# EUR-Lex - 52005PC0028 - EN

Important legal notice

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# 52005PC0028

**Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EC) No 1177/2003 concerning Community statistics on income and living conditions (EU-SILC) /* COM/2005/0028 final - COD 2005/0004 */ **

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Brussels 04.02.2005

COM(2005) 28 final

2005/0004 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

amending Regulation (EC) No 1177/2003 concerning Community statistics on income and living conditions (EU-SILC)

(PRESENTED BY THE COMMISSION)

EXPLANATORY MEMORANDUM

1. BACKGROUND AND BRIEF HISTORY

1. On 16 June 2003, the European Parliament and the Council adopted Regulation (EC) No 1177/2003 concerning Community Statistics on Income and Living Conditions (EU-SILC), which was subsequently published in the Official Journal of the EU on 3 July 2003. Under this Regulation, the EU-SILC project will be launched in 2004 or in 2005 in all EU Member States, in Iceland and Norway.

2. The aim of this Regulation is to establish a common framework for the systematic production of Community statistics on Income and Living Conditions (EU-SILC). EU-SILC is to become the reference source of comparative statistics on income .

3. Because the new SILC project is a source for key socio-economic indicators and is to be used by the Council and the Commission in the fight against poverty and social exclusion in the EU, it must meet high statistical quality standards, mainly a high response rate, a low error rate and full geographical coverage.

2. POLICY CONTEXT

4. The SILC project is also to be launched in the ten new Member States. However, it appears that all these new Member States, with the exception of Estonia, need more time to adapt their systems to the harmonised methods and definitions used to compile Community statistics. The sample sizes for these countries also need to be defined.

3. OBJECTIVE OF THIS NEW REGULATION

5. The proposed Regulation of the European Parliament and of the Council amending Regulation (EC) No 1177/2003:

- introduces a derogation in Article 4 to allow all the new Member States except Estonia to launch the SILC project in 2005;

- specifies in Article 13 that the EU financial contribution for Estonia will not be for the first four years of data collection but for four years from 2005;

- defines in Annex the minimum effective sample size for each of the ten new Member States.

4. FINANCIAL IMPLICATIONS

6. The proposed Regulation of the European Parliament and of the Council has a financial implication for the Commission. The EU contribution for the first four years of data collection of the SILC information in the old EU Member States, in Iceland and Norway amounted to €38 650 000. It amounts to €9 556 000 for the new Member States.

5. NEXT STEPS

7. The proposed Regulation will be submitted to the European Parliament and the Council for their consideration.

2005/0004(COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

amending Regulation (EC) No 1177/2003 concerning Community statistics on income and living conditions (EU-SILC)

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 285 thereof,

Having regard to the proposal from the Commission,[1]

Acting in accordance with the procedure laid down in Article 251 of the Treaty,[2]

Whereas:

(1) Regulation (EC) No 1177/2003 of the European Parliament and of the Council of 16 June 2003 concerning Community statistics on income and living conditions (EU-SILC)[3] establishes a common framework for the systematic production of Community statistics on income and living conditions encompassing comparable and timely cross-sectional and longitudinal data on income and on the level and composition of poverty and social exclusion at national and European levels.

(2) As a result of the accession of new Member States to the European Union on 1 May 2004, there is a need to enlarge Annex II to Regulation (EC) No 1177/2003, since that Annex sets out for each Member State the minimum effective sample sizes required under the EU-SILC scheme.

(3) Furthermore, it appears that most of the new Member States, and several of the existing Member States, need additional time to adapt their systems to the harmonised methods and definitions used to compile Community statistics.

(4) Regulation (EC) No 1177/2003 should therefore be amended accordingly,

HAVE ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 1177/2003 is amended as follows:

In Article 4, paragraph (2) is replaced by the following:

“2. By way of derogation from paragraph 1, Czech Republic, Germany, Cyprus, Latvia, Lithuania, Hungary, Malta, Netherlands, Poland, Slovenia, Slovakia and United Kingdom may start the annual cross-sectional and longitudinal data collection in 2005.

This authorisation is subject to the condition that those Member States shall supply comparable data for the year 2004 for the cross-sectional common European Union indicators which have been adopted by the Council before 1 January 2003 in the context of the open method of coordination and which can be derived on the basis of the EU-SILC instrument.”

