52005DC0358

[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 2.8.2005

COM(2005)358 final

REPORT FROM THE COMMISSION TO THE COUNCIL

on the application of Annex X to the Staff Regulations (Council Regulation No 3019/1987 of 5 October 1987)Year 2004

INTRODUCTION

In accordance with Article 101a of the Staff Regulations, Annex X determines, without prejudice to the other provisions of the Staff Regulations, the special and exceptional provisions applicable to officials of the European Communities serving in non-member countries.

Article 14 of Annex X requires the Commission to “submit an annual report to the Council on the application of this Annex and in particular on the fixing of the rate of the allowance for living conditions as provided for in Article 10”.

Since 1 January 1988, the Commission has prepared fourteen reports. They cover the following periods: October 1987-December 1988, 1989, 1990-1991, 1992, 1993, 1994, 1995, 1996, 1997-1998, 1999, 2000, 2001, 2002 and 2003.

CHAPTER 1: GENERAL PROVISIONS

Article 1: Recruitment

At 31 December 2004, there were 1008 officials/temporary staff members in delegations[1] (951 as of 31 December 2003).

In 2004, these staffing levels:

- were increased by:

- 117 posts as part of the fourth phase of the devolution exercise.

- 2 temporary additional A posts (India, Kenya).

- and decreased by:

- 60 posts as part of enlargement.

- 2 posts under the early retirement scheme.

At 31 December 2004, 896 of these posts were occupied in delegations. The 112 vacant posts accounted for 11.11% of posts against 12.41% (118 vacant posts) in 2003.

A large number of external recruitment procedures were completed or set in motion in 2004: 33 recruitments of successful competition candidates, one interinstitutional transfer from the European Parliament and five recruitments of temporary staff. Four temporary staff members were in the process of being recruited on 31 December 2004.

Article 2 : MOBILITY

Rotation

The rotation exercise for 2004 covered 196 officials on the list (140 in 2003), of whom:

- 60 moved between delegations (40 in 2003);

- 89 moved from delegations to headquarters (65 in 2003);

- 15 terminated their service (7 in 2003);

- 32 remained in post (28 in 2003).

The principle of alternate postings in delegations and at headquarters resulted in:

- 89 moves from delegations to headquarters (65 in 2003);

- 94 moves from headquarters to the delegations (63 in 2003).

In all, 258 officials moved under the 2004 rotation exercise (compared with 175 in 2003).

Redeployment

Two posts were redeployed:

- 1 A post was redeployed from Côte d’Ivoire to Liberia;

- 1 B “floater” post (an official based at headquarters who provides emergency support to delegations in difficulty) became a head of administration post (Saudi Arabia).

ARTICLE 3: RETRAINING

In 2004, decisions were made to retrain 57 External Service officials who were reassigned to headquarters in one of the Directorates-General of the Relex family as part of the rotation policy.

CHAPTER 2: OBLIGATIONS

Article 4: Carrying out duties at THE PLACE OF EMPLOYMENT

Nothing to report.

Article 5: Accommodation

In late 2004, the External Relations DG finalised its work on housing standards in third countries. Since then, all delegations (except for Cuba) have had standards for rental accommodation in the host country. At the same time, responsibility for administrative matters was transferred to the delegations.

CHAPTER 3: WORKING CONDITIONS

Articles 6, 7 and 9: Annual leave

Officials serving abroad have continued to make an effort to use their entitlement and reduce excessive carryover of leave in line with the recommendation from headquarters. Note that despite the increase in staffing levels, in the short term the devolution and administrative decentralisation processes have increased the workload, which to some extent has prevented officials from taking the desired amount of leave.

The table below shows that for the 815 officials in delegations the percentage of carryovers of more than 14 days increased compared with the previous financial year (47.12% versus 43.56%). Carryovers of 36 to 50 days increased as well (5.89% versus 4.95%). Carryovers of 50 to 70 days increased from 1.41% in 2003 to 3.44% in 2004.

