[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 19.7.2007

COM(2007) 433 final

2007/0156 (COD)

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on a Programme for the Modernisation of European Enterprise and Trade Statistics (MEETS)

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. CONTEXT OF THE PROPOSAL

- Grounds for and objectives of the proposal

Business and trade statistics are faced with major challenges in the coming years: the strong integration of world markets is changing the structure of the economy and also European integration is progressing further. Statistics have to react to these trends and have to describe new phenomena. At the same time, the administrative burden on businesses must be reduced. These two challenges are not contradictory to each other. The need for new types of indicators can go hand in hand with efforts to modernise the production system. New types of indicators providing the needed information could be obtained by using new sources of information and by linking already existing types of business statistics without the necessity to increase the reporting burden on the enterprises. But an investment is needed to exploit the potential synergies efficiently, this is the main reason for this programme.

- General context

The Commission has made a commitment to ensure a better policy on regulation, to cut unnecessary red-tape and over-regulation. As outlined in the Commission Communication on Better Regulation for Growth and Jobs in the European Union (COM (2005) 97 final of 16 March 2005), simplification of existing EU legislation (and hence a reduction in the burden on business) is one of the core issues of this policy initiative. This commitment was more specifically targeted to statistics in the Commission Communication on the Reduction of response burden, simplification and priority setting in the field of Community statistics (COM (2006) 693 final of 14 November 2006).

European companies operate under conditions of globalisation with an important role for multinational companies. Globalised markets lead to increased international competition on markets for goods and services, but also on factor markets, to which the business sector has to react in order to maintain and strengthen its position. The subject of Europe having to move up a gear economically was recently highlighted in the European Commission's 2006 Annual Progress Report on Growth and Jobs.

Globalisation and the reaction of businesses is closely interconnected and next to the internal efforts of companies to increase their performance it can have the form of relocation of industry, outsourcing of activities, foreign direct investment and other forms of foreign operations.

Economic statistics and business statistics in particular should be able to portray these processes appropriately and to provide timely and high quality statistical information on the structural changes in the European economy and its business sector. These statistics should also be appropriate for monitoring the impact of EU policies. On the other hand, any new statistics should not put any additional burden on business. These targets should be achieved with this programme.

- Existing provisions in the area of the proposal

There are three basic legal acts in this area.

Firstly, the main Regulation concerning business statistics: Council Regulation (EC, Euratom) No 58/97 of 20 December 1996 concerning structural business statistics.

Secondly, the Regulation on business registers: Council Regulation (EEC) No 2186/93 of 22 July 1993 on Community coordination in drawing up business registers for statistical purposes.

Both legislations set out the main principles of business statistics and maybe subject to revision aiming at a more efficient data collection and treatment.

For objective 4, the main reference is the Regulation on Intrastat: European Parliament and Council Regulation (EC) No 638/2004 of 31 March 2004. The MEETS programme may lead to amendments of this Regulation aiming at simplifications to achieve a less burdensome data collection for enterprises.

- Consistency with the other policies and objectives of the Union

The deepening of European integration in a number of areas, including the Monetary Union and the European Customs System, creates new statistical needs related to the role of the euro in international transactions and leads to the necessity of adjusting the statistical system.

The proposal is consistent with the Commission priorities and the initiative focussed on better regulation, and on cutting unnecessary red-tape and over-regulation which were mentioned above.

2. CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT

- Consultation of interested parties

Consultation methods, main sectors targeted and general profile of respondents There have been intensive consultations in the framework of the European Statistical System on a technical level in the relevant working groups and also on the level of the heads of the Statistical Offices. Secondly, there have been consultations within the Commission with the relevant Directorates General. |

Summary of responses and how they have been taken into account Member States face similar problems. First of all, a changing economic environment implies changes of the statistical needs expressed by policy makers. Information on phenomena like globalisation or areas with increased importance like the services sector is highly required by all stakeholders. At the same time Member States face strong restrictions to further increase the burden on business. On the contrary, the burden on business should be lowered. The consequence is that some Member States have already started reforming their business and trade statistics fundamentally. The general response was that synergies should be exploited, coherent approaches should be worked out to avoid inefficient overlapping uncoordinated initiatives on national level which would lead to a differentiation of statistical treatment of the new phenomena rather then to a harmonised approach. |

- Collection and use of expertise

There was no need for external expertise.

- Impact assessment

Option 1 (Baseline option, i.e. no Community involvement). To fully exploit the opportunities of providing the EU with better and relevant business and trade statistics and at the same time ensure a reduced burden on businesses emanating from statistics, an investment is needed before a renewed system would become operational. With no Community involvement, only a limited number of countries would make that investment, the comparability of European statistics would be weakened and the opportunities for burden reduction would not be fully exploited.

Option 2 (Community involvement as proposed). The MEETS programme will avoid duplication of efforts. New and more cost-effective data collection systems can be tested in few Member States and become applicable in all. Therefore, sharing experiences and best practices is the core of this programme. Efforts to harmonise, streamline, and regulate can best be initiated at community level at which such projects can be carried out with optimal efficienc.

