Proposal for a Council Regulation (EC) concerning Short- Term Statistics
Date: 1997-06-24
Institutions: European Commission
Subjects: European undertaking, economic indicator, economic statistics, harmonisation of standards, statistical method

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 24.06.1997 
COM(97)  313  filial 

97/0171  (CNS  ) 

Proposal for a 

COUNCIL REGULATION  fEQ 

rnnrerning  Short-Term  Statistics 

(presented  by the Commission) 

EXPLANATORY  MEMORANDUM 

Part One (justification  as regards subsidiarity  and  proportionality): 

a)  What  are  the  objectives  of  the  proposed  measures,  and  how  do  they  relate  to  the  Community's 

obligations? 

The  general  purpose  of  the  Regulation  is  to  require  Member  States  to  provide  Eurostat  with 

comparable  statistical  data  relating  to  the  short-term  evolution  of  the  European  business  Community. 

Statistical  information  on  businesses  is  required  for  the  follow-up  of  the  internal  market  and  the 

development  and  appraisal  of  many  policies,  particularly  in  the  following  fields:  monetary,  economic, 

social,  industrial  and  enterprise  policies. The  short-term  indicators  proposed  in this  Regulation  provide 

a  picture  of  the economy  which  is more  up-to-date  than  can  be  acquired  from  annual  statistics  and  are 

also  an  important  reference  for  the  compilation  of  quarterly  accounts.  This  is particularly  necessary  at 

a time when the European  Union  is starting  work on the transition  towards  the  single  currency. 

b)  Is  the  measure  an  area  where  the  Community  has  sole jurisdiction  or  where  it  shares jurisdiction  with 

the Member  States? 

The Member  States  are  responsible  for  the  collection  of  the  data,  not  the  Commission.  The  Regulation 

lays  down  the  norms,  standards  and  definitions  necessary  for  producing  comparable  statistics  within 

the European  Union,  without  detailing  the  actual  collection  methods  to  be  used.  As  such  each  Member 

State may conduct  the data  collection  exercises  in the manner  most  appropriate  to  its own  situation,  for 

example  to  take  account  of  general  administrative  records  such  as  social  security  and  VAT 

declarations  as  well  as  more  narrow  records  concerning  wage  agreements,  tariffs  for  utilities  or 

building  permit  applications. 

c)  What  is the scale of  the problem  at the Community  level? 

All member  States currently  collect  some  information  on  the business  cycle.  The  Regulation  will  entail 

the  collection  of  some  additional  data  for  most  Member  States  and  certain  changes  to  the  definitions 

and  norms  for  all  Member  States. 

d)  What  would  be  the  most  effective  solution  among  those  available  to  the  Community  and  the  Member 

States? 

It  is  only  by  way  of  such  a  Community  initiative  that  the  aim  of  using  common  classifications, 

definitions  and  methods  for  adjusting  data  for  seasonal  effects  can be  achieved. 

e)  What  practical  gains  does  the  proposed  measure  offer  and  what  would  be  the  cost  of  failure  to  take 

action? 

The  recent  developments 

in  Community  monetary,  economic  and  social 

integration  require 

information  to  support  the  development  and  appraisal  of  initiatives  and  decisions.  The  development 

and  appraisal  of  these  initiatives  and decisions  needs  to  be  based  on more  reliable,  exhaustive,  up-to-

date  and  comparable  statistics.  A  failure  to  implement  this  Regulation  would  imply  that  the  drafting, 

monitoring,  control  and evaluation  of  Community  policies  in the fields  of  monetary,  economic,  social, 

industrial  and  enterprise  policies  would  continue  to  be  based  to  a  large  extent  on  incomplete,  non 

standard statistics. 

f)  What options are available to the Community? 

The  choice  of  a  Regulation  is  the  most  appropriate  instrument  given  that  the  proposal  includes  the 

delegation of  implementing  powers to the Commission according  to the Comitology  procedure. 

In  addition,  it  should  be  noted  that  the  system  for  the  collection  of  statistics  will  be  based  to  a large 

extent  on  existing  statistical  systems.  These  systems  will  only  very  slowly  move  towards  common 

norms  without  Community  legislation.  The  use  of  a  Council  regulation  ensures  the  direct  application 

of this act in the Member States which  is an important  factor given the urgent need for  information. 

g)  Are  uniform  rules  needed,  or  is  the  adoption  of  a  Regulation  setting  out  the  general  objectives  and 

leaving  implementation to the Member  States  sufficient? 

This  Council  Regulation  will  set  out  the  minimum  number  of  standards  to  ensure  the  availability  of 

comparable  short-term  indicators  within  the  European  Union.  The  Member  States  will  remain 

responsible  for the design and operation of their data collection systems. 

Part  Two 

General  Statement 

1.  The  general  purpose  of  the  Regulation  is  to  require  Member  States  to  provide  Eurostat  with 

comparable  statistical  data  relating  to the short-term  evolution  of  the  European  business  Community.  It 

should  be  noted  that  it  is the Member  States  who are  responsible  for  the  collection  of  the  data,  not  the 

Commission.  The  Regulation  lays  down  the  norms,  standards  and  definitions  necessary  for  producing 

comparable  statistics  within  the  European  Union,  without  detailing  the  actual  collection  methods  to  be 

used.  As  such  each  Member  State  may  conduct  the  data  collection  exercises  in  the  manner  most 

appropriate  to  its  own  situation,  for  example  to  take  account  of  national  requirements  for  social 

security  and  VAT  declarations. 

User  needs 

2.  The  statistical  services  of  the  Member  States,  co-ordinated  by  Eurostat,  have  a significant  role  to  play 

in  meeting  the  European  Union's  need  for  information  on  the  business  Community.  The  recent 

developments  in Community  monetary,  economic and  social  integration  require  information  to  support 

the  development  and  appraisal  of  initiatives  and  decisions.  The  development  and  appraisal  of  these 

initiatives  and  decisions  needs  to  be  based  on  more  reliable,  exhaustive,  up-to-date  and  comparable 

statistics.  Statistical  information  on  businesses  is  required  for  the  follow-up  of  the  internal  market  and 

the  development  and  appraisal  of  many  policies,  particularly  in  the  following  fields:  monetary, 

economic,  social, 

industrial  and  enterprise  policies.  In  addition,  businesses 

themselves  need 

information  on the business cycle and  its impact  in their  sector  in national  and  international  markets. 

3.  The  short-term  indicators  proposed  in this  Regulation  provide  a picture  of  the  economy  which  is  more 

up-to-date  than  can  be  acquired  from  annual  statistics  and  are  also  an  important  reference  for  the 

compilation  of quarterly  accounts. 

Existing  situation 

4.  For  many  years  harmonised  Community  short-term  indicators  have  only  been  available  for  a  limited 

part  of  the  business  community,  namely  the  traditional  industrial  sectors  of  energy  and  water  supply 

and 

the  extractive,  manufacturing  and  construction 

industries.  The  sectoral  coverage  within 

manufacturing  is  about  80%  and  construction  indicators  are  produced  by  about  two-thirds  of  the 

Member  States.  The  coverage  of  service  sectors  in  the  Member  States  has  been  very  limited.  The 

indicators  that  do  exist  in services  are  compiled  in an unharmonised  format  which  has  severely  limited 

the comparability  of  the  resulting  information  at a Community  level. 

5.  The  statistical  information  that  has  been  available  for  the  industrial  sectors  since  the  two  Council 

Directives  covering  this area  were  adopted  (in  1972 and  1978)  has become  progressively  less useful  as 

the  inflexibility  of  the  legal  instruments  has  not  permitted  economic  and  technical  developments  to  be 

taken  into account  during  the  intervening  years. 

Aims of  the new  legal  instrument 

6.  Provide  a  common  framework  for  the  collection,  transmission  and  development  of  short-term 

indicators  in  order  to  produce  data  comparable  between  the  different  Member  States  to  support  the 

need  for  statistical  information  of  the Commission,  Member  States,  enterprises  and  other users. 

7.  Continue  to  strengthen  the  development  of  the  Community  statistical  system,  incorporating  into  the 

production  of  short-term  indicators  the  recently  developed  Community  statistical  tools  such  as  the  new 

classification  of  activities  (NACE  Rev.l  -  Council  Regulation  761/93  of  24.3.1993),  the  definition  of 

statistical  units  (Council  Regulation  696/93  of  15.3.1993)  and  the  drawing  up  of  business  registers 

(Council  Regulation  2186/93  of  22.7.1993)  as  well  as  the  transmission  of  confidential  data  (Council 

Regulation  1588/90  of  11.6.1990). 

8.  Provide  flexibility  to  allow  minor  changes  notably  to  the  list  of  indicators  to  be  collected  in the  future 

(use of Council  Decision  87/373  of  13.7.1987  on  'Comitology'). 

9.  Provide  the  framework  for  testing  new  methodology  to  study  new  concepts  or  the  compilation  of 

results  for  new  indicators  or  industrial  sectors. 

Consultation  of  interested  parties 

10.  The  European  Monetary  Institute  has  been  consulted  on  the  needs  of  a  future  European  Central  Bank 

for  short-term  indicators.  The  following 

list  summarises  these  needs  and  indicates  where  the 

Commission's  proposal  does  not meet  their needs. 

•  Monthly  production  indicators  are  regarded  as  essential  with  some  activity  breakdown  and  a  delay 

of  6-8  weeks.  Information  on turnover  is relatively  less  important. 

•  Manufacturing  orders  information,  broken  down  into  domestic  and  foreign  orders  is  regarded  as 

essential.  Quantitative  information  is  more  important  than  qualitative  data  from  opinion  surveys. 

Orders  in construction  are  important.  Monthly  orders  information  is needed  with  a  maximum  delay 

of 2 months.  The  residential/non-residential  breakdown  in construction  is  regarded  as  important  for 

business  cycle  analysis.  A  further  breakdown  that  is  not  proposed  in  the  draft  Regulation  but  is 

requested  by  the  EMI  is  between  orders  from  MUMS  (Monetary  Union  Member  States)  and  non-

MUMS. 

•  Monthly  information  on  stocks  is  seen  as  an  important  supplementary  statistic.  At  present  this  is 

only  foreseen  as a pilot  study. 

•  Producer  prices  are  essential  with  some  activity  breakdown  regarded  as  important  and  they  are  all 

required  within  1 month  for  manufacturing  and  2 months  for  construction. 

