Communication from the Commission to the European Parliament and the Council on the appropriateness of establishing rules on a Europe-wide basis for more detailed levels in the NUTS Classification
Date: 2005-10-06
Institutions: European Commission
Subjects: EU Member State, data collection, regional statistics, statistical method, statistical nomenclature

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 6.10.2005 
COM(2005)473 final 

COMMUNICATION FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

on the appropriateness of establishing rules  
on a Europe-wide basis for more detailed levels in the NUTS Classification 

EN 

   EN 

 
 
 
  
THE BACKGROUND 

At  the  beginning  of  the  1970s,  the  Commission  set  up  the  “Nomenclature  of  Statistical 
Territorial Units” (NUTS) as a single, coherent system for dividing up the European Union's 
territory in order to produce regional statistics for the Community. For around thirty years, the 
implementation  and  updating  of  the  NUTS  classification  was  managed  under  a  series  of 
“gentleman’s agreements” between the Member States and the Commission, sometimes after 
long and difficult negotiations. Work on a Regulation to give NUTS a legal status started in 
spring 2000. This NUTS Regulation was then adopted in May 2003 and entered into force in 
July 20031. 

The current NUTS breakdown subdivides each Member State into a whole number of regions 
at NUTS 1 level. Each of these is then subdivided into regions at NUTS level 2, and these in 
turn into regions at NUTS level 3. 

Until  the  beginning  of  the  1990s,  the  NUTS  classification  consisted  of  these  three  regional 
levels  alone.  In  order  to  meet  a  growing  general  need  for  information  at  local  level,  The 
Commission has set up an infra-regional information system, the first step being to compile a 
Community classification of local administrative units (“LAU”) compatible with NUTS. Two 
further levels (baptised LAU) have been defined in accordance with the NUTS principles, but 
only the last and smallest (LAU level 2) has been fixed for all Member States. This usually 
corresponds to the concept of the “municipality” or “commune”. 

During the discussions of the NUTS Regulation in Council, there were diverging views as to 
how  many  levels  of  NUTS  should  be  covered  by  the  legal  text.  Many  countries  wanted  to 
stick to only three NUTS levels, while some countries (supported by the European Parliament 
in their opinion) wanted to include levels 4 and 5, i.e. the current LAU level 1 and 2. In order 
to reconcile the views, the Commission accepted a proposal that it would be given two years 
to study the  appropriateness  of covering further NUTS levels  in the Regulation.  The NUTS 
Regulation therefore contains the following provision in Article 2(5): 

“In  each  Member  State,  there  can  be  further  hierarchical  levels  of  detail,  decided  by  the 
Member  State,  whereby  NUTS  level  3  is  subdivided.  Within  two  years  from  the  entry  into 
force of this Regulation, the Commission, after consulting the Member States, shall submit a 
communication  to  the  European  Parliament  and  the  Council  on  the  appropriateness  of 
establishing  rules  on  a  Europe-wide  basis  for  more  detailed  levels  in  the  NUTS 
classification.” 

What  would  an  additional  NUTS  level  in  the  Regulation  mean,  considering  the  various 
principles of the Regulation? 

• NUTS level 4 would be a subdivision of NUTS level 3 regions, 
• NUTS level 4 regions should cover the territory of each country completely, 

1 

Regulation (EC) No 1059/2003 of the European Parliament and of the Council of 26 May 2003 on the 
establishment of a common classification of territorial units for statistics (NUTS) (OJ L 154, 21.6.2003, 
p. 1) 

EN 

2 

   EN 

 
                                                 
• The regional breakdown would be kept stable for at least three years before the next 

possible amendments, 

• Minimum and maximum population thresholds would apply, 
• Supply of complete lists of names/identities for level 4 regions, 
• Development of specific rules to cover modifications of NUTS level 4 in Article 5. 

In other words, the introduction of an additional regional level in the NUTS Regulation would 
imply  a  considerable  additional  workload  both  for  the  Member  States  and  for  the 
Commission.  The  Commission  has  investigated  in  the  past  months,  if  the  advantages  of  an 
additional regional level in NUTS outweigh the additional burden. 

The current Communication reflects the results of the Commission’s study. 

CONSULTATION OF THE MEMBER STATES 

First of all, the Commission consulted the statistical offices of the Member States. A written 
questionnaire  was  sent  to  all  National  Statistical  Offices  on  15 June 2004.  All  25  Member 
States  replied  in  this  consultation  process2.  The  replies  varied  widely,  in  both  length  and 
content. The following conclusions can be drawn: 

•  A large majority of countries have a regional breakdown between NUTS level 3 and LAU 

level 2, i.e. a LAU level 1. 

•  This  LAU  level  1  is  also  used  for  the  collection  and  dissemination  of  regional  statistics 

within the country. 

•  Only  a  very  small  minority  of  countries  has  more  than  one  regional  breakdown  between 
NUTS level 3 and LAU level 2. We can therefore concentrate the Commission proposal on 
LAU level 1. 

•  In a majority of countries the boundaries of LAU level 1 change never or rarely. Stability 

is therefore practically guaranteed. 

