Common Position (EC) No 21/2005 of 8 March 2005 adopted by the Council, acting in accordance with the procedure referred to in Article 251 of the Treaty establishing the European Community, with a view to adopting a Regulation of the European Parliament and of the Council on the compilation of quarterly non-financial accounts by institutional sector
Date: 2005-03-08
Institutions: Council of the European Union
Subjects: Economic and Monetary Union, Eurostat, economic statistics, national accounts

C 144 E/16

EN

Official Journal of the European Union

14.6.2005

COMMON POSITION (EC) No 21/2005

adopted by the Council on 8 March 2005

with a view to adopting Regulation (EC) No …/2005 of the European Parliament and of the
Council of … on the compilation of quarterly non-financial accounts by institutional sector

(2005/C 144 E/03)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

these accounts and, with regard to the rest of the world
accounts, between the balance of payments and the
national accounts data.

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

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Central Bank (1),

Acting in accordance with the procedure laid down in Article
251 of the Treaty (2),

Whereas:

(1)

(2)

(3)

(4)

The Action Plan on Economic and Monetary Union
(EMU) Statistical Requirements endorsed by the Ecofin
Council in September 2000 specifies that a limited set of
quarterly sector accounts is urgently needed, and that
these should be available within 90 days of the end of
the quarter concerned.

The Joint Report of the Ecofin Council and the Commis-
sion to the European Council on eurozone statistics and
indicators, as adopted by the Ecofin Council on 18
February 2003, emphasises that high priority actions in
including quarterly national accounts by
several fields,
institutional sector, should be fully implemented by
2005.

The analysis of cyclical movements in the European
Union economy and the conduct of monetary policy
within the EMU require macroeconomic statistics on the
economic behaviour and the interrelationship of indivi-
dual institutional sectors which are impossible to identify
in data compiled at the level of the economy as a whole.
There is, therefore, a need to produce quarterly accounts
by institutional sector,
for the European Union as a
whole and for the euro area.

Production of these accounts is part of the overall aim
to compile a system of annual and quarterly accounts
for the European Union and for the euro area. The
system includes the main macroeconomic aggregates
and the financial and non-financial accounts by institu-
tional sector. The aim is to achieve consistency across all

(1) OJ C 42, 18.2.2004, p. 23.
(2) Opinion of the European Parliament of 30 March 2004 (OJ C 103
E, 29.4.2004, p. 141), Council Common Position of 8 March 2005
and Position of the European Parliament of … (not yet published in
the Official Journal).

(5)

(6)

(7)

set out

The compilation of European accounts by institutional
sector, in accordance with the principles of the European
system of national and regional accounts in the Com-
munity as
in Council Regulation (EC) No
2223/96 (3), requires the transmission by Member States
of quarterly national accounts by institutional sector.
the
the European accounts must
However,
economy of the European area as a whole and may
differ from the simple aggregation of Member States'
accounts. In particular, the objective is to take account
of the transactions of the institutions and bodies of the
European Union in the accounts of the area concerned
(the European Union or the euro-zone, whichever is
applicable).

reflect

specific Community statistics

The production of
is
governed by the rules set out in Council Regulation (EC)
No 322/97 of 17 February 1997 on Community Statis-
tics (4).

the scale and effects of

Since the objective of this Regulation, namely the compi-
lation of quarterly non-financial accounts by institutional
sector for the European Union and the euro area, cannot
be achieved satisfactorily by the Member States and can
therefore, by reason of
the
action, be better achieved at Community level, the Com-
in accordance with the
munity may adopt measures,
principle of subsidiarity as set out in Article 5 of the
Treaty. In accordance with the principle of proportion-
ality, as set out in that Article, this Regulation does not
go beyond what is necessary to achieve that objective. In
particular, where Member States make a negligible
contribution to the European totals, they should not be
required to report the full detail of data.

(8)

The measures necessary for the implementation of this
Regulation should be adopted in accordance with
Council Decision 1999/468/EC of 28 June 1999 laying
down the procedures for the exercise of implementing
powers conferred on the Commission (5).

(3) OJ L 310, 30.11.1996, p. 1. Regulation as last amended by Regu-
lation (EC) No 1267/2003 of the European Parliament and of the
Council (OJ L 180, 18.7.2003, p. 1).

(4) OJ L 52, 22.2.1997, p. 1. Regulation as amended by Regulation
(EC) No 1882/2003 of the European Parliament and of the Council
(OJ L 284, 31.10.2003, p. 1).

(5) OJ L 184, 17.7.1999, p. 23.

14.6.2005

EN

Official Journal of the European Union

C 144 E/17

(9)

The Statistical Programme Committee set up by Council
Decision 89/382/EEC, Euratom (1) and the Committee
on Monetary, Financial and Balance of Payments Statis-
tics set up by Council Decision 91/115/EEC (2) have
been consulted,

Article 3

Reporting obligations

HAVE ADOPTED THIS REGULATION:

Article 1

Purpose

This Regulation provides a common framework for the contri-
butions of the Member States to the compilation of quarterly
European non-financial accounts by institutional sector.