In Article 13, the following paragraphs 4 and 5 are added:

“4. By way of derogation from paragraph 1, Estonia shall receive a financial contribution from the Community towards the cost of the work involved for the four years of data collection from 2005.

5. The financing for the year 2007 shall still be ensured by a future Community programme.”

Annex II is replaced by the text shown in the Annex to this Regulation.

Article 2

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the European Parliament For the Council

The President The President

ANNEX

“ANNEX II

Minimum effective sample sizes

Households | Persons aged 16 or over to be interviewed |

cross-sectional | longitudinal | cross-sectional | longitudinal |

1 | 2 | 3 | 4 |

EU Member States |

Belgium | 4 750 | 3 500 | 8 750 | 6 500 |

Czech Republic | 4 750 | 3 500 | 10 000 | 7 500 |

Denmark | 4 250 | 3 250 | 7 250 | 5 500 |

Germany | 8 250 | 6 000 | 14 500 | 10 500 |

Estonia | 3 500 | 2 750 | 7 750 | 5 750 |

Greece | 4 750 | 3 500 | 10 000 | 7 250 |

Spain | 6 500 | 5 000 | 16 000 | 12 250 |

France | 7 250 | 5 500 | 13 500 | 10 250 |

Ireland | 3 750 | 2 750 | 8 000 | 6 000 |

Italy | 7 250 | 5 500 | 15 500 | 11 750 |

Cyprus | 3 250 | 2 500 | 7 500 | 5 500 |

Latvia | 3 750 | 2 750 | 8 500 | 6 500 |

Lithuania | 4 000 | 3 000 | 9 000 | 6 750 |

Luxembourg | 3 250 | 2 500 | 6 500 | 5 000 |

Hungary | 4 750 | 3 500 | 10 250 | 7 750 |

Malta | 3 000 | 2 250 | 7 000 | 5 250 |

Netherlands | 5 000 | 3 750 | 8 750 | 6 500 |

Austria | 4 500 | 3 250 | 8 750 | 6 250 |

Poland | 6 000 | 4 500 | 15 000 | 11 250 |

Portugal | 4 500 | 3 250 | 10 500 | 7 500 |

Slovenia | 3 750 | 2 750 | 9 000 | 6 750 |

Slovakia | 4 250 | 3 250 | 11 000 | 8 250 |

Finland | 4 000 | 3 000 | 6 750 | 5 000 |

Sweden | 4 500 | 3 500 | 7 500 | 5 750 |

United Kingdom | 7 500 | 5 750 | 13 750 | 10 500 |

Total of EU Member States | 121 000 | 90 750 | 251 000 | 187 750 |

Iceland | 2 250 | 1 700 | 3 750 | 2 800 |

Norway | 3 750 | 2 750 | 6 250 | 4 650 |

Total including Iceland and Norway | 127 000 | 95 200 | 261 000 | 195 200 |

NB:

The reference is to the effective sample size, which is the size required if the survey were based on simple random sampling (design effect in relation to the ‘risk of poverty rate’ variable = 1.0). The actual sample sizes will have to be larger to the extent that the design effects exceed 1.0 and to compensate for all kinds of non-response. Furthermore, the sample size refers to the number of valid households which are households for which, and for all members of which, all or nearly all the required information has been obtained.”

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): Statistics Activity(ies): Social Statistics |

TITLE OF ACTION: EU-SILC (COMMUNITY STATISTICS ON INCOME AND LIVING CONDITIONS) |

1. BUDGET LINE(S) + HEADING(S)

29 02 01: Politique d’informations statistiques

04 04 02 02: Actions visant à combattre et à prévenir l’exclusion sociale

2. OVERALL FIGURES

2.1. Total allocation for action (Operational part): €46 982 000 for commitment for EU-25

2.2. Period of application: 2003 - 2007

2.3. Overall multi-annual estimate of expenditure

(a) Schedule of commitment appropriations/payment appropriations (financial intervention) (see point 6.1.1)

€ Million

2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | Total |

Commitments | 6,423 | 12,057 | 11,681 | 11,692 | 5,127 | 46,980 |

Payments | 1,927 | 6,185 | 10,255 | 11,797 | 9,718 | 5,560 | 1,538 | 46,980 |

(b) Overall financial impact of human resources and other administrative expenditure