•  Very  few  answers  specify  population  thresholds  for  the  NUTS  level  4  regions.  This  is 

regarded as a difficult question. 

•  Opinions seem to be split on the question of whether a NUTS level 4 at the European level 
should  be  integrated  into  the  Regulation.  Counting  France  and  Finland  (that  opt  for 
functional regions that are not subdivisions of NUTS level 3 regions) as “no” votes, there 
are 14 Member States out of 25 that oppose a further NUTS level in the Regulation. 

In a Working Party meeting with the Member States, held in Luxembourg 3rd to 5th November 
2004, this issue was discussed in detail. With very few exceptions, there was a consensus that 
LAU level 1 should be harmonised across Europe and the Commission should play its role as 
communicator  and  coordinator,  but  it  should  not  be  integrated  as  NUTS  level  4  into  the 

2 

The questionnaire and an overview of the answers by the Member States can be found in the Annex to 
this Communication. 

EN 

3 

   EN 

 
                                                 
NUTS Regulation. The Commission concluded that statistics at LAU level 1 would be very 
welcome (on a voluntary basis) and would be loaded into the appropriate database. 

ASSESSMENT 

Following  the  process  of  consultation  on  the  feasibility  from  the  Member  States’  view,  the 
Commission finalised its assessment according to the following analytical framework: 

1. 

EU  POLICY  REQUIREMENTS  JUSTIFYING  THE  CREATION  OF  AN  ADDITIONAL  
NUTS LEVEL 

Statistics at a regional level are primarily used for Cohesion Policy purposes. At present and 
in  the  foreseeable  future,  the  lowest  level  for  providing  such  data  is  NUTS  level  3.  Whilst 
requirements for more detailed statistical information may be required for certain policy areas 
(e.g.  rural  development)  it  is  not  yet  clear  whether  these  are  best  met  using  administrative 
units.  No  other  immediate  needs  for  systematic  collection  of  regional  statistics  at  a  lower 
administrative (i.e. NUTS) level could be identified. 

As the Union broadens, policy application is most probably going to get wider in geographical 
terms  rather  than  anything  else.  Subsidiarity  may  require  Member  States  to  go  into  more 
detail  in  certain  policy  initiatives  (e.g.  urban  programmes)  but  the  Commission  cannot  and 
should not manage this level of detail Union wide but in a policy targeted perspective. 

Hence, from a European policy point of view, the creation and management of an additional 
NUTS level in the NUTS Regulation is not justified. 

2. 

FEASIBILITY OF INCLUDING A NUTS LEVEL 4, ACCORDING TO THE PRINCIPLES OF 
THE LEGAL TEXT, INTO THE REGULATION FOR ALL MEMBER STATES 

In  view  of  the  strong  resistance  of  a  majority  of  statistical  offices  of  the  Member  States,  it 
seems rather problematic to force all Member States to create a NUTS level 4, which has to 
cover the whole country, be stable over time, respect certain size thresholds etc. 

Many  statistical  offices  had  good  arguments  for  not  introducing  a  formal  additional  NUTS 
level:  adding  a  forth  level  of  regional  breakdown  would  not  enhance  quality  and 
comparability of European statistics. The territorial divisions based on administrative regions 
consist of very different kinds of areas, which are more and more different when going down 
the hierarchy. Population thresholds, as such, would not harmonise the areas nor make them 
more  usable,  when  they  are  applied  to  rather  small  “regions”.  However  a  flexible  (case  by 
case)  use  of  other  territorial  divisions  than  NUTS  level  1  to  3  is  supported,  if  policy  needs 
demand so. 

EN 

4 

   EN 

 
3. 

DATA PROVISION RESULTING FROM AN ADDITIONAL NUTS LEVEL IN THE FORMAL 
REQUIREMENTS OF THE REGULATION 

A first candidate for regular statistics at NUTS level 4 would be annual population data. At 
the  moment,  the  Commission  receives  every  ten  years  detailed  population  data  from  the 
census  at  LAU  level  2  (municipalities).  To  have  fresher  data  in  a  harmonised  form  at  LAU 
level 1 (respectively NUTS level 4) would allow an in-depth analysis of regional evolution at 
a European scale. 

4. 

JUSTIFICATION  OF  THE  RESOURCES  NECESSARY  FOR  PROVIDING  STATISTICS  AT  A 
POSSIBLE NUTS LEVEL 4 

Two  different  types  of  costs  need  to  be  identified  here:  resources  needed  for  keeping  up  to 
date  the  structure  of  an  additional  NUTS  level  (administration  of  codes,  region  names, 
respecting  thresholds,  management  of  changes  etc.)  and  resources  needed  for  the  statistical 
data set. The NUTS regulation only concerns itself with the classification as such and NOT 
the  statistical  data,  which  is  regulated  in  other  statistical  legal  acts.  At  present  there  is  no 
legislative framework to collect data at any thing more detailed than NUTS level 3, and there 
are no current plans for more detailed collections of data. It therefore seems inappropriate to 
expend scarce resources on the maintenance of a classification for which no statistical data is 
currently envisaged. 