•  Employment  and  hours  worked  are  important  in  manufacturing  and  services.  These  indicators 

should  be  available  within  3  months.  The  EMI  would  like  these  social  indicators  to  be  collected 

every  quarter.  The draft  Regulation  does  not  foresee  the collection  of  information  on the  number  of 

hours  worked  in the  services  sectors.  In  addition,  an  indicator  of  hours  worked  at  overtime  rates  is 

regarded  by  the  EMI  as  an  important  supplementary  statistic  but  is  not  proposed  in  the  draft 

Regulation. 

•  For  the  construction  sector,  the  EMI,  regards  additional  indicators  of  building  permits,  housing 

starts  and  completions  as  important.  These  need  to be  available  within  1-2  months.  Information  on 

housing  starts and  completions  is not  required  by the draft  Regulation. 

•'  A  monthly  indicator  of  retail  sales  is  regarded  as  essential  and  needs  to  be  available  within  1-2 

months.  The draft  Regulation  proposes  that  this  information  should  be provided  within  3 months. 

At  a  more  general  level,  the  EMI  has  called  for  shorter  transition  periods  than  proposed  by  the 

Commission  in  order  to  ensure  the  availability  of  comparable  statistics  by  the  start  of  the  single 

monetary  policy.  Further  breakdowns  between  MUMS  and  non-MUMS  are  called  for,  in  particular 

for  new  orders.  The  pilot studies  in the  other  service  areas  are  strongly  supported  and  a need  for  more 

comprehensive,  frequent  and  timely  information  in  branches  with  short-term  fluctuations  has  been 

expressed. 

11.  The  services  of  the  Commission  have  been  consulted  on  their  needs  on  a  regular  basis.  A  written 

consultation  was  made  of  all  services  of  the  Commission  on  a  recent  draft.  There  was  support  for  the 

draft  from  all  of  the  Directorate  Generals  that  replied.  However,  six  Directorate  Generals  wanted  the 

Regulation  to ask  for  more detail  on  very  specific  matters.  The following  points  can be  noted. 

•  More  indicators:  Value  added  in  all  sectors.  Breakdown  between  residential  and  non-residential 

production  indexes  in Construction.  Breakdown  of  non-residential  building  permits  in  Construction. 

Hours  worked  in  retail  trade.  Number  of  retailers  in  the  fish  retail  sector.  Indexes  of  turnover  and 

number  of employees  in services. 

•  Greater  level  of  NACE  breakdown:  3-digit  level  in  services  and  4-digit  level  concerning  some 

transport  activities. 

• 

Indicators  on  SMEs:  For  enterprise  policy  a  breakdown  by  size  class, is  necessary  in  order  to-

separate  business  cycles of  SMEs  from  large  enterprises. 

•  Frequency:  Information  on employment  should  be  monthly. 

12.  Representatives  of  the business community  at the European  level  were presented  with several  drafts  of 

the text. 

14/10/1994:  Meeting  with  approximately  40  representatives  of  industrial  and  service  sectors  and 

chambers  of  commerce.  The  participants  requested  a  better  co-ordination  between  quantitative  and 

qualitative indicators. 

10/3/1995:  Progress  report  on  developments  since  the  previous  meeting.  Distribution  of  the  text.  60 

participants. 

15/11/1995:  Progress  report  on developments  since  the  previous  meeting.  Distribution  of  the  text.  50 

participants. 

21/5/1996:  Progress  report  on  developments  since  the  previous  meeting.  Distribution  of  the  text.  36 

participants. 

30/9/1996:  Progress  report  on  developments  since  the  previous  meeting.  Distribution  of  the  text.  50 

participants. 

As  a  result  of  the  meeting  on  15/11/95  a postal  survey  was  made  of  the  participants  to  investigate  in 

detail their needs for short-term indicators and their views on the text. 

•  Indicators:  The  index  of  production,  turnover,  new  orders  and the stock  of  orders  and the  number 

of  employees  are  the  most  important  indicators.  Wages  and  salaries  and  the  volume  of  work  were 

not  regarded  as  essential.  In  addition,  the  trade  associations  would  like  to  see  extra  indicators 

concerning  capacity  utilisation and the breakdown of turnover  and production prices between intra-

EU and extra-EU. 

•  Delays: Acceptable. 

•  Level  of  detail:  The  2-digit  level  is  insufficient.  The  trade  associations  would  like  3  and  4-digit 

level data. 

•  Pilot studies: Supported the development of  indicators on investment. 

•  Burden: the burden needs to be minimised and administrative  sources used as much as possible. 

13.  The  National  statistical  offices  who  are  responsible  for  data  collection  have  been  consulted  on  many 

occasions  during  the  preparation  of  this  text.  A  very  close  dialogue  has  been  undertaken  during  the 

drafting  of  the  methodological  manuals  which  will  support  this  legislation  on  a  technical  level.  A 

dozen  task  force  meetings  were  held  with  Member  States  to  look  at  particular  sectors  and  particular 

indicators.  In addition  there  have  been  a number  of  working  party  meetings  with  all  Member  States 

since  1992. The  text has been presented to the Statistical  Programme  Committee.  There  is support  for 

the draft text from  10 countries.  The Member States who objected to the text did so principally  on the 

following grounds: 

France,  the  Netherlands  and  the  United  Kingdom:  Would  like  a more  complete  services  module,  not 

just pilot studies. It should be noted that the agreement to the draft by the German statistical office  was 

conditional on the inclusion of services only as pilot studies and not as compulsory data collection, 

Spain and Ireland:  Oppose  new  orders  indicator  as  they do  not currently  collect  this  information  and 

do not want to introduce it, 

Denmark: Against output prices for export market as they do not currently collect this information and 

do not want to introduce it. 

COUNCIL REGULATION  (EC) 

concerning  Short-Term  Statistics 

The Council  of the European  Union, 

Having  regard  to the Treaty  establishing  the European  Community,  and  in particular  Article 213 thereof, 

Having  regard  to the draft  Regulation  submitted  by the Commission, *) 

Having  regard to the opinion  of the European  Parliament,^) 

Having  regard  to the opinion  of the economic  and  social  committee,^) 

Having  regard  to the opinion of the  European  Monetary  Institute,4) 

(1)  Whereas  the  Council  Directive  No.  72/211  (EEC)  of  30  May  19725)  and  Council  Directive  No. 

78/166  (EEC)  of  13 February  1978^)  which  aimed  to provide  a  body  of  coherent  statistics,  have  not 

been  able to take  account  of economic  and technical  changes; 

(2)  Whereas  the  European  Union  has  in  the  meantime  made  further  progress  towards  integration; 

whereas  new  economic,  competition,  social,  environmental  and  enterprise  policies  and  guide-lines 

call  for  initiatives  and  decisions  based  on valid  statistics;  whereas  the  information  provided  for  under 

existing  Community  legislation  or  available  in  the  various  Member  States  is  partly  inadequate  or 

insufficiently  comparable  to serve  as a reliable basis for  the work  of the  Communities; 

(3)  Whereas  the  future  European  Central  Bank  (ECB)  needs  rapid  short  term  statistics  in  order  to  assess 

the economic development  in the Member  States in the context  of a single  European  monetary  policy; 

(4)  Whereas  standardisation  is  required  to  meet  Community  needs  for  information  concerning  economic 

convergence; 

(5)  Whereas  it  is  necessary  to  have  reliable  and  rapid  statistics  available  in  order  to  report  on  the  eco 

nomic  development  in  each  Member  State  of  the  Union  in  the  framework  of  the  economic  policy  of 

the  Union; 

1)  Official  Journal  * *** of  **.**.****,  p.  *. 

2)  Official  Journal  * *** of  **.**.****?  p  * 

3)  Official  Journal  * *** of  ******** 

t  p.  *. 

4)  Official  Journal  * *** of  **.**.****?  p.  *. 

5)  Official  Journal  L  128 of  3.06.1972,  p. 28. 

6)  Official  Journal  L 52 of 23.02.1978,  p.  17. 

S 

(6)  Whereas  businesses  and  their  professional  associations  need  such  information  in  order  to  understand 

their  markets  and  to  know  their  activity  and  performance  relative  to  their  sector,  at  national  and 

international  level; 

(7)  Whereas  in  its  Decision  93/464  of  22  July  1993 7)  the  Council  adopted  a  framework  programme  for 

priority  actions  in the field of statistical  information  for  1993 to  1997; 

(8)  Whereas  the compilation  of  national  accounts according  to Council  Regulation  No.  223/96  of  26 June 

1996**)  concerning  the  European  System  of  National  and  Regional  Accounts  in  the  European 

Community  (ESA95)  requires  the  development  of  comparable,  complete  and  reliable  statistical 

sources; 

(9)  Whereas  in Decision  92/326/EEC  of  18 June  1992 9)  the  Council  adopted  a two-year  program  (1992 

to  1993)  for  the  development  of  European  statistics  on  services;  whereas  this  program  includes  the 

compilation  of  harmonised  statistics  at  national  and  regional  levels,  particularly  for  the  distributive 

trades; 

(10)  Whereas  in accordance  with the principle  of subsidiarity  the creation  of  common  statistical  norms  that 

permit  the  production  of  harmonised  statistics  is an action  which  can  only  be undertaken  efficiently  at 

Community  level and  that they  will be applied  in each Member  State under  the authority  of the  bodies 

and  institutions  in charge  of compiling  official  statistics; 

(11)  Whereas  the  best  method  of  ascertaining  the  business  cycle  consists  of  compiling  statistics  which 

conform  to  common  methodological  principles  and  with  common  definitions  of  characteristics; 

whereas  it  is only  from  co-ordinated  compilation  that  harmonised  statistics  can  be drawn  up  with  reli 

ability,  speed,  flexibility  and  the  level  of  detail  required  to meet  the  needs  of  the  Commission  and  of 

enterprises; 

(12)  Whereas  the  statistical  data  compiled  within  the  Community  system  must  be  of  a  satisfactory  quality 

and  this  quality,  as  well  as  the  burden  it  entails,  must  be  comparable  from  one  Member  State  to 

another,  and  whereas  it  is  therefore  necessary  to  establish jointly  the  criteria  enabling  these  require 

ments  to  be  met;  Whereas  short-term  statistics  must  be  consistent  with  the  results  transmitted  in 

accordance  with  Council  Regulation  No.  58/97  of  20  December  1996*^)  concerning  structural 

business  statistics; 

(13)  Whereas  it  is  necessary  to  simplify  the  administrative  procedures  for  enterprises,  particularly  smaller 

enterprises,  including  the promotion  of  new technologies  for  data  collection  and  compilation;  whereas 

the  use  of  existing  administrative  data  for  statistical  purposes  is  one  of  the  measures  to  decrease  the 

7)  Official  Journal  L 219 of 28.08.1993,  p.  1. 

8)  Official  Journal  L 310 of  13.11.1996,  p. 39. 

