1. Ares(2015)
Ag21 Mission expenses
Working Group on Article 64 and Article 65 of the Staff Regulations
Meeting in Luxembourg 21st & 22nd March 2016

2. Content of this presentation
Context and history
Daily subsistence allowances (DSA)
Intra-EU
Extra-EU
Hotel ceilings (HC)
Next steps…

3. Context
Operational budget for costs incurred on official business away from place of employment
NOT incentive / compensation for inconvenience
Transport = arranged directly by employer or 100% reimbursement (if prior agreement)
Hotels = arranged directly by employer or 100% reimbursement (if prior agreement)
Derogation required if vary from target ceilings
Daily allowance = flat rate amount to cover meals, local transport (from departure point + to arrival point) and other necessary costs (eg. photocopies, telephone charges, force majeure)
Exceed allowance? 100% reimbursement (if prior agreement)

4. History Date current values established:
Extra-EU: Commission Decision C(2002)98
Intra-EU: Regulation 1066/2006 (EU25) and Regulation 337/2007 (BG, RO)
Reproduced as Appendices to the "Missions Guide": Commission Decision C(2008)6215
Staff regulations Annex VII Article 13 (as amended by Regulation 1023/2013):
Commission shall review every two years, on the basis of an Eurostat report on price indices of hotels, restaurants

5. Previous calculations/reports
Under staff regulations in force from 2004
Methodology already broadly agreed
Improving data availability for Extra-EU
Reference
Intra (daily)
Intra (hotels)
Extra (daily)
Extra (hotels)
1 Jan 2005
SEC(2006)397 -
1 Jan 2009
internal
1 Jan 2010
A64/10/17
A64/10/18
1 Jul 2011
1 Jul 2012

6. Since 10/2013 change to Staff Regs
Eurostat calculations:
Presentation of test figures for July 2013 at A6465WG meeting, March 2014 (Doc.A6465/14/73)
Presentation of test figures for July 2014 at A6465WG meeting, March 2015
for 1st time, new proposal included data for Extra-EU (hotels)
► Written consultation (Doc.A6465/15/11), June 2015
Analysis using data for July 2015, summer/autumn 2015
► Updated report Ares(2015) , December 2015

7. Reminder of technical approach
Ares(2015)
Reminder of technical approach
Daily subsistence allowances (Intra-EU)
BXL-DA = BXL-DA * BE-HICP
DS-DA = BXL-DA * DS-CC 2015
4 possibilities (2 indices, 2 periods):
BE-HICP
DS-PPP
Inflation period 1
All items excl. Housing rent
2004m m6 1'
2004m m6, 2014m6-2015m6 2
75% : 25% Restaurants : all items excl. Hsg 2'
REC

8. Reminder of technical approach
Ares(2015)
Reminder of technical approach
Daily subsistence allowances (Extra-EU)
BXL-DA = BXL-DA * BE-HICP
DS-DA = BXL-DA * DS-CC 2015
2 possibilities (2 indices, 1 period):
+1 alternative data source: UN.ICSC
DS-DA = UN DSA 07/2015 * ( 1 – room rate )
BE-HICP
DS-PPP
Inflation period 1
All items excl. Housing rent
2004m m6 2
75% : 25% Restaurants : all items excl. Hsg
REC

9. Reminder of technical approach
Ares(2015)
Reminder of technical approach
Hotel ceilings (Intra-EU)
BXL-DA = BXL-DA * BE-HICP
DS-DA = BXL-DA * DS-CC 2015
6 possibilities (1 index, 2 periods, 3 decision rule):
BE-HICP
DS-PPP
Inflation period
90% ceiling 1a
Hotels
2004m m6 -
1a *
2004m m6, 2014m6-2015m6 1b
If lower…
1b *
1b'
If higher…
1b' *
REC

10. Reminder of technical approach
Ares(2015)
Reminder of technical approach
Hotel ceilings (Intra-EU)
+3 alternatives (1 index, 3 decision rule):
DS-DA = DS-DA * DS-HICP
DS-HICP directly
Inflation period
90% ceiling 2a
Hotels
2004m m6 - 2b
If lower…
2b'
If higher…

11. Reminder of technical approach
Ares(2015)
Reminder of technical approach
Hotel ceilings (Extra-EU)
3 possibilities :
1a and 2a same as for Intra-EU
3a uses data from UN.ICSC
DS-DA = UN DSA 07/2015 * ( room rate ) * 130%
(in absence of expenditure data, cannot evaluate 90% decision rule)
Hotels index
Inflation period
90% ceiling 1a
BE-HICP, DS-PPP
2004m m6 - 2a
DS-HICP 3a
UN-DSA
2015m6
REC

12. Daily allowances (Intra-EU): 28 MS
Ares(2015)
Daily allowances (Intra-EU): 28 MS
In force
Apply PPP 75:25 ReCa:Glob
% chg
Brussels
92€
119€
+28.9
Min. value
52€ RO-Buc
52€ BG-Sof
0.0
Max. value
120€ DK-Cop
156€ DK-Cop
+29.9
Avg. value
84€
98€
+16.7
Min. chg. -
-18.5 CZ-Pra
Max. chg.
SE-Sto
Avg. chg.
+15.3
Option 2
Reference date: 07/2015

13. Daily allowances (Extra-EU): 144 places
Ares(2015)
Daily allowances (Extra-EU): 144 places
In force
Apply PPP 75:25 ReCa:Glob
% chg
Brussels
92€
119€
+28.9
Min. value
50€ =54 places
34€ Lesotho
-31.3
Max. value
130€ Japan
257€ Bangladesh
+97.7
Avg. value
63€
97€
+53.9
Min. chg. -
-48.6 Belarus
Max. chg.
Bangladesh
Avg. chg.
+58.3
Option 2
Reference date: 07/2015

14. Hotel ceilings (Intra-EU): 28 MS
Ares(2015)
Hotel ceilings (Intra-EU): 28 MS
In force
Apply PPP 75:25 ReCa:Glob
% chg
Brussels
140€
165€
+18.0
Min. value
110€ EE-Tal, SI-Lju
111€ EE-Tal
+0.9
Max. value
175€ UK-Lon
273€ UK-Lon
+55.8
Avg. value
164€
+17.1
Min. chg. -
-7.7 BG-Sof
Max. chg.
UK-Lon
Avg. chg.
+16.9
Option 1b'
Reference date: 07/2015

15. Hotel ceilings (Extra-EU): 144 places
Ares(2015)
Hotel ceilings (Extra-EU): 144 places
In force
Apply UN-DSA +30%
% chg
Brussels
140€
168€
+20.1
Min. value
75€ = 5 places
64€ Somalia
-14.7
Max. value
275€ Japan
326€ Russia
+18.5
Avg. value
144€
164€
+13.9
Min. chg. -
-48.6 Somalia
Max. chg.
Uzbekistan
Avg. chg.
Option 3a
Reference date: 07/2015

16. Next steps DGHR launch formal Commission proposals:
Delegated Act (Intra-EU)
Commission Decision (Extra-EU)
New missions guide…