DRAFT COUNCIL REGULATION (EEC) ON THE ESTABLISHMENT OF A COMMUNITY SURVEY OF INDUSTRIAL PRODUCTION
Date: 1991-02-25
Institutions: European Commission
Subjects: EU statistics, Eurostat, confidentiality, industrial production, production statistics

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0MC91) 56 final 

Brussels/  25 February 1991 

Draft 

COUNCIL REGULATION (EEC) 

on the establishment  of a Community  survey 

of  industrial  production 

(presented  by the Commission) 

-  2  -

Explanatory  memorandum 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

The production statistics compiled by the Member States are very useful  in providing 
a highly detailed  picture of  the industrial  apparatus and especially  of  its  competitive 
position,  but the diversity  of  statistical  methods used  by each  Member  State  means 
that the  Community  is  unable  to derive any  benefit  from  the  surveys  carried  out at 
national level. 

In  the  run-up  to  the  large  internal  market  in  1993,  business  statistics  must  be 
prepared  to  produce  European-level  results  with  the  same  degree  of  accuracy  and 
reliability as  the best national  statistics.  This will  necessarily  involve  harmonization 
of methodologies and adaptation of national surveys to the European dimension. 

That is the aim of the system proposed by the Commission  through  the creation of a 
European  survey of  industrial production.  This  system  is designed  to transform  the 
surveys  carried  out 
in  the  Member  States  by  standardizing  their  product 
classifications  and  laying  down  conventions  and  constraints  that  will  ensure  high-
quality  Community  statistics.  Nevertheless,  far  from  ruling  out  the  possibility  of 
national results,  it will  enhance their value by placing them in the context of  Europe 
as a whole. 

The common  classification  for  the national  surveys  of  industrial  production  will  be 
based on  the Community  external  trade classification,  the Combined  Nomenclature. 
This  will  enable  the  production  statistics  to  be  compared  easily  with  the  external 
trade statistics  and will  considerably  facilitate  market  studies and  the calculation  of 
domestic consumption. 

The information  to be  gained  from  the introduction  of  this  system  should  not result 
in  an  increased  survey  burden  on  firms. 
It  is  therefore  planned  to  set  survey 
thresholds  that  take  account  of  the  national  structure  of  industry  so  as  to  ensure a 
satisfactory  degree of representativeness  without having to survey the smallest firms; 
it will  seldom be necessary to go below the 20-employee limit. 

Like the industrial  situation to which  it relates,  the system is  not static: it introduces 
an  annual  information  system  in  terms  of  both  volume  and  value  on  the  basis  of 
which  extensions  may  be  authorized  in  order  to  meet  specific  requirements  of 
Community policy or surveillance of sensitive products. 

The  reference  to  Council  Regulation  (Euratom/EEC)  No  1588/90  of  11 June  1990 
authorizing the transmission to the Statistical Office  of the European Communities of 
data  subject  to  statistical  confidentiality  will  make  it  possible  to  produce  at 
Community  level  statistics that were hitherto regarded  as being  out of  the question. 
Nevertheless,  any  publication  of  such  data will  be  subject  to  the  supervision  of  the 
committee  responsible  for implementing  this new  Regulation  in order to ensure that 
data which might be detrimental to the interests of the Community are not divulged. 

The  creation  of  these  European  statistics  of  industrial  production  meets  a  need 
widely  felt  by  the  European  Federations  of  Branches  of  Industry,  the  Commission 
and  the  National  Statistical  Offices.  They  constitute  the  cornerstone  of  an 
information  system  whose development  forms  a logical  part of  the gradual  build-up 
of a system of European business statistics. 

- 3 -

Draft 

COUNCIL  REGULATION  (EEC) 

on the establishment  of a Community  survey 

of  industrial  production 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having  regard  to  the  Treaty  establishing  the  European  Economic  Community,  and  in 

particular Article 213  thereof, 

Having regard to the draft Regulation submitted by the Commission, 

Whereas  in  order to carry  out  the  tasks devolving  on  it  from  the Treaties,  especially  with 

the  prospect  of  the  internal  market  as  provided  for  under  Article  8a  of  the  Treaty 

establishing  the  European  Economic  Community,  the  Commission  must  have  full,  up-to-

date and reliable information on industrial production in the Community; 

Whereas  companies  need  such  information  in  order  to  know  their  markets  and  the 

international  dimension  of  these  markets  will  favour  an  alignment  between  production 

statistics and external trade statistics; 

