Proposal for a Regulation of the European Parliament and of the Council amending Council Regulation (EC) No 1165/98 concerning short-term statistics
Date: 2004-04-13
Institutions: European Commission
Subjects: EU statistics, economic statistics, short-term economic prospects

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 13.04.2004 
COM(2003) 823 final 

2003/0325 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Council Regulation (EC) No 1165/98 concerning short-term statistics 

(presented by the Commission) 

EN 

   EN 

 
 
 
  
  
EXPLANATORY MEMORANDUM 

The  Short-term  Statistics  (STS)  Council  Regulation  Nr.  1165/98  provided  the  basis  for 
collecting a range of monthly and quarterly indicators on the evolution of the business cycle 
for economic and monetary policy. The creation of the Monetary Union established the urgent 
need  for  such  statistics.  The  STS  Regulation  was  a  compromise  between  more  far-reaching 
requirements  from  economic  and  monetary  policy  makers  and  the  limited  means  and 
resources  of  National  Statistical  Institutes  in  Member  States.  Consequently,  soon  after  the 
STS Regulation came into force, it became quite evident that the effort to improve the short-
term  statistics  had  to  continue  after  the  5-year  implementation  period  foreseen  in  the  STS 
Regulation.  

A document of the European Central Bank published in 2000 on the requirements on general 
economic  statistics  made  that  need  again  evident.  Since  that  time,  Eurostat  has  been  in 
discussion  with  the  Member  States  about  the  contents  of  an  Amendment  Regulation  while 
respecting the Member States priorities on the implementation of the existing Regulation. 

The EMU Action Plan of autumn 2000 named import prices and the distinction of the Euro-
zone  for  non-domestic  industrial  indicators  as  priority  targets  for  complementing  the  STS 
Regulation.  In  addition,  subsequent  progress  reports  to  the  action  plan  called  for  a  stronger 
emphasis on service sector statistics.  

Finally,  the  work  of  the  SPC  resulted  in  a  set  of  Principle  European  Economic  Indicators 
(PEEI)  that  named  desirable  timeliness  and  deadlines  for  implementation  including  the 
indicators  import  prices  and  service  prices  that  have  not  been  covered  by  the  original  STS 
Regulation. The European Council has approved the PEEI. 

The requests of the EMU Action Plan and the PEEI have been incorporated into the submitted 
proposal  for  a  STS  Amendment  Regulation  to  the  European  Council  and  the  European 
Parliament. A compromise on the exact terms was achieved with the Member States with the 
exception of Austria, which has expressed principle legal objections. The Acceding Countries 
and EFTA Countries have been strongly involved in the discussions on the draft Amendment 
Regulation.  All  Acceding  Countries  except  Hungary,  which  sees  resource  problems  for  the 
implementation, support the proposed draft. 

The draft STS Amendment Regulation covers a wide range of improvements to the existing 
Short-term Statistics Council Regulation. The most important points are: 

– 

– 

– 

The addition of a variable on import prices with a similar level of detail as the output 
price variable. 

The  distinction  of  the  Euro-zone  in  industrial  indicators  for  the  non-domestic 
markets of turnover, new orders, output prices and import prices. The level of detail 
is limited to the 2-digit NACE/CPA level of detail. 

The  addition  of  a  output  price  index  for  a  selection  of  particular  relevant  service 
sectors for which consumer price indices are not providing a sufficient picture of the 
price  evolution.  The  indicator  aims  at  a  corporate  output  price  index  for  services 
delivered from enterprises to other enterprises as customers. 

2 

 
 
  
 
– 

– 

– 

– 

The  change  of  the  reference  period  for  production  in  construction  from  'at  least 
quarterly'  to  monthly.  Such  an  indicator  provides  for  the  first  time  a  sufficiently 
responsive indicator for the extremely volatile construction sector. 

Shortening  of  the  delays  for  a  series  of  short-term  statistics  indicators  that  are  also 
covered  by  the  Principle  European  Economic  Indicators  (PEEI)  to  the  timeliness 
conditions that have been agreed for the PEEI. 

Many  detailed  operational  improvements  that  originate  from  the  practice  with  the 
data  collection  and  processing  under  the  current  STS  Regulation,  such  as  a  more 
consistent  treatment  of  data  aggregates  and  data  adjustments  (working  day  and 
seasonal adjustments). 

The  clarification  of  construction  costs  and  prices  in  construction.  The  current  STS 
Regulation aims at construction costs but allows using output prices for buildings as 
approximation. The Amendment Regulation limits this practice to a transition period 
and stipulates a feasibility study to establish a price index alongside the construction 
cost index. 

The draft Amendment Regulation explicitly encourages the definition of a European approach 
for various indicators, i.e. a common import price indicator for the Euro-zone. A pilot project 
for  such  an  approach  currently  implemented  in  the  Member  States  concerns  the  turnover 
index for retail trade. A reduced sample size will be a key element for reducing the delay for 
the retail trade index from the current t+60 days after the reference period to t+30 days by the 
beginning of 2004. The turnover index for retail trade is a significant indicator of consumer 
demand. A European scheme will need a different methodology for each indicator.  

The  draft  Amendment  Regulation  requires  a  set  of  feasibility  studies  with  the  explicit 
possibility  to  modify  the  list  of  variables  and  their  conditions  through  a  Comitology 
procedure: 

– 

– 

– 

The 'hours worked' variable for retail trade as well as other services; 

The 'gross wages and salaries' indicator for retail trade as well as other services; 

A monthly reference period for turnover in other services. 

The  draft  Amendment  Regulation  also  includes  a  number  of  simplifications  in  technical 
details.  They  have  been  defined  in  close  co-operation  with  the  ECB  with  the  objective  to 
reduce the workload of National Statistical Institutes without putting the value of short-term 
statistics at risk. In particular, the large number of small future Member States has been given 
particular  consideration.  The  draft  Regulation  makes  significant  concessions  in  the  level  of 
detail and reference period for a number of indicators for those Member States whose value 
added is below 1% of the EU total value added. 