9)  Official  Journal  L  179,  1.7.1992,  p.  131. 

10)  Official  Journal  L  14 of  17.01.1997,  p.  1. 

m  3 

burden  on  enterprise;  whereas  if  a direct  data  collection  from  businesses  is  indispensable  for  compil 

ing  the  statistics,  the  methods  and  techniques  must  ensure  that  the  data  are  reliable  and  up  to  date, 

without  giving  rise  for  the parties  concerned,  in particular  for  small  and  medium  sized  businesses,  to 

a burden  out  of proportion  to the results  which  users of the said  statistics  can  reasonably  expect; 

(14)  Whereas  it  is  necessary  to  have  a  legal  framework  common  to  all  business  activities  and  domains  of 

business  statistics  covering  also  the  activities  and  domains  for  which  statistics  are  not  yet  developed; 

whereas  the  scope  of  the  statistics  to  be  compiled  can  be  defined  by  reference  to  Council  Regulation 

No.  93/696**)  on  the  statistical  units  for  the  observation  and  the  analysis  of  the  production  system  in 

the  European  Community  and  Council  Regulation  No.  3037/9012)  on  the  statistical  classification  of 

activities  in  the  European  Community  (NACE  Rev.l)  amended  by  Commission  Regulation  No. 

761/9313); 

(15)  Whereas,  in  order  to  enable  the  rules  for  the  collection  and  statistical  processing  of  data  and  for 

processing  and  transmission  of  the  variables  to be  clarified  further,  it  is necessary  to confer  upon  the 

Commission,  assisted  by  the  Statistical  Programme  Committee  set  up  by  Decision  89/382/EEC 

(Euratom),*4) the power  to adopt measures  for  the application  of this  Regulation, 

(16)  Whereas  the  statistical  Programme  Committee  has  been  consulted  in  accordance  with  article  3 of  the 

aforesaid  Decision, 

has adopted  this  Regulation: 

11)  Official  Journal  L 76,  30.3.1993, p.  1. 

12)  Official  Journal  L 293, 24.10.1990,  p.  1. 

13)  Official  Journal  L 83, 3.4.1993,  p.  1. 

14)  Official  Journal  L  181, 28.6.1989,  p. 47. 

• •) 

Article 1 

General aims 

(1)  The objective of this Regulation  is to establish a common framework  for  the production of short-term 

Community Statistics on the Business cycle. 

(2)  The statistics comprise information  (variables) which are necessary to provide a uniform  basis for the 

analysis of the short term evolution of output and demand, the production factors and prices. 

» 

Article 2 

Scope 

(1)  This Regulation  shall  apply  to all  market  activities  in Sections  C to K and  M to O of  the  statistical 

classification  of  economic  activities  in  the  European  Community  (NACE  Rev.l)  as  established  by 

Regulation (EEC) No 3037/90 

(2)  Statistical units of the types listed  in Section I of the Annex to Regulation  No 93/696  and which are 

classified  under one of the activities  referred  to in paragraph  1 shall be  included  in the scope  of this 

Regulation.  The use of particular  units for  the compilation  of statistics  is specified  in the Annexes to 

this Regulation. 

Article 3 

Modules 

(1)  The  specific  requirements  for  the  variables  are  described  in  modules  set  out  in  the  annexes  to  this 

Regulation. 

(2)  The following  information  is laid down in each module where relevant: 

a.  the specific activities for which the statistics are to be compiled; 

b.  the types of statistical unit to be used for the compilation of the statistics; 

c.  the lists of variables; 

d.  the form of the variables; 

e.  the frequency  of the variables; 

f. 

the level of detail of the variables; 

g.  the deadlines for data transmission; 

h.  the list of voluntary pilot studies; 

i. 

the first reference  period; 

j. 

the maximum length of the transition period which may be conceded. 

• 

'1-1 

Article 4 

Collection  of  data 

(1)  Member  States  shall  obtain  the  necessary  data  for  the  compilation  of  the  variables  listed  in  the  mo 

dules. 

(2)  Member  States  may  obtain  the-necessary  data  using  a  combination  of  different  sources  specified 

below,  applying  the principle of  administrative  simplification: 

(a)  compulsory  surveys:  the  legal  units,  to  which  the  statistical  units  called  upon  by  the  Member 

States  belong  or  of  which  they  are  composed,  shall  be  obliged  to  give  accurate  and  complete 

information  within  the prescribed  deadlines; 

(b)  other  sources  which  are at  least  equivalent  as regards accuracy  and  quality; 

(c)  missing data  may  be estimated  if this does not  lower  substantially  the quality  of the variables. 

(3)  Member  States  shall  promote  conditions  which  reduce  the  response  burden  on  the  reporting  units. 

For  this  purpose  Member  States  shall  take  the  necessary  measures  to  allow  and  facilitate  access  by 

the  authorities  responsible  for  the  collection  of  data,  to  administrative  sources  within  their  State,  in 

particular  periodic  information  contained  in  VAT  declarations,  including  information  in  the  tax 

register. 

(4)  The  Member  States,  in co-operation  with  the Commission,  shall  promote  the  conditions  for  increased 

use of electronic  data  collection  and  automatic  data  processing. 

Article 5 

Periodicity 

All variables  are provided  on a monthly  or  quarterly  base as specified  in the modules. 

Article 6 

Level  of  detail 

The  variables  are  to  be  supplied  in  accordance  with  NACE  Rev.l  at  the  level  of  detail  as  set  out  in  the 

modules. 

Article 7 

Processing 

Member  States  shall  process  the  completed  data  collected  by  means  of  surveys  or  obtained  from  other 

sources  into comparable  variables 

(a)  following  the  rules  laid down  in  the modules and 

(b)  taking  account  of  the guidelines  laid  down  in the methodological  manual  referred  to  in Article  11. 

• 

-12 

Article 8 

Transmission 

(1)  Member  States  shall  transmit  the  variables  provided  for  in  Article  7  of  this  Regulation,  including 

confidential  data,  to  the  Statistical  Office  of  the  European  Communities  in  accordance  with  the 

existing  Community  provisions  on  transmission  of  data  subject  to  statistical  confidentiality.  The 

existing  Community  provisions  on  the  transmission  of  data  subject  to  statistical  confidentiality  shall 

apply to the treatment of the variables,  insofar as they include confidential  data. 

(2)  The  transmission  to  the  Statistical  Office  of  the  European  Communities  shall  be  carried  out  by 

electronic  or  other  appropriate  means  within  a period  of  time  from  the  end  of  the  reference  period 

which  is laid down in the modules and which shall be no longer than 6 months. 

(3)  In any  case,  the variables  shall  be  transmitted  to the  Statistical  Office  of  the  European  Communities 

not later than the day they are ready  for publication  in the Member State. 

Article  9 

Quality 

(1)  The  Member  States  shall  ensure  that  the  transmitted  variables  reflect  the  true  situation  of  the  total 

population of units.  For this purpose  the surveys  or other sources must cover as many units as neces 

sary  to ensure a sufficient  degree of  representativeness. 

(2)  The  accuracy  of  the  variables  has  to  be  measured  by  each  Member  State  according  to  a  common 

methodology.  This  methodology  will  be  established  by  the  Commission  after  consultation  of  the 

Committee  referred  to  in Article  17  and  will  be  laid down  in the methodology  manual  referred  to  in 

Article  11. 

(3)  The  quality  of  the  variables  is  to  be  tested  regularly  by  comparing  them  with  other  statistical  in 

formation,  notably  the  variables  transmitted  in  accordance  with  Regulation  No.  58/97.  In  addition 

they are to be checked for  internal consistency.  Deviations  between first published  data and final data 

are to be minimised. 

(4)  If  any  of  these  tests  result  in  a  deviation  from  the  common  methodology,  the  Member  States  shall 

remedy the deviation. 

Article  10 

Change  of  base  year 

(1)  At least every  five  years,  for the years ending with a 0 or a 5,  Member States are obliged to adapt the 

weighting  systems  of  the  composite  indices  and  in  the  appropriate  case  the  choice  of  representative 

products. 

•  A3 

(2)  All  variables  must  be  rebased  on  the  new  base  year  within  three  years  after  the  end  of  this  new  base 

year.  The  weights  used  in  the  adopted  weighting  systems  shall  be  transmitted  to  the  Commission 

within three years after  the end of  the new  base  year. 

Article  11 

Methodological  manual 

In co-operation  with the Committee  referred  to in Article  17, a methodological  manual  which 

(a)  explains the  rules set up  in the modules and also 

(b)  contains the necessary  recommendations  concerning  short term  statistics, 

will be published  by the  Commission. 

This manual  will be  revised  at regular  intervals. 

Article  12 

Transition  period and  derogations 

(1)  Transition  periods  may  be  conceded,  not  extending  more  than  five  years  from  the  beginning  of  the 

first reference  periods  for  the compilation  of the statistics. 

(2)  During  the  transition  periods  derogations  from  the  provisions  of  this  Regulation  may  be  accepted  by 

the Commission  insofar  as the national  statistical  systems  require  major  adaptations. 

Article  13 

Reports 

(1)  Member  States  shall  transmit  to  the  Commission  on  request  any  relevant  information  to  evaluate  and 

compare  the degree  of accuracy  and  quality  of the transmitted  variables;  in particular  they shall  notify 

on request  of the criteria  for  the design  of the samples and the estimation  algorithm. 

(2)  The  Commission  shall,  within  three  years  of  the date  of  entry  into  force  of  this  Regulation  and  again 

every  three  years  thereafter,  submit  a  report  to  the  European  Parliament  and  the  Council  on  the  sta 

tistics  compiled  pursuant  to  this  Regulation  and  in  particular  on  their  quality  and  the  burden  on 

business. 

Article  14 

Co-ordination  in the  Member  States 

In each Member  State one national authority  shall  co-ordinate 

• 

• 

• 

the transmission  of  variables  (Article  8), 

the quality  measurement  (Article 9) and 

the transmission  of  relevant  information  (Article  13(1)). 

•  >W 

Article 15 

Pilot studies 

(1)  The Commission  will,  in accordance  with  the procedure  laid  down  in  Article  17 of  this  Regulation, 

institute  a  series  of  pilot  studies  to  be  completed  by  the  Member  States.  These  pilot  studies  are 

specified  in the modules. 

(2)  These pilot studies will be carried out in order to assess the feasibility  of obtaining  more data, taking 

into  account  the  benefits  of  the  availability  of  the  data  in  relation  to  the  cost  of  collection  and  the 

burden on business. 

(3)  The  Commission  will  inform  the  Council  of  the  results  of  the  pilot  studies  and  will  if  necessary 

submit to it proposals on new requirements for the modules. 