Annual leave carryovers |

Number of officials | Carryovers 2002/2003 | Carryovers 2003/2004 |

Fewer than 14 days | 399 | 431 |

56.44% | 52.88% |

More than 14 days | 308 | 384 |

43.56% | 47.12% |

14 to 35 days | 253 | 298 |

35.79% | 36.56% |

36 to 49 days | 35 | 48 |

4.95% | 5.89% |

50 to 70 days | 10 | 28 |

1.41% | 3.44% |

More than 70 days | 10 | 10 |

1.41% | 1.23% |

Total number of officials | 707 | 815 |

ARTICLES 8 AND 9(2): EXCEPTIONAL GRANTING OF REST LEAVE

As part of its regular annual exercise, the Commission decided on 25 March 2004 to exceptionally grant rest leave for the year for those places of employment where (1) living conditions were “particularly difficult” according to the parameters used each year to fix the living-conditions allowance and (2) a state of emergency had been declared.

Strict application of the conditions set out in Article 8 of Annex X resulted in this entitlement being accorded for 30 places of employment in 2004 (see Annex I), compared with 24 in 2003. For places in a state of emergency, entitlement is granted in proportion to the actual duration of the crisis.

CHAPTER 4: EMOLUMENTS AND SOCIAL SECURITY BENEFITS

SECTION 1: EMOLUMENTS AND FAMILY ALLOWANCES

ARTICLE 10(1): ALLOWANCE FOR LIVING CONDITIONS

On 12 February 2004, the Commission fixed the living-conditions allowance rates for 2004 as shown in the table in Annex II.

- 1 increase (from 10 to 15%): Argentina;

- 1 increase (from 25 to 35%): Côte d’Ivoire;

- 7 new places of employment: Armenia (35%), El Salvador (25%), Honduras (25%), Kyrgyzstan (35%), New Zealand (10%), Tajikistan (35%), Yemen (35%).

An amendment to the Staff Regulations took effect on 1 May 2004, fixing the living-conditions allowance rates at 10%, 15%, 20%, 25%, 30%, 35% and 40%. The automatic application of the new bands laid down by the amended Article 10 resulted in an update of the living-conditions allowance rates for the financial year 2004. The new rates took effect on 1 May 2004 and set out in the table in Annex III:

- 9 increases (from 25% to 30%): Cape Verde, Ethiopia, India, Laos, Mozambique, Sri Lanka, Tanzania, Vietnam and Zambia;

- 9 decreases (from 35% to 30%): Albania, Burkina Faso, Cambodia, Djibouti, Guyana, Haiti, Indonesia, Mali and Pakistan;

- 8 increases (from 35% to 40%): Afghanistan, Bangladesh, Central African Republic, Liberia, Papua New Guinea, Sierra Leone, Sudan and Chad.

A mid-year exercise took effect on 1 July 2004 (Appointing Authority Decision of 25 November 2004) for the following places of employment:

- 1 increase (from 15% to 20%): Malaysia;

- 2 increases (from 20% to 25%): Saudi Arabia and Bolivia;

- 1 increase (from 25% to 30%): Nepal;

- 2 increases (from 30% to 35%): Guyana and Haiti.

Article 10(2): Additional allowance

Commission and Appointing Authority Decisions allocated additional allowances in 2004 to officials in the following posts:

Delegation | Date of effect | Allowance (%) | Number of officials concerned |

Haiti (Port-au-Prince) | 24.02.2004 25.02.2004 to 17.03.2004 18.03.2004 to 22.03.2004 | 5 10 5 | 3 |

Saudi Arabia (Riyadh) | from 16.07.2004 | 5 | 1 |

Côte d’Ivoire (Abidjan) | 07.11.2004 from 08.11.2004 | 5 10 | 8 |

ARTICLES 11 AND 12: ARRANGEMENTS FOR THE PAYMENT OF REMUNERATION

The currency in which officials’ remuneration was paid in 2004 breaks down as follows in percentage terms:

- 76% opted to have their salaries paid in euro under Article 11 of Annex X to the Staff Regulations;

- 21% requested payment of part of their salary in local currency. Of these, 32% asked for the maximum allowed by the internal directives relating to Article 12 of Annex X (80%) and the remainder opted for percentages varying between 15% and 64%;

- under the second paragraph of Article 12 of Annex X, 3% requested payment of part of their remuneration in a currency other than that of their place of employment (Angola, Georgia, Kazakhstan, Democratic Republic of Congo and Ukraine), on the basis of the necessary supporting documents.

Article 13: Weightings

On 5 October 2004 the Council adopted Regulation No 1785/2004[2] laying down the weightings applicable from 1 January 2004 and, on 4 February 2005, Regulation No 257/2005[3] laying down the weightings applicable from 1 July 2004 to the remuneration of officials of the European Communities serving in third countries.

