Report from the Commission to the Council on the exception clause (Article 10 of Annex XI to the Staff Regulations)

During the discussions on the 2010 annual adjustment of the remuneration and pensions of EU staff the Council stated that the latest financial and economic crises had resulted in a serious and sudden deterioration of the economic and social situation within the EU and requested the Commission to submit appropriate proposals on the basis of Article 10 of Annex XI to the Staff Regulations (the exception clause).

The Commission has used 15 indicators to assess whether it is necessary to use the exception clause in 2011. In line with the European Economic Forecasts released by DG ECFIN on 13 May 2011, they show that the economic recovery in the EU continues to make headway.

The report concludes that there has been no serious and sudden deterioration in the economic and social situation within the Union during the reference period of 1 July 2010 to mid-May 2011, and that it is not appropriate to submit a proposal under Article 10 of Annex XI to the Staff Regulations.

However, on 29 June 2011, the Commission took note of a draft proposal for a new method, including possible amendments to the mechanism of the exception clause, in order to render its application automatic under specific conditions in the future.

EUR-Lex: COM(2011)440: Follow the progress of this document through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2011:440:FIN

---