3. LEGAL ELEMENTS OF THE PROPOSAL

- Summary of the proposed action

Firstly, it will be important to identify and agree on the new areas that are to be portrayed. Together with all stakeholders, target sets of indicators need to be defined and underpinned by methodological agreements, so that comparable data can be produced. It goes without saying that a changing environment does not only create new requirements, but also the need for a permanent review of old requirements.

Secondly, all statistics related to business should be streamlined, i.e. efforts are needed to enforce the integration of concepts and methods in business statistics. In addition, the focus might shift from a national perspective to a European perspective. This integration will include: co-ordination of the legal acts, harmonisation of the methodologies, work on the further integration and linking of statistical classifications, work on the further integration and linking of business registers and related sources, the appropriate inclusion of multinational enterprise groups into the business register and the set up of the reporting on multinational enterprise groups.

Thirdly, on the side of data collection and treatment, integration is needed as well. By either integrating all collected data into a single system, or by techniques of micro-data linking, a much more effective use of already existing information will be possible. The second pillar of the reform of the production system is the support of the use of administrative data. Governments collect quite a number of data for all kinds of purposes, tax reasons, labour market policy etc. It would be highly efficient if statistical offices did not need to collect the same data again. But a considerable effort is needed to guarantee data quality, because very often the administrative data are not available in the form needed. The third issue is to make sure that the data that still needs to be collected can be obtained easily from the company accounts. The harmonisation of the accounting standards will help to achieve this target. Finally, standard estimation techniques have to be developed to lessen the burden on business wherever possible, e.g. these techniques could be applied to estimate the information needed for the SMEs, without burdening them. To provide comparable data, a set of standards and conventions is necessary.

Fourthly, some statistical areas were already identified where simplifications are necessary. An example is Intrastat. Simplifications to the Intrastat system will continue to be carried out along the traditional lines (thresholds, ICT improvements, nomenclatures etc.). Furthermore the potential will be investigated of switching to a single flow system. This could reduce the burden considerably, while at the same time maintaining the most important information. To make sure that such a transition is carried out in the most effective way and that quality of statistical information is ensured, a careful steering of this transition is needed. The effects of such a change and its full implementation in Member States should therefore also be one of the objectives of the new programme.

- Legal basis

Article 285 EC Treaty.

- Subsidiarity principle

The subsidiarity principle applies insofar as the proposal does not fall under the exclusive competence of the Community. |

The objectives of the proposal cannot be sufficiently achieved by the Member States for the following reason(s). |

Some Member States would have invested in the modernisation of business and trade statistics in an uncoordinated way producing results that are not comparable to other EU Member States and where the aggregation to European aggregates would be problematic. Some Member States would not have taken appropriate actions, lagging behind in modern developments in areas like globalisation, and would therefore be missing in the European picture. Efforts would be duplicated, similar exercises would be carried out in several Member States, mistakes would be repeated. If some Member States had successfully modernised their system of business and trade statistics, the marginal costs to implement the same system in other Member States are much smaller than developing a completely new system, an uncoordinated approach would result in a situation, where potential savings were not realised. |

Community action will better achieve the objectives of the proposal for the following reason(s). |

To fully exploit the opportunities of providing the EU with better and relevant business and trade statistics and at the same time ensure a reduced burden on businesses emanating from statistics, an investment is needed before a renewed system would become operational. The MEETS programme will avoid duplication of efforts. New and more cost-effective data collection systems can be tested in few Member States and become applicable in all. Therefore, sharing experiences and best practices is the core of this programme. Efforts to harmonise, streamline, and regulate can best be initiated at community level at which such projects can be carried out with optimal efficiency. |

The main purpose of this programme is that an investment is needed such that new statistical requirements can be taken on board with less burden on enterprises by a more efficient use of data and processes. The adaptation of the statistical requirements to both new and to outdated needs of EU statistics indicates the achievement of the first aspect. In some areas of trade and business statistics there are already burden measurements available. EU wide indicators would show the decrease of the burden ceteris paribus. |

The proposal is limited to exploiting synergies and avoiding double, and therefore inefficient efforts. The regular statistical data production will be not be supported by this programme, but the "re-engineering" of business and trade statistics will be supported to guarantee a co-ordinated and efficient approach. |

The proposal therefore complies with the subsidiarity principle. |

- Proportinality principle

Proportionality principle The proposal complies with the proportionality principle for the following reason(s). |

The proposed Decision of the European Parliament and of the Council is providing a framework for the main objectives and the actions related to the programme. The concrete annual work programme will be voted upon by Member States via comitology. In many cases the support of the individual actions will be given in form of grants to Member States, therefore Member States have control of the actions. |

There is the financial burden on the Community as indicated in the budget of the programme, there will be administrative burden on Commission services and national statistical offices. There is no additional burden on business foreseen. At the end of the programme statistical data should be collected in an even less burdensome way. |

Choice of instruments |

Proposed instruments: other. |

Other means would not be adequate for the following reason(s). The programme should have as basis a Decision of the European Parliament and of the Council, setting the framework. The annual work programme will be adopted by the Commission after being subject to comitology. |

4. BUDGETARY IMPLICATION |

The following amounts will be used during the programme (in million EUR): 2008 (5.00), 2009 (6.50), 2010 (11.50), 2011 (9.00), 2012 (6.50), 2013 (4.00). Over 2008-2013 the programme will have a budget of 42.50 million €. |

5. ADDITIONAL INFORMATION |

European Economic Area The proposed act concerns an EEA matter and should therefore extend to the European Economic Area. |

2007/0156 (COD)

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on a Programme for the Modernisation of European Enterprise and Trade Statistics (MEETS)

(Text of 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,

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

Whereas:

(1) The Commission has made a commitment in its Communication on Better Regulation for Growth and Jobs in the European Union[1]to ensure a better policy on regulation, to cut unnecessary red-tape and over-regulation.