On 4 June 2004[4] the Commission approved the Decision adjusting the weightings applicable from 1 August, 1 September, 1 October, 1 November and 1 December 2003 and, on 22 December 2004[5], the Decision adjusting the weightings applicable from 1 February, 1 March, 1 April, 1 May and 1 June 2004 to the remuneration of officials of the European Communities serving in third countries.

In 2004 DG Relex and Eurostat reached agreement on a procedure for improving the monitoring over time of weightings in countries where the cost of living is relatively high (which reduces the frequency of more costly geographical comparisons) and for using alternative reliable sources, such as the UN, for monitoring weightings in countries where the cost of living is structurally lower than in Brussels (which allows further savings).

Following this agreement, the budget for 2005-2009 was reduced to a level comparable to that of annual budgets from the period when Annex X was first implemented.

Article 15: Education allowance

A total of EUR 2 474 791.35 was paid in education allowances in the year 2003/2004. The amount appearing in the 2003 report (EUR 4 371 421.80) was incorrect. It should read EUR 2 558 938.95.

The system of granting advances to officials whose school fees were particularly high was maintained. All the advances granted for the 2003/2004 school year were settled within the prescribed deadlines.

Following an overall increase in school expenses for some delegations, particularly in Japan, Washington and New York, the Commission allowed fee ceilings to be exceeded.

Such authorisations were, however, exceptional and covered children receiving instruction at the place of employment in an international school awarding European or international baccalaureates. The aim was to allow children to continue in their current school. In another case of applying the principle of continuity with regard to studies, six officials in retraining, covered by Annex X, also received school expenses exceeding the ceilings for the 2003/2004 school year. The total amount paid over and above the maximum for the 2003/2004 school year came to EUR 271 110.40.

Article 16: Installation and resettlement allowances

In 2004 allowances paid for installation (for officials transferred from headquarters to a delegation or from one delegation to another) and resettlement (for officials in a delegation definitively ceasing their functions) totalled EUR 2 440 382.86 (against EUR 2 766 468.64 in 2003).

The amount paid out dropped in 2004 despite an increase in staff movements. One reason is that since the reform took effect on 1 May 2004 the unit no longer advances installation expenses.

The amount breaks down as follows:

- Installation allowances

- EUR 1 862 217.30 for payments in Belgium; and

- EUR 165 501.41 for payments in local currency in the officials’ place of employment, with application of economic parity (weighting and associated exchange rate).

- Resettlement allowances

- EUR 105 536.64 for resettlements in Belgium; and

- EUR 310 127.51 for payments in local currency in the country to which the officials resettled, with application of economic parity.

SECTION 2: RULES RELATING TO REIMBURSEMENT OF EXPENSES

ARTICLE 17: REIMBURSEMENT OF EXPENSES INCURRED IN RESPECT OF REMOVAL OF FURNITURE AND ACTUAL INSTALLATION ALLOWANCES FOR OFFICIALS NOT IN FURNISHED ACCOMMODATION PROVIDED BY THE INSTITUTION

This article was not applied in 2004.

Article 18: Temporary accommodation

284 decisions authorising temporary accommodation were taken in 2004 (versus 187 in 1998, 163 in 1999, 195 in 2000, 184 in 2001, 318 in 2002 and 270 in 2003).[6]

Article 19 : SERVICE CARS/MILEAGE ALLOWANCE

Pending the approval of new standards for the vehicle fleet, the rules for the use of vehicles, in force since 1996 and revised in 1998, still apply.

The amount of the mileage allowance has not changed (EUR 0.26 per km and EUR 0.36 per km for 4WDs).

Article 20: Travel expenses for rest leave

Travel expenses for rest leave were reimbursed based on the distance between the place of employment and the place of leave determined by the Commission. Where the place of rest leave was disregarded, reimbursement could be claimed up to the same amount. Expenditure in 2004 was EUR 659 644.

Article 21: Reimbursement of the cost of transporting personal effects, removals and storage

There were 415 removals in 2004 (266 in 1998, 237 in 1999, 278 in 2000, 324 in 2001, 358 in 2002 and 331 in 2003) under the rules for the removal of personal effects, which were updated in 1997 and implemented in 1998.

