ORDER OF THE COURT (Fourth Chamber)
5 February 1998 (1)
(Officials - Pay slips - Weightings - Regulations (EEC) Nos 3761/92, 3765/92 and 3766/92 - Plea of inadmissibility)
In Case C-30/96 P,
Giovanni Battista Abello and Others,
Gerhard Riesch,
represented by Michele Tamburini and Franco Colussi, of the Milan Bar, with an address for service in Luxembourg at the latter's Chambers, 36 Rue de Wiltz,
appellants,
APPEAL against the judgment of the Court of First Instance of the European Communities (Fourth Chamber) in Joined Cases T-544/93 and T-566/93 Abello and Others v Commission [1995] ECR-SC II-815, seeking to have that judgment set aside,
the other party to the proceedings being:
Commission of the European Communities, represented by Gianluigi Valsesia, Principal Legal Adviser, acting as Agent, assisted by Alberto Dal Ferro, of the Vicenza Bar, with an address for service in Luxembourg at the office of Carlos Gómez de la Cruz, of its Legal Service, Wagner Centre, Kirchberg,
supported by
Council of the European Union, represented by Anna Lo Monaco, of its Legal Service, acting as Agent, with an address for service in Luxembourg at the office of Alessandro Morbilli, Manager of the Legal Affairs Directorate of the European Investment Bank, 100 Boulevard Konrad Adenauer,
intervener,
THE COURT (Fourth Chamber),
composed of: H. Ragnemalm, President of the Chamber, J.L. Murray (Rapporteur) and K.M. Ioannou, Judges,
Advocate General: P. Léger,
Registrar: R. Grass,
after hearing the Advocate General,
makes the following
-1. Equivalence of purchasing power - the principle that all officials and other servants of the Community, wherever they are assigned and in whichever currency their remuneration is paid, should have equal overall purchasing power (or economic parity) - has its legal basis in Articles 63, 64 and 65 of the Staff Regulations of Officials of the European Communities (hereinafter the Staff Regulations); the same provisions apply to members of the temporary and auxiliary staff pursuant to Articles 20 and 64 of the Conditions of Employment of other Servants of the European Communities. Effect is given to that principle through the application to financial entitlements of weightings which reflect the ratio between the cost of living in Brussels (the reference city) and the various capitals of the Member States or other places where officials are employed.
2. By decision of 26 June 1976 (unpublished) laying down the method for adjusting the remuneration of officials and other servants of the European Communities, provision was made for the periodic review of weightings so as to monitor whether they accurately reflect purchasing power equivalences between salaries in the various places of employment (Chapter II, paragraph 1, second subparagraph, of that decision).
3. By Decision 81/1061/Euratom, ECSC, EEC of 15 December 1981 amending the method of adjusting the remuneration of officials and other servants of the Communities (OJ 1981 L 386, p. 6), the Council laid down the detailed rules for the application of Article 65 of the Staff Regulations for the period from 1 July 1981 to 30 June 1991.
4. Decision 81/1061 made provision for the Council to adjust the weightings annually - in the context of the annual pay review under Article 65(1) of the Staff Regulations - on a proposal from the Commission and on the basis of information provided by the national statistical institutes, having regard to the joint cost-of-living index drawn up by the Statistical Office of the European Communities (hereinafter Eurostat) in accordance with the Fisher method, and taking into account the ratio between the cost-of-living index numbers in the ... countries [concerned] and the cost-of-living index number in Brussels and Luxembourg. Decision 81/1061 also provided that, in the event of a substantial change in the cost of living, interim adjustments would be made where necessary (Article 65(2) of the Staff Regulations) and confirmed at the time of the annual adjustments.
5. Decision 81/1061 also provided for the quinquennial review of weightings: on the occasion of each such review, Eurostat must verify, in agreement with the national statistical departments of the Member States, whether the ratios between weightings accurately reflect purchasing power equivalences between salaries paid to staff serving in the capitals of the Member States; such a check must also be carried out for other places of employment where there appears to be a danger of considerable distortion. On the basis of the results of that verification, the Commission must propose the quinquennial adjustment of weightings to the Council.
6. In the course of those checks, it had occasionally been noted that the way in which the joint index method had been implemented gave rise to significant disparities between the figures extrapolated using the joint index and the new findings of geographical surveys.