(2) The Commission has published in November 2006 a Communication on reduction of the response burden, simplification and priority setting in the field of Community statistics [2] which sets out a strategic approach to continue reducing the statistical burden on enterprises.

(3) Business and trade statistics are faced with a major challenge in the coming years. To underpin Community policy initiatives, they have to be capable of reflecting phenomena in the changing Community economy such as globalisation, emerging trends in entrepreneurship, the information society, innovation, shifting trade patterns and competitiveness in the light of the renewed Lisbon strategy.

(4) A key element driving the needs for enterprise and trade statistics is the renewed Lisbon strategy with the objective to foster the competitiveness of the European economy and achieve high and sustainable growth.

(5) The deepening of European integration in a number of economic areas, including the European Monetary Union and the European Customs System, creates new statistical needs related to the role of the euro in international transactions and leads to the necessity of adjusting the statistical system. Enterprise and trade statistics should be able to portray these processes appropriately and to provide timely and high quality statistical information on the structural changes in the European economy and its business sector.

(6) Business and trade statistics services will have to re-engineer the methods for the production of statistics so that the burden on enterprises can be reduced and so that all available sources and new technologies can be used in a fully effective way.

(7) The need for new types of indicators can go hand in hand with efforts to modernise the statistical production system. New types of indicators providing the needed information could be obtained by linking together already existing types of business statistics without the necessity to increase the reporting burden on the enterprises. New sources and access by electronic means will make data collection less burdensome and at the same time provide more information. The potential of business statistics should be exploited in a more efficient way and the quality of statistical information should increase.

(8) An ex-ante evaluation has been performed in accordance with the principle of sound financial management, in order to focus the programme on the need for effectiveness in achieving the objectives and to incorporate budgetary constraints from the design phase of the programme onwards.

(9) This Decision establishes a financial framework for the entire duration of the programme which is to be the principal point of reference for the budgetary authority, within the meaning of point 37 of the Inter-institutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management[3].

(10) Since the objective of this Decision, namely to establish a Programme for the modernisation of European enterprise and trade statistics, cannot be sufficiently achieved by the Member States (because uncoordinated modernisation would lead to duplication of efforts, repetition of mistakes and higher costs) it should therefore, for reasons of the scale of these statistics, 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 Decision does not go beyond what is necessary in order to achieve those objectives.

(11) The Statistical Programme Committee, established by Council Decision 89/382/EEC, Euratom[4], has been consulted in accordance with Article 3 of that Decision.

(12) Council Regulation (EC) No 322/97 of 17 February 1997 on Community Statistics provides a reference framework for the provisions of this Decision.[5]

(13) The measures necessary for the implementation of this Decision 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.[6]

HAVE DECIDED AS FOLLOWS:

Article 1

Establishment of the Programme

1. A Programme for the Modernisation of European Enterprise and Trade Statistics, (hereinafter referred to as the "MEETS Programme") is hereby established.

2. The MEETS Programme shall start on 1 July 2008 and end on 31 December 2013.

Article 2

Field of application and general objectives

1. The measures provided for by the MEETS Programme relate to the production and dissemination of enterprise and trade statistics within the European Community.

2. The general objectives are as follows:

(a) to develop target sets of indicators and to review priorities; (objective 1)

(b) to achieve a streamlined framework of business related statistics; (objective 2)

(c) to support the implementation of a more efficient way of collecting data; (objective 3)

(d) to modernise and simplify statistics on trade in goods between Member States (hereinafter referred to as Intrastat) (objective 4).

Article 3

Actions

To achieve the objectives referred to in Article 2, a set of actions shall be implemented in order to:

(a) develop target sets of indicators and review priorities (objective 1)

- Action 1.1: Development of new areas;

- Action 1.2: Identification of areas that are of lesser importance;

(b) streamline the framework of business related statistics (objective 2):

- Action 2.1: Integration of concepts and methods within the legal framework;

- Action 2.2: Development of statistics on enterprise groups;

- Action 2.3: European surveys to minimise the burden on business.

(c) support the implementation of a more efficient way of collecting data (objective 3):

- Action 3.1: Make better use of data that already exist in the statistical system including the possibility of estimations;

- Action 3.2: Make better use of data that already exist in the economy;

- Action 3.3: Develop tools for a more efficient extraction, transmission and treatment of data.

(d) modernise and simplify the data collection system for Intrastat (objective 4):

- Action 4.1: Harmonisation of methods to improve quality under a simplified Intrastat system;

- Action 4.2: Make better use of administrative data;

- Action 4.3: Improve and facilitate the data exchange for Intrastat.

These actions are specified in the annex and shall be further detailed in the annual work programmes referred to in Article 4.