Article 23: Reimbursement of rent where the official is not provided with accommodation by the Institution

Article 23 was applied in 31 cases, in 2004 (10 in 1999, 8 in 2000, 7 in 2001, 31 in 2002 and 40 in 2003).[7]

SECTION 3: SOCIAL SECURITY

ARTICLE 24(3): REPATRIATION IN THE EVENT OF A MEDICAL EMERGENCY OR AN EXTREME MEDICAL EMERGENCY

The Medical Service authorized 44 repatriations in 2004, 40 of them for a medical emergency (total repatriations of this type numbered 68, because some persons requiring individual follow-up were evacuated on multiple occasions) and four for an extreme medical emergency.

The SOS Air Ambulance annual premium cost EUR 15 525 in 2004.

Article 25: Accident cover for dependants OF OFFICIALS

THERE WERE FIVE CLAIMS IN 2004 UNDER THE ACCIDENT COVER FOR OFFICIALS ’ dependants.

ANNEX I

DETERMINATION OF ENTITLEMENT TO REST LEAVE (Article 8 of Annex X) Effective date: 1 January 2004

LIVING-CONDITIONS ALLOWANCES |

Number of days and instalments | Place of employment | Place of rest leave |

15 days | Afghanistan | Brussels (Belgium) |

over up to 3 instalments | Bangladesh | Phuket (Thailand) |

(living-conditions | Liberia | Dakar (Senegal) |

allowance ≥ 12 points) | Papua New Guinea | Darwin (Australia) |

Central African Republic | Libreville (Gabon) |

Sierra Leone | Dakar (Senegal) |

Sudan | Mombassa (Kenya) |

Chad | Dakar (Senegal) |

10 days | Algeria | Casablanca (Morocco) |

over up to 2 instalments | Angola | Windhoek (Namibia) |

(living-conditions | Armenia | Vienna (Austria) |

allowance = 11 points) | Congo | Libreville (Gabon) |

Georgia | Vienna (Austria) |

Guinea | Dakar (Senegal) |

Mauritania | Casablanca (Morocco) |

Niger | Libreville (Gabon) |

Democratic Republic of the Congo | Libreville (Gabon) |

5 consecutive days | Burundi | Mombassa (Kenya) |

(living-conditions | Cameroon | Libreville (Gabon) |

allowance = 10 points) | Côte d’Ivoire* | Dakar (Senegal) |

Guinea-Bissau | Dakar (Senegal) |

Solomon Islands | Brisbane (Australia) |

Kazakhstan | Frankfurt (Germany) |

Kyrgyzstan | Frankfurt (Germany) |

Nigeria | Libreville (Gabon) |

Rwanda | Mombassa (Kenya) |

Tajikistan | Frankfurt (Germany) |

Togo | Libreville (Gabon) |

Yemen | Dubai (United Arab Emirates) |

* See also below (supplement granted according to the duration of the state of emergency in 2003). |

ALLOWANCES FOR STATES OF EMERGENCY IN 2004 |

Number of days and instalments | Place of employment | Place of rest leave |

15 days over up to 3 instalments | Colombia (living-conditions allowance = 6 points; emergency = 11 months in 2003) | Miami (United States) |

10 days over up to 2 instalments | Côte d’Ivoire* (living-conditions allowance = 10 points; emergency = 9.5 months in 2003) | Dakar (Senegal) |

5 consecutive days | None |

ANNEX II

LIST OF PLACES OF EMPLOYMENT AND LIVING-CONDITIONS ALLOWANCE RATES (Article 10 of Annex X) Effective date: 1 January 2004

35% | 25% | 20% | 15% | 10% | No allowance |

Afghanistan | Benin | Former Yugoslav Republic of Macedonia | South Africa | Australia | Canada |

Albania | Cape Verde | Saudi Arabia | Argentina | Barbados | Cyprus |

Algeria | China | Bolivia | Botswana | Brazil | United States (New York) |

Angola | West Bank – Gaza Strip | Bosnia and Herzegovina | Chile | Croatia | United States (Washington) |