Article 16 

Implementation 

The  Commission  shall  determine,  under  the  procedure  laid  down  in  Article  17,  the  measures  for 

implementing  this  Regulation,  including  the  measures  for  adjustment  to  economic  and  technical 

developments  concerning  the  collection  and  statistical  processing  of  data,  the  processing  and  the 

transmission of the variables, taking  into consideration  the principle that the benefits  of the measure must 

outweigh  its  cost,  and  provided  that  major  additional  resources  are  not  involved  either  for  the  Member 

States or for enterprises as compared with the original provisions of this Regulation,  in particular: 

(a)  the use of particular units (Article 2), 

(b)  the updating of the list of variables (Article 3), 

(c)  the definition  and the appropriate forms of the transmitted variables (Article 3), 

(d)  the frequency  of compilation of the statistics (Article 5), 

(e)  the levels of breakdown and aggregation to be applied to the variables (Article 6), 

(0  the transmission deadlines (Article 8), 

(g)  the accuracy of the variables (Article 9), 

(h)  the transition periods and derogations granted during the transition period (Article 12), 

(i)  the pilot studies (Article 15), 

Article 17 

Committee procedure 

(1)  The  Commission  shall  be  assisted  by  the  Statistical  Programme'  Committee  set  up  by  Decision 

89/382/EEC, Euratom, hereinafter  referred  to as "the Committee". 

(2)  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. The opinion shall be delivered  by the  majority 

t  ir 

laid down  in Article  148 (2) of  the Treaty  in the case of decisions  which  the Council  is required  to 

adopt on a proposal  from  the Commission. 

The votes of the representatives  of the Member States within the Committee  shall be weighted  in the 

manner set out in that Article. The Chairman shall not vote. 

(3)  The  Commission  shall  adopt  measures  which  shall  apply  immediately.  However,  if  these  measures 

are  not  in  accordance  with  the  opinion  of  the  Committee,  they  shall  be  communicated  by  the 

Commission to the Council forthwith.  In that event: 

(a)  The  Commission  shall  defer  application  of  the  measures  which  it  has  decided  for  a period  of 

three months from  the date of communication. 

(b)  The Council,  acting  by a qualified  majority,  may take a different  decision  within the time limit 

referred  to in the previous paragraph. 

Article 18 

Repealing provisions 

The Directives 72/211 (EEC) of 30 May  1972 and 78/166 (EEC) of  13 February  1978 shall cease to apply 

after  the transmission of all of the data for the reference periods within 1997. 

Article 19 

Entering into force 

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

European Communities. 

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

• 

y)(o 

ANNEX A 

Industry module 

a.  Scope 
This module is applicable for all activities of mining, manufacturing  and energy,  listed  in sections C to E 

of NACE Rev.l. 

b.  Observation Unit 

(1)  The observation unit for all variables in this module is the kind-of-activity  unit. 

(2)  For enterprises with few persons employed in secondary activities the National Statistical Offices may 

use the enterprise as the observation unit. 

(3)  Exceptions  for  the  observation  unit  can  be  decided  by  the  Commission  after  consultation  of  the 

Committee referred  to in Article 17. 

c.  List of Variables 

(1)  The statistics in this module comprise the following variables: 

Variable 

Name 

110 

120 

121 

122 

130 

131 

132 

210 

220 

230 

310 

311 

312 

production 

turnover 

domestic turnover 

export turnover 

new orders received 

domestic new orders 

export new orders 

persons employed 

hours worked 

gross wages and salaries 

output prices 

output prices of the domestic market 

output prices of the export market 

(2)  The  information  on  orders  (No  130,  131,  132)  are  only  required  for  the  following  divisions  of 

NACE Rev.l:  17,  18, 21, 24, 27, 28, 29, 30, 31, 32, 33, 34, 35. 

(3)  The  information  concerning  output  prices  (No  310,  311,  312)  is  not  required  for  the  following 

groups of NACE Rev.l:  12.0, 22.1, 23.3, 29.6, 35.1,  35.3. 

1-1 

d.  Form 

(1)  The variables  are  to be supplied  in the following  form: 

Variable  Unadjusted  Working  day 

Seasonally 

adjusted 

adjusted 

y 

110 

120 

121 

122 

130 

131 

132 

210 

220 

230 

310 

311 

312 

(2)  Ail variables  can be supplied  either  as an index or as absolute  figures. 

e. 

Frequency 

The variables  are 

to be  supplied  with the following  frequency: 

Variable 

Frequency 

110 

120 

121 

122 

130 

131 

132 

210 

220 

230 

310 

311 

312 

monthly 

monthly 

monthly 

monthly 

monthly 

monthly 

monthly 

at  least  quarterly 

at  least  quarterly 

at  least  quarterly 

monthly 

monthly 

monthly 

-;? 

f.  Level of detail 

(1)  All variables are to be supplied at least at 2-digit level of NACE Rev. 1. 

(2)  For  Section  D,  the  index of production  and  the  index of output  prices  will be supplied  at both  the 3 

and 4-digit level of NACE Rev.l,  with the following exceptions: 

a)  If value added in a class of NACE Rev  1 Section D in a given base year represents,  in a Member 

State,  less than  3% of the European  Community  total, the  index of production  (No  110) and the 

index of output prices (No 310, 311, 312) need not to be supplied for this class. 

b)  If  value  added  in  a  group  of  NACE  Rev  1 Section  D  in  a  given  base  year  represents,  in  a 

Member State,  less than 3% of the European Community total, the index of production  (No 110) 

and the index of output prices (No 310, 311, 312) need not to be supplied for this group. 

(3)  If necessary for European Community policy requirements, the Commission may,  in accordance with 

the  procedure  laid  down  in  Article  17  of  this  Regulation,  request  ad hoc  collection  of  the  data 

referred  to in paragraph 2. 

(4)  In  addition,  all  variables  are  to  be  supplied  for  main  industrial  groupings,  ihe  definition  of  which 

(reference  to  NACE  Rev. 1 activities)  are decided  after  consultation  of  the  Committee  referred  to in 

Article 17. 

g.  Deadlines for data transmission 

(1)  The variables shall be transmitted within the following  deadlines after  the end of the reference  period: 

Variable 

Deadlines 

110 

120 

121 

122 

130 

131 

132 

210 

220 

230 

310 

311 

312 

45 calendar days 

60 calendar days 

60 calendar days 

60 calendar days 

50 calendar days 

50 calendar days 

50 calendar days 

50 calendar days 

60 calendar days 

60 calendar days 

35 calendar days 

35 calendar days 

35 calendar days 

"9 

(2)  The  deadline  may  be  up to  15 calendar  days  longer  for  those  activities  where,  in a given  base  year, 

the value added of  the activities in a Member State represents less than 2% of the Community  total. 

h.  Pilot Studies 

In  accordance  with  Article  15  voluntary  pilot  studies  are  launched  in  the  order  of  priorities  on  the 

following  subjects: 

1.  The break-down of export market variables into intra EC and extra EC, 

2.  short term investment  information, 

3.  short term information concerning  birth and death of enterprises, 

4.  a monthly  frequency  for employment  information, 

5.  data on stock of orders, 

6.  data on inventories, 

7.  order information  for more activities than listed in c.(2), 

8.  the calculation of output prices for the activities excluded in c.(3). 

i. 

First reference  period 

The first reference  period  for which all variables  are to be  supplied  is January  1998  for  monthly  data, the 

first quarter  1998 for quarterly data. 

i.  Transition period 

For production  (No  110),  new  orders  received  (No  130,  131,  132)  and domestic  output prices  (No  311) a 

transition period of  no longer than two years may be conceded by the Commission.  For all other variables 

the transition period may be up to five years. 

<?o 

ANNEXE 

Construction module 

Scope 

This module is applicable for ail activities of construction listed in section F of NACE Rev. 1. 

b.  Observation Unit 

(1)  The observation unit for all variables in this module is the kind-of-activity  unit. 

(2)  For enterprises with few persons employed in secondary activities the National Statistical Offices  may 

use the enterprise as the observation unit. 

(3)  Exceptions  for  the  observation  unit  can  be  decided  by  the  Commission  after  consultation  of  the 

Committee referred  to in Article 17. 

c.  List of Variables 

(1)  The statistics in this module comprise the following variables: 

Variable 

Name 

110 

115 

116 

130 

135 

136 

210 

220 

230 

310 

320 

321 

322 

411 

412 

production 

production of building construction 

production of civil engineering 

new orders received 

new orders received for building construction 

new orders received for civil engineering 

persons employed 

hours worked 

gross wages and salaries 

output prices 

construction costs 

material costs 

labour costs 

building permits: number of dwellings 

building permits: square meters of useful  floor area 

(2)  The information  concerning new orders (No  130,  135, 136) is not required for groups 45.3 to 45.5 of 

NACE Rev.l. 

2<\ 

( 3)  Approximations  for  the  variables  can  be  defined  by  the  Commission  after  consultation  of  the 

Committee and laid down in the methodological  manual referred to in Article  11. 

Form 

(1)  The variables are to be supplied  in the following  form: 

Variable 

Unadjusted 

Seasonally 

110 

115 

116 

130 

135 

136 

210 

220 

230 

310 

320 

321 

322 

411 

412 

adjusted 

y 

y 

y 

(2)  All  variables  except  the building  permits  (No 411  and 412)  can be supplied  in the form  of  indices or 

in absolute  figures. 

(3)  The building permits (No 411 and 412) are to be supplied  in absolute figures. 

zz 

p 

Frequency 

The variables  are  to be  supplied  with  the  following  frequency: 

Variable 

| 

Frequency 

110 

115 

116 

130 

135 

136 

210 

220 

230 

310 

320 

321 

322 

411 

412 

monthly 

monthly 

monthly 

at  least  quarterly 

at  least  quarterly 

at  least  quarterly 

at  least  quarterly 

at  least  quarterly 

at  least  quarterly 

at  least  quarterly 

at  least  quarterly 

at  least  quarterly 

at  least  quarterly 

monthly 

monthly 

f.  Level of  detail 

(1)  The variables  No  110,  130,  210,  220  and  230 are  to be supplied  at  least  at  the  2-digit  level  of  NACE 

Rev.  1. 

(2)  The  output  prices  and  construction  costs  (Variables  No  310,  320,  321  and  322)  are  only  mandatory 

for  new  residential  buildings  excluding  residencies  for  communities. 

