Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the statistics relating to vocational training in enterprises

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. The Commission Communication of November 2001 entitled "Making a European Area of Lifelong Learning a Reality" underlines in paragraph 1.1 that the "Lisbon European Council confirmed lifelong learning as a basic component of the European social model". In this sense, lifelong learning encompasses all learning activities undertaken throughout life, with the aim of improving knowledge, skills and competence within a personal, civic, social and/or employment-related perspective. Learning is no longer given weight only in the area of education; it is also seen as a critical factor in areas of employment and social security, of economic performance and competitiveness extended to the whole lifecycle. Lifelong learning is an important issue also for scientists and engineers and other personnel involved in enterprises. Supporting the lifelong learning of R&D personnel in enterprises fosters the permanently high quality of knowledge production as well as the capability to absorb new knowledge from other sectors. This perception reflects the long-term strategy of the Lisbon Summit to strengthen employment and social cohesion in a knowledge-based society and economy. Nowadays, lifelong learning policy is a cornerstone in the European Employment strategy, underpinning several Employment Guidelines, and in all National Action Plans of the Member States implementing these guidelines.

In one of the building blocks for developing and implementing coherent national strategies for lifelong learning, "Sharing of roles and responsibilities", the Communication highlights the responsibility of employers for developing the competencies of their workforce. "Enterprises should be facilitated to become learning organisations, where everyone learns and develops through the work context...". Continuing training is increasingly at the core of policies to reduce unemployment and foster productivity and competitiveness in Europe. Skill development through continuing vocational training in enterprises is a crucial part of lifelong learning improving adaptability of the workforce and ensuring lifelong employability. Investment by enterprises in continuing vocational training reflects their willingness to devote resources to responding to the evolution of the labour market. But it also reflects the potential they have for doing so.

The Council Resolution of 27 June 2002 on lifelong learning "...welcomes the fact that the Communication of November 2001 established lifelong learning as one of the guiding principles for education and training, and recognises the relevance of the building blocks for lifelong learning strategies...".

The Council Resolution of 24 June 2003 on social and human capital underlines the importance of learning and training at work in building social and human capital in the knowledge society. Special reference is made to "...the importance of ensuring that all workers within their specific enterprises and organisations are fully involved and properly trained...which can help facilitate change, and are thus aware of the benefits in terms of improved competitiveness and quality of working life;...". The resolution highlights also "...the problem of well-educated/trained people having more possibilities and, in reality, more access to learning opportunities than less well-educated/trained people, who should most benefit from training, such as women and older workers:...".

The new European Employment Strategy, agreed on the 22 July 2003, has been revised to better account for the needs of an enlarged European Union, to react better to the challenges facing a modern labour market, and to contribute better to the Lisbon strategy. Two key specific guidelines within the EES tackle the need to improve skill levels through lifelong learning, and to address labour shortages and bottlenecks. The guidelines call upon Member states to address labour shortages and skill bottlenecks. Member States are also encouraged to implement comprehensive lifelong learning strategies in order to equip all individuals with the skills required for a modern workforce, and to reduce skills mismatch and bottlenecks in the labour market. The guidelines state policies will aim to achieve an increase in investment in human resources, in particular through a significant increase in investment by enterprises in the training of adults.

2. This recent focus, combined with the inclusion of education and training among the Community competencies for the first time in the Maastricht and Amsterdam Treaties, has created an increasing demand for statistics in the area of lifelong learning. In order to monitor lifelong learning as a process and assessing progress towards the implementation of related policies, appropriate and comparable statistical measures need to be developed and produced. For Eurostat, the creation of an integrated European Statistical Information System (ESIS) on education and learning is the goal in trying to measure lifelong learning. Within this framework, information on continuing vocational training provided by enterprises will shed light upon a key aspect of lifelong learning. Information is indispensable to establish and to assess policies and strategies with a view to adapting human resources to a changing economy.

3. The Continuing Vocational Training Survey is the only source that provides internationally comparable statistical data and indicators on continuing vocational training in enterprises both for the Member States and also for the acceding and candidate countries and the participating EFTA countries. The survey results can be used for benchmarking at several levels (EU, country, enterprise) on training provision, on access to and participation in training, on the intensity and the costs of training. The results also provide a description of the context in which enterprises operate, which helps employers and employees to compare their own experiences to wider standards.