7. On 19 December 1991 the Council therefore adopted Regulations (ECSC, EEC, Euratom) Nos 3830/91, 3831/91, 3832/91, 3833/91 and 3834/91 amending the Staff Regulations and the Conditions of employment of other servants of the Communities with regard, inter alia, to the detailed rules for adjusting their remuneration and pensions, and the weightings applied thereto (OJ 1991 L 361, pp. 1, 7, 9, 10 and 13, respectively).
8. In particular, Regulation No 3830/91 renewed the existing method of adjusting remuneration for ten years, with certain amendments, incorporating it in the Staff Regulations as Annex XI. Under the new method, on the occasion both of the annual pay review and the interim adjustments, Eurostat is to calculate, in agreement with the national statistics institutes, the economic parities which establish the equivalence of purchasing power of the salaries of European officials serving in the capitals of the Member States and in certain other places of employment, with reference to Brussels. Thus the use of a joint index for calculating weightings was replaced by a method along the lines of that used for thequinquennial verification, definitive weightings being therefore fixed annually.
9. As from 1 July 1991, the new method for adjusting remuneration was to be taken into account in determining the weightings. However, on the occasion of the 1991 annual adjustment and the 1992 interim adjustment, that method could not be used to fix definitive weightings on account of the lack of statistical data. Accordingly, the weightings were fixed by the Council subject to later rectification following the quinquennial verification of the weightings for the period from 1 January 1986 to 31 December 1990.
10. It was against that background that, on 21 December 1992, the Council adopted Regulations (ECSC, EEC, Euratom) Nos 3765/92, 3766/92 and 3761/92 adjusting, with effect from 1 January 1991, 1 July 1991 and 1 July 1992, respectively, the remuneration and pensions of officials and other servants of the European Communities, and the weightings applicable thereto (OJ 1992 L 383, pp. 9, 11, 1 respectively). Regulation No 3765/92, which gives effect to the quinquennial review, is based on Decision 81/1061, whereas Regulations Nos 3761/92 and 3766/92 are based on Annex XI to the Staff Regulations. Those Council regulations fix, inter alia, a weighting for Italy of 111.5 with effect from 1 January 1991, 112.2 with effect from 1 July 1991 and 113.4 with effect from 1 July 1992, and a specific weighting for Varese of 104.3, 103.5 and 105.8, respectively, for the same dates.
-11. The applicants in Case T-544/93 are 1 405 Commission officials who are employed at Ispra (Varese).
12. The applicant in Case T-566/93 is a Commission official employed at Ispra (Varese).
13. In December 1992 the applicants received the adjustments of their remuneration calculated on the basis of Regulations Nos 3765/92 and 3766/92 and, in January 1993, they received their pay slips for December 1992, drawn up on the basis of Regulation No 3761/92.
14. By memoranda of 18 March 1993, Mr Riesch, acting alone, and the other applicants, acting jointly, submitted complaints under Article 90(2) of the Staff Regulations, challenging the weightings fixed by Regulations Nos 3765/92, 3766/92 and 3761/92.
15. By letter of 12 August 1993 the Commission notified Mr Riesch of a decision rejecting his complaint.
16. The Commission did not respond to the complaints submitted by the other applicants.
17. Those are the circumstances in which, by application lodged at the Registry of the Court of First Instance on 18 October 1993, Mr Abello, together with 1 404 other officials or servants, brought an action, registered as Case T-544/93.
18. By application lodged at the Registry of the Court of First Instance on 15 November 1993, Mr Riesch brought an action, registered as Case T-566/93.
19. By orders of the President of the Fifth Chamber of the Court of First Instance of 2 and 3 March 1994, the Council was given leave to intervene in Cases T-566/93 and T-544/93 in support of the forms of order sought by the Commission.
20. By order of the President of the Fifth Chamber of the Court of First Instance of 20 June 1994, Cases T-544/93 and T-566/93 were joined for the purposes of the oral procedure and the judgment.
The judgment under appeal
The appeal
Pleas in law
Findings of the Court
Costs
61. Under Article 69(2) of the Rules of Procedure, which applies to appeal proceedings by virtue of Article 118 thereof, the unsuccessful party is to be ordered to pay the costs, if they have been applied for. Since the appellants have been unsuccessful, they must be ordered to pay the costs.
On those grounds,
THE COURT (Fourth Chamber),
hereby orders:
1. The appeal is dismissed.
2. Mr Abello and Others and Mr Riesch shall pay the costs.
Luxembourg, 5 February 1998.
R. Grass H. Ragnemalm
Registrar President of the Fourth Chamber
1: Language of the case: Italian.