Council Regulation (EC) No 2103/2005 of  12 December 2005  amending Regulation (EC) No 3605/93 as regards the quality of statistical data in the context of the excessive deficit procedure
Date: 2005-12-12
Institutions: Council of the European Union
Subjects: EU Member State, European Commission, European accounting system, data transmission, loss, public debt, statistics

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 2103/2005

of 12 December 2005

amending Regulation (EC) No 3605/93 as regards the quality of statistical data in the context of the
excessive deficit procedure

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty
Community, and in particular
Article 104(14) thereof,

establishing the European
the third subparagraph of

Having regard to the proposal from the Commission,

regards

reliability, relevance, cost-effectiveness, statistical confi-
dentiality and transparency, as laid down in Commission
Decision 97/281/EC of 21 April 1997 on the role of
the production of Community
Eurostat as
statistics (3). The implementation by the national and
Community statistical authorities of
the Recommen-
dation of the Commission of 25 May 2005 on the inde-
pendence, integrity and accountability of the national and
Community statistical authorities should enhance the
principle of professional
independence, adequacy of
resources and quality of statistical data.

Having regard to the opinion of the European Parliament (1),

(3)

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

Whereas:

Council Regulation (EC) No 3605/93 of 22 November
1993 on the application of the Protocol on the excessive
deficit procedure annexed to the Treaty establishing the
European Community (4) contains the relevant definitions
for the purpose of the excessive deficit procedure and
lays down a
reporting to the
for
Commission of annual government deficit and debt
and of other annual government data.
In its current
wording,
the Regulation does not contain provisions
concerning the assessment of the quality of the data
reported by Member States or to the provision of data
by the Commission.

timetable

the

Statistical data to be used for the application of
the
Protocol on the excessive deficit procedure annexed to
the Treaty establishing the European Community must
be provided by the Commission. The Commission does
relies on data
not directly compile these data but
compiled and reported by the national
authorities
pursuant to Article 3 of that Protocol.

(4)

(1)

(2)

in
The role of the Commission, as statistical authority,
is specifically exercised by Eurostat, on
that context
the Commission
behalf
of
department
tasks
the
for
devolving on the Commission as regards the production
of Community statistics, Eurostat is required to execute
its tasks in accordance with the principles of impartiality,

the Commission. As
responsible

carrying out

(1) Opinion delivered on 23 June 2005 (not yet published in the

Official Journal).

(2) OJ C 116, 18.5.2005, p. 11.

Following a proposal by the Commission, the Council
(ECOFIN) adopted on 18 February 2003 a Code of
Best Practice on the compilation and reporting of data
in the context of the excessive deficit procedure, in an
to clarify and streamline procedures, at both
attempt
Member States and Commission levels, when compiling
and reporting the European System of Accounts 1995
(ESA 95) (5), government accounts, and in particular data
in the context of the
for government deficit and debt,
excessive deficit procedure.

(3) OJ L 112, 29.4.1997, p. 56.
(4) OJ L 332, 31.12.1993, p. 7. Regulation as last amended by
Commission Regulation (EC) No 351/2002 (OJ L 55, 26.2.2002,
p. 23).

(5) Council Regulation (EC) No 2223/96 of 25 June 1996 on the
European system of national
in the
Community (OJ L 310, 30.11.1996, p. 1). Regulation as last
amended by Regulation (EC) No 1267/2003 of
the European
Parliament and of the Council (OJ L 180, 18.7.2003, p. 1).

and regional

accounts

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(5)

(6)

(7)

(8)

A revision of the deadlines for reporting data in the
context of the excessive deficit procedure should ensure
full consistency with the deadlines of the ESA trans-
mission programme (1) on government expenditure and
revenue, financial balance sheets, financial transactions
and debt with quarterly and annual
frequency. The
the revision of reporting deadlines is to
purpose of
streamline the Member States’
reporting obligations,
and the revision implies some future amendment of
the ESA 95 transmission programme, to be carried out
by a Commission Regulation.