In sum, the STS Amendment Regulation is a major step forward towards achieving a system 
of short-term statistics that corresponds to the requirements of economic and monetary policy. 
The compromise laid down in the draft Amendment Regulation tackles many of the gaps of 
the  current  Regulation  while  providing  Member  States  with  sufficient  time  for  the 
implementation  of  the  changes.  In  addition,  the  draft  Regulation  stipulates  analyses  into 
further  steps  with  a  facilitated  (Comitology)  procedure  in  case  of  success.  This  provision 

3 

 
 
  
 
increases the flexibility of the short-term statistics to respond to the requirements of economic 
and monetary policy. 

The proposed Regulation is submitted to  the European  Parliament  and  the  Council for  their 
consideration. 

4 

 
 
  
 
2003/0325 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Council Regulation (EC) No 1165/98 concerning short-term statistics 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
285(1) thereof, 

Having regard to the proposal from the Commission1, 

Having  consulted  the  European  Central  Bank  in  accordance  with  Article  105(4)  of  the 
Treaty2, 

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

Whereas: 

(1) 

(2) 

(3) 

Council Regulation (EC) No 1165/98 of 19 May 1998 concerning short-term statistics3 
established  a  common  basic  framework  for  the  collection,  compilation,  transmission 
and evaluation of Community business statistics for the purpose of the analysis of the 
economic cycle. 

The  implementation  of  the  Regulation  (EC)  No  1165/98  effected  by  Commission 
Regulations  (EC)  No  586/20014,  (EC)  No  588/20015,  and  (EC)  No  606/20016, 
concerning  respectively  the  definition  of  Main  Industrial  Groupings  (MIGs),  the 
definition of variables and the granting of derogations to Member States, has created a 
body  of  practical  experience  that  allows  the  identification  of  measures  for  further 
improvements in the short-term statistics. 

The  Ecofin  Council  in  its  Action  Plan  on  EMU  Statistical  Requirements  and  in 
subsequent  progress  reports  on  the  implementation  of  that  Action  Plan,  identified 
additional  fundamental  aspects  for  the  improvement  of  the  statistics  covered  by 
Regulation (EC) No 1165/98. 

(4) 

For  its  monetary  policy,  the  European  Central  Bank  needs  a  further  development  of 
short-term  statistics  as  is  stated  in  its  document  ECB  Statistical  Requirements  in  the 

1 
2 
3 
4 
5 
6 

OJ C , , p. . 
OJ C , , p. . 
OJ L 162, 5.6.1998, p. 1 
OJ L 86, 27.3.2001, p. 11. 
OJ L 86, 27.3.2001, p. 18. 
OJ L 92, 2.4.2001, p. 1. 

5 

 
 
  
 
                                                 
field of General Economic Statistics, and in particular, the Bank needs timely, reliable 
and meaningful aggregates for the euro-zone. 

The Statistical Programme Committee, established by Council Decision 89/382/EEC7 
has  identified  Principle  European  Economic  Indicators  (PEEI)  that  go  beyond  the 
scope of Regulation (EC) No 1165/98. 

It  is  therefore  necessary  to  amend  Regulation  (EC)  1165/98  in  areas  of  particular 
importance to monetary policy and to the study of the business cycle. 

The measures provided for in this Regulation are in accordance with the opinion of the 
Statistical Programme Committee. 

(5) 

(6) 

(7) 

HAVE ADOPTED THIS REGULATION: 

Article 1 

Regulation (EC) No 1165/98 is amended as follows: 

(1) 

In Article 4 (2) the following text is added: 

“(d) Participation in European sample schemes co-ordinated by Eurostat in order to 
produce European estimates. 

The details of the schemes referred to in point (d) shall be as specified in the Annex. 
Their approval and implementation shall be governed by the procedure laid down in 
Article 18. 

European  sample  schemes  shall  be  established  only  when  national  sample  schemes 
do not meet the European requirements. Participation in a European sample scheme 
shall  satisfy  the  conditions  of  a  Member  State  for  the  supply  of  the  variable 
concerned  according  to  the  objective  of  the  European  scheme.  European  schemes 
may target the conditions, the level of detail and the deadlines for data transmission.”  

(2) 

Annexes A to D are amended as shown in the Annex to this Regulation. 

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

Article 2 

7 

OJ L 181, 28.6.1989, p. 47. 

6 

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

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

7 

 
 
  
 
ANNEX  

PART (A) 

ANNEX A TO REGULATION (EC) NO. 1165/98 IS AMENDED AS FOLLOWS: 

Scope 

The text under heading (a) ("Scope") is replaced by the following: 

“This Annex applies to all activities listed in Sections C to E of NACE, or as the case 
may be, to all products listed in Sections C to E of the CPA.” 

List of variables 

The text under heading (c) ("List of variables") is amended as follows: 

(1) The following variable is added to paragraph 1: 

Variable 

340 

Name 

Import prices 

(2) Paragraph (2) is replaced by the following: 

"2. The information on output prices for non-domestic markets (No 312) and import 
prices  (No  340)  may  be  compiled  using  unit  values  for  products  originating  from 
foreign trade or other sources only if there is no significant deterioration in quality 
compared  to  specific  price  information.  The  Commission  shall  determine  in 
accordance  with  the  procedure  laid  down  in  Article  18,  the  conditions  for  assuring 
the necessary data quality." 

(3) Paragraph (9) is replaced by the following text: 

"9. The information on output prices and import prices (Nos. 310, 311, 312 and 340) 
is not required for the following groups of NACE respectively CPA: 12.0, 22.1, 23.3, 
29.6,  35.1,  35.3,  37.1,  37.2.  The  list  of  groups  may  be  revised  until  [date  to  be 
determined to be 3 years after the entry into force of this Amendment Regulation] in 
accordance with the procedure laid down in Article 18." 

(4) The following paragraph 10 is added: 

"10. The variable on import prices is calculated on the basis of CPA products. The 
importing kind-of-activity units may be classified outside the activities of Sections C 
to E of NACE." 

Form  

Under heading (d) ("Form"), paragraphs 1 to 4 are replaced by the following: 

“1. All of the variables are to be transmitted in unadjusted form, if available. 