€ Million

Commitments/ payments | 1,080 | 1,080 | 1,080 | 1,080 | 4,320 |

TOTAL a+b | € Million |

Commitments | 7,503 | 13,137 | 12,761 | 12,772 | 5,127 | 51,300 |

Payments | 3,007 | 7,265 | 11,335 | 12,877 | 9,718 | 5,560 | 1,538 | 51,300 |

2.4. Compatibility with financial programming and financial perspective

Proposal compatible with the existing financial programming 2000-2006

2.5. Financial impact on revenue

No financial implications (involves technical aspects regarding implementation of a measure)

3. BUDGET CHARACTERISTICS

Type of expenditure | New | EFTA participation | Participation applicant countries | Heading Financial Perspective |

Non-comp | Diff | YES | YES | NO | Non-comp |

4. LEGAL BASIS

- Articles 285, 136, and 137 of the Amsterdam Treaty establishing the European Community

- Council Regulation (EC) No 322/97 on Community Statistics

- Proposal for a decision of the European Parliament and of the Council on the Community Statistical Programme 2003 to 2007 (COM(2001) 683 final)

- Decision No 50/2002/EC of the European Parliament and of the Council of 7 December 2001 establishing a programme of Community action to encourage cooperation between Member States to combat social exclusion

- Regulation (EC) No 1177/2003 of the European Parliament and of the Council of 16 June 2003 concerning Community statistics on income and living conditions (EU-SILC)

5. DESCRIPTION AND GROUNDS

5.1. Need for Community intervention

5.1.1. Objectives pursued

The general objective of EU-SILC (Community Statistics on Income and Living Conditions) is to produce timely and comparable cross-sectional and longitudinal data on income and on the level and composition of poverty and social exclusion at national and EU levels.

The high priority given by the Council and the Commission to the fight against poverty and social exclusion in the EU requires comparable and timely statistics to monitor this process.

5.1.2. Measures taken in connection with ex ante evaluation

The EU-SILC project was launched in 2003 on the basis of a general agreement and in 2004-2005 under the Framework Regulation in place of the European Community Household Panel (ECHP) survey that ran for the 1994-2001 period.

In 1999, the Directors of Social Statistics of the National Statistical Institutes decided to stop the ECHP project in 2001. This decision was taken in view of both the need to update the content according to the new political demands, and the request for operational improvement, i.e. mainly the timeliness of the data produced.

In 2000, the Directors of Social Statistics supported the introduction of a legal act for EU-SILC. The draft of the related Framework Regulation was then presented and amended following decisions taken during the meetings of the Statistical Programme Committee (SPC) on 30/05/01 and of the Directors of Social Statistics on 11-12/06/01.

The total costs for the collection of the EU-SILC data will be around €47 million over a five-year period. Fifty-five percent of the data collection costs will be supported by the Commission for the first four year of the project in each country, since it is a new project. Depending on the country between 37% and two-thirds of the data collection will be given to the countries.

The yearly data collection costs for the ECHP project were lower (€10 million). However, the Commission was not financing more than half of the costs.

EU-SILC evaluation

It is planned to carry out a regular evaluation of the EU-SILC project:

- Annual intermediate quality reports relating to the common cross-sectional EU indicators, as well as annual final quality reports covering both cross-sectional and longitudinal components of EU-SILC and focusing on the internal accuracy, will be produced by each Member State as well as by Iceland and Norway.

- The Commission will produce annual comparative intermediate and final quality reports on the basis of the reports mentioned above.

- From 2004 on, the Commission will organise methodological studies to estimate the impact on comparability of the national data sources used and to identify best practices to be followed.

- In addition, no later than 31 December 2007, the Commission will submit a report to the European Parliament and the Council on the work done in the preceding years under the Regulation.

5.2. Action envisaged and budget intervention arrangements

- The target population(s): Community policies, national governments, businesses, universities, research organisations, and the general public.

- The concrete measures to be taken to implement the action: launching of household/individual surveys in all EU Member States and Iceland and Norway, combined with register information in some countries.

- On average, the countries will support 45% of the costs, but country contributions will vary from 33.3% to 63%.

- The immediate outputs of each action: annual production of survey (combined with register) data.

