Regulation (EC) No 1221/2002 of the European Parliament and of the Council of 10 June 2002 on quarterly non-financial accounts for general government
Date: 2002-06-10
Institutions: Council of the European Union, European Parliament
Subjects: European accounting system, data collection, data transmission, expenditure, public accounting, public administration, revenue

9.7.2002

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Official Journal of the European Communities

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I

(Acts whose publication is obligatory)

REGULATION (EC) No 1221/2002 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on quarterly non-financial accounts for general government

of 10 June 2002

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 285 thereof,

Having regard to the proposal from the Commission (1),

Having regard to the opinion of the European Central Bank (2),

Acting in accordance with the procedure laid down in Article
251 of the Treaty (3),

Whereas:

(1)

(2)

Council Regulation (EC) No 2223/96 of 25 June 1996
on the European system of national and regional
accounts in the Community (4), (ESA 95), contains the
reference framework of common standards, definitions,
classifications and accounting rules for drawing up the
accounts of the Member States for the statistical require-
ments of the Community, in order to obtain comparable
results between Member States.

effective

surveillance

The report by the Monetary Committee on information
requirements, endorsed by the Ecofin Council on 18
January 1999, underlined that,
for the proper func-
tioning of economic and monetary union and the single
market,
and coordination of
economic policies are of major importance and that this
requires a comprehensive statistical information system
providing policy-makers with the necessary data on
which to base their decisions. That report also stated that
a high priority should be given to short-term public
finance statistics for Member States, in particular those
participating in economic and monetary union, and that
the objective was the compilation of simplified quarterly
non-financial accounts for the general government sector
approach.
resulting

step-by-step

from

a

(1) OJ C 154 E, 29.5.2001, p. 300.
(2) OJ C 131, 3.5.2001, p. 6.
(3) Opinion of the European Parliament of 3 July 2001 (OJ C 65 E,

14.3.2002, p. 33) and Council Decision of 7 May 2002.

(4) OJ L 310, 30.11.1996, p. 1. Regulation as last amended by Regula-

tion (EC) No 359/2002 (OJ L 58, 28.2.2002, p. 1).

(3)

(4)

(5)

(6)

(7)

(8)

It is appropriate to define simplified quarterly non-finan-
cial accounts for general government by reference to the
list of ESA 95 categories of government expenditure and
revenue defined in Commission Regulation (EC) No
1500/2000 of 10 July 2000 implementing Council
Regulation (EC) No 2223/96 with respect to general
government expenditure and revenue (5).

Priority in the step-by-step approach was given to taxes,
actual social contributions and social benefits other than
social transfers in kind, as categories representing reliable
indicators of trends in public finances that are already
available on time (first step).

The transmission of this first set of categories on a quar-
terly basis, from June 2000,
in all Member States is
covered by Commission Regulation (EC) No 264/2000
of 3 February 2000 on the implementation of Council
Regulation (EC) No 2223/96 with respect to short-term
public finance statistics (6).

It is necessary to supplement the first step with another
set of categories in order to obtain the full list of cate-
gories constituting general government expenditure and
revenue.

The reliability of quarterly data provided under this
Regulation with regard to annual data should be
assessed. A report on the quality of the quarterly data
should therefore be made before the end of 2005.

Articles 2 and 3 of Regulation (EC) No 2223/96 lay
down the conditions under which the Commission may
adopt amendments to the ESA 95 methodology in order
to clarify and improve its content. The compilation of
quarterly non-financial accounts for general government
will require additional resources in Member States. Their
transmission to the Commission cannot
therefore be
dealt with in a Commission Decision.

(5) OJ L 172, 12.7.2000, p. 3.
(6) OJ L 29, 4.2.2000, p. 4.

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Official Journal of the European Communities

9.7.2002

(9)

The Statistical Programme Committee (SPC), set up by
Council Decision 89/382/EEC, Euratom (1), and the
Committee on Monetary, Financial and Balance of
Payments Statistics (CMFB), set up by Council Decision
91/115/EEC (2), have each been consulted in accordance
with Article 3 of those Decisions,

HAVE ADOPTED THIS REGULATION:

Article 1

Purpose

— adjustment for the change in net equity of households

in pension funds reserves (D.8)

— capital taxes + Investment grants + Other capital trans-

fers, payable (D.91 + D.92 + D.99).