Community statistics on enterprise training are important to evaluate the needs for support at European and national levels in an area that benefits employees and employers alike. The Continuing Vocational Training Survey is a unique data source at the international level for analysing enterprise training: the discrepancies between skills supply and demand, between training needs and the forms, fields and volume of training offered, between enterprises' own resources and the use of external providers. The survey opens the way to assess opportunities for enterprise training, especially for disadvantaged groups, older workers and women that are most affected by unemployment. Last but not least the survey provides essential information on the training cost that originate both for enterprises and the State and on methods of funding.

4. The first enterprise survey of continuing vocational training (CVTS1) was conducted in 1994. The survey was part of the action programme for the development of continuing vocational training in the European Community (FORCE) based on Council Decision 90/267/EEC of 29 May 1990. The growing policy interest in information on continuing vocational training in enterprises together with the demand to cover the fifteen EU Member States have led the European Commission to initiate a second survey. At its meeting in November 1997 the SPC gave its approval to the new survey. The second survey (CVTS2) was conducted in 2000/2001 in all the Member States, Norway and nine candidate countries.

The implementation of both CVTS1 and CVTS2 was based on "gentlemen's agreements" between Eurostat and the EU Member States. In CVTS, as in many other areas of statistical activities, such agreements have been an important step for creating the conditions for co-operation in the establishment of the survey and the development of a common survey approach. However, "gentlemen's agreements" cannot be seen as an alternative to legislation adopted under the co-decision procedure, in particular in the domain of enterprise surveys.

Therefore, after the implementation of CVTS2, Eurostat and the EU Member States decided to provide a legal basis for the data collection within the European Statistical System in the form of a Regulation of the European Parliament and Council. The Directors of Social Statistics gave their approval to this approach in their meeting on 22/23 April 2002. The proposal for a Regulation of the European Parliament and Council takes into account both the discussion in the CVTS2 Working Group (November 2002), comments sent by countries in writing and the discussion in the Education and Training Statistics Working Group (23/24 January 2003). The Directors of Social Statistics gave their approval to the draft at their meeting on 7/8 April 2003 and by written consultation launched on 15 May 2003.

5. The Continuing Vocational Training Survey is one of the main building blocks of an integrated European Statistical Information System on lifelong learning. According to the proposal it is intended to carry out the data collection regularly every five years. The statistics will provide quantitative and qualitative information on continuing vocational training in enterprises completed by basic information on initial training. The aspects covered by the survey will range from training policy, the volume, intensity and content of continuing training through to the cost and funding of training in enterprises.

It is proposed that a survey approach should be developed which aims to reduce the burden on respondents - on enterprises. The regulation will help to put the co-operation with enterprises in the Member States on a stable basis and to improve the quality and the completeness of the data.

6. The Regulation of the European Parliament and of the Council on the development and production of Community statistics on vocational training in enterprises is supposed to establish a common framework for the data collection within the European Statistical System.

2004/0041 (COD)

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the statistics relating to vocational training in enterprises

(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(1) thereof,

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

[1] OJ C [], [], p. [].

Having regard to the opinion of the European Economic and Social Committee [2],

[2] OJ C [], [], p. [].

Acting in accordance with the procedure laid down in Article 251 of the Treaty [3],

[3] OJ C 325, 24.12.2002, p. 133. Consolidated version.

Whereas:

(1) At the Lisbon European Council in March 2000 the European Union set the strategic goal of becoming the most competitive and dynamic knowledge-based society in the world, capable of sustained economic growth with more and better jobs and greater social cohesion.

(2) The employability, adaptability and mobility of citizens is vital for Europe to maintain its commitment to becoming the most competitive and dynamic knowledge-based society in the world.

(3) Lifelong learning is a key element in developing and promoting a skilled, trained and adaptable workforce.

(4) The Council Conclusions of 5 May 2003 on reference levels of European average performance in education and training (Benchmarks) [4] adopted the following benchmark: "Therefore, by 2010, the European Union average level of participation in Lifelong Learning should be at least 12,5% of the adult working age population (25 to 64 age group)".