Armenia | Colombia | Bulgaria | Costa Rica | Estonia | Malta |

Bangladesh | Egypt | South Korea | Hong Kong | Hungary | Norway |

Burkina Faso | El Salvador | Cuba | Jamaica | Latvia | Switzerland |

Burundi | Ecuador | Gabon | Japan (Tokyo) | Lithuania |

Cambodia | Eritrea | Israel | Jordan | Morocco |

Cameroon | Ethiopia | Lesotho | Lebanon | Mauritius |

Congo | Gambia | Mexico | Malaysia | Namibia |

Côte d’Ivoire | Ghana | Romania | New Caledonia | New Zealand |

Djibouti | Guatemala | Serbia and Montenegro | Paraguay | Poland |

Georgia | Honduras | Swaziland | Senegal | Dominican Republic |

Guinea | Fiji | Syria | Singapore | Czech Rep. |

Guinea-Bissau | India | Thailand | Taiwan | Slovakia |

Guyana | Japan (Naka) | Vanuatu | Turkey | Slovenia |

Haiti | Kenya | Zimbabwe | Trinidad and Tobago |

Solomon Islands | Laos | Tunisia |

Indonesia | Madagascar | Uruguay |

Kazakhstan | Malawi |

Kyrgyzstan | Mozambique |

Liberia | Nepal |

Mali | Nicaragua |

Mauritania | Uganda |

Niger | Peru |

Nigeria | Philippines |

Pakistan | Russia |

Papua New Guinea | Sri Lanka |

Central African Republic | Suriname |

Democratic Republic of the Congo | Tanzania |

Rwanda | Ukraine |

Sierra Leone | Venezuela |

Sudan | Vietnam |

Tajikistan | Zambia |

Chad |

Togo |

Yemen |

ANNEX III

LIST OF PLACES OF EMPLOYMENT AND LIVING-CONDITIONS ALLOWANCE RATES (Article 10 of Annex X) Effective date: 1 May 2004

40% | 35% | 30% | 25% | 20% | 15% | 10% | No allowance |

Afghanistan | Algeria | Albania | Benin | Former Yugoslav Republic of Macedonia | South Africa | Australia | Canada |

Bangladesh | Angola | Burkina Faso | China | Saudi Arabia | Argentina | Barbados | United States (New York) |

Liberia | Armenia | Cambodia | West Bank – Gaza Strip | Bolivia | Botswana | Brazil | United States (Washington) |

Papua New Guinea | Burundi | Cape Verde | Colombia | Bosnia and Herzegovina | Chile | Croatia | Norway |

Central African Republic | Cameroon | Djibouti | Egypt | Bulgaria | Costa Rica | Jordan | Switzerland |

Sierra Leone | Congo | Ethiopia | El Salvador | South Korea | Hong Kong | Morocco |

Sudan | Côte d’Ivoire | Guyana | Ecuador | Cuba | Jamaica | Mauritius |

Chad | Georgia | Haiti | Eritrea | Gabon | Japan (Tokyo) | Namibia |

Guinea | India | Gambia | Israel | Lebanon | New Zealand |

Guinea-Bissau | Indonesia | Ghana | Lesotho | Malaysia | Dominican Republic |

Solomon Islands | Laos | Guatemala | Mexico | New Caledonia | Trinidad and Tobago |

Kazakhstan | Mali | Honduras | Romania | Paraguay | Tunisia |

Kyrgyzstan | Mozambique | Fiji | Serbia and Montenegro | Senegal | Uruguay |

Mauritania | Pakistan | Japan (Naka) | Swaziland | Singapore |

Niger | Sri Lanka | Kenya | Syria | Taiwan |

Nigeria | Tanzania | Madagascar | Thailand | Turkey |

Democratic Republic of the Congo | Vietnam | Malawi | Vanuatu |

Rwanda | Zambia | Nepal | Zimbabwe |

Tajikistan | Nicaragua |

Togo | Uganda |

Yemen | Peru |

Philippines |

Russia |

Suriname |

Ukraine |

Venezuela |

* Some officials remaining in their post in the new Member States after accession will receive the living-conditions allowance applicable prior to accession during a transition period of up to 15 months beginning on 1 May 2004.

[1] The posts for officials/temporary agents in delegations break down as follows: a) the formal allocation of the External Service (982 posts for 2004); b) posts lent for specific, ad hoc programmes (4 posts); c) posts made available by Directorates-General outside the RELEX family (22 posts at 31 December 2004). These posts remain assigned to their parent DG’s establishment plan but are financed wholly or in part by the External Service budget.

[2] OJ L 317, 16.10.2004, p. 1.

[3] OJ L 46, 17.02.2005, p. 1.

[4] OJ L 207, 10.06.2004, p. 13.

[5] OJ 396, 31.12.2004, p. 49.

[6] Based on 103 responses received from delegations.

[7] Based on 103 responses received from delegations.