8 

 
 
  
 
 
2. In addition, the production variable (No 110) and the hours-worked variable (No 
220)  are  to  be  transmitted  in  working  day  adjusted  form.  Wherever  other  variables 
show  working  day  effects,  Member  States  may  transmit  these  variables  also  in 
working  day  adjusted  form.  The  list  of  variables  to  be  transmitted  in  working-day 
adjusted  form  may  be  amended  in  accordance  with  the  procedure  laid  down  in 
Article 18. 

3.  In  addition,  Member  States  may  transmit  the  variables  seasonally  adjusted  and 
may  also  transmit  the  variables  in  the  form  of  trend-cycles.  Only  if  data  are  not 
transmitted  in  these  forms,  may  the  Commission  (Eurostat)  produce  and  publish 
seasonally adjusted and trend cycle series for these variables. 

4. Variables Nos. 110, 310, 311, 312 and 340 are to be transmitted as an index. All 
other variables are to be transmitted either as an index or as absolute figures.” 

Reference period 

Under heading (e) (Reference period"), the following variable is added: 

Variable 

340 

Reference period 

month 

Level of detail 

The text under heading (f) ("Level of detail"), is amended as follows: 

(1) Paragraphs 1 and 2 are replaced by the following: 

"1.  All  variables,  except  the  import  price  variable  (No  340),  are  to  be 
transmitted at the Section (1 letter), Sub-section (2 letter) and Division 2-digit level 
of NACE. The variable 340 is to be reported at the Section (1 letter), Sub-section (2 
letter) and Division 2-digit level of CPA" 

"2.  In  addition,  for  Section  D  of  NACE,  the  index  of  production  (No  110)  and  the 
index of output prices (Nos. 310, 311, 312) are to be transmitted at the 3-digit and 4-
digit levels of NACE. The index of import prices (No 340) is to be transmitted at the 
3-digit and 4-digit levels of CPA. The transmitted indices for production and output 
prices at the 3-digit and 4-digit levels must represent at least 90% of the total value 
added  for  each  Member  State  of  Section  D  of  NACE  in  a  given  base  year.  The 
transmitted indices for import prices at the 3-digit and 4-digit levels must represent at 
least 90% of the total import for each Member State of products belonging to Section 
D  of  CPA  in  a  given  base  year.  The  variables  need  not  be  transmitted  at  these 
detailed  levels  by  those  Member  States  whose  total  value  added  of  Section  D  of 
NACE  (or  the  imports  of  products  in  Section  D  of  CPA)  in  a  given  base  year 
represents less than 4% of the European Community total." 

(2) Paragraph 4 is replaced by the following: 

"4. In addition, all variables except for the turnover and new orders variables (Nos. 
120,  121,  122,  130,  131,  132)  are  to  be  transmitted  for  total  industry  defined  as 
NACE  Sections  C  to  E  and  the  main  industrial  groupings  (MIGs)  as  defined  in 
Commission Regulation 586/2001." 

9 

 
 
  
 
 
(3) The following paragraphs 5 to 10 are added: 

"5.  The  turnover  variables  (Nos.  120,  121,  122)  are  to  be  transmitted  for  total 
industry defined as NACE Sections C and D and the main industrial groupings with 
the exception of the main industrial grouping defined for energy related activities. 

6.  The  new  orders  variables  (Nos.  130,  131,  132)  are  to  be  transmitted  for  total 
manufacturing, Section D of NACE and a reduced set of main industrial groupings 
calculated  from  covering  the  list  of  NACE  Divisions  defined  in  paragraph  8  under 
heading (c) ("List of variables") of this Annex. 

7.  The  import  price  variable  (No  340)  is  to  be  transmitted  for  total  industrial 
products, Sections C to E of CPA and main industrial groupings (MIGs) defined in 
accordance with the Regulation (EC) No 586/2001 from product groups of the CPA. 

8.  For  the  import  price  variable  (No  340),  the  Commission  may  determine  in 
accordance  with  the  procedure  laid  down  in  Article  18,  the  terms  for  applying  a 
European sample scheme as defined in Article 4(d). 

9.  The  variables  on  the  non-domestic  markets  (Nos.  122,  132  and  312)  are  to  be 
transmitted  according  to  the  distinction  into  euro-zone  and  non-euro-zone.  The 
distinction is to be applied to the total industry defined as NACE Sections C to E, the 
main industrial groupings, the Section (1 letter), Sub-section (2 letter) and Division 
2-digit level of NACE. The information on NACE E is not required for variable 122. 
In addition, the import price variable (No 340) is to be transmitted according to the 
distinction into euro-zone and non-euro-zone. The distinction is to be applied to the 
total  industry  defined  as  CPA  Sections  C  to  E,  the  main  industrial  groupings,  the 
Section  (1  letter),  Sub-section  (2  letter)  and  Division  2-digit  level  of  CPA.  For  the 
distinction into the euro-zone and non-euro-zone, the Commission may determine in 
accordance  with  the  procedure  laid  down  in  Article  18,  the  terms  for  applying 
European  sample  schemes  as  defined  in  Article  4(d).  The  European  scheme  may 
limit the scope of the import price variable to the import of products from non-euro-
zone  countries.  The  distinction  into  the  euro-zone  and  non-euro-zone  for  the 
variables  122,  132,  312  and  340  does  not  need  to  be  delivered  by  those  Member 
States that have not adopted the euro as their currency. 

10. Those Member States whose value added in Sections C, D and E of NACE in a 
given base year represents less than 1% of the European Community total only need 
to  transmit  data  for  total  industry,  main  industrial  groupings,  and  NACE  Section 
level, or CPA Section level." 

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Deadlines for data transmission 

The  text  under  heading  (g)  ("Deadlines  for  data  transmission")  is  amended  as 
follows: 

(1) In paragraph 1, certain variables are amended, or added, as follows:  

Variable 

Deadlines 

110 

(…) 

210 

(…) 

340 

1 month and 10 calendar days 

(…) 

2 months  

(…) 

1 month and 15 calendar days 

(2) Paragraph 2 is replaced by the following:  

"2. The deadline may be up to 15 calendar days longer for data on the NACE Group 
and Class levels or the CPA Group and Class levels. 

For those Member States whose value added in Sections C, D and E of NACE in a 
given  base  year  represents  less  than  3%  of  the  European  Community  total,  the 
deadline  may  be  up  to  15  calendar  days  longer  for  data  on  total  industry,  main 
industrial groupings, NACE Section and Division level or CPA Section and Division 
level." 