(b) revenue:

— market output + Output for own final use + Payments
for the other non-market output (P.11 + P.12 + P.131)

— other subsidies on production, receivable (D.39)

— property income (D.4)

— imputed social contributions (D.612)

— other current transfers (D.7)

The purpose of this Regulation is to define the content of quar-
terly non-financial accounts for general government,
to lay
down the list of the ESA 95 categories to be transmitted by
Member States from 30 June 2002 and to specify the main
characteristics of these categories.

— investments grants + Other capital transfers, receivable

(D.92 + D.99).

3.
Transactions D.41, D.7, D.92 and D.99 are consolidated
within the general government sector. The other transactions
are not consolidated.

Article 2

Content of the quarterly non-financial accounts for general
government

The content of the quarterly non-financial accounts for general
government is defined in the Annex by reference to a list of
ESA 95 categories constituting general government expenditure
and revenue.

Article 3

Categories concerned by the transmission of quarterly
data

1. Member States shall transmit to the Commission (Euro-
stat) quarterly data for the categories or groups of categories
included in the list provided in the Annex, with the exception
of those categories for which data must be transmitted pursuant
to Regulation (EC) No 264/2000.

Quarterly data shall be transmitted for the following cate-
2.
gories (or groups of categories) of general government expendi-
ture and revenue:

(a) expenditure:

— intermediate consumption (P.2)
— gross capital formation + Acquisitions less disposals of

non-financial non-produced assets (P.5 + K.2)

— gross fixed capital formation (P.51)
— compensation of employees (D.1)
— other taxes on production (D.29)
— subsidies, payable (D.3)
— property income (D.4)
— interest (D.41)
— current taxes on income, wealth etc. (D.5)
— social

transfers

in kind related to expenditure on
products supplied to households via market producers
(D.6311 + D.63121 + D.63131)

— other current transfers (D.7)

(1) OJ L 181, 28.6.1989, p. 47.
(2) OJ L 59, 6.3.1991, p. 19. Decision as last amended by Decision 96/

174/EC (OJ L 51, 1.3.1996, p. 48).

Article 4

Compilation of quarterly data: sources and methods

Quarterly data relating to the first quarter of 2001

1.
onwards shall be compiled according to the following rules:

(a) quarterly data shall be based as much as possible on direct
information from basic sources, with the objective of mini-
mising, for each quarter, differences between the first esti-
mates and the final figures;

(b) direct information shall be completed by coverage adjust-
ments, if needed, and by conceptual adjustments in order to
bring quarterly data in line with ESA 95 concepts;

(c) the quarterly data and the corresponding annual data shall

be consistent.

2.
Quarterly data relating to the first quarter of 1999 until
the fourth quarter of 2000 shall be compiled according to
sources and methods ensuring consistency between the quar-
terly data and the corresponding annual data.

Article 5

Timetable for the transmission of quarterly data

Quarterly data referred to in Article 3 shall be delivered
1.
to the Commission (Eurostat) at the latest by three months after
the end of the quarter to which the data relate.

Any revision of quarterly data for previous quarters shall be
transmitted at the same time.

2.
The first transmission of quarterly data shall relate to data
for the first quarter of 2002. Member States shall deliver these
data no later than 30 June 2002.

However,
the Commission may grant a derogation, not
exceeding one year, concerning the date of the first transmis-
sion of quarterly data for the first quarter of 2002 onwards, in
so far as the national statistical systems require major adapta-
tions.

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Article 6

Transmission of backdata

1. Member States shall deliver to the Commission (Eurostat)
quarterly backdata for the categories referred to in Article 3,
starting from the first quarter of 1999.

2.
Quarterly data relating to the first quarter of 1999 until
the fourth quarter of 2001 shall be transmitted to the Commis-
sion (Eurostat) no later than 30 June 2002.

However,
the Commission may grant a derogation, not
exceeding one year, concerning the date of the first transmis-
sion of quarterly data from the first quarter of 1999 onwards,
in so far as national statistical systems require major adapta-
tions.

Article 7

Implementation

1. Member States shall provide the Commission (Eurostat)
with a description of the sources and methods used to compile
the quarterly data referred to in Article 3 (initial description), at
the same time as they start to transmit quarterly data according
to the timetable referred to in Article 5(2).