(3)  Following  the classification  of  constructions,  the  number of dwellings present  in building  permits  (No 

411)  is to be supplied  for: 

(i)  one dwelling  residential  buildings 

(ii)  two and  more-dwelling  residential  buildings 

(4)  The building  permits  (No 412)  are  to be supplied  for: 

(i)  one dwelling  residential  buildings 

(ii)  two and  more-dwelling  residential  buildings 

(iii)  residencies  for  communities 

(iv)  offices  buildings 

(v)  other  buildings 

This  is to be compiled  using  the square  meters of useful  floor  area  or an  alternative  size  measure. 

Z'i> 

(5)  ~The building permits (No. 411  and 412) are not to be supplied  for civil  engineering. 

g.  Deadlines  for data transmission 

The variables shall be transmitted within the following  deadlines after the end of the reference period: 

Variable 

Deadline 

110 

115 

116 

130 

135 

136 

210 

220 

230 

310 

320 

321 

322 

411 

412 

60 calendar days' 

60 calendar days 

60 calendar days 

90 calendar days 

90 calendar days 

90 calendar days 

90 calendar days 

90 calendar days 

90 calendar days 

90 calendar days 

90 calendar days 

90 calendar days 

90 calendar days 

60 calendar days 

60 calendar days 

h.  Pilot Studies 

In  accordance  with  Article  15  voluntary  pilot  smdies  are  launched  in  the  order  of  priorities  on  the 

following  subjects: 

1.  on the possibilities  to break down production (No  110) into new work and repair & maintenance, 

2.  on providing  new orders  information (No  130,  135 and  136) and prices (No 310,  320,  321  and 322) 

at a monthly  frequency, 

3.  on  the  possibilities  to  break  down  the  variables  No  210,  220  and  230  into  building  and  civil 

engineering, 

4.  on  the  possibilities  to  have  price  information  (No  310,  320,  321  and  322)  for  other  types  of  con 

struction than residential buildings,  as well as for repair and maintenance work, 

5.  on  the  possibilities  to break down  the  production  of  building  construction  (No  115)  into  residential 

and non-residential  buildings 

6.  on short term investment  information, 

7.  on short term information concerning birth and death of enterprises. 

zy 

i. 

First reference  year 

The first reference  period  for  which all  variables are to be supplied  is January  1998  for  monthly  data,  the 

first  quarter  1998 for quarterly data. 

j. 

Transition period 

For the variables  No  110,  130  and  310  a transition period  of  no  longer  than two years  may  be  conceded 

by the Commission.  For all other variables the transition period may be up to five years. 

For the periodicity  of  variable  No  110 (production  index)  to be monthly,  a transition period  of up to five 

years may be conceded. 

zj 

ANNEX  C 

Retail  trade module 

a. 

Scope 

This  module  is  applicable  for  the  retail  trade  sector  except  trade  of  motor  vehicles  and  motorcycles,  in 

other  words all activities  listed  in groups  52.1  to 52.6  of  NACE  Rev.l  (distributive  trade). 

b.  Observation  Unit 

(1)  The observation  unit  for  all variables  in this module  is the  enterprise. 

(2)  The Member  States shall  also collect,  compile  and  transmit  variables  for  enterprises  which,  according 

to  their  main  activity,  are  not  classified  in  NACE  Rev.l  52.1  to  52.6,  but  which  nevertheless  carry 

out significant  retail  trade  activities. 

(3)  The  Member  States  shall  determine  the  appropriate  manner  for  the  implementation  of  paragraph  (2). 

The  Member  States  shall  inform  the  Commission  of  the  action  they  have  taken  to  meet  the 

requirements  of paragraph  (2). 

c.  List of  variables 

The  statistics  in this module  comprise  the  following  variables: 

Variable 

Name 

turnover 

persons  employed 

deflator  of  sales 

120 

210 

330 

Form 

(1)  All variables  are  to be sent  in the  form  of  indices or  absolute  figures. 

(2)  The variables  are  to be supplied  in the  following  form: 

Variable 

Unadjusted 

Working day 

Seasonally 

adjusted 

adjusted 

y 

y 

y 

120 

210 

330 

y 

y 

y 

Z  4 

* 

Frequency 

The variables  are  to be supplied  with the following  frequency: 

Variable 

Frequency 

120 

210 

330 

monthly 

quarterly 

monthly 

f.  Level  of  detail 

The variables  are  to  be  supplied  according  to the  regroupings  of  activities,  defined  below  according  to  the 

NACE Rev.l  classification  classes  and groups: 

•  class  52.11 

•  class  52.12 

•  group  52.2 

•  group  52.3 

•  sum of classes  52.41,  52.42  and  52.43 

•  sum of classes  52.44,  52.45  and  52.46 

•  sum of classes  52.47  and  52.48 

•  class  52.61 

Aggregated  variables  are  required  for: 

•  sum of class  52.11  and  group  52.2 

•  sum of class  52.12  and  groups  52.3 to  52.6 

•  sum of groups  52.1  to  52.6. 

g.  Deadlines  for  data  transmission 

The  preliminary  variables  shall  be  transmitted  within  3  months  after  the  end  of  the  reference  period,  the 

revised  variables  within  6  months  after  the  end  of  the  reference  period.  Special  estimated  advanced 

variables  shall  be  transmitted  within 2 months  at the aggregated  level of  retail  trade. 

h.  Pilot  Studies 

In accordance  with  Article  15 voluntary  pilot studies are'launched  on  the  following  subjects: 

1.  on the possibilities  of  faster  data  supply, 

2.  on the kind-of-activity  unit  as observation  unit, 

3.  on short  term  investment  information, 

4.  on short  term  information  concerning  birth  and death  of  enterprises. 

•2 4 

i. 

First reference  year 

The first reference  period  for  which all  variables  are to be supplied  is January  1998  for monthly  data,  the 

first  quarter  1998 for quarterly data. 

').  Transition period 

For aggregated turnover (No  120) a transition period of no longer than two years may be conceded  by the 

Commission.  For all other variables the transition period may be up to five years. 

?cc 

ANNEX  D 

Module on Other  Services 

Scope 

(1)  Pilot  studies  are  to  be  carried  out  by  the  end  of  2002  in  order  to  know  for  which  NACE  Rev.l 

activities short  term  statistics  need  to be  compiled  because  a business cycle can be observed. 

(2)  The pilot studies  shall  be  applicable  for  all  activities  listed  in sections  G  to K and  O of  NACE  Rev.l, 

except groups  52.1 to 52.6. 

(3)  The  pilot  studies  will  be  carried  out  in  order  to  assess  the  feasibility  of  collecting  data,  taking  into 

account  the  benefits  of  the  availability  of  the  data  in  relation  to  the  cost  of  collection  and  the  burden 

.  on business. 

(4)  The  specifications  laid  down  in points  b)  to g) below  are  to be  examined  in the  pilot  studies  and  shall 

be reviewed  after  the pilot  studies have  been  completed. 

(5)  After  the  pilot  studies  have  been  completed,  the  Commission,  after  consultation  of  the  Committee  in 

accordance  with  the  procedure  laid  down  in  Article  17 of  this  Regulation,  shall  determine  the  NACE 

Rev.l  activities  for  which  short  term  statistics  are  to  be  completed  for  the  activities  covered  by  this 

annex. 

b.  Observation  Unit 

The observation unit  for  all variables  in this  module  should  be the  enterprise. 

c.  List of  variables 

The  statistics  in this module  should  comprise  the  following  variables: 

Variables 

Name 

120 

210 

turnover 

persons  employed 

d. 

Form 

The  variables  should  be collected  in the  form  of  indices, both unadjusted  and  seasonally  adjusted. 

e. 

Frequency 

The  variables should  be supplied  on a quarterly  basis. 

f.  Level  of detail 

The  variables should  be supplied  according  to the divisions (2-digit  level) of  NACE  Rev.l. 

-Z.9 

g.  Deadlines  for data transmission 

Variables should be transmitted to the Commission within 6 months after  the end of the reference period. 

2^ 

Financial Statement 

Financial statement relating to short-term statistics 

1. 

Title of operation 

Proposal for  a Council Regulation concerning short-term statistics 

2. 

Budget heading involved 

Chapter B5-6000 

3. 

Legal basis 

Article 213 of the Treaty 

4. 

Description  of  operation 

4.1 

General objective 

This  Council  Regulation  aims  to  make  available  harmonised  statistical  information  on  the 

business cycle  within the European  Union to all users of short-term  indicators. This  information 

is  necessary  for  drawing  up,  monitoring  and  evaluating  Community  policies,  in  particular 

concerning  the  monetary  policy  as  well  economic,  social,  industrial,  sectoral,  regional, 

competition,  enterprise and environmental policies. 

4.2 

Period covered and arrangements for renewal 

Multi-annual  (ongoing collection and compilation of statistical data). 

Period covered by the action:  1998-2000 

31 

5. 

Classification  of expenditure or revenue 

5.1 

Non-compulsory  expenditure 

5.2 

Differentiated  appropriations. 

5.3 

Type of revenue involved 

The  sale of  statistical  products  (databases,  paper  and  electronic  publications)  partially  covering 

production costs. 

6. 

Type of expenditure or revenue 

6.1 

Partial subsidy 

The  Commission's  contribution  represents  only  a  part  of  the  cost  of  collecting  the  data, 

approximately  8-10%. 

6.2 

Cofinancing with the public sector 

Cofinancing  with  the  public  sector  (budgets  of  the  national  statistical  services)  and  the  private 

sector (revenue from sales of statistical products). 

7. 

Financial impact 

7. / 

Method of calculating total cost of operation 

During  1996  the  Commission  carried  out  an  exercise  with  the  Member  States  to  estimate  the 

costs  for  the  new  indicators  and  the  new  sectors  for  which  information  would  need  to  be 

collected.under the draft  Regulation. The cost estimates collected  in this exercise have been used 

32 

to  establish  the  total  extra  cost  for  the  Member  States  to  implement  this  Regulation.  The 

expenditure  by  the  Member  States  will  concern  the  execution  of  new  surveys  and  pilot  studies. 

The financing  will  be a contribution to the costs of data collection,  data processing,  dissemination 

and other running costs as well as the development of  Electronic  Data Interchange (EDI). 