The credibility of budgetary surveillance crucially hinges
upon reliable budgetary statistics.
the utmost
importance that data reported by Member States under
Regulation (EC) No 3605/93 and provided by the
Commission to the Council
in accordance with the
Protocol be of high quality.

is of

It

It is necessary to specify measures to improve the quality
of actual government data reported in the context of the
excessive deficit procedure which build on existing best
practices and which would allow the Council and the
Commission to perform their duties under the Treaty.
Core elements for the evaluation of quality are laid
down in the Quality Declaration of
the European
Statistical System, adopted by the Statistical Programme
Committee in September 2001.

In accordance with the principle of proportionality, as set
out in Article 5 of the Treaty, the measures provided for
in this Regulation necessary to achieve the objective of
strengthening the statistical monitoring of the quality of
the reported data in the context of the excessive deficit
procedure do not go beyond what is required to achieve
this objective.

(1) — 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 (OJ L 29,
4.2.2000, p. 4).

— 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 (OJ L 179, 9.7.2002, p. 1).
— Regulation (EC) No 501/2004 of the European Parliament and
the Council of 10 March 2004 on quarterly financial
of
accounts for general government (OJ L 81, 19.3.2004, p. 1).
— Council Regulation (EC) No 1222/2004 of 28 June 2004
concerning the compilation and transmission of data on the
quarterly government debt (OJ L 233, 2.7.2004, p. 1).

— 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 (OJ
L 172, 12.7.2000, p. 3).

— Council Regulation (EC) No 2223/96 (OJ L 310, 30.11.1996,

(9)

The compilation of budgetary statistics is governed by
the principles laid down in Council Regulation (EC) No
322/97 of 17 February 1997 on Community statistics (2),
most notably the principles of
impartiality, reliability,
relevance and transparency.

(10)

shall be

responsible, on behalf of

Eurostat
the
Commission, for assessing the quality of the data and
for providing the data to be used in the context of the
accordance with
excessive
Commission Decision 97/281/EC.

procedure,

deficit

in

(11) A permanent dialogue should be established between the
Commission and the Member States’ statistical authorities
in order to ensure the quality both of the actual data
the underlying
reported by Member States and of
government
sector accounts compiled in accordance
with ESA 95. To that end, regular dialogue visits, as
well as possible methodological visits, may be carried
out by the Commission, thus enhancing the monitoring
of the reported data and providing continuing assurance
of data quality. Member States are to provide the
Commission with prompt access to the information.
Dialogue visits should be the rule. Methodological visits
the
should only be undertaken in cases where
Commission (Eurostat)
risks or
potential problems with the quality of the data, especially
where it relates to the methods, concepts and classifi-
cations applied to the data, which Member States are
obliged to report. The conduct of these possible metho-
dological visits will be based on exchange of information
amongst all the relevant fora, in particular the Economic
and Financial Committee.

substantial

identifies

(12) Detailed inventories of

the methods, procedures and
sources used for the compilation of actual deficit and
debt data
sector
accounts compiled according to ESA 95 are to be
provided to the Commission, updated and made public
by the Member States.

and the underlying

government

(13)

accounting

Prompt decisions by the Commission (Eurostat) on the
correct
transaction in
treatment of
accordance with Council Regulation (EC) No 2223/96
are needed in cases of doubt as to the correct accounting
treatment of a government transaction or in cases which
are either complex or of general interest.

a

p. 1).

(2) OJ L 52, 22.2.1997, p. 1.

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(14)

(15)

the

governing

the
Rules
Commission (Eurostat) are to be clarified in terms of
the time limit for such provision and any reservations
and amendments.

provision

data

by

of

Coverage of the reporting needs to be brought in line
with the data currently reported by the Member States.
More generally, Regulation (EC) No 3605/93 needs to be
updated in the light of the experience gained through the
implementation of the Code of Best Practice.

