trade association countries (Iceland, Norway and Switzerland) and 12 Accession countries (Bulgaria,
Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovak Republic,Slovenia). OECD does the same for the remaining OECD countries. Both Commission and OECD applysimilar methods.
4. The most relevant OECD publications on purchasing power parities methodology, practice and
results are: Purchasing power parities and real expenditures in the OECD (1980), Michael Ward, OECD,Paris, 1985; Purchasing power parities and real expenditures, 1985, OECD, Paris, 1987; Purchasing powerparities and real expenditures, 1990, Volume 1, EKS results, OECD, Paris, 1992; Purchasing power paritiesand real expenditures, 1990, volume 2, GK results, OECD, Paris, 1993; Purchasing power parities and realexpenditures, 1993, volume 1, EKS results, OECD, Paris, 1995; Purchasing power parities and realexpenditures, 1993, volume 2, GK results, OECD, Paris, 1996. The publication for the 1996 results willbe released in October 1999.
(2000/C 27 E/163) WRITTEN QUESTION E-1567/99
by Paulo Casaca (PSE) to the Commission
(1 September 1999)
Subject: Legal status of statistics on PPPs
For various purposes, some of which have a significant impact on the budget, the European institutions
have been using an indicator which they call purchasing power parity (PPP).
However, Council Regulation (EC) 2223/96 (1) does not refer to this indicator.
1. Can the Commission say whether there is a legal basis for the PPP and, if so, say what it is?2. If there is no legal basis, can the Commission say whether any steps are being taken to create one?3. Does the Commission consider the situation with regard to the legal basis of the PPP to be
appropriate, bearing in mind in particular the rules observed in statistical areas of comparable significance
or importance?
(1) OJ L 310, 30.11.1996, p. 1.
Answer given by Mr Solbes Mira on behalf of the Commission
(20 October 1999)
1. For the time being, there is no legal act covering solely the purchasing power parities (PPPs).
However, PPPs are mentioned in Council Regulation (EC) 1260/1999 of 21 June 1999 laying downgeneral provisions on the Structural Funds, Article 3 (
1); and Council Regulation (EC) 1267/1999 of 21 June
1999 establishing an instrument for structural policies for pre-accession, Article 41. Furthermore, based onArticle 64 of the Staff Regulations and rules for implementing it the price data collected for PPP purposesare used to calculate correction coefficients to establish the equivalence of purchasing power of the salariesof European officials serving in the capitals of the Member with reference to Brussels.
2. The Commission has recognized the lack of specific legal act on PPPs and an initial discussion was
held at the meeting of the statistical programme committee on 25 May 1999 in The Hague.
3. For the time being the PPP work is based on annual contracts concluded with the Member States
statistical offices, and on voluntary contributions of two participating European economic area countries(Iceland and Norway). So far the lack of a specific legal act has not created any major problems. However,
the Commission believes that the foundation of PPP work might be further strengthened by adopting a
specific legal act which would cover both the methodological basis and procedures applied.
(1) OJ L 161, 26.6.1999.C 27 E/134 EN 29.1.2000 Official Journal of the European Communities