El Salvador, Ecuador) = USD). (**) Brussels = 100%.

(8)

TABLE B

% CHANGE July 2006 against July 2005 PLACE OF EMPLOYMENT

Economic parities Exchange rate Weighting

Afghanistan - - - Albania -5,0 1,0 -4,1 Algeria -1,6 -4,0 -5,4 (*) Angola - - -10,3 Argentina -1,2 -10,9 -10,9 Armenia -1,6 2,3 0,8 Australia 2,2 -8,5 -5,9 Bangladesh -8,3 -11,8 -18,0 Barbados 2,6 -3,9 -1,3 Benin -0,6 0,0 -0,5 Bolivia -4,7 -2,8 -7,3

Bosnia and Herzegovina 5,9 0,0 5,9

Botswana 14,3 -15,5 -1,1 Brazil -3,1 2,4 -0,8 Bulgaria 3,3 0,0 3,4 Burkina Faso 2,4 0,0 2,3 Burundi - - - Cambodia 8,5 -4,2 4,1 Cameroon 8,6 0,0 8,7 Canada 1,0 5,6 7,1 Cape Verde 4,2 0,0 4,3

Central African Republic 2,1 0,0 2,1

Chad 0,5 0,0 0,5 Chile -5,3 1,9 -3,5 China -1,9 -0,5 -2,3 Colombia 2,4 -15,5 -11,4 Congo 0,5 0,0 0,5 Costa Rica 6,5 -11,5 -4,6 Côte d'Ivoire -1,6 0,0 -1,6 Croatia 3,0 0,9 3,9 Cuba 8,5 -3,9 4,4

(*) Democratic Republic of Congo - - -4,5

Djibouti -0,5 -3,9 -4,3 Dominican Republic -2,5 -15,0 -15,2 Ecuador 4,4 -3,9 0,4 Egypt -7,2 -3,5 -10,4 El Salvador 9,9 -3,9 5,8 Eritrea 0,6 -4,0 -3,1 Ethiopia 10,3 -4,3 5,7 Fiji -1,1 -8,6 -9,1

(9)

% CHANGE July 2006 against July 2005 PLACE OF EMPLOYMENT

Economic parities Exchange rate Weighting

Gambia 12,7 -3,4 9,2 Georgia 0,8 -1,8 -0,9 Ghana 3,8 -3,1 0,6 Guatemala -1,2 -4,0 -5,1 Guinea 31,0 -39,0 -5,7 Guinea-Bissau -27,7 0,0 -27,7 Guyana 10,6 -10,5 0,0 Haiti 13,4 -4,3 8,6 Honduras 2,8 -4,1 -1,3 Hong Kong 20,2 -3,9 15,6 India -3,9 -9,4 -12,2

Indonesia (Banda Aceh) - - -

Indonesia (Jakarta) 6,8 -0,2 6,6 Iraq - - - Israel 23,2 -2,8 19,8 Jamaica 9,7 -10,0 -0,2 Japan (Naka) -0,7 -9,7 -9,5 Japan (Tokyo) -1,0 -9,7 -9,8 Jordan -1,1 -3,9 -4,9 Kazakhstan (Almaty) 2,1 8,0 11,0 Kazakhstan (Astana) - - - Kenya -10,1 -1,9 -11,8 Kyrgyzstan -3,1 -2,1 -5,1 Laos -6,5 2,0 -4,6 Lebanon -10,7 -3,9 -14,1 Lesotho -5,8 -13,2 -16,8 Liberia - - - Madagascar 11,2 -10,5 0,6 Malawi 7,5 -16,7 -7,9 Malaysia 2,0 -0,8 1,2 Mali -7,7 0,0 -7,7 Mauritania -0,6 -5,2 -5,6 Mauritius 4,2 -10,5 -5,7 Mexico -0,9 -10,0 -9,9 Moldavia - - - Montenegro - - - Morocco 1,7 -0,8 0,8 Mozambique 0,8 -5,8 -4,7 Namibia 3,6 -13,2 -8,4 Nepal 2,8 -8,8 -5,4 New Caledonia 11,7 0,0 11,7 New Zealand 2,2 -22,5 -16,6 Nicaragua -2,0 -9,0 -10,1 Niger -2,7 0,0 -2,7

(10)