Article 2

Transmission of quarterly non-financial accounts by insti-
tutional sector

1. Member States shall transmit to the Commission quarterly
non-financial accounts by institutional sector, as specified in
the Annex, except, in the first instance, items P.1, P.2, D.42,
D.43, D.44, D.45 and B.4G.

A timetable for the transmission of items P.1, P.2, D.42,
2.
D.43, D.44, D.45 and B.4G, respectively, and any decision to
require a breakdown of the transactions listed in the Annex by
counterpart sector shall be adopted in accordance with the
procedure referred to in Article 8(2). Any such decision shall
not be adopted before the Commission has reported to the
European Parliament and the Council on the implementation of
this Regulation pursuant to Article 9.

The quarterly data referred to in paragraph 1 shall be
3.
delivered to the Commission at the latest 90 calendar days after
the end of the quarter to which the data relate. During a transi-
tional period of three years from the entry into force of this
Regulation the quarterly data referred to in paragraph 1 shall
be delivered to the Commission at the latest 95 calendar days
after the end of the quarter to which the data relate. Any revi-
sion of the data for previous quarters shall be transmitted at
the same time.

4.
The time of transmission specified in paragraph 3 may be
adjusted, by a maximum of five days, in accordance with the
procedure referred to in Article 8(2).

5.
The first transmission of quarterly data shall relate to data
for the third quarter of 2005. Member States shall deliver these
data no later than 3 January 2006. This first transmission shall
include back data for the periods from the first quarter of
1999.

(1) OJ L 181, 28.6.1989, p. 47.
(2) OJ L 59, 6.3.1991, p. 19.

1.
All Member States shall transmit the data described in the
Annex, with respect to the rest of the world sector (S.2) and
the general government sector (S.13). A Member State for
which gross domestic product at current prices normally repre-
sents more than 1 % of the corresponding Community total
shall transmit the data described in the Annex for all institu-
tional sectors.

2.
The Commission shall determine the percentage of Com-
munity total gross domestic product at current prices that a
Member State's gross domestic product normally represents, as
specified in paragraph 1, on the basis of the arithmetic mean
of the latest three years' annual data transmitted by Member
States.

3.
The proportion (1 %) of the Community total referred to
in paragraph 1 may be adjusted in accordance with the proce-
dures referred to in Article 8(2).

4.
Derogations from this Regulation may be accepted by the
Commission if national statistical systems require major adapta-
tion. Such derogations shall
last not more than three years
from the date of entry into force of this Regulation, or that of
the implementing measures adopted in accordance with the
procedure referred to in Article 8(2).

Article 4

Definitions and standards

The standards, definitions, classifications, and accounting rules
for data transmitted for the purposes of this Regulation shall be
those laid down in Regulation (EC) No 2223/96 (hereinafter
referred to as the ESA Regulation).

Article 5

Data sources and consistency requirements

1. Member States shall compile the information requested in
this Regulation using all sources they consider relevant, giving
priority to direct information such as administrative sources or
surveys of enterprises and households.

When such direct information cannot be collected, in particular
for the back data required under Article 2(5), best estimates
may be transmitted.

2.
Data transmitted by Member States for the purposes of
this Regulation shall be consistent with the quarterly non-finan-
cial accounts of the general government and the quarterly main
aggregates of the total economy, transmitted to the Commis-
sion under the data transmission programme of the ESA Regu-
lation.

C 144 E/18

EN

Official Journal of the European Union

14.6.2005

3.
The quarterly data transmitted by Member States for the
purposes of this Regulation shall be aligned with the corre-
sponding annual data transmitted under the data transmission
programme of the ESA Regulation.

Article 6

Quality standards and reports

1. Member States shall take all measures necessary to ensure
that the quality of the data transmitted improves over time to
meet the common quality standards to be defined in accord-
ance with the procedure referred to in Article 8(2).

2. Member States shall supply the Commission with an up-
to-date description of the sources, methods and statistical treat-
ments used within a year of their first transmission of data.

inform the Commission of major
3. Member States shall
methodological or other changes that would affect the data
transmitted not later than three months after such change takes
effect.

Article 7

Implementing measures

The implementing measures shall be laid down in accordance
with the procedure referred to in Article 8(2). Such measures
shall include:

(a) determining the timetable for the transmission of the items
P.1, P.2, D.42, D.43, D.44, D.45 and B.4G pursuant to
Article 2(2);

(b) requiring the transactions shown in the Annex to be
broken down by counterpart sector in accordance with
Article 2(2);

(c) revising the timetable of quarterly transmissions pursuant

to Article 2(4);

(e) defining data quality standards in accordance with Article

6(1).

Article 8

Committee procedure

The Commission shall be assisted by the Statistical

1.
Programme Committee.

2. Where reference is made to this paragraph, Articles 5 and
7 of Decision 1999/468/EC shall apply, having regard to the
provisions of Article 8 thereof.

The period referred to in Article 5(6) of Decision 1999/468/EC
shall be set at three months.

3.

The Committee shall adopt its rules of procedure.

Article 9

Report on implementation

Within five years of the entry into force of this Regulation, the
Commission shall submit a report to the European Parliament
and the Council on its implementation.