2.

Before 1 April of year n, Member States:

— shall

to

report

the Commission

planned
government deficit for year n, an up-to-date estimate
of
for year n-1 and
their actual government deficits for years n-2, n-3 and
n-4,

their actual government deficit

their

(16)

Regulation (EC) No 3605/93 should therefore be
amended accordingly,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 3605/93 is hereby amended as follows:

1. Article 3 shall be replaced by the following:

‘Article 3

1.
Planned government deficit and government debt level
figures mean the figures established for the current year by
the Member States. They shall be the most recent official
forecasts,
the most recent budgetary
decisions and economic developments and prospects. They
should be produced in as short a time as possible before the
reporting deadline.

taking into account

2.
Actual government deficit and government debt level
figures mean estimated, provisional, half-finalised or final
results for a past year. The planned data together with the
actual data must form a consistent time series as far as the
definitions and concepts are concerned.’;

2.

in Article 4, paragraphs 1, 2 and 3 shall be replaced by the
following:

‘1.
As from the beginning of 1994, Member States shall
report
to the Commission their planned and actual
government deficits and levels of government debt twice a
year, the first time before 1 April of the current year (year n)
and the second time before 1 October of year n.

Member States shall inform the Commission which national
authorities are responsible for the excessive deficit procedure
reporting.

— shall simultaneously provide the Commission with their
planned data for year n and the actual data for years n-1,
n-2, n-3 and n-4 of their corresponding public accounts
budget deficits in accordance with the definition which is
given most prominence nationally and with the figures
which explain the transition between the public accounts
budget deficit and their government deficit for the sub-
sector S.1311,

— shall simultaneously provide the Commission with their
actual data for years n-1, n-2, n-3 and n-4 of their
corresponding working balances and with the figures
transition between the working
which explain the
and their
sub-sector
balances of
government deficit for the sub-sectors S.1312, S.1313
and S.1314,

each government

— shall report to the Commission their planned level of
government debt at the end of year n and their levels
of actual government debt at the end of years n-1, n-2,
n-3 and n-4,

— shall simultaneously provide the Commission, for years
n-1, n-2, n-3 and n-4, with the figures which explain the
contribution of the government deficit and other factors
relevant to the variation in the level of their government
debt by sub-sector.

Before 1 October of year n, Member States shall report

3.
to the Commission:

— their updated planned government deficit for year n and
their actual government deficits for years n-1, n-2, n-3
and n-4 and shall comply with the requirements of the
second and third indents of paragraph 2,

— their updated planned level of government debt at the
end of year n and their levels of actual government debt
at the end of years n-1, n-2, n-3 and n-4, and shall
comply with the requirements of
the fifth indent of
paragraph 2.’;

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3. Articles 7 and 8 shall be replaced by the following:

— data from national accounts,

‘Article 7

1. Member States shall inform the Commission, as soon
as it becomes available, of any major revision in their actual
and planned government deficit and debt
figures already
reported.

— inventories,

— EDP notification tables,

— additional questionnaires and clarification related to the

notifications.

2. Major revisions in the actual deficit and debt figures
already reported shall be properly documented. In any case,
revisions which result in the reference values as specified in
the relevant Treaty Protocol being exceeded, or revisions
which mean that a Member State’s data no longer exceed
the reference values, must be reported and properly docu-
mented.

Article 8

Member States shall make public the actual deficit and debt
data and other data for past years
reported to the
Commission in accordance with Articles 4, 5, 6 and 7.’;

format

The questionnaires’
the
Commission (Eurostat) after consultation of the Committee
on Monetary, Financial and Balance of Payments Statistics
(hereinafter referred to as CMFB) established by Council
Decision 91/115/EEC (*).

shall be defined by

3.
The Commission (Eurostat) shall report regularly to the
European Parliament and to the Council on the quality of
the actual data reported by Member States. The report shall
address the overall assessment of the actual data reported by
Member States as regards to the compliance with accounting
rules, completeness, reliability, timeliness, and consistency of
the data.