Article 4

Annual work programme

An annual work programme, including the priorities for the actions under each objective and the budgetary allocations under this Decision, shall be adopted in accordance with the procedure referred to in Article 5(2).

Article 5

Committee

1. The Commission shall be assisted by the Statistical Programme Committee, established by Decision 89/382/EEC, Euratom.

2. Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof. The period laid down in Article 4(3) of Decision 1999/468/EC shall be set at three months.

Article 6

Evaluation

1. The Commission shall, in cooperation with the Member States, regularly evaluate the activities carried out under the MEETS Programme, in order to ascertain whether the stated objectives have been attained and to provide guidelines for improving the effectiveness of future actions.

2. By 31 December 2011 at the latest, the Commission shall submit to the European Parliament and the Council an interim report on the implementation of the MEETS Programme.

By 31 July 2014 at the latest, the Commission shall submit to the European Parliament and the Council a final report on the implementation of the MEETS Programme. This report shall assess, in the light of the expenditure incurred by the Community, the benefits of the actions accruing to the Community, the Member States and providers and users of statistical information, to identify areas for potential improvement.

Article 7

Financing

1. The financial framework for the implementation of this programme for the period 2008-2013 is set at EUR 42.50 million.

2. The annual appropriations shall be authorised by the budgetary authority within the limits of the financial framework.

Article 8

Entry into force

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

Done at Brussels, […]

For the European Parliament For the Council

The President The President

[…] […]

ANNEX Breakdown of the actions listed in Article 3

Objective 1: The development of target sets of indicators and a review of priorities

Action 1.1: Development of new areas

- In a changing economic environment it is important to define priority areas for statistics like globalisation and entrepreneurship and to agree on Community level on a target set of indicators for each of the priority areas. These indicators need to be harmonised with international statistics to the extent possible.

- The statistics have to be compiled in an efficient way and need to be comparable. Therefore work has to be carried out within the European Statistical System to achieve harmonised definitions of newly identified characteristics and indicators.

- After having agreed on target sets of indicators and harmonised definitions for them, Member States need to develop and test their ways of collecting the statistics in the priority areas in a harmonised manner.

- The new areas will be developed by means of studies, by organising seminars and by financially supporting projects to develop methods and ways to collect new statistics.

Action 1.2: Identify the areas of lesser importance

- In a changing world not only new statistical needs emerge, but other needs will become obsolete. Therefore, regular reviews of priorities will be conducted in order to identify areas and characteristics which have become less important and consequently can be deleted from the legal requirements. The reviews require external studies to be launched by the Commission.

- The collection of statistical indicators linked to ongoing policy initiatives will be ensured.

Objective 2: A streamlined framework of business-related statistics

Action 2.1: Integration of concepts and methods within the legal framework

- European statistics are compiled according to European legislation, which has developed over several years. An overhaul of the consistency between the legal acts is needed in order to ensure that all relevant pieces are consistent. Therefore it is planned to review the existing legal acts to provide a harmonised legal framework for the different areas of business and trade statistics. This will require external studies to be launched by the Commission.

- There are cross-cutting issues in statistics, e.g. several statistical areas report on employment and in some cases the same phenomenon is described from different angles. To ensure a better harmonisation studies shall be initiated to achieve harmonisation of methodologies among the relevant statistical areas. This will require financial support to Member States.

- It is important to guarantee consistency between areas of business and trade statistics. For that purpose studies on consistency will be launched. This consistency could refer to trade in goods statistics and balance of payments statistics, but also between structural business statistics and trade statistics This will require external studies to be launched by the Commission and financial support to Member States' projects in this area.

Action 2.2: Development of statistics on enterprise groups

- An initiative to establish a Community register of multinational enterprise groups has been started by the Commission. This register is a crucial basis for the production of harmonised statistics on globalisation of the economy. The activities under this action will be devoted to complete this register, by means of external studies to be launched by the Commission.

- It is not sufficient to create such a register, but financial support shall be given to actions in Member States to develop more efficient data collection methods for enterprise groups and illustrate their importance for international trade.

- When it will come to the exploitation of the Community register of multinational enterprise groups, European statistics will have to take a new perspective, so it will become important to set up specific Community surveys on enterprise groups. This will require external studies to be launched by the Commission and financial support to Member States' projects in this area.

Action 2.3: European surveys to minimise the burden on business

- To highlight new and emerging needs of Community statistics, specific Community surveys will be conducted on an ad-hoc basis. Such surveys will be set up by means of external studies to be launched by the Commission or financial support to Member States.

- To exploit the potential savings of Community sampling schemes in regular statistics, studies will be made to identify areas where Community aggregates would be sufficient and to develop new methods for data collection in these areas. Financial support will also be given to Member States to adjust their data collection systems. There is not a standard type of Community sampling schemes; they have to be specific to the circumstances.

- National surveys will be kept in statistical areas that feed benchmarking exercises.

Objective 3: The implementation of a more efficient way of collecting data

Action 3.1: Make better use of data that already exist in the statistical system, including the possibility of estimates

- The ultimate aim of this action is to create fully integrated data sets for business and trade statistics at micro level – a "data warehouse" approach to statistics. To achieve that, Member States will be financially supported in order to link data or micro-data sets from different areas of business and trade statistics, such as trade and business registers; linking structural business statistics to research and development statistics and information society statistics.