In  so  far  as  existing  data  collection  systems  have  to  be  extended  or  new  statistical  collection 

systems developed,  the contribution from the Community  budget  is calculated  on the basis of the 

following  hypotheses: 

• 

8-10%  of  the start-up and running costs for the first 3 years of  operation  for statistics  on the 

industrial,  construction and retail trades sectors 

• 

8-10%  of  the start-up and running costs  for the first 3 years of  operation for  statistics  on the 

remaining  service  sectors 

7.2 

Breakdown of commitment appropriations (ECU) 

Surveys  on  industrial 

Implementation  in 

1 025  000 

1 025.000 

750  000 

2  800 000 

Financial  year 

1998 

1999 

2000 

Total 

and  construction  sectors 

the Member  States 

Surveys  on  retail  trade 

Implementation  in 

1 000  000 

1 000  000 

750  000 

2  750 000 

Pilot  studies 

1 025  000 

1 025  000 

750  000 

and  other  service  sectors 

the Member  States 

Total 

4 050  000 

4 050  000 

3 000  000 

11  100 000 

Pilot  studies 

1000  000 

1000  000 

750  000 

2  750 000 

33 

7.3 

Schedule of commitment and payment appropriations  (ECU) 

Financial year 

1998 

1999 

2000 

Total 

Commitment 

appropriations 

Payment appropriations 

4 050 000 

4 050 000 

3000 000 

11 100 000 

1998 

1999 

2000 

2001 

2002 

1 620 000 

0 

1 620 000 

1 620 000 

0 

0 

1 620 000 

3 240 000 

810 000 

1 620 000 

1 200 000 

3 630 000 

0 

0 

810 000 

1200 000 

2 010 000 

0 

600 000 

600 000 

Total 

4 050 000 

4 050 000 

3 000 000 

11 100 000 

8. 

What anti-fraud measures are planned in the proposal for the operation? 

For the contracts and agreements entered into by the Commission payment is solely by results. 

Data  supplied  are  checked  by  the  Commission  which  can  then  assess  the  need  for  financial 

support. The data are checked before  payment, taking account of  the contractual obligations and 

the principles  of  sound  financial  management.  Anti-fraud  provisions  (controls,  reports  etc.)  are 

included in all agreements and contracts between the Commission and beneficiaries. 

9. Elements of cost-effectiveness  analysis 

9.1. 

Specific and quantified objectives; target population 

Specific objectives: 

This  Council  Regulation  aims  to  make  available  harmonised  statistical  information  on  the 

business cycle within the European  Union to all users of short-term  indicators. This  information 

is  necessary  for  drawing  up,  monitoring  and  evaluating  Community  policies,  in  particular 

34 

concerning  the  monetary  policy  as  well  economic,  social, 

industrial,  sectoral,  regional, 

competition,  enterprise and environmental  policies.  The annexes of  the draft  Regulation contain a 

list of  indicators  for which statistics should be provided. 

Target population 

The  final  beneficiaries  of  this  operation  are  all  users  of  official  statistics,  principally  the 

Community  institutions  but  also  the  Governments  of  the  Member  States,  economic  and  social 

decision makers, central banks,  research institutes, universities and the media. 

Information  on the  internal market is needed to ensure  reliable  statistics  are available  to  facilitate 

the  proper  functioning  of  the  Single  Market  and  promote  competitiveness  of  the  Community 

economy. 

The Member States authorities are responsible  for the data collection  foreseen  in this proposal. 

9.2. 

Grounds for  the operation 

Reasons  for  choosing  this  operation  rather, than  an  alternative  which  would  meet  the  same 

objectives. 

Statistical  activities  generally  and  data  collection  in particular  draw  exclusively  on  the  principle 

of  subsidiarity  and  the  operating  and  administrative  costs  are  almost  exclusively  met  by  the 

national  Governments.  Nevertheless,  the  expenditure  is  essential  to  provide  an  incentive  for 

broadening  the  scope  of  the  national  surveys  and  standardising  the  results  produced  by  the 

Member  states.  The  extension  of  national  surveys  will  involve  major  changes  in most  countries. 

There  will  need  to  be  new  surveys  in  some  sectors,  particularly  in  the  construction  sector  in 

Denmark,  Greece,  Spain,  Ireland,  Portugal,  Sweden and the United Kingdom.  There will  need to 

be  new  surveys  for  particular  indicators  not  yet  collected  in  some  countries:  New  orders  in 

Belgium,  Greece,  Spain,  France,  Ireland,  Portugal  and  Finland;  Turnover  index  in  Greece, 

Spain,  France,  Portugal  and Finland;  Building  permits  in the United  Kingdom  and hours  worked 

by non-manual  workers  in nearly  all countries. 

'^5 

Choice of  intervention 

This  operation  is  mainly  financed  by  the  Member  States,  which  already  have  systems  for 

collecting  data  on  short-term  indicators.  However,  in certain  Member  States,  these  systems  are 

incomplete  (or unsuitable) and the results are not harmonised  from  one  Member  State to another. 

If the Commission had to finance  the whole of this programme,  the cost  would be extremely high 

and the results less reliable.  Such an approach would run counter to the principal  of subsidiarity. 

Statistical  information  is collected by a highly decentralised  system,  in which the national  systems 

have  a responsibility  at individual  Member  State  level.  The  Community  statistical  programme  is 

becoming  an  integral  part  of  the  national  statistical  programmes,  thereby  contributing  to 

establishing  a European statistical area. 

As  well  as  providing  statistics  on  the  business  cycle  within  the  European  Union,  the  proposals 

should  improve  the availability  of data used in the compilation of  national  accounts  and quarterly 

accounts. 

The  potential  for  multiplier  effects  is  relatively  limited.  However,  the  data  foreseen  by  the  draft 

Regulation  will  be  of  considerably  greater  relevance  for  users  wishing  to  make  international 

comparisons  of  the  business  cycle  within  the  European  Union.  This  should  lead  to  a  greater 

revenue from the sale of statistical products. 

Main factors  of uncertainty  which  could affect the specific  results of the  operation. 

Difficulties  may  arise  if  certain  Member  States  -  or the  Commission  -  do  not  manage  to  release 

the necessary  resources for the success of the operation. 

In particular,  the pilot studies foreseen  in the Regulation will  not be carried  out without  financing 

from the Commission. 

3  6 

9.3.  Monitoring and evaluation of the operation 

Performance indicators selected 

The operation  is monitored as part of the Community statistical programme.  The progress of the 

statistical  programme  is  continuously  monitored  against  a  control  chart  which  sets  out  the 

operating  targets  and  the  resources  necessary  for  each  project  in  target/performance  terms.  At 

the  start  of  each  year,  Eurostat  prepares  a  report  on  the  progress  of  the  programme  in  the 

previous year. This is in three parts: 

• 

• 

• 

the first summarises the main goals achieved during the year in terms of each policy; 

the second describes the objectives  laid down for each project  and the results obtained; 

the third provides statistics on the use of human, budgetary,  IT and administrative  resources 

during the previous year. 

The  quality  of  the  statistics  compiled  will  be  regularly  checked  against  other  statistical 

information,  notably the annual data available from  structural business statistics. 

Details and frequency of planned evaluation 

It is proposed  in the draft  Regulation that the Commission shall submit  a report to the Parliament 

and  the  Council  on  the  experience  acquired  from  the  work  carried  out  pursuant  to  the 

Regulation.  This report shall be prepared at least every three years. 

10. 

Administrative expenditure (Part A of the budget) 

The  provision  of  the  required  administrative  resources  is  dependant  upon  the  annual  decision  of  the 

Commission  concerning  the  allocation  of  resources,  taking  particular  account  of  the  extra  personnel  and 

financial  resources made available by the budget authority. 

37 

10.1. 

Effect on the number of Commission staff? 

Type of 

staff post 

Staff  to be assigned to 

Source 

Duration 

managing the operation 

Permanent 

Temporary 

Existing 

Additional 

posts 

posts 

resources in 

resources 

Officials 

or 

A 

temporary  staff 

B 

C 

Other resources 

Total 

2 

2 

4 

the DG or 

department 

concerned 

2 

2 

4 

From  1998 

10.2. 

Total financial impact of the additional human resources 

Indicators:  1995 annual employment costs (ECU) 

Amount 

373 456 

Officials 

Temporary staff 

Other resources 

Total / year 

373 456 

Costs expressed  in constant ECU at  1995 value. 

Method of calculation 

Average  cost  of  a  post  at  B2 

level.  93  364  ECU  of  which  76 

495  ECU  staff  expenditure  and 

16  869  ECU 

administrative 

expenditure 

3  8 

10.3. 

Increase in other administrative expenditure as a result of the operation 

On average there will be 2 Committee meetings/year to oversee the implementation1 of this Regulation 

Budget heading  ~~ 

A0-2510 

~~ 

Amount 

20 000 ECU 

Total / year 

20 000 ECU 

Costs expressed in constant ECU at  1995 value. 

Method of calculation 

Average  cost  of  similar  meetings 

in  1996 was  10 000 ECU. Hence 

2  meetings/year  costs  20  000 

ECU. 

J  9 

Impact Assessment  Form 

The Impact of the Proposal on  Business 

with  special  reference  to small  and  medium  sized  enterprises  (SMEs) 

Title of  proposal 

Council  Regulation concerning  short-term  statistics. x 

Reference  number 

The  Proposal 

1. 

Taking account  of the principle  of subsidiarity,  why is  Community  legislation  necessary  in this 

area and  what are  its main  aims? 

The  Commission  requires  statistical  information  on  the  business  cycle  within  the  European  Union,  in 

particular  for  the  development  and  evaluation  of  monetary  policy.  The  need  for  harmonised  short-term 

indicators  has grown with  the development  of monetary  policy  and  the internal  market. 

The  statistical  surveys  in place  in the  Member  States have,  for  the most  part,  developed  since  the  adoption 

of  the  Council  Directives  No.  72/211  of  30  May  1972  and  No.  78/166  of  13  February  1978,  which 

covered  the  industrial  and  construction  sectors  of  the  economy.  These  developments  have  often  taken 

place  in  an  uncoordinated  and  piecemeal  manner  as  they  have  been  undertaken  by  national  statistical 

offices  in  response  to national  needs  for  data.  The  need  for  similar  developments  has often  been  expressed 

within  the  European  Union.  Despite  efforts  by  the  Commission  (Eurostat)  it  has  not  been  possible  to 

produce  comparable  statistics within the  European  Union and the  inflexibility  of  the existing  legislation  has 

meant  that,  in the field of  short-term  indicators,  the  European  business  statistical  system  has not  developed 

in  line  with  national  systems  nor  with  changes  in  the  business  environment.  The  proposed  Regulation 

brings  the  existing  legislation  up  to  date,  notably  in  its  coverage  of  the  service  sectors  and  provides  an 

instrument  for  co-ordinating  the  many  short-term  surveys  undertaken  within  the  EU  such  that  unnecessary 

burden  through  duplication  of  data  collection  can  be  avoided.  It  also  foresees  the  future  development  of 

short-term  indicators  in a number  of  areas. 

