Close Menu
    Latest Category
    • Finance
    • Tech
    • EU Law
    • Energy
    • About
    • Contact
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Login
    • EU News
    • Focus
    • Guides
    • Press
    • Jobs
    • Events
    • Directory
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Home » EU staff budget savings come at a cost to workforce

    EU staff budget savings come at a cost to workforce

    npsBy nps26 September 2019Updated:25 June 2024 Finance No Comments4 Mins Read
    — Filed under: Commission EU EU News Headline2
    Share
    Facebook Twitter LinkedIn Pinterest Email
    EU staff budget savings come at a cost to workforce

    Berlaymont – Photo JLogan

    (BRUSSELS) – A 2014 EU staff reforms package has achieved significant savings, says a new report from the European Court of Auditors, but has at the same time had negative consequences for human resources.

    Some of the negative consequences could have been mitigated, at least in part, says the ECA, if reforms had been better prepared and monitored.

    The EU institutions and agencies employ approximately 60,000 people in total. Their terms of employment are set in the “Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Union”. Around half of EU staff are employed by the Commission, which is responsible for proposing reforms to the staff regulations. Commission staff’s pay costs €3.2 billion a year, or around 2 % of the total EU budget.

    During the negotiations for the 2014-2020 multiannual financial framework (MFF), the European Parliament, the Council and the Commission agreed different measures to reduce expenditure on staff and improve human resources management. This “2014 staff reforms package” included a 5 % cut in workforce, pay and pension freezes, as well as a revision of the staff regulations.

    The auditors assessed the effectiveness of these measures, with a specific focus on the Commission, which accounts for 53% of the EU institutions’ workforce and for 58 % of their payroll budget. In particular, they examined how the challenge of achieving the dual objective of budgetary savings and HR improvements has been managed.

    “Savings generated from the 2014 staff reforms go beyond expectations, but they are overshadowed by their impact on the workforce”, said Pietro Russo, the Member of the European Court of Auditors responsible for the report. “The HR implications of the cost-saving measures were not without negative consequences for both working conditions and the attractiveness of the EU institutions as an employer.”

    The auditors found that the 2014 package is delivering significant savings for the EU budget. The direct budgetary impact on the 2014-2020 MFF alone is likely to be around €4.2 billion, which is more than was planned. And savings are likely to be even higher in the long-term, add the auditors. Changes in the retirement age, career structure and pensions will reduce EU administrative expenditure by over €19 billion by 2064. In other words, long-term spending is expected to fall by around 30 % on what it would have been without the 2014 reforms.

    As for the impact on HR, the picture is more mixed. Changes in career structure have improved the link between pay, grade and responsibility, and the Commission’s workforce is becoming more gender balanced and flexible. However, the 2014 reforms have also led to less positive consequences for staff, as well as to additional challenges for human resources management, the auditors point out. Raising the retirement age to 66 and cutting recruitment have left the Commission with an ageing workforce. Furthermore, the increasing use of staff on short-term contracts has longer-term implications for knowledge management and business continuity. Finally, less favourable employment conditions have reduced job satisfaction and the attractiveness of working for the EU institutions. This comes at a time when the Commission is struggling to attract highly qualified, multilingual staff.

    However, better preparation of the 2014 package could have helped mitigate its negative consequences, the auditors say. The choice of measures – such as increasing working time and implementing the 5% reduction in posts – was not preceded by an overall analysis of the problems to be addressed or an assessment of the likely impact on HR management. The Commission’s monitoring arrangements did not allow it to identify negative consequences, such as increasing workload, fully or in a timely manner, the auditors conclude.

    Based on their findings, the auditors recommend that the European Commission:

    • establish a workforce management plan;
    • strengthen its monitoring and reporting of HR issues; and
    • assess needs and potential impact before any further revision of the staff regulations.

    Special report 15/2019 “Implementation of the 2014 staff reforms package at the Commission: big savings but not without consequences for staff”

    Add A Comment
    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    nps
    • Website

    Related Content

    Farm flooded with cows - Image by Brigitte Werner from Pixabay

    Climate and nature risks threaten Europe’s financial resilience and insurability – WWF report

    Sponsor: WWF15 January 2026
    Valdis Dombrovskis - Photo © European Union 2026

    Brussels presents 2026–2027 financial support package for Ukraine

    Bulgaria euro - Photo © European Union 2025

    Bulgaria joins euro zone on 1 January, 2026

    Volodymyr Zelensky - Photo © European Union 2025

    EU to provide EUR 90 billion loan to Ukraine

    Banking AI-generated Image by Pete Linforth from Pixabay

    ECB and EU central banks lead on climate, but action on nature risks is missing – WWF report 

    Sponsor: WWF EU14 December 2025
    Eurosif Logo

    Operations & Project Manager, European Sustainable Investment Forum, Eurosif

    LATEST EU NEWS
    Electric hydro storage Cierny Vah, Slovakia

    EU issues EUR 650m call for energy infrastructure projects

    28 January 2026
    Antonio Costa - Narendra Modi - Ursula von der Leyen - Photo © European Union 2026

    EU and India conclude ‘mother of all trade deals’

    27 January 2026
    Grok - Photo by UMA media on Pexels

    Brussels orders probe into X over Grok sexual images

    26 January 2026
    Liquified natural gas tanker - Photo by Sylvain Thomas © European Union 2012

    EU Council gives green light to phasing out of Russian gas imports

    26 January 2026
    Greenhouse gas - Image by Karl Egger from Pixabay

    EU greenhouse gas emissions in 2024 down 20 pct since 2013

    23 January 2026

    Subscribe to EUbusiness Week

    Get the latest EU news

    CONTACT INFO

    • EUbusiness, 117 High Street, Chesham Buckinghamshire, HP5 1DE, United Kingdom
    • +44(0)20 8058 8232
    • service@eubusiness.com

    INFORMATION

    • About Us
    • Advertising
    • Contact Info

    Services

    • Privacy Policy
    • Terms
    • EU News

    SOCIAL MEDIA

    Facebook
    eubusiness.com © EUbusiness Ltd 2026

    Type above and press Enter to search. Press Esc to cancel.

    Sign In or Register

    Welcome Back!

    Login to your account below.

    Lost password?