- Methodological studies shall be carried out on new work processes to improve the use made of ongoing data collections, e.g. with a view to assessing the impact of information and communication technology on business outcome by linking data from different sources.

- The more efficient way of data collection aims at reducing the burden on businesses. It has to be assured that statistical offices make the most efficient use of collected information. Therefore financial support will be given to methodological studies for optimal allocation of sample sizes and their combined use with other sources and related estimation methods. This may also relate to quality studies in cases where some enterprises (e.g. SMEs) are excluded from statistical surveys, and to the development of appropriate, harmonised estimation methods.

- The need of reducing the burden for businesses and in particular for SMEs should not endanger the collection of relevant information for the monitoring of policy initiatives.

Action 3.2: Make better use of data that already exist in the economy

- Statistical information is sometimes collected twice. Once for administrative purposes, like taxes, and then for statistical purposes in surveys. This double burden shall be avoided to the largest extent possible. Therefore, this programme will financially support projects on the use of administrative data for statistical purposes, including company accounts, by helping countries to change over from statistical surveys to use of administrative data while ensuring high data quality.

- Within enterprises it makes sense to promote the integration of accounting systems and statistical reporting, so that data can be delivered for statistics in a simplified manner. This requires external studies to be launched by the Commission and financial support to Members States' projects in this area.

Action 3.3: Develop tools for the more efficient extraction, transmission and processing of data

- New information technology (IT) offers opportunities of simplified reporting. Measures will be taken to financially support actions that facilitate data transfer from enterprises to the national statistical authorities. This can be done by using company accounts and other financial reports drawn up according to international accounting standards, and appropriate technical standards for such reports, including eXtensible Business Reporting Language (XBRL).

- A more efficient use of IT tools should be supported to facilitate the exchange of information between the Commission and the national level. In addition to that, there needs to be further development of tools for validation, error detection, correction, analysis and editorial work. This will require financial support to projects in this area.

- Taking into consideration the ongoing developments in the simplification of customs formalities on export and import, measures shall financially support actions aimed at facilitating the exchange, processing and dissemination of high-quality and detailed trade statistics.

Objective 4: The modernisation and simplification of Intrastat

Action 4.1: Harmonisation of methods to improve quality under a simplified Intrastat system

- Measures shall provide financial support to actions in Member States aiming at developing tools and methods for maintaining and improving data quality within a simplified collection system.

- Financial support shall be given to actions in Member States that are aimed at reducing asymmetries by avoiding misclassifications, by harmonising the estimation, the collection and processing systems, the rules for the handling of confidential data, the thresholds and methods for adjustment.

Action 4.2: Better use of administrative data

- The re-use of administrative data being reported by enterprises for other purposes (in particular Value Added Tax reports and accounting) shall ne encouraged. Measures shall be taken to financially support that, including the development of IT tools and procedures.

Action 4.3: Improve and facilitate the data exchange for Intrastat

- The further development of tools and methods for data exchange within a centralised system is vital. Tools for validation, error detection, correction, analysis and editorial work in the field of intra-Community trade statistics need to be developed. In addition actions shall be financially supported that focus on the legal and technical aspects of data exchange between Member States.

LEGISLATIVE FINANCIAL STATEMENT

1. NAME OF THE PROPOSAL:

Proposal for a European Parliament and Council Decision establishing a Programme for the Modernisation of European Enterprise and Trade Statistics (MEETS)

2. ABM / ABB FRAMEWORK

Policy Area(s) concerned and associated Activity/Activities: Statistics (Production of Statistical Information; Policy Strategy and Coordination; Administrative Support)

3. BUDGET LINES

3.1. Budget lines (operational lines and related technical and administrative assistance lines (ex- B.A. lines) including headings:

29.02.04 - Modernisation of European Enterprise and Trade Statistics (MEETS)

29.0104.04 - Modernisation of European Enterprise and Trade Statistics (MEETS) - expenditure on administrative management

3.2. Duration of the action and of the financial impact:

Six years; 2008-2013

3.3. Budgetary characteristics:

Budget line | Type of expenditure | New | EFTA contribution | Contributions from applicant countries | Heading in financial perspective |

29.02.04 | DNO | DA[7] | NO | YES | NO | Heading 1A |

29.0104.04 | DNO | NDA[8] | NO | YES | NO | Heading 1A |

4. SUMMARY OF RESOURCES

4.1. Financial Resources

4.1.1. Summary of commitment appropriations (CA) and payment appropriations (PA)

EUR million (to 4 decimal places)

Expenditure type | Section no. | Year 2008 | 2009 | 2010 | 2011 | 2012 | 2013 and later | Total |

Operational expenditure[9] |

Commitment Appropriations (CA) | 8.1. | a | 4,650 | 6,045 | 10,695 | 8,370 | 6,045 | 3,720 | 39,525 |

Payment Appropriations (PA) | b | 0,558 | 7,1145 | 8,370 | 9,5325 | 7,2075 | 6,7425 | 39,525 |