Pilot studies 

Under heading (h) ("Pilot Studies"), items 2 and 3 are deleted. 

First reference period 

Under heading (i) ("First reference period") the following paragraphs are added: 

"The first reference period for the transmission of the distinction of the variables on 
the non-domestic markets into euro-zone and non-euro-zone is not later than January 
2005." 

"The  first  reference  period  for  the  variable  340  is  not  later  than  January  2006  on 
condition that a base year not later than 2005 is applied." 

Transition period 

Under heading (j) ("Transition period"), the following paragraphs are added: 

"3.  A  transition  period  ending  no  longer  than  [date  to  be  determined  to  be  2  years 
after  the  entry  into  force  of  this  Amendment  Regulation]  may  be  conceded  for  the 
variable  340  and  the  distinction  into  the  euro-zone  and  non-euro-zone  for  the 
variables  122,  132,  312  and  340  in  accordance  with  the  procedure  laid  down  in 
Article 18. 

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4. A transition period ending no later than [date to be determined to be 2 years after 
the entry into force of this Amendment Regulation] may be conceded for the change 
of the deadlines for data transmission for variable 110. 

5.  A  transition  period  ending  no  longer  than  [date  to  be  determined  to  be  one  year 
after  the  entry  into  force  of  this  Amendment  Regulation]  may  be  conceded  for  the 
for  variable  210."
change  of 

the  deadlines 

transmission 

for  data 

12 

 
 
  
 
PART (B) 

ANNEX B TO REGULATION (EC) NO. 1165/98 IS AMENDED AS FOLLOWS: 

List of variables 

The text under heading (c) ("List of variables") is amended as follows: 

(1) Paragraph 5 is replaced by the following text: 

"5. Only if construction costs variables (Nos. 320, 321, 322) are not available, may 
they be approximated by the output prices variable (No 310). This practice shall be 
permitted until [date to be determined to be 5 years after the entry into force of this 
Amendment Regulation]." 

(2) The following paragraph 6 is added: 

"6.  The  Commission  shall  institute  a  series  of  studies  to  be  undertaken  by  the 
Member  States.  The  studies  shall  be  carried out taking  into account the benefits of 
collecting the data in relation to the cost of collection and burden on business to: 

assess  the  feasibility  of  a  quarterly  variable  of  output  prices  (No  310)  in 

(a) 
construction; 

(b) 

define a suitable methodology for the data collection and index calculation. 

The Commission shall no later than [date to be determined to be one year after the 
entry into force of this Amendment Regulation] propose a definition to be applied to 
the output price variable. 

Member States shall submit a report to the Commission on the results of the studies 
no  later  than  [date  to  be  determined  to  be  2  years  after  the  entry  into  force  of  this 
Amendment Regulation]. 

Acting  in  accordance  with  the  procedure  laid  down  in  Article  18,  the  Commission 
shall  decide  no  later  than  [date  to  be  determined  to  be  3  years  after  the  entry  into 
force of this Amendment Regulation] whether to invoke Article 17(b) to include the 
output price variable with effect from base year 2010." 

The text under heading (d) ("Form") is replaced by the following: 

“1. All of the variables are to be transmitted in an unadjusted form, if available. 

2. In addition, the variables on production (Nos. 110, 115, 116) and the hours worked 
variable  (No  220)  are  to  be  transmitted  in  working  day  adjusted  form.  Wherever 
other  variables  show  working  day  effects,  Member  States  may  transmit  these 
variables also in working day adjusted form. The list of variables to be transmitted in 
working-day adjusted form may be amended in accordance with the procedure laid 
down in Article 18. 

13 

Form  

 
 
  
 
3.  In  addition,  Member  States  may  transmit  the  variables  seasonally  adjusted  and 
may  also  transmit  the  variables  in  the  form  of  trend-cycles.  Only  if  data  are  not 
transmitted  in  these  forms,  may  the  Commission  (Eurostat)  produce  and  publish 
seasonally adjusted and trend cycle series for the variables. 

4.  Variables  110,  115,  116,  320,  321  and  322  are  to  be  transmitted  as  an  index. 
Variables  411  and  412  are  to  be  transmitted  as absolute  values. All other variables 
are to be transmitted either as an index or as absolute figures.” 

Reference period of variables 

The text under heading (e) ("Reference period") is replaced by the following: 

"A  reference  period  of  a  month  shall  apply  to  variables  110,  115  and  116.  A 
reference period of at least a quarter shall apply to all other variables in this Annex. 

Those Member States whose value added in Section F of NACE in a given base year 
represents less than 1% of the Community total need only supply variables 110, 115 
and 116 with a reference period of a quarter." 

Level of detail 

Under heading (f) ("Level of detail"), the following paragraph 6 is added: 

"6. Those Member States whose value added in Section F of NACE in a given base 
year represents less than 1% of the European Community total only need to transmit 
data for total construction (NACE Section level)." 

Deadlines for data transmission 

Under  heading  (g)  ("Deadlines  for  data  transmission")  the  variables  110,  115,  116 
and 210 are replaced by the following: 

Variable 

Deadlines 

110 

115 

116 

(…) 

210 

1 month and 15 calendar days 

1 month and 15 calendar days 

1 month and 15 calendar days 

(…) 

2 months  

Pilot studies 

Under heading (h) ("Pilot studies"), items 1 and 3 are deleted. 

First reference period 

Under heading (i) ("First reference period"), the following text is added: 

"The first reference period for the transmission of variables 110, 115, and 116 with a 
monthly reference period is not later than January 2005."  

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Transition period 

Under heading (j) ("Transition period"), the following paragraphs 3 and 4 are added: 

"3. A transition period ending [date to be determined to be 2 years after the entry into 
force  of  this  Amendment  Regulation]  may  be  conceded  for  the  amendment  of  the 
reference  period  for  variables  110,  115,  and  116  in  accordance  with  the  procedure 
laid down in Article 18. 