[4] OJ C 134, 7.6.2003, p.4.

(5) The Lisbon European Council confirmed lifelong learning as a basic component of the European social model.

(6) The new European Employment Strategy confirmed by Council Decision of 22 July 2003 on guidelines for the employment policies of the Member States [5] aims to contribute better to the Lisbon strategy and to implement coherent and comprehensive strategies for lifelong learning.

[5] OJ L 197, 5.8.2003, p. 13-21.

(7) Particular attention has to be given to the training at the workplace as a crucial dimension of lifelong learning.

(8) Comparable statistical information at Community level, with specific respect to enterprise training, is essential for the development of lifelong learning strategies and for the monitoring of progress in their implementation.

(9) The production of specific Community statistics is governed by the rules set out in Council Regulation (EC) No 322/97 of 17 February 1997 on Community Statistics [6].

[6] OJ L 52, 22.2.1997, p. 61.

(10) The transmission of data subject to statistical confidentiality is governed by the rules set out in Council Regulation (EC) No 322/97 and in Council Regulation (Euratom, EEC) No 1588/90 of 11 June 1990 on the transmission of data subject to statistical confidentiality to the Statistical office of the European Communities [7].

[7] OJ L 151, 15.6.1990, p. 1, Regulation as amended by Regulation (EC) No. 322/97.

(11) Commission Regulation (EC) No 831/2002 of 17 May 2002 implementing Regulation (EC) No 322/97 concerning access to confidential data for scientific purposes [8] established the conditions pursuant to which access to confidential data transmitted to the Community authority may be granted.

[8] OJ L 133, 18.5.2002, p. 7.

(12) Since the objectives of the creation of common statistical standards that permit the production of harmonised data cannot be sufficiently achieved by the Member States and can therefore be better achieved at Community level, the Community may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is required to achieve those objectives.

(13) The measures necessary for the implementation of this Regulation should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission [9].

[9] OJ L 184, 17.7.1999, p. 23.

(14) The Statistical Programme Committee has been consulted in accordance with Article 3 of Council Decision 89/382/EEC, Euratom of 19 June 1989 establishing a Committee on the Statistical Programmes of the European Communities [10],

[10] OJ L 181, 28.6.1989, p. 47.

HAVE ADOPTED THIS REGULATION:

Article 1

Subject matter

This Regulation establishes a common framework for the production of Community statistics on vocational training in enterprises.

Article 2

Definitions

For the purpose of this Regulation, the following definitions shall apply:

(a) 'enterprise': the enterprise as defined in Council Regulation (EEC) No 696/93 of 15 March 1993 on the statistical units for the observation and analysis of the production system in the Community [11];

[11] OJ L 76, 30.3.1993, p. 1.

(b) 'NACE Rev. 1': the general industrial classification of economic activities in the European Community established by Council Regulation (EEC) No 3037/90 of 9 October 1990 on the statistical classification of economic activities of the European Community [12];

[12] OJ L 293, 24.10.1990, p. 1. Regulation as last amended by Commission Regulation (EC) N° 29/2002 (O.J. L 6, 10.1.2002, p.3).

(c) 'second Continuing Vocational Training Survey (CVTS2)': second European survey of continuing vocational training in enterprises carried out in 2000/2001 in all Member States for the reference year 1999.

Article 3

Data to be collected

1. The data shall be collected by the Member States with a view to produce Community statistics for the analysis of continuing vocational training in enterprises in the following domains:

(a) the training policy and training strategies of enterprises in developing the competencies of their workforce;

(b) the management, organisation and forms of continuing vocational training in enterprises;

(c) the role of social partners in ensuring adequate continuing vocational training in the workplace;

(d) the access to continuing vocational training, its volume and content, especially in context of economic activity and enterprise size;

(e) specific continuing vocational training measures of enterprises to improve the ICT skills of their workforce;

(f) chances of employees in SMEs to access continuing vocational training and to acquire new skills, and the particular needs of SMEs for providing training;

(g) equal opportunities to access continuing vocational training in enterprises for all employees, with specific respect to gender in particular;

(h) specific continuing vocational training measures of groups that are disadvantaged on the labour market;

(i) the expenditure on continuing vocational training: funding levels and funding resources, incentives for continuing vocational training;

(j) the evaluation of continuing vocational training in enterprises.