% CHANGE July 2006 against July 2005 PLACE OF EMPLOYMENT

Economic parities Exchange rate Weighting

Nigeria 8,6 1,2 10,0

Norway -0,8 0,2 -0,6

Pakistan 4,8 -6,3 -1,3

Panama - - -

Papua New Guinea 0,5 -2,7 -2,2

Paraguay 2,9 4,0 7,3 Peru -5,4 -4,4 -9,4 Philippines 16,3 0,6 17,1 Romania 10,8 0,5 11,4 Russia 7,7 1,8 9,7 Rwanda 1,8 -2,5 -0,7 Saudi-Arabia 8,0 -5,1 2,8 Senegal 3,1 0,0 3,2 Serbia 3,4 -4,5 -1,0 Sierra Leone 12,3 -7,7 4,3 Singapore 4,5 1,4 5,9 Solomon Islands 3,4 0,5 3,9 Somalia - - - South Africa 1,8 -13,2 -10,1 South Korea 0,6 3,2 3,9 Sri Lanka -2,7 -6,8 -8,9 Sudan 8,3 9,9 20,0 Suriname -1,3 -4,0 -5,1 Swaziland 1,7 -13,2 -10,2 Switzerland -0,9 -1,1 -2,0 Syria -4,6 1,7 -3,0 Taiwan 0,2 -7,3 -6,5 Tajikistan 5,3 -9,4 -3,8 Tanzania 9,9 -15,2 -4,7 Thailand -5,6 3,2 -2,4 Timor Leste - - - Togo -2,7 0,0 -2,7

Trinidad and Tobago 1,2 -6,1 -4,6

Tunisia 3,8 -5,0 -1,1

Turkey 11,0 -23,7 -10,2

Uganda -19,0 -10,3 -26,6

Ukraine 7,2 -3,5 3,5

United States (New York) 2,0 -3,9 -1,9

United States (Washington) 0,7 -3,9 -3,1

Uruguay -1,4 -1,2 -2,5

Vanuatu -0,6 -7,8 -7,8

Venezuela -3,1 4,6 1,7

(11)

% CHANGE July 2006 against July 2005 PLACE OF EMPLOYMENT

Economic parities Exchange rate Weighting

Yemen -5,2 -5,2 -10,0

Zambia -4,2 22,7 24,0

Zimbabwe 700,1 -962,3 -24,7

(12)

Proposal for a

COUNCIL REGULATION

laying down the weightings applicable from 1 July 2006 to the remuneration of officials,

temporary staff and contract staff of the European Communities serving in third

countries and of certain officials remaining in post in the two new Member States for a

maximum period of nineteen months after accession

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to the Staff Regulations of Officials of the European Communities and the

Conditions of Employment of Other Servants of the Communities laid down by Regulation

(EEC, Euratom, ECSC) No 259/68

1

, as last amended by Regulation (EC, Euratom) No

2104/2005

2

and in particular the first paragraph of Article 13 of Annex X thereto,

Having regard to the Act concerning the conditions of accession of the two new Member

States, and in particular Article 27(4) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

It is necessary to take account of changes in the cost of living in countries outside the

Community and to determine accordingly the weightings applicable from 1 July 2004

to remuneration paid in the currency of the country of employment to officials serving

in third countries.

(2)

The weightings in respect of which payment has been made on the basis of Regulation

(EC, Euratom) No 351/2006

3

may lead to retrospective upward or downward

adjustments to remuneration.

(3)

Provision should be made for back-payments in the event of an increase in

remuneration as a result of the new weightings.

(4)

Provision should be made for the recovery of sums overpaid in the event of a

reduction in remuneration as a result of the new weightings for the period between

1 July 2006 and the date of entry into force of this Regulation.

1

OJ L 56, 4.3.1968, p. 1.

2

OJ L 337, 22.12.2005, p. 7.

(13)

(5)

Provision should be made for any such recovery to be restricted to a period of no more

than six months preceding the date of entry into force of this Regulation and for its

effects to be spread over a period of no more than twelve months following that date,

as is the case with the weightings applicable within the European Community to

remuneration and pensions of officials and other servants of the European

Communities,

HAS ADOPTED THIS REGULATION:

Article 1

With effect from 1 July 2006, the weightings applicable to the remuneration of officials

temporary staff and contract staff of the European Communities serving in third countries

payable in the currency of the country of employment shall be as shown in the Annex hereto.

The exchange rates used for the calculation of this remuneration shall be established in

accordance with the detailed rules for the implementation of the Financial Regulation and

correspond to the date of application of the weightings.

Article 2

1.

The institutions shall make back-payments in the event of an increase in

remuneration as a result of the weightings shown in the Annex.

2.

The institutions shall make retrospective downward adjustments to remuneration in

the event of a reduction as a result of the weightings shown in the Annex for the

period between 1 July 2006 and the date of entry into force of this Regulation.

Retrospective adjustments involving the recovery of sums overpaid shall be

restricted to a period of no more than six months preceding the date of entry into

force of this Regulation. Recovery shall be spread over no more than twelve months

from that date.

