Reform: latest news

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It is clear that the reform will not be implemented on 1 January 2013. The discussions stalled at the Council, who has been unable so far to reach a common position. No progress so far.
These are the main points:
·        The salaries and correction coefficients have to be reviewed annually as per Art. 64 and 65 of the Staff Regulations.
Art. 64 and 65 refer to the Annex XI of the Staff Regulations which details how the annual salary and correction coefficient adjustments must be calculated. This is the so-called “Method”.
However, the Annex XI of the Staff Regulations will become obsolete after 31 December 2012.
In absence of any Method, it is possible that the Council will deny any salary adjustment in 2013.
·        Article 66a of the Staff Regulations will also expire after 31 December 2012.
As this Article 66a is the legal basis for applying the 5,5 % “special levy”, such levy will not be collected anymore.
The fear is that the media and some politics exploit this fact and highlight that “the eurocrats have got a pay rise of 5,5 % in spite of those difficult times”.
Knowing that the Council will resume the negotiations on the Multiannual Financial Framework 2014-2020 on February 7 and 8, and that those negotiations are also critical for the reform of the Staff Regulations, any additional political tension can have very negative effects.
In an attempt to defuse the bomb, Vice-President Sefcovic made a proposal to the Council and the Parliament on November 30th to extend the validity of the current Method and special levy for another year in order to avoid a gap (Blue network Green Network).

On December 5 in COREPER, Member States refused the Commission proposal. Some Member States were in favour of extending the levy but not the method, but this was refused by the Commission, with the support of other Member States.
This of course wouldn’t have been acceptable as the deal agreed in 2004 was to introduce the special levy in exchange of a well-defined Method for adjusting salaries!
Anyway, the Commission has shown its good will and made every effort to avoid the unintentional salary rise.

The Commission fulfills it role of the guardian of the Treaties and the strict application of the rules. This is also in the interest of the staff.
The European Parliament is supporting the Commission. See the letter Mrs. Dagmar Roth-Behrendt of December 6th by which she strongly criticizes the attitude of some Member States!
MEP Dagmar Roth-Behrendt is the European Parliament rapporteur on the revision of the Staff Regulations. Thanks to recent changes of the Treaties (Treaty of Lisbon), the Parliament and the Council have equal power. This better balances the excessive behavior of some components of the Council.
Conclusion:
·        From January 2013 on and until the Staff Regulations are revised, our salaries will not be subject to the 5,5% special levy anymore
·        As for 2011, there will probably be no salary and correction coefficient adaptation 2012
·        Risk that the future 2013 adaptation follow the same destiny
·        The blockage comes from the Council (some Member States), not the Commission
·        No indication can be given about when the reform could be adopted

New developments may happen at any time and affect the conclusions mentioned above. 

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