4. A transition period ending [date to be determined to be 2 years after the entry into 
force  of  this  Amendment  Regulation]  may  be  conceded  for  the  change  of  the 
deadlines  for  data  transmission  for  variables  110,  115,  116  and  210  in  accordance 
with the procedure laid down in Article 18." 

15 

 
 
  
 
 
PART (C) 

ANNEX C TO REGULATION (EC) NO. 1165/98 IS AMENDED AS FOLLOWS: 

List of variables 

Under heading (c) ("List of variables"), the following paragraph 4 is added: 

"4.  The  Commission  shall  institute  a  series  of  studies  to  be  undertaken  by  the 
Member  States.  The  studies  shall  be  carried out taking  into account the benefits of 
collecting the data in relation to the cost of collection and burden on business to: 

assess  the  feasibility  of  delivering  a  quarterly  variable  of  hours  worked  (No 

(a) 
220) for retail trade and repair; 

assess  the  feasibility  of  delivering  a  quarterly  variable  of  gross  wages  and 

(b) 
salaries (No 230) for retail trade and repair; 

(c) 

define a suitable methodology for data collection and index calculation. 

Member States shall submit a report on the results of the studies to the Commission 
no  later  than  [date  to  be  determined  to  be  2  years  after  the  entry  into  force  of  this 
Amendment Regulation].  

In  accordance  with  the  procedure  laid  down  in  Article  18,  the  Commission  shall 
decide no later than [date to be determined to be 3 years after the entry into force of 
this  Amendment  Regulation]  whether  to  invoke  Article  17(b),  as  to  include  the 
variable hours worked (No 220) and the variable gross wages and salaries (No 230) 
with effect from the base year 2010." 

Form of variables 

Under  heading  (d)  ("Form  of  variables"),  paragraphs  1  and  2  are  replaced  by  the 
following: 

"1. All of the variables are to be transmitted in an unadjusted form, if available. 

2. The turnover variable (No 120) and the volume of sales variable (No 123) are also 
to  be  transmitted  in  a  working-day  adjusted  form.  Wherever,  other  variables  show 
working  day  effects,  Member  States  may  transmit  these  variables  also  in  working 
day adjusted form. The list of variables to be prepared in working-day adjusted form 
may be amended in accordance with the procedure laid down in Article 18." 

Level of detail 

The text under heading (f) ("Level of detail") is amended as follows: 

(1) Paragraph 1 is replaced by the following: 

"1. The turnover variable (No 120) and the deflator of sales/volume of sales variables 
(No  330/123)  are  to  be  transmitted  according  to  the  levels  of  detail  defined  in 

16 

 
 
  
 
paragraphs 2, 3 and 4. The number of persons employed variable (No 210) is to be 
transmitted according to the level of detail defined in paragraph 4." 

(2) The following paragraph 5 is added: 

"5.  Those  Member  States  whose  turnover  in Division 52 of  NACE in a  given  base 
year  represents  less  than  1%  of  the  European  Community  total,  need  only  transmit 
the  turnover  variable  (No  120)  and  the  deflator  of  sales/volume  of  sales  variables 
(No 330/123) according to the levels of detail defined in paragraphs 3 and 4." 

Deadlines for data transmission 

The  text  under  heading  (g)  ("Deadlines  for  data  transmission")  is  replaced  by  the 
following: 

“1.  The  variables  shall  be  transmitted  for  turnover  (No  120)  and  the  deflator  of 
sales/volume  of  sales  (No  330/123)  within  two  months  at  the  levels  of  detail 
specified in paragraph 2 under heading (f) of this Annex. The deadline may be up to 
15  days  longer  for  those  Member  States  whose  turnover  in  Division  52  in  a  given 
base year represents less than 3% of the European Community total. 

2.  The  variables  shall  be  transmitted  for  turnover  (No  120)  and  the  deflator  of 
sales/volume of sales (No 330/123) within one month for the level of detail specified 
in paragraphs 3 and 4 under heading (f) of this Annex. Member States may choose to 
participate for the turnover and deflator of sales/ volume of sales variables Nos. 120 
and  330/123  with  contributions  according  to  the  allocation  of  a  European  sample 
scheme as defined in point (d) of Article 4(2). The terms of the allocation are to be 
determined in accordance with the procedure laid down in Article 18. 

3.  The  variable  number  of  persons  employed  shall  be  transmitted  within  2  months 
after the end of the reference period. The deadline may be up to 15 days longer for 
those Member States whose turnover in Division 52 in a given base year represents 
less than 3% of the European Community total.” 

Pilot studies 

Under heading (h) ("Pilot studies"), items 2 and 4 deleted. 

Transition period 

Under heading (j) ("Transition period"), the following paragraph 4 is added: 

"4.  A  transition  period  ending  no  later  than  [date  to  be  determined  to  be  one  year 
after  the  entry  into  force  of  this  Amendment  Regulation]  may  be  conceded  for  the 
change of the deadlines for data transmission of the variable 210 in accordance with 
the procedure laid down in Article 18." 

17 

 
 
  
 
PART (D) 

ANNEX D TO REGULATION (EC) NO. 1165/98 IS AMENDED AS FOLLOWS: 

List of variables 

The text under heading (c) ("List of variables") is amended as follows: 

(1) In paragraph 1 the following variable is added: 

Variable 

310 

Name 

Output prices 

(2) The following paragraphs 3 and 4 are added: 

“3.  The  output  price  variable  (No  310)  covers  services  delivered  to  customers  that 
are enterprises or persons representing enterprises.  

4. The Commission shall institute a series of studies to be undertaken by the Member 
States. The studies shall be carried out taking into account the benefits of collecting 
the data in relation to the cost of collection and burden on business to: 

assess  the  feasibility  of  delivering  a  quarterly  variable  of  hours  worked  (No 

(a) 
220) for other services; 

assess  the  feasibility  of  delivering  a  quarterly  variable  of  gross  wages  and 

(b) 
salaries (No 230) for other services; 

(c) 

define a suitable methodology for data collection and index calculation; 

(d) 
define  a  suitable level of  detail. The data shall be broken down by economic 
activities defined by NACE Sections and by further dis-aggregations, not beyond the 
level of NACE Divisions (two-digit level) or groupings of Divisions. 