Whereas if production  statistics are to be useful  and make such  alignment practicable,  they 

must be  drawn up at a level  of  detail  which  is close  to the first  six digits of  the Combined 

Nomenclature (which also corresponds to the coding used in the Harmonized System); 

Whereas  the Combined  Nomenclature is a product nomenclature  with  which companies are 

already familiar, and  it will  be to their benefit  to make reference  to this,  instead of a newly 

created classification  specific  to production activities; 

-  4  -

Whereas it  is only  if  the Member States use survey  classification  systems derived  from  the 

same  product  list  that  standardized  statistics  can  be  drawn  up  with  reliability,  speed, 

f l e x i b i l i ty  and  the  level  of  detail  required  to  manage  the  internal  market; 

Whereas in order to meet particular national requirements,  Member  States  may  retain  or 

enter in their national nomenclatures items  to  supplement  the  Community  product 

l i s t, 

HAS  ADOPTED  THIS  REGULATION: 

-  5  -

Article 1 

General 

Member 

States  shall carry out a Community statistical survey of  industrial production. 

Article 2 

Survey field and characteristics 

(1)  The field of production covered by  the survey provided  for  in Article 1 

shall be that  of the activities  listed  in sections  C, D and  E of NACE 

Rev. 1 as established  by  Council  Regulation  (EEC) No 3037/90 (1). 

(2)  The production  recorded  by the survey  in this field  shall be defined 

by the  list of products, hereinafter  referred  to as "PR0DC0M  list1' 

The elements of this  list shall be built  up, in principle, with 

articles  or groups of articles  from  the Combined  Nomenclature. 

The PR0DC0M  list and  the procedures  shall be  laid down by the  Commission 

after  consulting  the  Committee  referred  to  in Article 9 and  in accordance 

with  the procedure  laid down  in Article  10.  The  same procedure  shall be 

followed  for updating  the PR0DC0M  list. 

(3)  The survey  shall  cover  the following  information  for each  product: 

a)  Unless stated  otherwise  under paragraph  4, the volume of  production 

sold during  the survey  period; 

b)  The value of production  sold during  the survey  period/ 

-  6  -

(4) 

In the case of some products in the  PRODCOM list  ,  the information on volume of 

production  referred  to  in  paragraph  3(a)  shall  not  be  information  on  the 

production  sold  during  the  survey  period  but  one  of  the  following  two 

variables: 

a)  The  volume  of  production  actually  carried  out  during  the  survey  period, 

including any which is incorporated into the manufacture of other products from 

the same enterprise; 

b) 

the volume  of  production  actually  carried  out  during  the  survey  period  with a 

view to its being offered  for sale. 

(5) 

The  survey  in  each  Member  State  shall  cover  only  that production  actually  carried 

out  within  the  national  territory  and  shall  not  include  subcontracted  production 

outside the national territory. 

Article 3 

Representativeness 

The production of  all enterprises of  the Community  is to be recorded  with a certain degree 

of accuracy for each NACE Rev.  1  class. 

The  survey  shall  fulfil  the following  requirements: 

(1) 

The data  supplied  shall  represent  the production  of  all  enterprises  which  have 20 or 

more employees; 

(2) 

if  the production  of  enterprises  which  have 20  or  more employees  is  less  than 90% 

of the national production  for one NACE Rev. 1 class, additional enterprises shall be 

included until this threshold 

is  reached 

for  the  class  concerned; 

-  7  -

(3) 

if the production of enterprises which have 20 or more employees is more than 90% 

of  the  national production  for  one NACE Rev.  1 class,  a  threshold  higher  than  20 

persons  employed  may  be  used  by  the  Member  State  concerned,  where  such  an 

increase  in  the  threshold  does  not  compromise  the  representation  of  90%  for  the 

class concerned. 

The survey  methodology  shall be improved  to enable Community production  to be valued 

sufficiently  accurately.  The  appropriate  measures  shall  be  drawn  up  by  the  Commission 

following  consultation  with  the  Committee  referred  to  in  Article  9,  in  accordance 

with  the  procedure  specified  in  Article  10. 

Article 4 

Periodicity 

The survey shall cover a period of one calendar year. 

However,  monthly  or  quarterly  surveys  may  be  carried  out  for  certain  products  in  the 

PRODCOM list  . 

