# Gross National Income Regulation 2019

The Gross National Income Regulation (EU) 2019/516 (2019/516) is a Regulation in EU law that sets out methods for calculating "Gross Domestic Product" and "Gross National Income" in EU accounts and for member states. It repeals Council Directive 89/130/EEC, Euratom and Council Regulation (EC, Euratom) No 1287/2003.

## Contents

Article 1(1) states that "Gross national income at market prices (GNI) and gross domestic product at market prices (GDP) shall be defined in accordance with the European System of Accounts 2010 (ESA 2010) established by Regulation (EU) No 549/2013." Article 1(2) then states, "GDP means the final result of the production activity of resident producer units. It can be defined in three ways:
    (a) production approach: GDP is the sum of gross value added of the various institutional sectors or the various industries plus taxes and less subsidies on products (which are not allocated to sectors and industries). It is also the balancing item in the total economy production account;
    (b) expenditure approach: GDP is the sum of final uses of goods and services by resident institutional units (final consumption and gross capital formation) plus exports and minus imports of goods and services;
    (c) income approach: GDP is the sum of uses in the total economy generation of income account (compensation of employees, taxes on production and imports less subsidies, gross operating surplus and mixed income of the total economy)."
Article 1(3) defines GNI as "the total primary income receivable by resident institutional units: compensation of employees, taxes on production and imports less subsidies, property income (receivable less payable), gross operating surplus and gross mixed income. GNI equals GDP minus primary income payable by resident institutional units to non-resident institutional units plus primary income receivable by resident institutional units from the rest of the world."
Article 2 outlines the transmission of GNI data and additional information by member states to the Commission (Eurostat) annually before 1 October.
Article 3 requires member states to provide an inventory of the sources and methods used to produce GNI aggregates and their components.
Article 4 establishes a formal expert group to advise the Commission on the comparability, reliability, and exhaustiveness of GNI calculations.
Article 5 mandates that GNI data must be reliable, exhaustive, and comparable.
Article 6 allows for GNI information visits by the Commission (Eurostat) to verify the quality of GNI aggregates and their components.
Article 7 delegates power to the Commission to adopt delegated acts to ensure the reliability, exhaustiveness, and comparability of GNI data.
Article 8 establishes that the Commission shall be assisted by the European Statistical System Committee.
Article 9 requires the Commission to present a report to the European Parliament and the Council on the application of the Regulation by 1 January 2023.
Article 10 repeals Council Directive 89/130/EEC, Euratom, and Council Regulation (EC, Euratom) No 1287/2003.

## Criticism

The measures of GDP and GNI are widely criticised for counting as positive production that causes widespread pollution, greenhouse gas emissions, or harm to human health, particularly from gas, oil, coal, tobacco, firearms, or other harmful products and substances. Since it already excludes illegal products (such as drugs) from accounts, it has been recommended that GDP and GNI be redefined to exclude harmful (even if lawful) production.