Member States shall submit a report on the results of the studies to the Commission 
not later than [date to be determined to be 2 years after the entry into force of this 
Amendment Regulation].  

Acting  in  accordance  with  the  procedure  laid  down  in  Article  18,  the  Commission 
shall  decide  no  later  than  [date  to  be  determined  to  be  3  years  after  the  entry  into 
force of this Amendment Regulation] whether to invoke Article 17(b) as to include 
the  variable  hours  worked  (No  220)  and  the  variable  gross  wages  and  salaries  (No 
230) with effect from base year 2010." 

Form of variables 

The text under heading (d) ("Form of the variables") is amended as follows: 

(1) Paragraphs 1 and 2 are replaced by the following:  

"1. All of the variables are to be transmitted in unadjusted form, if available. 

18 

 
 
  
 
2. The turnover variable (No 120) is also to be transmitted in working-day adjusted 
form.  Wherever  other  variables  show  working  day  effects,  Member  States  may 
transmit these variables also in working day adjusted form. The list of variables to be 
prepared  in  working-day  adjusted  form  may  be  amended  in  accordance  with  the 
procedure laid down in Article 18." 

(2) Paragraph 4 is replaced by the following: 

"4.  The  output  price  variable  (No  310)  is  to  be  transmitted  as  an  index.  All  other 
variables are to be transmitted as an index or as absolute figures." 

Reference period 

Under heading (e) ("Reference period"), the following text is added: 

"2. The Commission shall institute studies to be undertaken by the Member States. 
The  studies  shall  be  carried  out  taking  into  account  the  benefits  of  a  reduced 
reference period in relation to the cost of collection and burden on business to assess 
the feasibility of reducing the reference period of a quarter for the turnover variable 
(No 120) to a reference period of a month; 

Member States shall submit a report on the results of the studies to the Commission 
no  later  than  [date  to  be  determined  to  be  2  years  after  the  entry  into  force  of  this 
Amendment Regulation].  

In  accordance  with  the  procedure  laid  down  in  Article  18,  the  Commission  shall 
decide no later than [date to be determined to be 3 years after the entry into force of 
this  Amendment  Regulation]  whether  to  invoke  Article  17(d)  in  connection  with  a 
revision of the frequency of compilation of the turnover variable." 

Level of detail 

The text under heading (f) (Level of detail") is amended as follows: 

(1) Paragraphs 3 and 4 are replaced by the following: 

"3.  For  Divisions  50,  51,  64  and  74  of  NACE,  the  turnover  variable  need  only  be 
transmitted  at  the  2  digit  level  by  those  Member  States  whose  turnover  in  those 
divisions  of  NACE  in  a  given  base  year  represents  less  than  4  %  of  the  European 
Community total. 

4. For Section I of NACE, the number of persons employed variable (No 210) needs 
only be transmitted at Section level by those Member States whose total value added 
in  Section  I  in  a  given  base  year  represents  less  than  4  %  of  the  European 
Community total." 

(2) The following paragraphs 5, 6 and 7 are added: 

"5. The output price variable (No 310) is to be transmitted according to the following 
activities and groupings of NACE:  

60.24, 63.11, 63.12, 64.11, 64.12 at 4 digits; 

19 

 
 
  
 
61.1, 62.1, 64.2 at 3 digits;  

72.1 to 72.6 at 3 digits; 

sum of 74.11 to 74.14; 

sum of 74.2 and 74.3; 

74.4 to 74.7 at 3 digits. 

NACE 74.4 may be indicated approximately by advertising placements.  

NACE 74.5 covers the total price of labour recruited and personnel provided. 

6. The list of activities and groups of activities may be amended no later than [date to 
be determined to be 3 years after the entry into force of this Amendment Regulation] 
in accordance with the procedure laid down in Article 18. 

7. For Division 72, the output price variable (No 310) need only to be transmitted at 
the 2 digit level by those Member States whose turnover in those divisions of NACE 
in a given base year represents less than 4% of the European Community total." 

Deadlines for data transmission 

The  text  under  heading  (g)  ("Deadlines  for  data  transmission")  is  replaced  by  the 
following: 

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

Variable 

120 

210 

310 

Deadlines 

2 months 

2 months 

3 months 

First reference period 

Under heading (i) ("First reference period"), the following text is added: 

"The first reference period for transmission of the output price variable No 310 is not 
later than the first quarter of 2005. A derogation of a further year may be conceded 
for the first reference period in accordance with the procedure laid down in Article 
18, on condition that a base year not later than 2005 is applied." 

Transition period 

Under heading (j) ("Transition period") the following paragraphs are added: 

“A transition period ending no later than [date to be determined to be 3 years after 
the entry into force of this Amendment Regulation] may be conceded for the variable 
No  310  in  accordance  with  the  procedure  laid  down  in  Article  18.  A  further 

20 

 
 
  
 
transition period of one year may be conceded for the implementation of variable No 
310 for the NACE Divisions 63 and 74.  

A transition period ending no later than [date to be determined to be one year after 
the entry into force of this Amendment Regulation] may be conceded for the change 
of  the  deadlines  for  data  transmission  for  the  variables  120  and  210  in  accordance 
with the procedure laid down in Article 18.” 

21 

 
 
  
 
LEGISLATIVE FINANCIAL STATEMENT 

Policy area(s): Statistics 

Activit(y/ies): Business Statistics; Short-term Statistics 

TITLE OF ACTION: Proposal for a Regulation of the European Parliament and the Council (EC) 
No  …/…,  amending  Council  Regulation  (EC)  No  1165/98  concerning  short-term 
statistics. 

1. 

BUDGET LINE(S) + HEADING(S) 

B5-600 (ESTAT) Statistical Information Policy 

2. 

OVERALL FIGURES  

2.1. 

Total allocation for action (Part B): 

4.5  €  million  for  commitment.  The  existing  budget  allocation  on  this  line  already 
covers  this  amount  and  no  additional  resources  are  necessary.  This  proposal  is 
consistent with the existing financial programming of the Commission. 

2.2. 

Period of application: 

From 2004/2005 onwards without limitation in period of application. 

2.3. 