4. After Article 8, the following sections shall be inserted:

Article 8b

‘SECTION 2a

QUALITY OF DATA

Article 8a

1.
The Commission (Eurostat) shall regularly assess the
quality both of actual data reported by Member States and
the underlying government sector accounts compiled
of
according to ESA 95 (hereinafter referred to as government
accounts). Quality of actual data means compliance with
accounting rules, completeness, reliability,
timeliness, and
consistency of
the statistical data. The assessment will
focus on areas specified in the inventories of Member
States such as the delimitation of the government sector,
the classification of government transactions and liabilities,
and the time of recording.

shall

States

provide

the Commission
2. Member
relevant
(Eurostat), as promptly as possible, with the
information requested for the needs of the data
statistical
quality assessment, without prejudice to the provisions
relating to statistical confidentiality of Regulation (EC)
No 322/97.

“Statistical information” referred to in the first subparagraph
should be limited to the information strictly necessary to
check the compliance to ESA rules. In particular, statistical
information means:

1. Member States shall provide the Commission (Eurostat)
with a detailed inventory of the methods, procedures and
sources used to compile actual deficit and debt data and
the underlying government accounts.

2.
The inventories shall be prepared in accordance with
guidelines adopted by the Commission (Eurostat) after
consultation of CMFB.

3.
The inventories shall be updated following revisions in
the methods, procedures and sources adopted by Member
States to compile their statistical data.

4. Member States shall make their inventories public.

The issues referred to in paragraphs 1, 2 and 3 may be

5.
addressed in the visits mentioned in Article 8d.

Article 8c

1.
In the event of a doubt regarding the correct imple-
mentation of the ESA 95 accounting rules, the Member State
concerned shall request clarification from the Commission
(Eurostat). The Commission (Eurostat)
shall promptly
examine the issue and communicate its clarification to the
Member State concerned and, when appropriate,
to the
CMFB.

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in the view of

the Commission (Eurostat) shall

For cases which are either complex or of general
2.
the Commission or the Member
interest
State concerned,
take a
decision after consultation of the CMFB. The Commission
together with the
(Eurostat) shall make decisions public,
opinion of the CMFB, without prejudice to the provisions
relating to statistical confidentiality of Regulation (EC)
No 322/97.

Article 8d

shall

ensure

a permanent
The Commission (Eurostat)
dialogue with Member States’ statistical authorities. To this
end, the Commission (Eurostat) will carry out in all Member
States regular dialogue visits, as well as possible methodo-
logical visits. The methodological visits should only be
undertaken in cases where substantial risks or potential
problems with the quality of the data are identified, espe-
cially as they relate to the methods, concepts and classifi-
cation applied to the data, which Member States are obliged
to report.

to

issues,

discuss

The dialogue visits are designed to review reported data, to
statistical
examine methodological
processes and sources described in the inventories, and to
assess compliance with the accounting rules. The dialogue
visits should be used to identify risks or potential problems
about the quality of the reported data. The methodological
visits are designed to monitor
the processes and the
government accounts which justify the reported actual data
and to draw detailed conclusions as to the quality of
reported data, as defined in Article 8a(1). The methodo-
logical visits should not go beyond the purely statistical
domain. This should be reflected in the composition of the
delegations referred to in Article 8e.