Article 5 

Collection of data 

(1)  Member 

States 

shall  collect the required  data using  survey questionnaires.  The 

Commission shall lay down the relevant arrangements. 

(2) 

The  enterprises  called  upon  by  Member  States  to  supply  information  shall  be 

obliged to give honest and complete information  within the prescribed periods. 

- 8 -

(3) 

The 

survey 

may 

not 

be 

requisite 

if  Member 

States 

already  have information  from  other sources which is at least equivalent as regards 

precision and quality. 

Article 6 

Processing of results 

Member  States  shall process  the completed  questionnaires  (Article  5(1)) or 

information  from other  sources (Article  5 (3)) 

in  accordance  with  specifications 

which  the  Commission  shall  lay  down. 

Article 7 

Transmission of results 

(1)  Member 

States 

shall  send  the  results  of  the  annual  survey  to  the  Statistical 

Office  of the European Communities within six months after  the end of the  survey 

year.  These shall include any data which  are classed  as confidential  under  national 

legislation; these data should be clearly marked as such. 

The first  survey shall cover 1993. 

(2) 

Product  data  which  have  a  periodicity  shorter  than  annual  shall  be  sent 

under  the  procedure  which  the  Commission  shall 

lay  down. 

(3)  With  the  data  for  1993 the  Member  States  shall  send  information  relating  to  1992 

using national statistics which correspond  as closely as possible to the  PRODCOM 

list  . 

- 9 -

(4) 

Data  transmitted  to the Statistical  Office of the European  Communities 

shall be treated as confidential as required by Council  Regulation 

(Euratom/EEC) No 1588/90  (2). 

Article 8 

Transitional period 

Articles 1 to 7 shall be the subject of progressive  implementing  measures 

for the surveys  covering 1993 and 1994. 

Article 9 

The Committee 

The procedures  for  implementing  this Regulation,  including  the measures  for adjustment  to 

technical progress concerning  the processing and the transmission of the results shall be laid 

down  by  the  Commission  after  consulting  the  Statistical  Programme  Committee  set  up by 

Council 

Decision  89/382/EEC,  Euratom  (3),  in  accordance  with  the  procedure 

set  out  in  Article  10. 

-  10  -

Article  10 

Procedure 

The representative of  the Commission  shall  submit to the committee a draft of  the measures 

to be taken.  The committee  shall deliver  its opinion  on the draft,  within  a time limit which 

the chairman may lay down according to the urgency of the matter,  if  necessary by taking a 

vote. 

The opinion  shall be recorded in the minutes; in addition, each Member State shall  have the 

right to ask to have its position recorded in the minutes. 

The Commission  shall take the utmost account of  the opinion delivered by  the committee.  It 

shall inform the committee of the manner in which its opinion has been taken into account. 

Article 11 

Entry into force 

This Regulation  shall  enter into  force on  the day of  its publication  in  the Official  Journal of 

the European Communities. 

-  11  -

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

Done at  Brussels, 

For the Council 
The  President 

-  12 -

FICHE  FINANCIERE 

eN 

concernant  la mise en place d'une enquête communautaire 
sur  La production  industrielle 

TI 

Budget  :  B5-60  Article  :  85-60 1 
Titre  :  Actions relatives aux programmes statistiques  sectoriels pour 

l'accompagnement  des politiques communautaires 

2l 

Base  légale  :  Article 100 A du Traité  instituant  la Communauté 

Economique Européenne. 

Classification  :  Dépense non obligatoire 

4. 

Description du projet : 

4.1  Objectifs 

(a) harmoniser  les statistiques de production  sur  te champs 

industriel 

(b) produire une statistique européenne détaillée et  rapide 
(c) rapprocher  les statistiques de production des 

statistiques de commerce extérieur 

4.2 

Actions : 

(a) aider  les Etats membres à mettre en place tes 

équipements nécessaires 

(b) aider au démarrage d'enquêtes pilote. 

__ 

Méthode de calcuT 

5.1 

Nature des dépenses : 
(1)  frais d'envoi, de collecte, de traitement occasionnés par des 

enquêtes pilotes; 

(2)  financement d'équipement  pour  le traitement  des données. 