Overall multiannual estimate of expenditure: 

(a) 

Schedule  of  commitment  appropriations/payment  appropriations 
intervention) (see point 6.1.1) 

(financial 

€ million (to three decimal places) 

[n+1]

[n+2] 

[n+3] 

[n+4] 

Year 
[n] 

Commitments* 

1.500 

1.500 1.500 

0 

0 

Payments 

0.500 

1.500  1.500 

0.500 

0.500 

[n+5 
and 
subs. 
Years
] 

0 

0 

Total 

4.500 

4.500 

* Expected breakdown of expenditure between budget lines for each year (€ million): 

All budget to be imputed on budget line B5-6000. The schedule will be subject to an annual 
decision of Eurostat on the allocation of resources to this action. 

(b) 

Overall 
expenditure(see points 7.2 and 7.3) 

financial 

impact  of  human 

resources  and  other  administrative 

22 

 
 
  
 
 
 
 
 
 
 
 
 
 
 
Commitments/ 
payments 

0.108 

0.108 

0.108 

0.108 

0.108 

0.108 

0.648 

The human resources indicated will be covered within the existing allocation of Policy Area 
Statistics.  

The human resources are necessary for the reception, validation and processing of data from 
Member States and are not related to the expenditure in form of grants.  

Neither  the  Short-term  Statistics  Regulation,  1165/98,  nor  the  proposed  Amendment 
Regulation foresee an end date for the statistics to be established. Thus, the total of 0.648 Mio 
€ only covers the first 6 years of operation. The same impact applies to subsequent years. 

Total a+b 

Commitments 

1.608 

1.608 

1.608 

0.108 

0.108 

0.108 

5.148 

Payments 

0.608 

1.608 

1.608 

0.608 

0.608 

0.108 

5.148 

2.4. 

Compatibility with financial programming and financial perspective 

Proposal is compatible with existing financial programming. 

2.5. 

Financial impact on revenue: 

No financial implications (involves technical aspects regarding implementation of a 
measure) 

3. 

BUDGET CHARACTERISTICS 

Type of expenditure 

New 

EFTA 
participation

Contributions 
form applicant 
countries 

Heading in 
financial 
perspective 

Non-comp 

Diff 

NO 

YES 

NO 

No 3 – 
Internal 
policies 

4. 

LEGAL BASIS  

Articles 285, 157 and 165 of the Amsterdam Treaty establishing the European Community 

Council Regulation (EC) No. 322/97 on Community Statistics 

Decision No. 2367/2002/EC of the EP and of the Council of the 16th December 2002 on the 
Community Statistical Programme 2003 to 2007  

Council Resolution 1165/98 concerning short-term statistics 

23 

 
 
  
 
 
 
 
 
 
 
 
5. 

DESCRIPTION AND GROUNDS 

5.1. 

Need for Community intervention 

5.1.1.  Objectives pursued 

The  objective  of  this  Proposal  is  to  establish  a  legal  framework  for  the  provision  of 
harmonised  statistics  for  monetary  policy  in  the  framework  of  the  EMU.  The  STS 
Amendment Regulation will answer to important requirements of the European Central Bank 
for  improving  the  statistics  required  for  monetary  policy.  These  requirements  have  been 
reflected in the EMU Action Plan of 2000, its various progress reports and the list of Principle 
European Economic Indicators. 

Once  implemented,  the  improvements  brought  about  by  the  Amendment  Regulation  will 
provide a better information basis for the monetary policy of the European Central Bank. 

5.1.2.  Measures taken in connection with ex ante evaluation  

The Short-term Statistics (STS) Council Regulation 1165/98 concerning short-term statistics 
provided the basis for collecting a range of monthly and quarterly indicators on the evolution 
of  the  business  cycle  for  economic  and  monetary  policy.  The  Monetary  Union  created  the 
urgent need for such statistics. The Regulation was a compromise between more far-reaching 
economic and monetary policy requirements and the limited means and resources of Member 
States. Consequently, even directly after the Regulation came into force, it was quite evident 
that the effort to achieve a more comprehensive coverage of short-term statistics would have 
to continue. 

A  paper  of  the  European  Central  Bank  published  in  2000  on  the  requirements  on  general 
economic  statistics  made  this  need  quite  evident.  Since  that  time,  Eurostat  has  been  in 
discussion  with  the  Member  States  about  the  contents  of  an  Amendment  Regulation  while 
respecting the Member States priorities on the implementation of the current Regulation. The 
EMU Action Plan of autumn 2000 named import prices and the distinction of the Euro-zone 
for  non-domestic  industrial  indicators  as  priority  targets  for  complementing  the  Short-term 
Statistics Regulation. Progress reports to the action plan also called for a stronger emphasis 
on  service  sector  statistics.  Finally,  the  work  of  the  SPC  resulted  in  a  set  of  Principle 
European  Economic  Indicators  (PEEI)  naming  desirable  timeliness  and  deadlines  for 
implementation. The PEEIs have been approved by the SPC, the European Commission and 
the ECOFIN Council. 

Agreement  on  the  draft  has  been  achieved  with  all  Member  States,  with  the  exception  of 
Austria. It is supported by the Statistical Programme Committee. Austria has principle legal 
concerns  with  respect  to  Comitology  provisions  in  the  draft  Amendment  Regulation.  The 
Acceding Countries and EFTA Countries have been involved in the discussions on the draft 
Regulation. Among the Acceding Countries, Hungary has expressed opposition due to a lack 
of national resources to implement the measures foreseen in the Amendment Regulation. 

5.2. 

Action envisaged and budget intervention arrangements 

The  proposed  Regulation  describes  the  legal  framework  within  which  Member  States' 
national statistical offices will provide the specified statistical variables. The variables to be 
provided  will  be  detailed  in  implementing  measures.  Both  this  framework  regulation  and 
future implementing regulations will be "output" measures, defining the statistical variables to 

24 

 
 
  
 
be  provided,  but  leaving  Member  States  flexibility  in  how  to  obtain  the  variables. 
Nevertheless, methodological guidelines will make recommendations for the implementation. 