When organising dialogue and methodological visits,
Commission
shall
findings to the Member States concerned for comments.

the
provisional

(Eurostat)

transmit

its

Article 8e

1. When carrying out methodological visits in Member
States, the Commission (Eurostat) may request the assistance
of national accounts experts, proposed by other Member
States on a voluntary basis, and of officials from other
Commission departments.

authorities

take all necessary measures to
2. Member States shall
facilitate the methodological visits. These visits should be
confined to the national
involved in the
excessive deficit procedure reporting. Member States shall,
however, ensure that their services which are directly or
indirectly
involved in the production of government
accounts and debt, and where necessary their national autho-
rities which have a functional responsibility for the control
of the public accounts, provide the Commission officials or
other experts referred to in paragraph 1 with the assistance
necessary to carry out
including making
documents available to justify the reported actual deficit
and debt data and the underlying government accounts.
Confidential
system
should only be provided to the Commission (Eurostat).

the national

their duties,

records of

statistical

Without prejudice to the general obligation of the Member
States to take all measures required to facilitate the metho-
dological visits, the interlocutors of Eurostat for the metho-
dological visits referred to in the first subparagraph are, in
each Member State, the services responsible for the excessive
deficit procedure reporting.

The Commission (Eurostat) shall ensure that officials
3.
and experts participating
every
in these
guarantee as regards technical competence, professional inde-
pendence and observance of confidentiality.

visits meet

Article 8f

The Commission (Eurostat) shall report to the Economic and
Financial Committee on the findings of dialogue and meth-
odological visits, including any comments on these findings
made by the Member State concerned. These reports, along
with any comments made by the Member State concerned,
after having been transmitted to the Economic and Financial
Committee, shall be made public, without prejudice to the
provisions concerning statistical confidentiality in Regulation
(EC) No 322/97.

SECTION 2b

PROVISION OF DATA BY THE COMMISSION

Article 8g

The list of national accounts’ experts
from which the
Commission may request assistance, will be constituted on
to the Commission by the
the basis of proposals sent
national authorities
the excessive deficit
reporting.

responsible for

The Commission (Eurostat) shall provide the actual
1.
government deficit and debt data for the application of the
Protocol on the excessive deficit procedure, within three
weeks after the reporting deadlines referred to in Article
4(1) or after revisions as referred to in Article 7(1). This
provision of data shall be effected through publication.

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The Commission (Eurostat)

the
2.
provision of the actual government deficit and debt data
of Member States where a Member State has not reported
its own data.

shall not delay

Article 8h

1.
The Commission (Eurostat) may express a reservation
on the quality of the actual data reported by the Member
States. No later than three working days before the planned
publication date, the Commission (Eurostat) shall commu-
nicate to the Member State concerned and to the President
of the Economic and Financial Committee the reservation it
intends to express and make public. Where the issue is
resolved after publication of the data and the reservation,
withdrawal of the reservation shall be made public imme-
diately thereafter.

The Commission (Eurostat) may amend actual data
2.
reported by Member States and provide the amended data
and a justification of the amendment where there is evidence
that actual data reported by Member States do not comply
with the requirements of Article 8a(1). No later than three
the
working days before the planned publication date,
Commission (Eurostat) shall communicate to the Member
State concerned and to the President of the Economic and
Financial Committee the amended data and the justification
for the amendment.

SECTION 2c

GENERAL PROVISIONS

Article 8i

with the principles established by Article 10 of Regulation
(EC) No 322/97.
In this regard, the responsibility of the
National Statistical Authorities is to ensure the compliance
of reported data with Articles 1 and 2 and the underlying
ESA 95 accounting rules.

2. Member States shall take all appropriate measures to
ensure that officials responsible for the reporting of
the
actual data to the Commission and of
the underlying
government accounts act in accordance with the principles
established by Article 10 of Regulation (EC) No 322/97.

Article 8j

In the event of a revision of ESA 95 or of an amendment to
its methodology decided on by the European Parliament and
the Council or the Commission in accordance with the rules
of competence and procedure laid down in the Treaty and in
the Commission shall
Regulation (EC) No 2223/96,
introduce the new references to ESA 95 into Articles 1, 2
and 4.
___________
(*) OJ L 59, 6.3.1991, p. 19.’

Article 2

Entry into force

1. Member States
the actual data
reported to the Commission are provided in accordance

shall ensure that

This Regulation shall enter into force on the 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, 12 December 2005.

For the Council
The President

J. STRAW