- The expected outcomes solving needs or problems: annual production of comparable and timely data on income and on the level and composition of poverty and social exclusion for the EU as a whole and for each EU Member State as well as for Iceland and Norway.

5.3. Methods of implementation

Method used to implement the planned actions: direct management by the Commission using either regular or outside staff.

6. FINANCIAL IMPACT

6.1. Total financial impact on Part B - (over the entire programming period)

6.1.1. Financial intervention

€ Million |

2003 | 2004 | 2005 | 2006 | 2007 |

Eurostat 29 02 01 | 3,2115 | 6,0285 | 5,8405 | 5,846 | 2,5635 |

EMPL 04 04 02 02 | 3,2115 | 6,0285 | 5,8405 | 5,846 | 2,5635[4] |

TOTAL | 6,423 | 12,057 | 11,681 | 11,692 | 5,127 |

National shares of the Community funds will be allocated among EU and EEA countries as follows:

€ |

2003 | 2004 | 2005 | 2006 | 2007 | TOTAL |

Belgium | 571 441 | 567 841 | 567 841 | 567 841 | 2 274 964 |

Czech Republic | 351 825 | 351 825 | 351 825 | 351 825 | 1 407 300 |

Denmark | 261 651 | 261 651 | 261 651 | 261 651 | 1 046 604 |

Germany | 1 133 175 | 1 133 175 | 1 133 175 | 1 133 175 | 4 532 700 |

Estonia | 181 787 | 160 616 | 162 471 | 164 325 | 669 199 |

Greece | 277 783 | 277 783 | 277 783 | 277 783 | 1 111 132 |

Spain | 820 691 | 820 691 | 820 691 | 820 691 | 3 282 764 |

France | 874 964 | 1 065 150 | 1 065 150 | 1 065 150 | 4 070 414 |

Ireland | 619 800 | 619 800 | 619 800 | 619 800 | 2 479 200 |

Italy | 1 005 563 | 1 005 563 | 1 005 563 | 1 005 563 | 4 022 252 |

Cyprus | 236 000 | 206 000 | 213 667 | 221 533 | 877 200 |

Latvia | 112 171 | 121 486 | 126 153 | 136 218 | 496 028 |

Lithuania | 149 172 | 151 144 | 161 327 | 173 333 | 634 976 |

Luxembourg | 475 800 | 475 800 | 475 800 | 475 800 | 1 903 200 |

Hungary | 274 985 | 284 041 | 292 302 | 309 398 | 1 160 726 |

Malta | 198 204 | 209 635 | 213 192 | 216 819 | 837 850 |

Netherlands | 502 365 | 502 365 | 502 365 | 502 365 | 2 009 460 |

Austria | 664 781 | 664 781 | 664 781 | 664 781 | 2 659 124 |

Poland | 463 813 | 355 422 | 329 567 | 319 245 | 1 468 047 |

Portugal | 220 339 | 253 672 | 253 672 | 253 672 | 981 355 |

Slovenia | 282 879 | 287 227 | 292 859 | 298 491 | 1 161 456 |

Slovakia | 282 167 | 185 553 | 185 553 | 188 167 | 841 440 |

Finland | 295 000 | 295 000 | 295 000 | 295 000 | 1 180 000 |

Sweden | 335 367 | 335 367 | 335 367 | 335 367 | 1 341 468 |

United Kingdom | 1 245 296 | 1 089 101 | 1 084 789 | 1 112 500 | 4 531 686 |

TOTAL EU25 | 6 423 180 | 12 056 938 | 11 680 689 | 11 692 344 | 5 127394 | 46 980 545 |

Iceland | 65 481 | 68 835 | 74 025 | 74 025 | 282 366 |

Norway | 235 372 | 235 372 | 235 372 | 235 372 | 941 488 |

6.2. Calculation of costs by measure envisaged in Part B (over the entire programming period)[5]

Commitments in € million

Breakdown | Type of outputs (projects, files ) | Number of outputs (total for years 1...n) | Average unit cost | Total cost (total for years 2003-2007) |

1 | 2 | 3 | 4=(2X3) |

Action 1 - Data collection for the cross-sectional component | Data | - 2004: 65 250 households - 2005: 127 000 households - 2006: 127 000 households - 2007: 127 000 households -2008: 61 750 households | 79,864 € per household | 40,571 million € |

- Additional data collection for the longitudinal component 1 | Data | - 2004: 10 000 households - 2005: 21 500 households - 2006: 21 500 households - 2007: 21 500 households - 2008: 5 750 households | 79,864 € per household | 6,409 million € |

TOTAL COST | 46,980 million € 2 |

1 In most countries, the cross-sectional and longitudinal components will be combined into one operation; in a few countries, two separate operations will be carried out: the additional number of households corresponding to the additional data collection for the longitudinal component will be around 20.000 households.