In  practice,  many  Member  States  will  extend  existing  surveys  or  conduct  new  specific 
surveys  to  obtain  the  results  required.  The  Commission  contribution  will  be  based  on  grant 
applications  submitted  by  Member  States  in  advance  which  will  include  estimated  cost 
statements. There will thus be a single annual action: to provide grants to national statistical 
institutes in Member States to assist in initial costs for implementing the required survey, e.g. 
feasibility  studies,  implementation  costs,  quality  analyses,  pilot  studies.  The  grants  will  not 
cover any continuous costs for the operation of the required surveys. The Commission does 
not  enter  into  any  commitment  with  respect  to  the  size  of  the  grant  programmes  or  the 
financing of specific actions. 

5.3.  Methods of implementation 

Management of the grants procedure and all data handling will be carried out by permanent 
Commission staff, with no externalisation. 

6. 

FINANCIAL IMPACT 

6.1. 

Total financial impact on Part B - (over the entire programming period) 

6.1.1.  Financial intervention 

Commitments (in € million to three decimal places) 

Breakdown* 

[Year n] 

[n+1] 

[n+2] 

[n+3] 

[n+4] 

Action 1 - grants to MSs for 
preparatory  actions  required 
to 
the  necessary 
surveys 

set-up 

1.500 

1.500 

1.500 

0 

TOTAL  1.500 

1.500 

1.500 

0 

0 

0 

[n+5 and 
subs. 
Years] 

0 

0 

Total 

 4.500 

 4.500 

*Expected breakdown of expenditure between budget lines for each year (€ million): 

All budget to be imputed on budget line B5-6000. The schedule will be subject to an annual 
decision of Eurostat on the allocation of resources to this action. 

25 

 
 
  
 
6.2. 

Calculation  of  costs  by  measure  envisaged  in  Part  B  (over  the  entire 
programming period)8 

Breakdown  

Action 1 

Management of grant procedure 

TOTAL COST 

Commitments (in € million to three decimal places) 

Type  
of outputs 
(projects, files ) 

Number of 
outputs 

Average unit 
cost 

(total for years 
1…n)  

Total cost 

(total for years 
1…n)  

1 

2 

3 

4=(2X3) 

75 grants 

0.060 

4.500 

(25  countries  x 
3 years)  

Results of grant 
projects: 
feasibility 
studies, pilot 
projects, survey 
set-up in 
Member states  

7. 

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE  

7.1. 

Impact on human resources 

The human resources indicated will be covered within the existing allocation of Policy Area 
Statistics. 

Types of post 

Staff to be assigned to management of the 
action using existing and/or additional 
resources 

Number of 
permanent posts 

Number of 
temporary posts 

Officials 
temporary staff 

or 

A 

B 

C 

0 

1 

0 

Other human resources 

Total 

1.0 

Description of tasks deriving from the 
action 

Database management, reception, 
validation and processing of data from 
Member States 

Total 

0 

1 

0 

1.0 

8 

For further information, see separate explanatory note. 

26 

 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
7.2. 

Overall financial impact of human resources 

Type of human resources 

Amount (€) 

Method of calculation *  

Officials 

Temporary staff 

Other human resources 

108.000 

1 x 108.000 

(specify budget line) 

Total  108.000 

The amounts are total expenditure for twelve months. 

7.3. 

Other administrative expenditure deriving from the action 

Amount € 

Method of calculation 

Budget line 

(number and heading) 

Overall allocation (Title A7) 

A0701 – Missions 

A07030 – Meetings 

A07031 – Compulsory committees 1 

A07032 – Non-compulsory committees 1 

A07040 – Conferences 

A0705 – Studies and consultations 

Other expenditure (specify) 

Information systems (A-5001/A-4300) 

Other expenditure - Part A (specify) 

Total 

The amounts are total expenditure for twelve months. 

1 Specify the type of committee and the group to which it belongs. 

I. 

II. 

Annual total (7.2 + 7.3) 

108.000 

€ 

Duration of action  

see remark 

years 

III. 

Total cost of action (I x II) 

€ 

Neither  the  Short-term  Statistics  Regulation  1165/98  nor  the  proposed  Amendment 
Regulation foresee an end date for the statistics to be established. Thus neither a duration nor 
a total amount can be provided. 

27 

 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8. 

FOLLOW-UP AND EVALUATION 

8.1. 

Follow-up arrangements 

The  implementation  of  this  Regulation  will  be  treated  in  a  Comitology  procedure.  As 
specified in article 18 Council Regulation (EC) 1165/98 and in the passages relating to this 
article in the Amendment regulation, Commission Regulations will be developed in relation 
to the definition of variables and quality reports to Eurostat.  

8.2. 

Arrangements and schedule for the planned evaluation 

According  to  the  Council  Regulation  (EC)  1165/98  article  14,  the  Commission  establishes 
regular quality reports based on information to be provided by the Member States. This clause 
is also valid for the proposed Amendment regulation. 

Based on this report, Commission services will evaluate the quality and, in consultation with 
Member  States,  make  modifications  to  the  procedures  in  force  or  to  the  methodological 
recommendations to improve compliance to quality standards in the future. 

Moreover,  the  Commission  services  in  close  co-operation  with  the  European  Central  Bank 
evaluate the quality of the data provided on a continuous, practically daily basis immediately 
after  the  transmission  of  data  to  the  Commission  and  the  passage  of  processed  data  to  the 
European  Central  Bank.  Immediate  contacts  to  Member  States  for  initiating  remedy  actions 
are a consequence of this monitoring activity.  

9. 

ANTI-FRAUD MEASURES 

A  revised  system  of  internal  management  and  control  was  put  in  place  following  the 
Commission's Reform initiative on financial management. This system included a reinforced 
internal audit capability. 

Annual  monitoring  of  progress  with  implementation  of  the  Commission's  Internal  Control 
Standards  is  designed  to  give  assurance  on  the  existence  and  functioning  of  procedures  for 
prevention and detection of fraud and irregularities. 

New  rules  and  procedures  have  been  adopted  for  the  principal  budgetary  process:  calls  for 
tenders,  grants,  commitments,  contracts  and  payments.  The  manual  of  procedures  are  made 
available  to  all  those  intervening  in  financial  acts  with  a  view  to  clarify  responsibilities, 
simplify  workflows  and  indicate  key  control  points.  Training  on  their  use  is  provided.  The 
manuals are subject to regular review and updating. 

28