Article 3

This Regulation shall enter into force on the day of its publication in the Official Journal of

the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Council

(14)

ANNEX

PLACE OF EMPLOYMENT Weighting July 2006 (**) (***) Afghanistan 0 Albania 82,7 Algeria 84,5 Angola 113,5 Argentina 56,4 Armenia 105,7 Australia 99,1 Bangladesh 43,7 Barbados 125,7 Benin 92,3 Bolivia 48,4

Bosnia and Herzegovina 77,7

Botswana 62,1 Brazil 76,2 Bulgaria 76,4 Burkina Faso 89,7 (***) Burundi 0 Cambodia 70,4 Cameroon 110,1 Canada 90,6 Cape Verde 77,4

Central African Republic 120,1

Chad 131,2 Chile 76,6 China 76,7 Colombia 63,2 Congo 130,4 Costa Rica 69,1 Côte d'Ivoire 109,4 Croatia 105,8 Cuba 97,1

Democratic Republic of Congo 132,4

Djibouti 96,8 Dominican Republic 71,9 Ecuador 70,8 Egypt 51,0 El Salvador 86,4 Eritrea 49,4 Ethiopia 85,7 Fiji 71,3

(15)

PLACE OF EMPLOYMENT Weighting July 2006 (**) Gambia 55,8 Georgia 95,1 Ghana 79,9 Guatemala 80,6 Guinea 56,4 Guinea-Bissau 100,7 Guyana 60,6 Haiti 109,5 Honduras 74,9 Hong Kong 101,3 India 45,3

(***) Indonesia (Banda Aceh) 0

Indonesia (Jakarta) 83,9 (***) Iraq 0 Israel 109,6 Jamaica 91,3 Japan (Naka) 113,7 Japan (Tokyo) 119,9 Jordan 72,3 Kazakhstan (Almaty) 125,2 (***) Kazakhstan (Astana) 0 Kenya 77,8 Kyrgyzstan 80,3 Laos 71,3 Lebanon 90,8 Lesotho 61,8 (***) Liberia 0 Madagascar 72,3 Malawi 70,4 Malaysia 74,8 Mali 91,2 Mauritania 67,7 Mauritius 70,7 Mexico 70,2 Moldavia 52,6 (***) Montenegro 0 Morocco 86,8 Mozambique 69,3 Namibia 72,8 Nepal 68,8 New Caledonia 134,5 New Zealand 89,0 Nicaragua 60,7 Niger 89,3

(16)

PLACE OF EMPLOYMENT Weighting July 2006 (**) Nigeria 94,7 Norway 131,7 Pakistan 52,2 (***) Panama 0

Papua New Guinea 75,6

Paraguay 70,8 Peru 78,4 Philippines 60,2 Romania 62,7 Russia 120,7 Rwanda 87,1 Saudi-Arabia 88,8 Senegal 80,7 Serbia 61,1 Sierra Leone 75,1 Singapore 103,4 Solomon Islands 88,7 (***) Somalia 0 South Africa 59,9 South Korea 112,4 Sri Lanka 55,4 Sudan 52,1 Suriname 51,9 Swaziland 62,6 Switzerland 116,3 Syria 65,5 Taiwan 89,9 Tajikistan 70,2 Tanzania 58,8 Thailand 60,3 (***) Timor Leste 0 Togo 92,4

Trinidad and Tobago 70,4

Tunisia 71,8

Turkey 83,7

Uganda 55,5

Ukraine 104,6

United States (New York) 104,8

United States (Washington) 100,5

Uruguay 72,9

Vanuatu 114,5

Venezuela 60,9

(17)

PLACE OF EMPLOYMENT Weighting July 2006 (**) Yemen 68,2 Zambia 69,3 Zimbabwe 47,2 (**) Brussels = 100% (***) Not available

(18)

FINANCIAL STATEMENT

1. TITLE

OF

OPERATION

Proposal for a Council Regulation laying down the weightings applicable from 1 July

2006 to the remuneration of officials, temporary staff and contract staff of the

European Communities serving in third countries and of certain officials remaining

in post in the two new Member States for a maximum period of nineteen months

after accession

2. BUDGET

LINE

INVOLVED

XX-010102-01

3. LEGAL

BASIS

Articles 12 and 13 of Annex X to the Staff Regulations

4. FINANCIAL

IMPACT

4.1

Estimated actual expenditure

€145 047 000

for 2006

(€12 087 250 per month) (1)

4.2

Estimated impact of weightings

of July 2006

- €35 242,47 (2)

4.3

Estimated annual expenditure [(2) x 12]

- €422 909,66

4.4

Impact in terms of estimated

actual expenditure [(2) : (1)] (1)]

- 0,2915%

This financial impact does not include the impact of the intermediate weightings set

monthly by the Commission.

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