2. Specific data shall be collected by the Member States with respect to initial vocational training in enterprises on:

(a) participants in initial training;

(b) total expenditure on initial training.

Article 4

Scope

The statistics on vocational training shall cover at least all economic activities defined in sections C to K and O of the NACE Rev. 1.

Article 5

Statistical units

For the collection of the data the enterprise active in one of the economic activities referred to in Article 4 and employing 10 and more employees will be used as a statistical unit.

Article 6

Data sources

1. Member States shall acquire the required data using either a survey in enterprises or a combination of a survey in enterprises and other sources, applying the principles of reduced burden on respondents and of administrative simplification.

2. Through a survey the enterprises are asked to give correct and complete data within the prescribed deadlines.

3. The Member States may make it compulsory for enterprises to reply to the survey. In case of a compulsory survey enterprises shall be obliged to give correct and complete data within the prescribed deadlines.

4. Other appropriate sources, including administrative data, could be used to complete the data to be collected where these sources are appropriate in terms of relevance and timeliness.

Article 7

Survey characteristics

1. The survey shall be a sample survey. Sample sizes shall be in the range of those used in CVTS2 listed in the Annex.

2. Member States shall take the necessary measures to ensure that the data transmitted reflect the structure of the population of the statistical units. The survey shall be conducted in such a way as to permit a breakdown of the results at Community level in at least the following categories:

(a) economic activities pursuant to NACE Rev.1;

(b) size of the enterprises.

3. Sampling and precision requirements, specifications of the NACE and size categories into which the results can be broken down shall be determined by the Commission in accordance with the procedure referred to in Article 14.

Article 8

Survey approach

1. In order to reduce the burden on respondents the survey approach shall permit to the data collection to be customised with respect to :

(a) training and non-training enterprises;

(b) different forms of training.

2. The specific data to be collected according to training and non-training enterprises and the different forms of training shall be determined by the Commission in accordance with the procedure referred to in Article 14.

Article 9

Quality control and reports

1. Member States shall take all measures to ensure the quality of the data transmitted.

2. No later than 21 months after the end of the reference period Member States shall supply the Commission (Eurostat) with a quality report containing all the information and data that it requests to verify the quality of the data transmitted. They shall specify possible breaches of the methodological requirements.

3. The Commission (Eurostat) shall assess the quality of the data transmitted.

4. The quality requirements for the data to be collected and transmitted for Community statistics on vocational training in enterprises, the structure of the quality reports to be presented by the Member States and any measures necessary for assessing or improving the quality of the data shall be determined by the Commission in accordance with the procedure referred to in Article 14.

Article 10

Reference period and periodicity

1. The reference period to be covered by the data collection is one calendar year.

2. The Commission shall determine the first reference year for which the data are to be collected in accordance with the procedure referred to in Article 14.

3. Member States shall collect the data every five years.

Article 11

Transmission of data

1. Member States and the Commission, within their respective fields of competence, shall promote the conditions for increased use of electronic data collection, electronic data transmission and automatic data processing.

2. Member States shall transmit to the Commission (Eurostat) the individual data of enterprises in accordance with the existing Community provisions on transmission of data subject to confidentiality set out in Council Regulation (EC) No 322/97 of 17 February 1997 on Community Statistics [13] and in Council Regulation (Euratom, EEC) No 1588/90 of 11 June 1990 on the transmission of data subject to statistical confidentiality to the Statistical office of the European Communities [14]. Member States shall ensure that the transmitted data do not permit the direct identification of the statistical units.

[13] OJ L 52, 22.2.1997, p. 61.

[14] OJ L 151, 15.6.1990, p. 1, Regulation as amended by Regulation (EC) No. 322/97.

3. Member States shall transmit the data in electronic form, in conformance with the appropriate technical format and the interchange standard to be determined by the Commission in accordance with the procedure referred to in Article 14.

4. Member States shall transmit the complete and correct data within a period of time from the end of the reference year, which shall be no longer than 18 months.

