Monday, 25 February 2013

The Administrative Expenses of Running the ECB and its New Head Quarters

According to the 2012 accounts for the ECB,
The ECB’s administrative expenses consist of staff costs and all other administrative expenses. Staff costs rose marginally to €219 million in 2012 (2011: €216 million). Other administrative expenses, comprising rental of premises, professional fees and other goods and services, amounted to €242 million in 2012 (2011: €226 million) and included depreciation charges on fixed assets amounting to €13 million. The vast majority of the costs incurred in connection with the construction of the ECB’s new premises are excluded from this item and were capitalised under the heading “Assets under construction”, which is part of “Tangible and Intangible Fixed Assets”. “Assets under construction” increased by €191 million to €530 million in 2012.
That's €461 million in administrative expenses! As for the new and spectacular ECB head quarters under construction ("assets under construction") scheduled to be completed in 2014, the total costs are expected to be around €1.2 billion compared to the €850 million original estimate. Not bad for the euro area which is, if it wasn't for the ECB printing machine, virtually bankrupt. "Austerity", of course, does not apply to the EU bureaucrats.

Read more about the extravagant building here.

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