2.
Any revision of the initial description of the sources and
methods used to compile the quarterly data shall be provided
to the Commission (Eurostat) when the revised data are
communicated.

3.
The Commission (Eurostat) shall keep the SPC and the
CMFB informed of the sources and methods used by each
Member State.

Article 8

Report

On the basis of the data transmitted for the categories specified
in Article 3, and after consulting the SPC, the Commission

(Eurostat) shall, by 31 December 2005 at the latest, submit to
the European Parliament and the Council a report containing
an assessment of the reliability of quarterly data delivered by
Member States.

Article 9

Transitional provisions

1. Member States which are not in a position to transmit,
during the transitional period provided for in paragraph 4,
quarterly data from the first quarter of 2001 onwards according
to the sources and methods provided for in Article 4(1) and to
the timetable referred to in Article 5(1) shall apply paragraph 2.

2.
The Member States referred to in paragraph 1 shall
transmit to the Commission (Eurostat) their ‘best quarterly esti-
mates’ (that is, incorporating all new information that becomes
available during the process of compiling an improved system
of quarterly non-financial accounts for general government)
according to the timetable referred to in Article 5(1).

They shall indicate at the same time which steps still need to be
accomplished in order to comply with the sources and methods
provided for in Article 4(1).

3.
During the transitional period provided for in paragraph
4, the Commission (Eurostat) shall examine the progress made
by Member States towards full compliance with Article 4(1).

The transitional period shall start from the date of the first
4.
transmission referred to in Article 5(2) and shall end on 31
March 2005 at the latest.

Article 10

Entry into force

This Regulation shall enter into force on the 20th day following
that of its publication in the Official Journal of the European
Communities.

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

Done at Luxembourg, 10 June 2002.

For the European Parliament

The President

P. COX

For the Council

The President

J. PIQUÉ I CAMPS

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Official Journal of the European Communities

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ANNEX

Content of the quarterly non-financial accounts for general government

Quarterly non-financial accounts for general government are defined by reference to the list of government expenditure
and revenue included in Commission Regulation No 1500/2000.

General government expenditure comprises ESA 95 categories recorded under the use side, or the changes in assets side
or the changes in liabilities and net worth side of the sequence of accounts for general government, with the exception of
D.3 which is recorded under the resource side of general government accounts.

General government revenue comprises ESA 95 categories recorded under the resource or changes in liabilities in net
worth side of the sequence of non-financial accounts for general government, with the exception of D.39 which is
recorded under the use side of general government accounts.

By definition, the difference between general government revenue and general government expenditure, as defined above,
is net lending (+)/net borrowing (-) of the general government sector.

Transactions D.41, D.7, D.92 and D.99 are consolidated within the general government sector. The other transactions are
not consolidated.

The table below shows ESA 95 categories constituting general government expenditure and revenue. Categories shown in
italics are already subject to transmission on a quarterly basis in the context of the Commission Regulation (EC) No
264/2000.

ESA 95 codes

General government expenditure

P.2

P.5 + K.2

P.51

D.1

D.29

D.3

D.4

D.41

D.5

Intermediate consumption

Gross capital formation + acquisitions less disposals of non-financial non-
produced assets

Gross fixed capital formation

Compensation of employees

Other taxes on production

Subsidies, payable

Property income

Interest

Current taxes on income, wealth etc.

D.62 + D.6311 + D.63121 + D.63131

Social benefits other than social transfers in kind + social transfers in kind related
to expenditure on products supplied to households via market producers

D.7

D.8

D.9

Other current transfers

Adjustment for the change in net equity of households in pension funds
reserves

Capital transfers, payable

ESA 95 codes

General government revenue

P.11 + P.12 + P.131

Market output + output for own final use + payments for the other non-
market output

D.2

D.39

D.4

D.5

D.61

D.611

D.612

D.7

Taxes on production and imports

Other subsidies on production

Property income

Current taxes on income, wealth etc.

Social contributions

Actual social contributions

Imputed social contributions

Other current transfers

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ESA 95 codes

General government revenue

D.9 (1)

D.91

B.8g

B.9

Capital transfers, receivable

Capital taxes

Saving, gross

Net lending/net borrowing

(1) Adjustments for taxes and social contributions assessed but never collected, when recorded under D.9, are considered as negative

revenue.