The  purpose  of  the  legislation  is  to  make  available  comparable  short-term  indicators  for  all  EU  Member 

States.  It  aims  to do  this  by  harmonising  the  results  to  be  compiled  by  the  Member  States  in  terms  of  the 

coverage,  definitions  and  classifications  used  as well  as the  methods  for  weighting  indicators  and  adjusting 

them  for  seasonal  factors.  It does  not  try  to  harmonise  the  actual  data  collection  systems  in  each  Member 

M o 

States. The requirement  that will be imposed by this Regulation  is that each  Member State must be able to 

compile  results  which  are  comparable  between  EU  countries,  using  the  data  collected  in  their  national 

systems. Clearly  some changes  in all of the national  systems  will  be required,  but each  Member  States is 

free to find the most effective  solution in their own country. 

The impact on business 

2. 

Who will be affected by the proposal? 

- which sectors of business? 

The proposal  aims  in  the  long  term  to  compile  comparable  results  for  all  sectors  of  the  economy  in the 

Member States, with the exception of ; 

a) private households with employed persons; 

b)extra-territorial organisations and bodies; 

c)  the  agriculture,  hunting,  forestry  and  fishing  sectors  as  well  as  public  administration, 

defence  and activities of compulsory social security. 

d) other sectors which, after  pilot studies, have no business cycle. 

The requirements  in some  sectors,  particularly  industry,"construction  and  retail  trades,  are  more  detailed 

than in others. This reflects  the state of development of short-term  indicators rather  than a greater need for 

information  in these sectors than the others. 

-  Wiich sizes of business  (what is the concentration of small firms) ? 

The  Regulation  lays  down  that  the  indicators  to  be  transmitted  to  the  Commission  (Eurostat)  should  be 

representative  of the total population  of units and hence covers  all  size classes.  It does not  say how these 

data  should  be  collected  but  leaves  the  responsibility  for  the  construction  of  a  data  collection  system  to 

each Member State. 

Like  the  preceding  legislation  (the  Directives  mentioned  above)  the  Regulation  specifically  permits 

Member  States  to  use  sampling  methods  rather  than  to  carry  out  exhaustive  surveys.  This  gives  the 

Member  States the possibility  to reduce the number of enterprises  questioned  each year.  In particular  it is 

likely  that  the  percentage  of  small  and  medium  sized  enterprises  included  in  any  sample  will  be 

considerably smaller than large enterprises. 

In  addition,  Member  States  will  be  allowed  to  estimate  some  variables  rather  than  collect  them.  This 

possibility  was  introduced  into  the  text  with  the  purpose  of  allowing  Member  States  to  send  reduced 

4 

questionnaires  (with a smaller  number of  variables) to small  and medium  sized  enterprises  and to estimate 

the data which has not been collected using the results from larger enterprises. 

Finally,  the  use  of  administrative  sources  rather  than  special  data  collection  exercises  (using 

questionnaires)  is  permitted,  which  should  allow  some  variables  to  be  taken  from  existing  data  sources. 

These may be general  administrative  records such as social  security and VAT declarations  or more narrow 

records concerning  wage  agreements,  tariffs  for utilities  or building  permit  applications.  This,  when used 

by Member States, will  reduce the number of variables that need to be collected directly  from the business 

community.  Such  administrative  sources,  if  used  by  the  Member  States,  will  reduce  the  situation  of 

businesses being required to reply several times to the same questions. 

- are there particular  geographical areas  of the Community where these businesses are found? 

No,  all countries of the European Union are concerned. 

3. 

What will businesses have to do to comply with the proposal? 

The Member States are  required to collect  the data necessary  for the compilation of  harmonised  results. In 

doing so it is likely that statistical  units will be sampled and sent a questionnaire.  At the discretion of each 

Member  State,  the  units  drawn  in  the  samples  may  be  obliged  to  give  honest  and  complete  information 

within the prescribed .'deadlines. 

In  accordance  with  the  18th  Declaration  in  the  Treaty  on  European  Union  on  estimated  costs  under 

Commission  proposals,  and  in  order  to  try  to  assess  the  response  burden  of  the  new  Regulation  on  the 

business  community,  the  Commission  (Eurostat)  asked  each  of  the  Member  States  to  provide  any 

information  they  have  on  this  subject.  A  number  of  Member  States  replied  to  this  request.  The  figures 

below  show  the  increase  in  time  spent  filling  in  statistical  questionnaires  that  will  result  from  the 

introduction of  this Regulation or the cost for the enterprises  in ECUs.  These  increases  are  relevant to the 

enterprises  falling  within  the  sample  and  hence  will  not  be  felt  by  the  vast  majority  of  enterprises  which 

fall  outside of  the samples.  In some  countries,  particular  indicators  do not exist  in certain  sectors  and will 

have to be introduced; these cases are indicated  in the following  list. 

Belgium: 

No increase. 

0  M<? 

Denmark 

Industry:  Increase  of  5  hours  /year/enterprise  (Includes  the  extension  of  existing  surveys  to  NACE 

Section E) 

Construction:  Increase  of  2  hours/year/enterprise  (Includes  the  introduction  of  new  indicators  on 

new orders and output prices) 

Retail trade: Insignificant  increase 

Services: No  increase 

Greece: 

Production index only 

Industry: Increase of 24  hours/year/enterprise 

Construction: Increase of 36 hours/year/enterprise  - new index 

Retail trade: Increase of 2  hours/year/enterprise 

Services:  No  increase 

France 

Orders index: Increase of 6 hours/year/enterprise.  New indicator. 

Exports sales price: Increase of 6  hours/year/enterprise. 

Turnover index: Increase of 2 hours/year/enterprise.  New  indicator. 

Luxembourg: 

Industry: No  increase 

Construction:  No  increase  in  time  spent/enterprise,  but  an  increase  in  the  sample  size  of  200 

enterprises for which the time spent will be between 8 and  12 hcurs/year/enterprise. 

Retail  trade: No  increase 

Services:  No  increase 

Netherlands 

Industry:  No  increase 

Construction:  No  increase 

Retail trade: No  increase 

Portugal 

Industry:  Increase of  3 hours/year/enterprise 

Construction:  Increase of  15 hours/year/enterprise  - All  new  indicators except  for building permits. 

43 

Retail trade: No increase 

Services: Increase of 6 hours/year/enterprise  - All new indicators. 

Finland 

Industry: Increase of  12 hours/year/enterprise  - New indicators for  new orders,  turnover and wages 

and salaries. 

Construction:  Increase  of 4  hours/year/enterprise  - New  indicators  of  new  orders  and  output  price 

index. 

Retail trade: No increase 

Sweden 

Industry: Increase of  181 ECU/year/enterprise 

Construction: Increase of  122 ECU/year/enterprise 

Retail trade: Increase of 213 ECU/year/enterprise  (Eurostat estimate) 

Services: Increase of 339 ECU/year/enterprise  (Eurostat estimate) 

United Kingdom: 

Industry:  Extension  of  2 existing  indicators  into  new  industrial  sectors  not  previously  covered  (31 

and  181 ECU/year/enterprise) 

Construction: {ncrease of  10.4 ECU/year/enterprise 

Retail trade: No increase 

4. 

What economic effects is the proposal likely to have? 

- on employment 

- on investment and the creation of new businesses? 

- on the competitive position of businesses? 

The economic effects  will be indirect in so far as it is expected that the Regulation will improve the quality 

and availability of short-term statistical information  at Community  level thus improving transparency  in the 

internal  market.  Competitiveness  increases  as  decision  takers  have  better  information  on  the  current 

economic situation and hence money can be saved. 

4.1 

Costs 

In  accordance  with  the  18th  Declaration  in  the  Treaty  on  European  Union  on  estimated  costs  under 

Commission proposals,  an attempt has been made to evaluate the costs for  the national statistical offices  of 

W 

compiling  the  information  requested  in  the  draft  Regulation.  Eleven  countries  provided  estimates  for  the 

introduction  of  the  proposals  in the  Regulation. 

Belgium: 

Staff  costs  will  increase by 

Industry:  58 000  ECU 

Construction:  126 000  ECU 

Retail  Trade:  74 000  ECU  (new  sector) 

Services  74 000  ECU  (new  sector) 

Total: No one-off  increase.  Annual  increase  of 332 000 ECU 

Denmark 

Industry:  One-off  increase of  350 000  ECU  and  annual  increase of 250 000  ECU 

Construction:  One-off  increase  of 200 000  ECU  and  annual  increase  of  150 000  ECU 

Retail  trade:  One-off  increase  of  75 000  ECU  and  annual  increase  of 25 000  ECU 

Services:  One-off  increase  of 25 000  ECU  and  annual  increase of 25 000  ECU 

Total:  One-off  increase  of 650 000 ECU  and annual increase  of 450 000  ECU 

Greece  (excluding  the  wage  bill  for  indicators  of  employment,  hours  worked  and  wages  and 

salaries): 

Industry:  One-off  increase of  384 000  ECU  and  annual  increase'of  232 000  ECU 

Construction:  One-off  increase  of  156 000  ECU  and  an annual  increase  of 241 000  ECU 

Retail  trade:  One-off  increase  of  148 000  ECU  and  annual  increase  of  558 000  ECU 

Services:  One-off  increase  of  85 000  ECU  and  annual  increase  of  889 000  ECU 

Total:  One-off  increase  of 773 000 ECU  and an annual increase  of  1 920 000  ECU 

Spain 

Industry  (only  indicators  of  production,  prices,  turnover  and  orders):  One-off  increase  of  2  698  000 

ECU  and  an annual  increase  of  12 655 000  ECU 

France  (excluding  wage bill) 

One-off  increase  of 567 000 ECU and annual  increase  of 506 000  ECU 

Luxembourg: 

Industry:  No one-off  increase and  annual  increase  of  30 000  ECU 

Construction:  One-off  increase  of  5 000  ECU  and  annual  increase of 20 000  ECU. 

W 

Retail trade: One-off  increase of  16 000 ECU and annual increase of 95 000 ECU 

Services: One-off  increase of 5 000 ECU and annual increase of 48 000 ECU 

Total: One off increase of 26 000 ECU and annual increase of 193 000 ECU 

Netherlands 

Industry: No one-off  increase and annual increase of 42 000 ECU 

Construction:  No one-off  increase and annual increase of  142 000 ECU 

Retail trade: No one-off  increase and annual increase of 21 000 ECU 

Total: No one-off increase and annual increase of 205 000 ECU 

Portugal 

Industry: One-off  increase of 224 000 ECU and annual increase of 204 000 ECU 

Construction: One-off  increase of  173 000 ECU and annual increase of 218 000 ECU 

Retail trade: One-off  increase of 50 000 ECU and annual increase of 9 000 ECU. 

Services: One-off  increase of 53 000 ECU and annual increase of  104 000 ECU. 

