Thus, the Court concludes that the Council has no margin of discretion allowing it to decide upon a salary adjustment different to that proposed by the Commission on the basis of the criteria laid down in Article 3 of Annex XI of the Staff Regulations alone, except under the special procedure provided for by Article 10 of that Annex.

Consequently, the articles of the regulation that fix new amounts for salaries are annulled. However, in order to avoid creating a legal vacuum in the EU salary regime, the effects of those articles are maintained until such time as a new regulation, adopted by the Council, enters into force.

http://curia.europa.eu/jcms/upload/docs/application/pdf/2010-11/cp100114en.pdf