Judgment Case T-47/91 Analysis

Principles for paying officials that consider differences in purchasing power across locations.

The concept that salaries should reflect equivalent buying power, regardless of location.

The place where an official works and resides.

A country that is not a member of the European Union or a similar organization.

Rules and guidelines for employees of a specific organization, such as in the context of the European Commission.

The payment of a salary in its full amount without any deductions or adjustments.

A section within the Staff Regulations with specific guidelines about a certain topic, such as relocation allowance.

Adjusting a salary to reflect the relative value of currencies between payment locations.

A factor that adjusts an official's salary based on the cost of living in their location.

The principle that salaries should reflect the same buying power, regardless of the location.

This article outlines the standard payment rules for officials working outside of Belgium, stating that their salaries are paid in Belgian francs and subject to weighting for Belgium.

This article allows officials to request payment in the currency of their employment location, subject to currency weighting for the new location.

Internal guidelines within the Commission that provide specific instructions regarding the payment of officials in the currency of their employment location, up to 80% of their net salary.

The principle that officials should not be treated differently based on their location or currency of payment.

Articles 11 and 12 of Annex X, along with the internal directives, define the rules for paying officials in different currencies and locations, impacting their overall salaries.

Paying officials in the local currency, subject to weighting, can offer practicality and convenience for officials in their daily life.

Annex X benefits for officials serving outside the EU aim to compensate for the disadvantages they face compared to officials working within the EU.

Officials serving outside the EU often experience frequent rotation, meaning they move to different locations every few years. This contrasts with the stability of working within the EU.

The Commission states that the different working conditions and living conditions in non-member countries require adjustments in benefits, including housing and mobility.

Some EU Member States provide free accommodation for their diplomatic staff abroad, which is seen as a relevant practice in the context of addressing the mobility challenges of EU officials serving abroad.

The mobility requirement means that EU officials stationed abroad often need to find new housing frequently, which can be a significant challenge, especially in unfamiliar locations.

The Commission argues that free accommodation is justified due to the frequent transfers required for officials stationed abroad, which need to maintain a stable base within Europe.

These officials frequently relocate, requiring them to find new housing, navigate unfamiliar environments, and maintain connections with their families back home.

The Commission emphasizes the importance of supporting EU officials stationed abroad to help them adapt to challenging conditions and ensure they can effectively carry out their duties.

The entity responsible for deciding whether to pay an official partially or fully in the currency of their work location. Normally, it is the Commission.

The payment of an official's salary in the currency of their work location.

The official can request it, but the appointing authority has the final decision on whether to pay all or part of the salary in local currency.

If payment is made in local currency for officials working in both member and non-member countries, this could create a situation where expenses are double-counted.

The official can choose the percentage they would like paid in their local currency, and the appointing authority cannot arbitrarily reject it.

Community officials serving outside the Community should not be discriminated against when it comes to their children's education. They should receive increased allowances to afford suitable education, even if it's expensive.

Officials serving outside the Community face additional health risks and often higher medical costs. To address this, they receive supplementary insurance covering 100% of medical fees.

While officials serving outside the Community get supplementary health insurance for 100% of medical fees, they are required to pay half of the insurance cost.

Officials serving in non-member countries are intended to have a similar status to national diplomats working in similar conditions, considering their roles as representatives of the Community.

For those working in external delegations, their job often involves moving around, and their center of interests might not align with their place of work due to their family or personal needs.

The situation of officials serving in non-member countries differs from those serving within the Community, requiring special considerations for salaries, benefits and living conditions.

The key question is whether officials serving in non-member countries are being treated differently compared to those serving within the Community.

To ensure fairness, it's necessary to analyze whether the special provisions for officials serving in non-member countries create any inequalities compared to those serving within the Community.

The applicant argues that these articles violate the principle of equal treatment for officials by creating a system that disadvantages officials working outside of Belgium.

The principle of equal treatment, as established in Article 64 of the Staff Regulations, guarantees that officials have essentially the same purchasing power regardless of their location.

The articles limit the weighting for the official's location of employment to 80% of their salary, effectively reducing their purchasing power compared to officials working in Belgium or other non-member countries.

One consequence of this unfair treatment is that the applicant experiences a 7.8% reduction in their salary due to the limited weighting application.

Officials working in Belgium have a substantial advantage under Article 11 of Annex X as their salaries are paid in Belgian francs with full weighting for Belgium, ensuring high purchasing power despite potential cost of living differences.

Officials working in a non-member country may have a lower purchasing power, as the weighting is often less than 100%, while officials in Belgium receive full weighting.

The limit of 80% on weighting for the official's location creates an artificial reduction in purchasing power, making it discriminatory compared to officials working in Belgium.

The applicant argues that they are discriminated against in two ways: they receive a lower weighting than officials in a non-member country and they are disadvantaged compared to officials working in Belgium.