Total: One-off  increase of 501 000 ECU and an annual increase of 534 000 ECU 

Finland 

Industry: One-off  increase of 350 000 ECU and annual increase of 445 000 ECU 

Construction:  One-off  increase of  100 000 ECU and annual increase of 228 000 ECU 

Retail trade: One-off  increase of 20 000 ECU and no annual increase. 

Services: One-off  increase of  140 000 ECU and no annual increase. 

Total: One-off  increase of 610 000 ECU and an annual increase of 673 000 ECU 

Sweden 

Industry: Increase in annual costs of 506 000 ECU 

Construction:  Increase in annual costs of 412 000 ECU 

Retail trade: Increase in annual costs of 217 000 ECU 

Services: Increase in annual costs of 97 000 ECU 

Total: Increase in annual costs of 1 232 000 ECU 

United Kingdom: 

Industry: One-off  increase of  12 000 ECU and annual increase of 46 000 ECU 

Construction:  Annual  increase of 850 000 ECU 

Retail trade: One-off  increase of 7 000 ECU and annual  increase of 22 000 ECU 

Total: One-off  increase of 19 000 ECU and an annual increase of 918 000 ECU 

•  M 4 

The remaining  Member States did not provide  the necessary  information  for points 3 and 4.1  above.  There 

are  no  known  reasons  why  the costs  for  the  missing  Member  States  should  be  significantly  different  from 

the costs for the Member States given above. 

4.2 

Benefits 

The  statistical  services  of  the  Member  States  co-ordinated  by  Eurostat  have  a  significant  role  to  play  in 

meeting  the European Union's  need for  information on the business  Community.  The recent  developments 

in  Community  economic  and  social  integration  require  information  for  supporting  the  development  and 

following  the  impact  of  initiatives  and  decisions  to be  based  on  more  reliable,  exhaustive,  up-to-date  and 

comparable  statistics.  Statistical  information  on  businesses  is  required  for  the  development  of  monetary 

policy  and  the  follow-up  of  the  internal  market.  In  addition,  businesses  themselves  need  information  on 

their activity  and performance  relative to competitors  in their sector in national  and international markets. 

The  short-term  indicators  proposed  in  this  Regulation  also  provide  an  indispensable  complement  to  other 

business  statistics  such  as  the  harmonised  Community  product  and  structural  statistics  as  well  as  for  the 

compilation  of  quarterly  national  accounts.  It  is  practically  impossible  to  quantify  the  benefit  that  will 

accrue from the availability  of harmonised community statistics. 

4.3 

Balance 

As  the  benefit  that  will  accrue  from  the  availability  of  harmonisée!  community  statistics  can  not  be 

quantified,  it  is  equally  difficult  to  quantify  the  net  benefit  of  these  same  statistics.  However,  the 

importance  of  the  Community  programmes  whose  execution  and  evaluation  will  benefit  from  the 

availability  of  better  statistics,  in  particular  the  monetary  policy,  suggests  that  the  benefits  will 

considerably  outweigh the costs of the data collection exercise  and the burden on the enterprises. 

5. 

Does  the  proposal  contain  measures  to  take  account  of  the  specific  situation  of  small  and 

medium sized  firms  (reduced or different requirements) ? 

All  Member  States  compile  short-term  indicators  using  data  collected  from  surveys  with  a  threshold  (or 

cut-off),  below  which enterprises are excluded  from the survey. 

Where  small  and  medium  sized  enterprises  are  included  in  a  sample,  the  possibility  of  using  a  reduced 

questionnaires  (with  a  reduced  number  of  variables)  is  available  to  the  Member  States,  who  would  then 

need  to use  statistical  inference  methods  to compile  the  full  list of  indicators  for  the  entire  population.  As 

•  HI 

the  structure  of  a  sector  varies  according  to  the  country,  the  sector  and  over  time,  it  would  be 

inappropriate  to  fix  thresholds  for  these  reduced  questionnaires  in  the  legislation.  The  Member  States  are 

in the best  position  to judge  the usefulness  of  these  practices. 

Consultation 

6. 

List  the  organisations  which  have  been  consulted  about  the proposal  and  outline  their  main 

views. 

The  European  Monetary  Institute  has  been  consulted  on  the  needs  of  a  future  European  Central  Bank  for 

short-term  indicators. 

•  Monthly  production  indicators  are  regarded  as  essential  with  some  activity  breakdown  and  a  delay 

of 6-8  weeks.  Information  on turnover  is relatively  less  important. 

•  Manufacturing  orders  information,  broken  down  into  domestic  and  foreign  orders  is  regarded  as 

essential.  Quantitative  information  is  more  important  than  qualitative  data  from  opinion  surveys. 

Orders  in construction  are  important.  Monthly  orders  information  is needed  with  a maximum  delay 

of 2 months. The  residential/non-residential  breakdown  in construction  is  regarded  as  important  for 

business  cycle  analysis.  A  further  breakdown  that  is  not  proposed  in  the  proposal  but  is  requested 

by  the EMI  is between  orders  from  MUMS  (Monetary  Union  Member  States) and  non-MUMS. 

•  Monthly  information  on  stocks  is  seen  as  an  important  supplementary  statistic.  At  present  this  is 

only  foreseen  as a pilot  study. 

•  Producer  prices  are  essential  with  some  activity  breakdown  regarded  as  important  and  they  are  all 

required  within  1 month  for  manufacturing  and  2 months  for  construction. 

•  Employment  and  hours  worked  are  important  in  manufacturing  and  services.  These  indicators 

should  be  available  within  3  months.  The  EMI  would  like  these  social  indicators  to  be  collected 

every  quarter.  In  addition,  an  indicator  of  hours  worked  at  overtime  rates  is  regarded  as  an 

important  supplementary  statistic. 

•  For  the  construction  sector,  the  EMI,  regards  additional  indicators  of  building  permits,  housing 

starts  and completions  as  important.  These  need  to be available  within  1-2  months. 

•  A  monthly  indicator  of  retail  sales  is  regarded  as  essential  and  needs  to  be  available  within  1-2 

months. 

At  a  more  general  level,  the  EMI  has  called  for  shorter  transition  periods  than  proposed  by  the 

Commission  in  order  to  ensure  the  availability  of  comparable  statistics  by  the  start  of  the  single 

•  monetary  policy.  Further  breakdowns  between  MUMS  and  non-MUMS  are  called  for,  in  particular 

•  v g 

for  new  orders.  The  pilot studies  in the other  service  areas are  strongly  supported  and  a  need  for  more 

comprehensive,  frequent  and  timely  information  in  branches  with  short-term  fluctuations  has  been 

expressed. 

The  services  of  the  Commission  have  been  consulted  on  their  needs  on  a  regular  basis.  A  written 

consultation  was  made  of  all services  of the  Commission  on a recent  draft.  There  was  support  for  the  draft 

from  all  of  the  Directorate  Generals  that  replied.  Six  Directorate  Generals  wanted  the  Regulation  to  ask 

for  more detail.  The  following  points can be  noted. 

•  More  indicators:  Value  added  in  all  sectors.  Breakdown  between  residential  and  non-residential 

production  indexes  in Construction.  Breakdown  of non-residential  building permits  in  Construction. 

Hours  worked  in  retail  trade.  Number  of  retailers  in  the  fish  retail  sector.  Indexes  of  turnover  and 

number  of employees  in services. 

•  Greater  level  of  NACE  breakdown:  3-digit  level  in  services  and  4-digit  level  concerning  some 

transport  activities. 

• 

Indicators  on  SMEs:  For  enterprise  policy  a  breakdown  by  size  class  is  necessary  in  order  to 

separate business  cycles of  SMEs  from  large  enterprises. 

•  Frequency:  Information  on employment  should  be monthly.  . 

Representatives  of  the  business  community  at  the  European  level  were  presented  with  several  drafts  of  the 

text. 

•  14/10/1994:  Meeting  with  approximately  40  representatives  of  industrial  and  service  sectors  and 

chambers  of  commerce.  The  participants  requested  a better  co-ordination  between  quantitative  and 

qualitative  indicators. 

•  10/3/1995:  Progress  report  on  developments  since  the  previous  meeting.  Distribution  of  the  text. 

60 participants. 

•  15/11/1995:  Progress  report  on  developments  since  the  previous  meeting.  Distribution  of  the  text. 

50 participants. 

•  21/5/1996:  Progress  report  on  developments  since  the  previous  meeting.  Distribution  of  the  text. 

36 participants. 

•  30/9/1996:  Progress  report  on  developments  since  the  previous  meeting.  Distribution  of  the  text. 

50  participants. 

As  a  result  of  the  meeting  on  15/11/95  a  postal  survey  was  made  of  the  participants  to  investigate  in 

detail  their  needs  for  short-term  indicators  and  their views on the text. 

• 

Indicators:  The  index  of  production,  turnover,  new  orders  and  the  stock  of  orders  and  the  number 

of  employees  are  the  most  important  indicators.  Wages  and  salaries  and  the  volume  of  work  were 

• 

M9 

not  regarded  as  essential.  In  addition,  the  trade  associations  would  like  to  see  extra  indicators 

concerning  capacity  utilisation and the breakdown of  turnover and production prices  between intra-

EU and extra-EU. 

•  Delays:  Acceptable. 

•  Level  of  detail:  The  2-digit  level  is  insufficient.  The  trade  associations  would  like  3  and  4-digit 

level data. 

•  Pilot studies: Supported the development  of  indicators on investment. 

•  Burden: the burden needs to be minimised and administrative  sources used as much as possible. 

The  National  statistical  offices  who  are  responsible  for  data  collection  have  been  consulted  on  many 

occasions  during  the  preparation  of  this  text.  A  very  close  dialogue  has  been  undertaken  during  the 

drafting  of  the  methodological  manuals  which  will  support  this  legislation  on  a  technical  level.  A 

dozen  task  force  meetings  were  held  with  Member  States  to  look  at particular  sectors  and  particular 

indicators.  In addition  there  have  been  a  number  of  working  party  meetings  with  all  Member  States 

since  1992.  The text  has been presented  to the Statistical  Programme  Committee.  There  is support  for 

the draft  text from  10 countries.  The Member  States who  objected  to the  text did so principally  on the 

following  grounds: 

France,  the  Netherlands  and the  United  Kingdom:  Would  like  a more  complete  services  module,  not 

just pilot studies, 

Spain and Ireland^ Oppose new orders indicator, 

Denmark: Against  output prices for export market. 

•  f 

ISSN 0254-1475 

COM(97) 313 final 

DOCUMENTS 

EN 

17  10  08 

Catalogue  number  :  CB-CO-97-301-EN-C 

ISBN 92-78-21564-3 

Office  for Official  Publications of the European Communities 

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