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EU civil servants' pay must reflect economic downturn

19 November 2013, 18:08 CET
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EU civil servants' pay must reflect economic downturn

European Commission - Photo EC

(LUXEMBOURG) - Europe's highest court said Tuesday that a formula granting automatic pay rises to EU civil servants must take account of a wider economic downturn, a decision likely to accelerate reform in the bloc's bureaucracy.

The European Court of Justice ruled in favour of EU member states which argued against a 1.7-percent pay rise in 2011 on the grounds that it did not reflect deep austerity being imposed at the time by national administrations.

Judges said the European Commission -- whose staff staged industrial action in order to protect benefits and privileges long seen as superior to colleagues in national bureaucracies -- was wrong to hold to an outdated mathematical formula.

The Commission "is required to submit to the European Parliament and the Council new proposals which take into account the serious and sudden deterioration in the economic and social situation identified by the Council (of member states) in 2011," the ruling said.

The formula was eased from 2012 to provide for more discretion after angry member states led by Britain launched a putsch on the European Union's previously ever-rising budget.

Tuesday's judgement was announced hours before the Parliament sitting in Strasbourg votes on the bloc's 2014-2020 spending ceiling -- cut from a planned trillion euros to about 900 billion.

The new budget framework slashes administrative costs, and the Commission has already made substantial changes to its recruitment, remuneration and retirement policies in anticipation of this financial realignment.

Around 40,000 staff work for the Commission, although numbers on its payroll are being reduced.

Commission spokesman Antony Gravili said the EU executive would not "fly in the face of" the ruling, but wanted "time to study the judgement."

Gravili said a pay and pensions freeze had already been agreed for 2013 and 2014.

Judgements of the European Court of Justice in Cases C-63/12, C-66/12, C-196/12 - Commission v Council


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