Article 12

Report on implementation

1. Within 5 years of the entry into force of this Regulation and after consultation of the Statistical Programme Committee, the Commission shall transmit a report to the European Parliament and the Council on the implementation of this Regulation. In particular, this report shall :

(a) assess the benefits accruing to the Community, the Member States and the users of the statistics produced in relation to the burden on the respondents;

(b) identify areas for potential improvement and amendments considered necessary in the light of the results obtained.

2. Following the report on implementation, the Commission may propose the measures to improve the operation of this Regulation.

Article 13

Implementing measures

The measures necessary for the implementation of this Regulation, including measures to take account of economic and technical developments concerning the collection, transmission and processing of the data, shall be adopted in accordance with the procedure referred to in Article 14.

Article 14

Committee

1. The Commission shall be assisted by the Statistical Programme Committee.

2. Where reference is made to this paragraph, Articles 5 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.

The period laid down in Article 5(6) of Decision 1999/468/EC shall be set at three months.

Article 15

Financing

1. For the first reference year for which the Community statistics provided for in this Regulation are produced, the Commission shall make a financial contribution to the Member States to help cover the costs incurred by them in collecting, processing and transmitting the data.

2. The amount of the financial contribution shall be fixed as part of the relevant annual budgetary procedure. The budget authority shall determine the appropriation available.

3. In carrying out the Regulation, the Commission may have recourse to experts and to technical assistance organisations, the financing of which may be provided for within the overall financial framework for the decision. The Commission may organise seminars, colloquia or other meetings of experts as are likely to facilitate the implementation of the decision, and undertake appropriate information, publication and dissemination actions.

Article 16

Entry into force

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

Rounded gross sample sizes in CVTS2 [15]

[15] The calculation of sample sizes in the second European Continuing Vocational Training Survey (CVTS2) was based on an aimed relative standard error of 20% maximum (95%-confidence interval) for the estimated parameters which are proportions of "training enterprises", taking into account estimated proportions of training enterprises and expected response rates.

Country // Gross sample size (rounded)

Belgium // 4 000

Denmark // 2 800

Germany // 10 200

Greece // 4 400

Spain // 11 500

France // 8 100

Ireland // 2 100

Italy // 13 900

Luxembourg // 1 300

Netherlands // 8 000

Austria // 6 900

Portugal // 9 200

Finland // 3 100

Sweden // 5 800

United Kingdom // 4 000

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): Statistics

Activit(y/ies): Social Statistics

Title of action: Community Statistics on Vocational Training in Enterprises

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

29 02 01 (DG ESTAT) +04 02 15 (DG EMPL) +15 03 01 02 (DG EAC)

1,635 million EUR on 29 02 01 (DG ESTAT)

2,800 million EUR on 04 02 15 (DG EMPL)

1,700 million EUR on 15 03 01 02 (DG EAC)

2. OVERALL FIGURES

2.1. Total allocation for action (Financial interventions): 6.135.102 EUR for commitment

2.2. Period of application: 2005 - 2008

(period during which Community resources will be necessary)

2.3. Overall multiannual estimate on expenditure:

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

EUR million (to 3rd decimal place)

>TABLE POSITION>

b) Overall financial impact of human resources and other administrative expenditure (see points 7.2 and 7.3)

>TABLE POSITION>

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2.4. Compatibility with the financial programming and the financial perspective:

Proposal is compatible with the existing financial programming.

2.5. Financial impact on revenue:

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

3. BUDGET CHARACTERISTICS

>TABLE POSITION>

4. LEGAL BASIS

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

Council Regulation (EC) No 322/97 on Community statistics.

Decision No2367/2002/EC of the European Parliament and of the Council of 16 December 2002 on the Community statistical programme 2003 to 2007.

Council Decision (1999/382/EC) of 26 April 1999 establishing the second phase of the Community vocational training action programme 'Leonardo da Vinci'.

Decision No 1145/2002/EC of the European Parliament and of the Council of 10 June 2002 on Community incentive measures in the field of employment.