Administrative expenditure within reference amount[10] |

Technical & administrative assistance (NDA) | 8.2.4. | c | 0,350 | 0,455 | 0,805 | 0,630 | 0,455 | 0,280 | 2,975 |

TOTAL REFERENCE AMOUNT |

Commitment Appropriations | a+c | 5,000 | 6,500 | 11,500 | 9,000 | 6,500 | 4,000 | 42,500 |

Payment Appropriations | b+c | 0,908 | 7,5695 | 9,175 | 10,1625 | 7,6625 | 7.0225 | 42,500 |

Administrative expenditure not included in reference amount[11] |

Human resources and associated expenditure (NDA) | 8.2.5. | d | 0,224 | 0,341 | 0,341 | 0,341 | 0,341 | 0,341 | 1,929 |

Administrative costs, other than human resources and associated costs, not included in reference amount (NDA) | 8.2.6. | e | 0,006 | 0,006 | 0,006 | 0,006 | 0,006 | 0,006 | 0,036 |

Total indicative financial cost of intervention |

TOTAL CA including cost of Human Resources | a+c+d+e | 5,230 | 6,847 | 11,847 | 9,347 | 6,847 | 4,347 | 44,465 |

TOTAL PA including cost of Human Resources | b+c+d+e | 1,138 | 7,9165 | 9,522 | 10,5095 | 8,0095 | 7,3695 | 44,465 |

Co-financing details

The proposal involves, as far as the grants are concerned, co-financing by Member States according to the prevailing rules. The grant amounts foreseen are in EUR million (to 3 decimal places): 3.900 in 2008 - 4.795 in 2009 - 9.545 in 2010 - 7,770 in 2011 – 4.745 in 2012 and 3.070 in 2013.

EUR million (to 3 decimal places)

Co-financing body | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 and later | Total |

Member States | f | 1,671 | 2,055 | 4,090 | 3,330 | 2,033 | 1,315 | 14,494 |

Other bodies (EFTA, Switzerland: to be added) | f |

TOTAL CA including co-financing | a+c+d+e+f |

4.1.2. Compatibility with Financial Programming

X Proposal is compatible with existing financial programming.

( Proposal will entail reprogramming of the relevant heading in the financial perspective.

( Proposal may require application of the provisions of the Interinstitutional Agreement[12] (i.e. flexibility instrument or revision of the financial perspective).

4.1.3. Financial impact on Revenue

X Proposal has no financial implications on revenue

( Proposal has financial impact – the effect on revenue is as follows:

4.2. Human Resources FTE (including officials, temporary and external staff) – see detail under point 8.2.1.

Annual requirements | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 |

Total number of human resources | 2,5 | 3,5 | 3,5 | 3,5 | 3,5 | 3,5 |

5. CHARACTERISTICS AND OBJECTIVES

5.1. Need to be met in the short or long term

Business and trade statistics are faced with major challenges in the coming years: the strong integration of world markets is changing the structure of the economy and also European integration is progressing further. Statistics have to react to these trends and have to describe new phenomena. At the same time, the administrative burden on business must be reduced. These two challenges should not be contradictory. The need for new types of indicators can go hand in hand with efforts to modernise the production system. In fact, new types of indicators providing the needed information could be obtained by using new sources of information and by linking already existing types of business statistics without the necessity to increase the reporting burden on the enterprises. But an investment is needed to exploit the potential synergies efficiently; this is the main reason for this programme.

5.2. Value-added of Community involvement and coherence of the proposal with other financial instruments and possible synergy

The objectives of the proposal cannot be sufficiently achieved by the Member States for the following reason(s). |

Some Member States would have invested in the modernisation of business and trade statistics in an uncoordinated way producing results that are not comparable to other EU Member States and where the aggregation to European aggregates would be problematic. Some Member States would not have taken appropriate actions, lagging behind in modern developments in areas like globalisation, and would therefore be missing in the European picture. Efforts would be duplicated, similar exercises would be carried out in several Member States and mistakes would be repeated. If some Member States had successfully modernised their system of business and trade statistics, the marginal costs to implement the same system in other Member States are much smaller than developing a completely new system, an uncoordinated approach would result in a situation, where potential savings were not realised. |

Community action will better achieve the objectives of the proposal for the following reason(s). |

To fully exploit the opportunities of providing the EU with better and relevant business and trade statistics and at the same time ensure a reduced burden on businesses generated by statistics, an investment is needed before a renewed system would become operational. The MEETS programme will avoid duplication of efforts. New and more cost-effective data collection systems can be tested in a number of Member States and become applicable in all. Therefore, sharing experiences and best practices is the core of this programme. Efforts to harmonise, streamline, and regulate can best be initiated at Community level at which such projects can be carried out with optimal efficiency. |

The main purpose of this programme is that an investment is needed such that new statistical requirements can be taken on board, with less burden on enterprises by a more efficient use of data and processes. The adaptation of the statistical requirements to both new and to outdated needs of EU statistics indicates the achievement of the first aspect. In some areas of trade and business statistics there are already burden measurements available. EU wide indicators would show the decrease of the burden ceteris paribus. |

The proposal is limited to exploiting synergies and avoiding double and therefore inefficient efforts. The regular statistical data production will not be supported by this programme, but the "re-engineering" of business and trade statistics will be supported to guarantee a co-ordinated and efficient approach. |

5.3. Objectives, expected results and related indicators of the proposal in the context of the ABM framework

The general objectives and related actions of the programme are the following:

Objective 1: The development of target sets of indicators and a review of priorities

Action 1.1: Define priority areas and define target set of indicators;

Action 1.2: Identification of areas that are of lesser importance;

Objective 2: Streamline the framework of business related statistics

Action 2.1: Integration of concepts and methods within the legal framework;

Action 2.2: Development of statistics on enterprise groups;

Action 2.3: European surveys to minimise the burden on business.

