1. Ag.14 Eurostat Annual Report overview - A65 elements
Doc.A6465/18/05(b)
Ag.14 Eurostat Annual Report overview - A65 elements
Working Group on Articles 64 and 65 of the Staff Regulations
Meeting in Luxembourg March 2018

2. Content of this presentation
Reminder of timeline and report structure
Reminder who is affected by Annual Adjustment
Overview of A65 elements:
GSI for sample
Components of changes in nominal net salary
Comparative and analytical data
Do "moderation" and "exception" clauses apply?
Closer examination of the figures
Annex 2 report

3. Similar production timeline to previous
A year-long exercise!
Legal requirements respected
1st Extra-EU report via Ares (Aug-Jan)
Interim report via Ares January)
2nd Extra-EU report via Ares (Feb-Jun)
Annual report via Ares July)
Annex 2 report available 3

4. Subsequent steps also similar timeline
Since 2013 reform, automatic adoption procedure:
Interim report: as part of CC adjustment, only if % change exceeds threshold
Annual report: applies
Eurostat calculation, followed by:
DGHR budget impact report
internal administrative processes
Council WPSR for information
Communication in Official Journal
pay slips
INTERIM
ANNUAL
n/a
June (retro)
December (retro) 4

5. Report structure and content5

6. Did 2017 Intermediate Reports result in CC changes?
Duty stations
Changes signalled
Intra-EU staff
33 (ie.31) -
Pensioners
28 (ie.26)
Extra-EU (1st)
145 (ie. 144)
8* + 18
Extra-EU (2nd)
9* + 36
* CC > 100 6

7. Intra-EU intermediate report structure and content
Fourth Intra-EU interim report under Staff Regulations as amended October 2013
Similar transparent content as last year's report, some new tables
MAIN TEXT
6 pages
0 tables
Annex 1 - SI
5 pages
4 tables
Annex 2 -
JBLI
3 pages
6 tables
Annex 3 - CC
9 pages
5 tables
Annex 4 -
CC+SI
1 page 24 15
+ non sample 7

8. Extra-EU intermediate reports structure and content
7th and 8th Extra-EU interim reports under Staff Regulations as amended October 2013
Similar transparent content as last year's reports, more explanatory text
Period
Main text
Annex
Aug-Jan
4 pages
13 pages
13 tables
(6 months)
Feb-Jun
11 pages
11 tables
(5 months) 8

9. Annual Report structure and content
Fourth annual report under Staff Regs as amended October 2013
Increased transparency (more analysis and explanations)
MAIN TEXT pages tables
Appendix 1a - SI pages tables
Appendix 1b - JBLI pages tables
Appendix 1c - CC pages tables pages tables
+4 = split
+2 = impact SHE
+6 = 3x AnnAdj, a, (PPP)

10. Annual update 2017 (in Brussels/Luxembourg - and together with CC also everywhere else)
real GSI
JBLI
AnnAdj
"Implicit index" = total price effect = JBLI x PPP change

11. Who/what is affected by the update
Basic salary of permanent officials and other servants (all duty stations)
Pensions of pensioners (all places of residence)
Various values and ceilings, eg.
Household allowance; Parental leave allowance; Child allowance; Education allowance
Expatriation allowance (minimum); Foreign residence allowance (minimum)
Travel allowance
Installation allowance
Unemployment allowance

12. Estimate annual budgetary impact (DGHR)
NEW
Estimate annual budgetary impact (DGHR)
Ch. V
Other Ch.
Total
Expenditure
+93.0 mn €
+24.1 mn €
mn €
Revenue (tax, etc)
-16.3 mn €
-4.1 mn €
-20.4 mn €
Sub-total
+76.7 mn €
+20.0 mn €
+96.7 mn € 12

13. Any constraints on implementation?
Moderation clause (GSI >2%)
Exception clause (GDP growth <0%)
Was previous year exception clause correct?

