WRITTEN QUESTION E-1017/01 by Christopher Huhne (ELDR) to the Commission. Publication of economic statistics.
Date: 2001-03-30
Institutions: European Parliament, Provisional data
Subjects: EU statistics, Eurostat, United States, economic indicator, economic statistics, statistical method

4.12.2001

EN

Official Journal of the European Communities

C 340 E/147

approach is based on specific indicators which were approved by the Internal Market Council on
30 November 2000. Progress achieved in this area is subject to regular benchmarking using recognised
evaluation instruments (Eurobarometer surveys and/or data provided by the Member States, for example by
the ESDIS (3) (employment and social dimension of the information society) high-level group).

(1) OJ C 318 E, 13.11.2001, p. 86.
(2)
For further information, contact
Multimedia_Ventures@compuserve.com or jim.ayre@multimediaventures.com.
(3) http://europa.eu.int/comm/employment_social/soc-dial/info_soc/esdis/index.htm.

(2001/C 340 E/164)

WRITTEN QUESTION E-1016/01

by Christopher Huhne (ELDR) to the Commission

(30 March 2001)

Subject: Publication of statistics in the US and EU

1. Will the Commission examine the forthcoming timetables of a group of
leading international
investment banks (e.g. Goldman Sachs, Merrill Lynch, Morgan Stanley Dean Witter, UBS, Deutsche Bank)
for the listing of the statistics regularly published (quarterly or monthly) by United States agencies deemed
to have an effect on the euro-dollar exchange rate (e.g. GDP growth, inflation, non-farm payrolls, etc.)?

2. Will it compile a matrix setting out the time delay between that US publication date and the period
to which it refers, together with a further column indicating the euro area equivalent statistical series, if
any, with the equivalent time delay between Eurostat publication and the period to which it refers?

Answer given by Mr Solbes Mira on behalf of the Commission

(19 June 2001)

The Commission is fully aware of the importance attached by financial market operators to the release of
infra-annual economic indicators (e.g. gross domestic products (GDP),
trade
balance, etc.) in the Community and the United States. The Commission believes also that the comparative
evolution of such indicators has an impact on the euro-dollar exchange rate and considers it of utmost
importance that financial market operators are adequately informed.

inflation, employment,

A detailed analysis of the release of infra-annual economic statistics in the Community and United States
will be made in the context of a report comparing Community and United States practices, which will be
submitted in autumn 2001 to the Statistical Programme Committee (SPC). Such an analysis will, of course,
contain a table matching Community and United States release dates for a comparable set of infra-annual
economic indicators.

(2001/C 340 E/165)

WRITTEN QUESTION E-1017/01

by Christopher Huhne (ELDR) to the Commission

(30 March 2001)

Subject: Publication of economic statistics

Does the Commission agree that US practices in the publication of market-sensitive economic

1.
statistics are a proper benchmark for euro area practices?

2. Will it then indicate whether its objective is to match US practices and, if so, on what timescale and
by what means?

C 340 E/148

Official Journal of the European Communities

EN

4.12.2001

Answer given by Mr Solbes Mira on behalf of the Commission

(19 June 2001)

The Commission (Eurostat) is currently analysing American practices in the realm of market-sensitive
economic statistics. A report comparing Community and American practices will be submitted in autumn
2001 to the Statistical Programme Committee (SPC). This report is expected to explain performance
differentials and come up with recommendations for improving the performance of the Community
system most notably in terms of timeliness. The SPC will discuss this report and its recommendations and
take the necessary steps for improving the timeliness of economic statistics for the Community.

It should be noted that important actions are already under way in the framework of the (cid:145)Action Plan on
European Monetary Union (EMU) Statistical Requirements(cid:146) prepared by the Commission in close co-
operation with the European Central Bank (ECB) at the request of the (Ecofin) Council. If it will be possible
for the Community to meet American standards in terms of timeliness, however, remains to be seen given
the fact that the Community and American statistical systems are very different. Moreover, American
practices are not always considered to be superior to Community practices.

(2001/C 340 E/166)

WRITTEN QUESTION E-1019/01

by Christopher Huhne (ELDR) to the Commission

(30 March 2001)

Subject: Unemployment rate and pay settlements

Is the Commission able to find, or can it report on any independent findings about a relationship between
the short-term unemployment rate (defined as those seeking work for less than one year) and the
acceleration or deceleration of the growth of basic pay settlements in each EU Member State?

Answer given by Mr Solbes Mira on behalf of the Commission

(13 June 2001)

In economic theory, labour demand depends negatively on the cost of labour. All other things equal, wage
increases beyond productivity growth lead to a reduction of labour demand and employment and an
increase in unemployment. Whenever unemployment is above (below) its equilibrium level, real wages
should decrease (increase) in order to restore equilibrium. Empirically, the responsiveness of wages to the
level of unemployment may differ considerably from Member State to Member State. A Commission
contribution to this literature is notably Mc Morrow (1996) (1) who attributes slow employment growth in
Europe as compared to the United States or Japan to sticky real wages.

The short-run Phillips curve (2) provides a framework for thinking about the dynamics of wages, inflation
and the equilibrium rate of unemployment. However, one should be careful when interpreting estimated
Phillips curves, since the confidence intervals of estimates are generally quite large.

As with most of the literature, these studies deal with unemployment in general, rather than with the
narrower concept of short-term unemployment. Still, there is no reason to believe that results would
change considerably if one applied the analysis to short-term unemployment.

To conclude, a brief look at the evidence would seem to suggest that a negative relationship exists between
the (short-term) unemployment rate and wage settlements, but it is not possible to be precise about the
quantification of this relationship.

(1) The Wage Formation Process and Labour Market Flexibility in the Community, the United States and Japan,

Economic papers No 118.
For an overview, see e.g. OECD (2000): EMU one year on, Economics surveys, February.

(2)