Objective 3: Implementation of a more efficient way of collecting data

Action 3.1: Make better use of data that already exist in the statistical system including the possibility of estimations;

Action 3.2: Make better use of data that already exist in the economy;

Action 3.3: Develop tools for a more efficient extraction, transmission and treatment of data.

Objective 4: Modernise and simplify Intrastat

Action 4.1: Harmonisation of methods to improve quality under a simplified Intrastat system;

Action 4.2: Make better use of administrative data;

Action 4.3: Improve and facilitate the data exchange for Intrastat.

5.4. Method of Implementation (indicative)

X Centralised Management

X directly by the Commission

( indirectly by delegation to:

( executive Agencies

( bodies set up by the Communities as referred to in art. 185 of the Financial Regulation

( national public-sector bodies/bodies with public-service mission

( Shared or decentralised management

( with Member states

( with Third countries

( Joint management with international organisations (please specify)

6. MONITORING AND EVALUATION

6.1. Monitoring system

Article 3 of the proposed Decision of the European Parliament and of the Council specifies that the Commission shall adopt an annual work programme, including the priorities for action under each objective and the budgetary allocations under this Decision. These programmes, together with their corresponding financing, will be the matter of Commission Decisions detailing the outputs and the results (objectives and indicators) to be achieved during the reference period. The monitoring will be ensured through regular reports on the consumption of resources and on the progress made on the achievement of objectives.

6.2. Evaluation

6.2.1. Ex-ante evaluation

The proposed Decision of the European Parliament and of the Council has been the subject of an ex-ante evaluation carried out according to the procedure laid out by DG Budget. This ex-ante evaluation is attached to this document.

6.2.2. Measures taken following an intermediate/ex-post evaluation (lessons learned from similar experiences in the past)

The MEETS programme is the logical successor to the Edicom I (1996-2000) and Edicom II (2001-2005) programmes.

The first Edicom programme focused on the Intrastat (statistics on intra-EU trade) reporting obligations and more particularly on the development of the operational framework, i.e. electronic data collection and dissemination. The programme achieved its objectives by assisting the Member States in developing and implementing this framework for the transmission, compilation and re-dissemination of data.

The Edicom II programme had a broader focus, which included the stabilisation of the statistical system for external trade statistics (intra and extra EU), the further development of IT tools, modernisation and simplification. The programme has been particularly successful in improving the quality and timeliness of external trade statistics, in further developing web-based transmission and dissemination tools, and in integrating the trade statistics of the 10 Member States which acceded to the European Union in 2004.

The main lesson to be learned from the past concerns the internal organisation of the programme. The two Edicom programmes were structured according to separate objectives, and within each objective a number of actions was defined. Each action was carried out by means of a number of projects. A project leader was assigned to each project, while at the same time the overall organisation and financial management was centralised. This combination of centralisation and decentralisation of different aspects of the programme proved to be very effective in enabling the programme to focus in appropriate detail on particular issues, while at the same time maintaining overall internal coherence. The experience from past programmes also illustrates the need to be careful, particularly in the case of grants, to avoid overlapping or parallel implementation of similar activities and to achieve complementarities.

6.2.3. Terms and frequency of future evaluation

Article 6 of the proposed Decision of the European Parliament and of the Council specifies that the Commission shall, in cooperation with the Member States, regularly evaluate the actions financed under this Decision, in order to ascertain whether the stated objectives have been attained and to provide guidelines for improving the effectiveness of future actions.

Moreover, by the end of December 2011, the Commission shall submit to the European Parliament and the Council a report on the activities financed in the first three years under the new programme so as to enable, if appropriate, a review of the actions implemented under this Decision to be carried out.

Finally, six months after the end of the programme the Commission shall submit to the European Parliament and the Council a report on the implementation of this Decision, accompanied, if appropriate, by proposals for new actions. This report shall seek to assess, in the light of the expenditure incurred by the Community, the benefits of the actions accruing to the Community, the Member States and providers and users of statistical information, to identify areas for potential improvement and to verify synergy with other Community activities

7. ANTI-FRAUD MEASURES

Annual monitoring of progress with implementation and effectiveness 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.

Rules and procedures are in place for the principal budgetary processes: calls for tender, grants, commitments, contracts, payments. The manuals of procedures are made available to all those intervening in financial acts with a view to clarifying responsibilities, simplifying workflows, indicating key control points. Training is provided on their use. The manuals are subject to regular review and updating.

The Commission may have an audit of the use made of the grant carried out either directly by its own staff or by any other qualified outside body of its choice. These audits may be carried out throughout the lifetime of the contract and for a period of five years from the date of payment of the balance of the grant. Where appropriate, the audit findings may lead the Commission to seek recovery of sums paid.