14. Q: Moderation clause applies 2017 ?
Calculated SI
1 July Year n
1 April Year n+1 1
-2% ≤ X ≤ +2%
100% - 2
OR ( X < -2% , X > +2% )
(100-a)% a%
* a= the proportion of the calculated adjustment using X which exceeds a similar calculation substituting the -2% or +2% ceiling for X
2017 real GSI value is +0.4% ie. situation 1

15. Q: Exception clause applies 2017 ?
Forecast GDP for Year n
1 July Year n
1 April Year n+1
Later* 1
0% ≤ X
100% - 2
-1.0% ≤ X < 0%
33%
67% 3
-3.0% ≤ X < -1.0% 4
X < -3.0%
* ie. when cumulative GDP is again positive
ECFIN spring forecast +1.9% ie. situation 1
ECFIN autumn forecast not yet published

16. Q: Exception clause 2016 confirmed ?
2016 Annual Report assessment: situation 1
Staff Regulations requires review against actual 2016 GDP evolution (Eurostat published data)
Conclusion: yes, clause was correctly applied

17. Closer examination of the figures17

18. Steps towards the definitive result…
Spring forecast (04/17)
Actual HICP (09/17)
Diff
Final report (10/17)
[a]
[b]
[b]-[a]
[c]
[c]-[a]
GSI nominal
-0.2
+0.4
+0.6
Inflation
+2.1
+1.1
-1.0
GSI realterms
+1.9
+0.9
+1.5
-0.4 18

19. Components of nominal country SI 2017MS
Gross SI
comment
Stat. ded.
► Net SI BE
+2.0
'spilindex' May 2017
0.0 .. DE
+4.3
▲ Mar 2016 (retro); ▲ Feb 2017
-0.6
+3.7 ES
+1.0
Budget law 48/2015 paid 2016
-0.1
+0.9 FR
+2.9
'majoration' Feb 2017; FPN grades
+2.3 IT
+0.0
+0.7 LU
+1.8
Indexation Jan 2017; modify allow.
New tax scales
+3.8 NL
-1.0
Sep.2015 not repeated
-0.5
-1.5 AT
+1.3
▲ Nov 2016
-0.2
+1.1 PL
+1.5
New multipliers
'catchup' Rod.500
+3.0 SE
+0.4
multiple local agreements UK
average 5 departments
+1.4

20. Estimate of total impact (AA, PCR, etc)
Component
Nominal
Impact 1
Change to Gross Remuneration
(July 2017 Ann.Adj. in Brussels)
+ 1.5
100% 2
Change to Pension Contribution Rate
(July 2017 = July 2016 = 9.8%)
0.0
70% 3
Change to Health insurance (= 1.7%) 4
Change to Accident insurance (= 0.1%) 5
Change to Personal Income Tax (scale) 6
Change to Special Levy (= 6.0%)
50%
TOTAL

21. Comparative data Indicator Nominal Real 1 Net EU11 +1.9 +0.4 2
Tab. 1 2
Net EU 11 AD
+2.2
+0.6
Tab. 1.1 3
Net EU 11 AST
+1.6
+0.0 4
Net EU 11 SC
+2.3 5
Net EU28
+2.4
+1.0 6
Gross EU11
+2.0
+0.5 7
Gross EU11 CI – CoE
+2.5
Tab. 1.6 8
Gross EU11 CI – LCI
+0.3
Tab. 1.7

22. Structure and content of "Annex 2“ report (…from SRQ to CSI)
Doc.A6465/18/03
Structure and content of "Annex 2“ report (…from SRQ to CSI)
Annex 2c (34p)
Summary tables with information for EU28
Annex 2a (107p)
Detailed tables for 14 countries (BE to LV)
Annex 2b (118p)
Detailed tables for 14 countries (LT to UK)

23. Links to other presentations in agenda
Agenda point 5 - A64 content
Agenda point 7 - international collaboration
Agenda point lessons from annual exercise
Agenda point assessment
Agenda point dissemination
Agenda point 17 - transparency consultation
Agenda point 22 - documents for public 23

24. Thank you for your attention!