Text proposed by the Commission Amendments proposed by the ECB (1)

Amendment 1

(proposed new citation)

‘Having regard to the Treaty on the Functioning of the European Union, Having regard to Council Regulation (EC) No 2494/95 of 23 October 1995 concerning harmonized indices of consumer prices, and in particular Article 3 thereof,’ ‘Having regard to the Treaty on the Functioning of the European Union, Having regard to Council Regulation (EC) No 2494/95 of 23 October 1995 concerning harmonized indices of consumer prices, and in particular Article 5(3) thereof, Having regard to the opinion of the European Central Bank,’

Explanation: The second citation of the draft regulation refers to the legal basis for the draft legislation. In doing so, it refers to Article 5(3) of the HICP Regulation, according to which the Commission shall (i) adopt implementing measures necessary in order to ensure the comparability of HICPs and to maintain and improve their reliability and relevance, and (ii) request the ECB to provide an opinion on such measures which it proposes to submit to the Committee. It is, therefore, Article 5(3) of the HICP Regulation, and not Article 3 of the HICP Regulation concerning its scope of application, which should be referred to in the second citation of the draft regulation. Since the ECB is required to be consulted on the draft regulation under Article 127(4) of the Treaty, a citation to this effect should be inserted in the draft regulation in line with the second paragraph of Article 296 of the Treaty, according to which legal acts shall state the reasons on which they are based and shall refer to, inter alia, opinions required by the Treaties.

Amendment 2

(proposed amendment of recital 1)

‘(1) Harmonized Indices of Consumer Prices (HICP) are harmonized inflation measures required by the Commission and the European Central Bank for the performance of their functions under Article 140 of the Treaty on the Functioning of the European Union. HICPs are designed to facilitate international comparisons of consumer price inflation. They serve as important indicators for the management of monetary policy.’ ‘(1) Harmonized Indices of Consumer Prices (HICP) are harmonized inflation measures required by the Commission and the European Central Bank for the performance of their functions under Article 140 of the Treaty on the Functioning of the European Union. HICPs are designed to facilitate international comparisons of consumer price inflation. They serve as important indicators used by the European System of Central Banks for the conduct of monetary policy pursuant to Article 127(2) of the Treaty on the Functioning of the European Union.’

Explanation: The European System of Central Banks uses the HICP not only for the purpose referred to in Article 140 of the Treaty, but also for its conduct of monetary policy under Article 127(2) of the Treaty.

Amendment 3

(proposed amendment of recital 4)

‘(4) Article 9 of Regulation (EC) No 2494/95 requires HICPs to be price indices of the Laspeyres-type. When relative prices of different goods and services change, consumers expenditure patterns can change to an extent that makes it necessary for the weights of the corresponding expenditure groups, and in particular their underlying quantities, to be updated in order to ensure their relevance.’ ‘(4) Article 9 of Regulation (EC) No 2494/95 requires HICPs to be price indices of the Laspeyres-type. When economic conditions change, consumers expenditure patterns can change to an extent that makes it necessary for the weights of the corresponding expenditure groups, , to be updated in order to ensure their relevance.’

Explanation: Changes to the weights of expenditure groups may not only be triggered by changes in relative prices of different goods and services but may be triggered by any changes in economic conditions.

Amendment 4

(proposed amendment of recital 8)

‘(8) This Regulation should not require Member States to carry out new statistical surveys or to carry out family budget surveys more frequently than once every five years, taking into consideration that Member States are required to compile national accounts in accordance with the European System of Accounts (ESA 1995)7 and that the country weights, which are necessary for producing euro area, EU and other HICP aggregates, are based on national accounts data.’ ‘(8) This Regulation should not require Member States to carry out new statistical surveys or to carry out family budget surveys more frequently than once every five years, taking into consideration that Member States might be able to update the results from family budget surveys on the basis of other existing information or to have recourse to national accounts data compiled in accordance with the European System of Accounts (ESA 1995)7 and that the country weights, which are necessary for producing euro area, EU and other HICP aggregates, are based on national accounts data.’

Explanation: With a view to avoiding the conduct of additional statistical surveys it should be clarified that Member States may also update the results from family budget surveys on the basis of other existing information.

Amendment 5

(deletion of recital 10)

‘(10) The European Central Bank has been consulted in accordance with Article 5(3) of Regulation (EC) No 2494/95.’

Explanation: Since the ECB is required to be consulted on the draft regulation under the Treaty, a citation to this effect should be inserted in the draft regulation in line with Article 296 of the Treaty and recital 10 should be deleted.

Amendment 6

(proposed amendment of Article 3(2))

‘2. Each year, Member States shall therefore review and update HICP sub-index weights taking into account preliminary national accounts data on consumption patterns of year t-2 , except in exceptional and in duly motivated circumstances, as well as any available and relevant information from household budget surveys and other data sources which are sufficiently reliable for the purposes of the HICP.’ ‘2. Each year, Member States shall therefore review and update HICP sub-index weights taking into account preliminary national accounts data on consumption patterns of year t-2 , except in cases where relevant information from household budget surveys and other data sources is available for year t-2 and deemed to be more appropriate for the purposes of the HICP.’