5. DESCRIPTION AND GROUNDS

5.1. Need for Community intervention

5.1.1. Objectives pursued

The objective of the proposed action is to produce comparable data on enterprise training at national and EU levels. Comparable statistical information is essential not only for the development of lifelong learning strategies but also for the monitoring of progress in their implementation.

5.1.2. Measures taken in connection with ex ante evaluation

The first enterprise survey of continuing vocational training (CVTS1) was conducted in 1994. The survey was part of the action programme for the development of continuing vocational training in the European Community (FORCE) based on Council Decision 90/267/EEC of 29 May 1990. The growing policy interest in information on continuing vocational training in enterprises together with the demand to cover the fifteen EU Member States have led the European Commission to initiate a second survey. At its meeting in November 1997 the SPC gave its approval to the new survey. The second survey (CVTS2) was conducted in 2000/2001 in all the Member States, Norway and nine candidate countries.

The implementation of both CVTS1 and CVTS2 was based on "gentlemen's agreements" between Eurostat and the EU Member States. After the implementation of CVTS2, Eurostat and the EU Member States decided to provide a legal basis for the data collection within the European Statistical System in the form of a European Parliament/Council Regulation.

The CVTS is the only source of internationally comparable statistical information on the effort devoted to continuing vocational training in enterprises and one of the key elements of an integrated European Statistical Information System on lifelong learning.

5.2. Actions envisaged and arrangements for budget intervention

- The target population: European Commission, European Parliament, national governments and administration at different levels, employers' organisations and Trade Unions, business, universities and research institutes.

- The concrete measures to be taken to implement the action: grants to the national statistical authorities responsible for training statistics for the first reference year for which the Community statistics are produced with a view to supporting all phases of the data collection (preparation, fieldwork, data processing/data transmission, elaboration of the technical report). The Commission commitments for 2005 and 2006 to Member States cover all work to be done from 2005 to 2008.

- On average, about one third of the total cost of the action will be borne by the national statistical authorities responsible for training statistics.

- The immediate outputs of the action: data files for all the EU Member States, Norway, acceding and candidate countries

- The expected outcomes solving needs or problems: comparable statistical information on enterprise training at EU and national levels

5.3. Methods of implementation

Method used to implement the planned action: direct management by the Commission supported by the national authorities responsible for training statistics.

6. FINANCIAL IMPACT

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

6.1.1. Financial intervention

Commitments in EUR million (to the 3rd decimal place)

>TABLE POSITION>

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

Commitments in EUR million (to the 3rd decimal place)

>TABLE POSITION>

7. IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1. Impact on human resources

>TABLE POSITION>

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

7.2. Overall financial impact of human resources

>TABLE POSITION>

The amounts are total expenditure for twelve months.

7.3. Other administrative expenditure deriving from the action

>TABLE POSITION>

The amounts are total expenditure for twelve months.

I. Annual total (7.2 + 7.3) // 324.000 EUR

II. Duration of action // 4 years

III. Total cost of action (I x II) // 1.296.000 EUR

8. FOLLOW-UP AND EVALUATION

8.1. Follow-up arrangements

Implementation of the EP/Council Regulation on the "Statistics relating to vocational training in enterprises" will be a matter of comitology procedure. The corresponding Commission Regulation will be developed with reference to sampling, the definition of variables to be included in the questionnaire, the common methodological approach including the data collection mode, the standards for the electronic data transmission to Eurostat and the content of the quality reports to be delivered to Eurostat by all countries. The follow-up after launching the data collection will be based on interim reports to be sent to Eurostat, specifically after the fieldwork.

8.2. Arrangements and schedule for the planned evaluation

The evaluation of the action will be based on the final quality reports to be sent by all countries to Eurostat. The reports will contain all information that is necessary to assess the quality of the data and to evaluate the whole action, and in particular to verify whether countries have followed the methodological requirements. The Commission will report on the implementation of the action within 5 years of the implementation of the Regulation to the European Parliament and the Council. The Commission report will identify areas for improvement and amendments in the light of the outcome of the action, in particular in relation to the burden on enterprises.

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 capacity.

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 prevention and detection of fraud and irregularities.

New rules and procedures have been adopted for the principal budgetary process: call for tenders, grants, commitments, contracts and payments. Manuals of procedures are made available to all those intervening 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.