5.2  Part de la Coawission  :  25 X 

5.3  Calcul  : 

enquêtes pilotes  : 
: 
équipements 

1 Million  d'écus 
4 Millions  d'écus 

6. 

laplication financière au regard des opérations 

6.1 

Calendrier 

1991 
1992 
1993 
1994 

Total 

Crédits 
engagés 

Crédits 
dépensés 

1,7 
1,2 

5,0 

2,1 
1,0 
0,2 

5,0 

6.2 

Financement : 

Aucun en 1990 

77" 

Observations 

(1) La Communauté apporte sa contribution en complément 

d'un  financement  des Etats membres: coût total de 
l'opération  20 Mecu 

(2) La Commission se réserve  le droit de réaffecter  les 

crédits en fonction des priorités de  l'exercice  en 
cours. 

-  13  -

Impact on SMEs of the PRODCOM Regulation. 

1.  Administrative obligations on enterprises resulting  from the application of legislation. 

The  aim  of  the  Regulation  is  to  widen  the  interest  of  statistics  already  collected  by  the 
Member States,  without increasing  the survey  burden on enterprises,  by  producing annual 
European industrial statistics. 

The  regulation  breaks  new  ground  by  harmonizing  survey  methods,  especially 
classifications.  Each  country's  survey  classification  will  be  based  on  a  common  model, 
itself  based  on  the  Combined  Nomenclature,  the Community's  nomenclature  for  external 
trade.  The  national  survey  classifications  will  therefore  be  largely  harmonized  with  the 
Combined Nomenclature. 

All  industrial  enterprises  are  concerned  by  these  statistics,  but  experience  in  the 
Community's advanced  countries  has led  to  the  survey  being  limited  as far as possible  to 
enterprises with at least 20 employees. 

2.  Advantages for enterprises. 

The  European  dimension  of  the  results  produced  by  the  new  survey  system  is  a  major 
advantage  for  enterprises  :  instead  of  juxtaposing  incomplete  national  statistics  that  are 
difficult  to compare, the new system will produce the fullest  statistics at European level,  if 
not at the level of individual Member countries. 

All  the  enterprises  interviewed  in  the  Community  will  provide  data  on  the  same  list  of 
products  and,  thanks  to  the  new  Council  Regulation  authorizing  the  forwarding  of 
confidential  data to Eurostat, areas of secrecy will be kept to a minimum. 

In this  way it  will at last be possible to  have statistics  for a number of  industrial products 
which were formerly excluded by national constraints. 

And these statistics will  lead directly to market statistics, because  the survey  classifications 
are based on the Combined Nomenclature. 

Enterprises  will  therefore  be  able  to  gain  access  to  an  unprecedented  amount  of 
information  on  their  markets  without  having  to  call  upon  the  expensive  services  of 
specialized  firms. 

The professionals  are in no doubt as to the utility of these new statistics for enterprises. 

The utility  will  be  further  enhanced  by  the  short  deadline  imposed  on  Member  countries 
for producing the results. 

-  14  -

3.  Disavantages  for enterprises. 

It should be remembered,  firstly,  that these statistics will  not concern the great  majority of 
enterprises with fewer than 20 employees. 

» 

For the remaining  minority,  there may be difficulties  stemming  from  the level of detail or 
the  nature of  the  data required  and  the  frequency  of  interrogation,  especially  in  the  less 
advanced countries where enterprises are not so used to developed statistics. 

Since  the  statistics  will  be  annual,  the  periodicity  cannot  be  called  into  question.  As 
regards  the  survey  classification,  which  lays  down  the  detail  and  nature  of  the  data, 
enterprises  will  be  spared  the  task  of  learning  a  new  classification  since  the  Combined 
Nomenclature will be used. 

It should be added that entei prises will  find it simpler to provide replies the more reduced 
or concentrated their activities (the case of  "small and medium-sized  enterprises'*) and that 
the  largest  enterprises  are  sufficiently  well  organized  to  reply  in  the  level  of  detail 
corresponding to the diversity of their markets. 

As regards  data collection,  the  European  dimension  will  help  develop  computerized  data 
forwarding techniques. 

4.  Have the two sides of industry been consulted in advance? 

There  have  been  systematic  consultations  with  European  Federations  of  industrial 
branches,  as  least  with  those existence  was known  through  national  statistical  offices  and 
Commission departments.  Over 200 federations were involved.  These consultations played 
an essential role in tailoring the survey system to provide  market information. 

In addition,  each  national  statistical  office  was able  to extend consultations  to other types 
of  partner  through  the  organizations  on  the  Member  countries  normally  responsible  for 
national consultations in statistical matters. 

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-  15 -

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