CONCLUSION 

The  Commission  concludes  that  currently  no  additional  level  of  regional  breakdown  should 
be  envisaged  in  the  framework  of  the  NUTS  Regulation.  The  efforts  of  the  services  should 
concentrate  on  the  statistical  information  available  at  the  existing  NUTS  levels  in  terms  of 
consolidation in the enlarged EU, quality improvement and obtaining additional regional data 
where required for policy purposes. 

Also, at an informal level, the harmonisation of LAU level 1 should be supported actively by 
the Commission at a European scale. This comprises an intensive exchange of views between 
statistical  offices,  encouraged  and  supported  by  the  Commission,  and  the  development  of 
guidelines  to  a  harmonisation  of  concepts  with  regard  to  the  definition  of  LAU  level  1 
regions. 

It  is  proposed  that  the  situation  should  be  reassessed  at  some  point  in  the  future.  The  most 
appropriate moment would appear to be in 2008, which follows the start of the next Cohesion 
Policy period.  

EN 

5 

   EN 

 
4.1. 

Questionnaire to the Member States 

ANNEX  

Question 1 

Is an official territorial breakdown lower than NUTS level 3 (and above LAU level 2, i.e. the 
local administrative units) used for statistical purposes in your country? Please describe this 
level of your territorial classification (number of regions, average size, with an administrative 
function or not, position in the hierarchy of regions). 

Question 2 

Do you have more than one territorial breakdown in your country between NUTS level 3 and 
LAU  level  2  for  statistical  purposes?  If  so,  describe  them  all  and  point  out  the  differences. 
Please answer in this case the questions below for all these breakdowns. 

Question 3 

Do  you  use,  collect  and  disseminate  any  regional  statistics  in  your  country  for  this  detailed 
level below NUTS level 3? Please give a few examples of statistical domains for which data 
are regularly produced and/or disseminated at the detailed breakdown. 

Question 4 

How  often  do  boundaries  of  units  of  this  level  of  your  regional  classification  change?  You 
may specify both frequency and number of units affected by territorial changes. 

Question 5 

Irrespective of the situation in your country, would you welcome a NUTS level more detailed 
than NUTS level 3 for the European Union? Would you welcome one additional level (NUTS 
level 4) or more than one additional NUTS levels (NUTS levels 4, 5 …)? Please explain your 
views on this. 

Question 6 

In your opinion, what should the population thresholds be for the additional NUTS level(s)? 

Question 7 

Please let us have any further comments on the issue of further NUTS levels. 

EN 

6 

   EN 

 
4.2. 

Annex 2: Summary of the Member State replies 

More than 
one level? 

Collection and 
publication of 
data? 

Frequency of 
boundary 
changes 

NSO wants 
NUTS levels 
below level 3 ? 

Population 
thresholds? 

Regional 
break-
down below 
NUTS 3 ? 

no 

yes 

no 

Belgium 

Czech Rep. 

Denmark 

Germany 

partially 

Estonia 

Greece  

Spain 

France 

Ireland 

Italy 

Cyprus 

Latvia 

Lithuania 

Luxembourg 

Hungary 

Malta 

Netherlands 

Austria 

Poland 

Portugal 

Slovenia 

Slovak Republic 

Finland 

Sweden 

United Kingdom 

yes 

yes 

yes 

not for 
statistics 

yes 

yes 

yes 

yes, but will 
be abolished 

yes 

yes 

yes 

yes 

no 

yes 

yes 

yes 

yes 

yes 

yes 

yes 

yes 

EN 

▬ 

partially 

▬ 

no 

no 

no 

for some 
domains 

no 

no 

no 

no 

no 

no 

for some 
domains 

no 

no 

▬ 

no 

no 

no 

no 

no 

no 

no 

yes 

in future 

every 10 years 

▬ 

yes 

▬ 

yes 

yes 

yes 

no 

no 

yes 

yes 

yes 

yes 

yes 

yes 

yes 

▬ 

yes 

yes 

yes 

yes 

yes 

yes 

no 

yes 

7 

▬ 

rarely 

▬ 

frequently 

rarely 

rarely 

rarely 

no 

no 

no 

no 

yes 

yes 

yes 

▬ 

▬ 

▬ 

▬ 

30 000 - 500 000 

difficult 

difficult 

rarely 

functional regions 

50 000 - 150 000 

rarely 

never 

rarely 

rarely 

rarely 

frequently 

no 

yes 

yes 

no 

no 

yes 

no 

▬ 

no answer yet 

40 000 - 150 000 

▬ 

▬ 

difficult 

▬ 

rarely 

maybe 

30 000 - 130 000 

▬ 

never 

frequently 

no 

no 

yes 

▬ 

▬ 

average of 
countries 

rarely 

yes (reservations) 

▬ 

frequently 

maybe 

difficult 

rarely 

no 

difficult 

frequently 

functional regions 

makes no sense 

never 

rarely 

no 

yes 

▬ 

25 000 - 150 000 

   EN