In particular, this report shall:

(a) provide

information on the quality of

the

statistics

produced;

(b) assess the benefits accruing to the Community, the Member
States and the providers and users of statistical information
of the statistics produced in relation to their costs;

(c) identify areas for potential improvement and amendments

considered necessary in light of the results obtained.

Article 10

Entry into force

(d) adjusting the proportion (1 %) of the Community total to
institu-

determine the obligation to transmit data for all
tional sectors pursuant to Article 3(3);

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

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

…

P1

P2

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P.31

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P.5

P.51

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D.1

D.2

D.21

D.29

D.3

D.31

D.39

Output

Intermediate consumption

Final consumption expenditure

Individual consumption expenditure

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Changes in inventories and acquisi-
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Exports of goods and services

Imports of goods and services

Compensation of employees

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Taxes on products

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Reinvested earnings on F.D.I

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ance holders

Rents

Current taxes on income, wealth, etc.

Social contributions and benefits

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Social benefits other than social trans-
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Adjustment for the change in net
equity of households in pension funds
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.

1
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14.6.2005

EN

Official Journal of the European Union

C 144 E/21

Balancing items

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B.11

B.12

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Net value added

Operating surplus (gross)

Mixed income (gross)

Entrepreneurial income (gross)

Balance of primary incomes (gross)

Disposable income (gross)

Adjusted disposable income (gross)

Saving (gross)

Net lending/net borrowing

External balance of goods and services

Current external balance

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C 144 E/22

EN

Official Journal of the European Union

14.6.2005

STATEMENT OF THE COUNCIL'S REASONS

I. INTRODUCTION

1. On 17 December 2003, the Commission submitted a proposal for a Regulation of the European
Parliament and of the Council on the compilation of quarterly non-financial accounts by institu-
tional sector (1), based on Article 285 of the EC Treaty.

2. The European Central Bank delivered its opinion on 4 February 2004 (2).

3. The European Parliament delivered its opinion at first reading on 31 March 2004 (3).

4. The Commission has not submitted an amended proposal.

5. The Council adopted its common position according to Article 251 of the EC Treaty on 8 March

2005

II. AIM

6. The aim of this proposal for a Regulation is to provide a common framework for the contribu-
tions of the Member States to the compilation of quarterly European accounts by institutional
sector.

III. COMMON POSITION

Recitals

7. The Council has amended recital 5, by deleting the expression ‘when these are residents in the
European area’ to take on board in full the European Parliament's single amendment. This recital
has been changed in order to clarify that the scope of this regulation includes ‘the European
Union or the eurozone, whichever is applicable’, instead of the ‘European area’.

Articles

Article 1 (Purpose)

8. Article 1 was accepted as in the Commission's proposal and the European Parliament did not

suggest any amendments.

Article 2 (Transmission of quarterly non-financial accounts by institutional sector)

9. Paragraph 1 was accepted as in the Commission's proposal.

10. On paragraph 2, the Council has added the sentence:

‘Any such decision shall not be adopted
before the Commission has reported to the European Parliament and Council on the implementa-
tion of this Regulation pursuant to Article 9’. By introducing this amendment the Council estab-
lished that the transmission of further data regarding further breakdown of transactions will not
take place before the European Commission reports to the European Parliament and to the
Council (within a maximum period of five years) on the implementation of this regulation.

11. On paragraph 3, the Council has introduced a new sentence: ‘During a transitional period of three
years from the entry into force of this Regulation the quarterly data referred to in paragraph 1
shall be delivered to the Commission at the latest 95 calendar days after the end of the quarter to
which the data relate.’ to allow for a transitional period of three years during which Member
States are required to deliver to the Commission the quarterly data referred to in paragraph 1
within a deadline of 95 days instead of the 90 days initially proposed by the Commission.

(1) COM(2003) 0789 final.
(2) OJ C 42, 18.2.2004, p. 23.
(3) OJ C 103 E, 29.4.2004, p. 141.

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12. Paragraph 4 was accepted as in the Commission's proposal.

13. On paragraph 5, the Council replaced ‘first quarter’ by ‘third quarter’ and ‘30 June 2005’ by ‘3
January 2006’, moving forward by two quarters the first period to which the first transmission of
quarterly data relates and moving forward by a half year the date for Member States to deliver
these data.

Articles 3 (Reporting obligations), 4 (Definitions and standards), 5 (Data sources and consis-
tency requirements), 6 (Quality standards and reports), 7 (Implementing measures), 8
(Committee), 9 (Report on implementation) and 10 (Entry into force)

14. These Articles were accepted as in the Commission's proposal and the European Parliament did

not suggest any amendments to them.

IV. EUROPEAN PARLIAMENT AMENDMENTS NOT TAKEN ON BOARD

15. The sole amendment proposed by the European Parliament in its first reading has been accepted.

V. CONCLUSIONS

16. In its common position, the Council has taken over the amendment proposed by the European
Parliament. The Council considers that the modifications introduced in its common position are
fully in line with the objectives of the regulation. The overall balance of the Council's common
position has been acknowledged by the Commission, which has accepted it as a satisfactory
compromise package.