Commission staff and outside persons authorised by the Commission must be granted appropriate access to the offices of the beneficiary and to all the information, including information in electronic format, needed in order to conduct such audits.

The Court of Auditors and the European Anti-Fraud Office (OLAF) must enjoy the same rights, especially of access, as the Commission. The Commission may also undertake in situ inspections pursuant to Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities.

8. DETAILS OF RESOURCES

8.1. Objectives of the proposal in terms of their financial cost

Commitment appropriations in EUR million (to 3 decimal places)

2008 | 2009 | 2010 | 2011 | 2012 | 2013 |

Officials or temporary staff[13] (XX 01 01) | A*/AD | 0,5 | 1 | 1 | 1 | 1 | 1 |

B*, C*/AST | 1 | 1,5 | 1,5 | 1,5 | 1,5 | 1,5 |

Staff financed[14] by art. XX 01 02 | 1 | 1 | 1 | 1 | 1 | 1 |

Other staff[15] financed by art. XX 01 04/05 |

TOTAL | 2,5 | 3,5 | 3,5 | 3,5 | 3,5 | 3,5 |

8.2.2. Description of tasks deriving from the action

AD and END: general management of programme, coordination with Member States, other Commission DGs, coordination of calls for tender and calls for proposals.

AST administrative support and financial follow-up, payments.

8.2.3. Sources of human resources (statutory)

X Posts currently allocated to the management of the programme to be replaced or extended (1,5 FTE officials in 2008 and 2,5 FTE officials in the remaining years)

( Posts pre-allocated within the APS/PDB exercise for year n

( Posts to be requested in the next APS/PDB procedure

X Posts to be redeployed using existing resources within the managing service (internal redeployment) 1 END post

( Posts required for year n although not foreseen in the APS/PDB exercise of the year in question

8.2.4. Other Administrative expenditure included in reference amount (29.0104.04– Expenditure on administrative management)

EUR million (to 3 decimal places)

Budget line(number and heading) | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | TOTAL |

Meetings & Conferences | 0,100 | 0,100 | 0,100 | 0,100 | 0,100 | 0,100 | 0,600 |

Other technical and administrative assistance |

- intra muros * | 0,250 | 0,355 | 0,705 | 0,530 | 0,355 | 0,180 | 2,375 |

- extra muros |

Total Technical and administrative assistance | 0,350 | 0,455 | 0,805 | 0,630 | 0,455 | 0,280 | 2,975 |

*: intra-muros technical and administrative assistance to be commissioned via calls for tender.

8.2.5. Financial cost of human resources and associated costs not included in the reference amount

EUR million (to 3 decimal places)

Type of human resources | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 |

Officials and temporary staff (XX 01 01) | 0,175 | 0,292 | 0,292 | 0,292 | 0,292 | 0,292 |

Staff financed by Art XX 01 02 (auxiliary, END, contract staff, etc.) (specify budget line) | 0,049 | 0,049 | 0,049 | 0,049 | 0,049 | 0,049 |

Total cost of Human Resources and associated costs (NOT in reference amount) | 0,224 | 0,341 | 0,341 | 0,341 | 0,341 | 0,341 |

Calculation– Officials and Temporary agents Officials EUR 117.000 per year

Calculation – Staff financed under art. XX 01 02 END EUR 48.678 per year

8.2.6. Other administrative expenditure not included in reference amount EUR million (to 3 decimal places) |

2008 | 2009 | 2010 | 2011 | 2012 | 2013 | TOTAL |

XX 01 02 11.01 – Missions | 0,006 | 0,006 | 0,006 | 0,006 | 0,006 | 0,006 | 0,036 |

XX 01 02 11 02 – Meetings & Conferences |

XX 01 02 11 03 – Committees[17] |

XX 01 02 11 04 – Studies & consultations |

XX 01 02 11 05 - Information systems |

2 Total Other Management Expenditure (XX 01 02 11) |

3 Other expenditure of an administrative nature (specify including reference to budget line) |

Total Administrative expenditure, other than human resources and associated costs (NOT included in reference amount) | 0,006 | 0,006 | 0,006 | 0,006 | 0,006 | 0,006 | 0,036 |

[1] COM(2005)97

[2] COM(2006)693

[3] OJ C 139, 14.6.2006, p. 1.

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

[5] OJ L 146, 5.6.197

[6] OJ L 184, 17.7.1999, p. 23. Decision as amended by Decision 2006/512/EC (OJ L 200, 22.7.2006, p. 11)

[7] Differentiated appropriations

[8] Non-differentiated appropriations hereafter referred to as NDA

[9] Expenditure that does not fall under Chapter xx 01 of the Title xx concerned.

[10] Expenditure within article xx 01 04 of Title xx.

[11] Expenditure within chapter xx 01 other than articles xx 01 04 or xx 01 05.

[12] See points 19 and 24 of the Interinstitutional agreement.

[13] Cost of which is NOT covered by the reference amount

[14] Cost of which is NOT covered by the reference amount

[15] Cost of which is included within the reference amount

[16] Reference should be made to the specific legislative financial statement for the Executive Agency(ies) concerned.

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