EU staff regulations: European Parliament approves final deal that saves more money than originally expected

The European Parliament (EP) today approved by a broad majority (522 votes in favour, 150 against) the final deal to reform EU staff regulations, closing two years of negotiations.  

The Chairman of the Legal Affairs Committee, Klaus-Heiner Lehne, urged the EU Council to automatically endorse the agreement approved in plenary in Strasbourg as otherwise none of the savings envisaged in administrative spending can be effectively implemented from 1 January next year.

"We promised significant savings in the European public service and we’ve delivered," stressed Raffaele Baldassarre MEP, EPP Group Spokesman on the EU Staff Regulations. "The EU had to send a strong signal in these times of crisis. Through this agreement, we are taking responsible decisions in the interest of the credibility and authority of the EU Institutions."

A major reform of the EU staff regulations was envisaged in the context of the ten-year review of the salary adaptation method, in reaction to the challenges posed by the financial and economic crisis. In addition to the major goals of the EPP Group, namely enhancing efficiency, strengthening a system based on merit and reducing overall administrative costs whilst maintaining high-quality staff for the European institutions, the EP negotiators achieved savings of over 2.7 billion Euros for the period up until 2020, thus going around ten percent over the savings envisaged by the European Summit in February this year.

The EPP Group succeeded in ensuring that, in future, the merits of competitive staff are better evaluated. "We will have a career structure based on merit and efficiency, linked to a system which will improve the assessment of officials' professional performance while enhancing the link between functions and responsibilities," underlined Mr Baldassarre.

The text agreed comprises, inter alia, a 5% staff cut (2500 jobs in all EU bodies) by 2017, an increase in working time from 37.5 hours per week to 40 hours per week without any compensation, the freeze of salaries, pensions and allowances in 2013 and 2014, the reintroduction of a 6% solidarity levy in addition to the existing income tax of up to 45 %; an increased levy of 7% for the two highest grades. There will be significantly lower end-of-career salaries (between -22 and -40%). Retirement age will be raised from 63 to 66 for new staff and to 65 for current staff. In addition to cuts in allowances and holidays, these measures will add up to total savings of 2.7 billion Euros (plus the 1.5 billion value of additional working hours and cuts in leave) for the period 2014 to 2020 and, in addition to this, to 1.5 billion per year in the long term.