2 €38 686 million will be borne by countries

7. IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1. Impact on human resources

Types of posts | Staff to be assigned to management of the action using existing resources | Total | Description of tasks deriving from the action |

Number of permanent posts | Number of temporary posts |

Permanent officials or Temporary staff | A B C | 2 2 1 | 2 3 |

Other human resources |

Total | 5 | 5 | 10 |

7.2. Overall financial impact of human resources

Type of human resources | Amount € | Method of calculation * |

Officials Temporary staff | 540 000 540 000 | 5*108 000 € per year 5*108 000 € per year |

Other human resources (give budget line) |

Total | 1 080 000 |

The amounts are the total expenditure for twelve months.

7.3. Other administrative expenditure deriving from the action

Budget line (number and heading) | Amount € | Method of calculation |

Overall allocation (Title A7) A0701 – Missions A07030 – Meetings A07031 – Compulsory committees[6] A07032 – Non-compulsory committees4 A07040 – Conferences A0705 – Studies and consultations ... Other expenditure (state which) |

Information systems (A-5001/A-4300) |

Other expenditure - Part A (state which) |

Total |

The amounts are the total expenditure for twelve months.

I. Annual total (7.2 + 7.3) II. Duration of action III. Total cost of action (I x II) | 1 080 000 € 4 Years 4 320 000 € |

7.4. Allocation

The need for human and administrative resources shall be covered within the allocation granted to the managing DG in the framework of the annual allocation procedure.

8. FOLLOW-UP AND EVALUATION

8.1. Follow- up arrangements

Implementation of the EU-SILC project will be handled by comitology procedure. Commission Regulations will be developed in relation to the list of variables to be included in EU-SILC: the updated definitions, the sampling and tracing and fieldwork aspects including imputation, and the content of the quality reports to be transmitted by Member States as well as by Iceland and Norway to Eurostat.

8.2. Arrangements and schedule for the planned evaluation

The main instruments used for the evaluation of the EU-SILC project are the annual intermediate quality reports relating to the common cross-sectional EU indicators and the annual quality reports covering both cross-sectional and longitudinal components of EU-SILC. The latter will also focus on the internal accuracy produced by each country, as well as the report produced no later than 31 December 2007 by the Commission to the European Parliament and the Council on the work done in the preceding years under the Regulation.

In addition, rolling reviews will be used for the evaluation of the EU-SILC project during its implementation.

User surveys will be carried out in order to give a clear picture of strengths and weaknesses. These evaluation activities will take place in the context of Eurostat's Corporate Plan.

9. ANTI-FRAUD MEASURES

A revised system of internal management and control was put in place following the Commission's Reform initiative on financial management. This system included a reinforced internal audit capability.

Annual monitoring of progress with implementation of the Commission's Internal Control Standards is designed to give assurance on the existence and functioning of procedures for the prevention and detection of fraud and irregularities.

New rules and procedures have been adopted for the principal budgetary process: calls for tenders, grants, commitments, contracts and payments. The manual of procedures is made available to everyone involved in financial acts with a view to clarifying responsibilities, simplifying workflows and indicating key control points. Training on their use is provided. The manuals are subject to regular review and updating.

[1] OJ

[2] Opinion of the European Parliament of 14 May 2002 (not yet published in the Official Journal), Council Common Position of 6 March 2003 (OJ C 107 E, 6.5.2003, p. 26) and Decision of the European Parliament of 13 May 2003 (not yet published in the Official Journal).

[3] OJ L 165, 3.7.2003, p. 1.

[4] The financing for the year 2007 shall still be ensured by a future Community programme.

[5] For further information, see separate explanatory note.

[6] Specify the type of committee and the group to which it belongs.