Proposal for a Regulation of the European Parliament and of the Council establishing common rules for the provision of basic information on Purchasing Power Parities and for their calculation and dissemination
Date: 2006-03-22
Institutions: European Commission
Subjects: disclosure of information, dissemination of information, purchasing power parity, statistical method, statistics

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 22.3.2006 
COM(2006) 135 final 

2006/0042 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing common rules for the provision of basic information on Purchasing Power 
Parities and for their calculation and dissemination 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

WHY A PURCHASING POWER PARITIES (PPPS) REGULATION? 

PPPs  are  currency  conversion  rates  that  convert  economic  indicators  expressed  in  national 
currencies to a common currency and, at the same time, take account of price level differences 
and  thus  allow  pure  volume  comparisons  of  Gross  Domestic  Product  (GDP)  and  its 
aggregates between countries.  

The  purpose  of  a  PPP  Regulation  would  be  to  codify  what  is  already  being  done  by  the 
European  Union  (EU)  Member  States  and  Eurostat  to  calculate  annual  PPPs,  and  hence  to 
give the work a statutory basis. It would not of itself call for any new work to be done, except 
to introduce new elements of quality control; nor would it seek to encompass other matters, 
such as price comparisons in general. 

The  Structural  Funds  Regulation,  Council  Regulation  (EC)  No  1260/1999,  gives  statutory 
responsibility  to  the  Commission  for  calculating  GDP  on  a  purchasing  power  basis.  A  new 
legal  act  in  this  domain  provides  the  opportunity  to  clarify  the  role  and  responsibilities  of 
national authorities in compiling these statistics and transmitting them to Eurostat. 

The  setting-up  of  a  legal  basis  for  PPPs  should  improve  the  transparency,  timeliness  and 
quality of the entire process of PPP production, both within the national statistical institutes 
(NSIs) and in Eurostat. The use of a Regulation as a means of improving PPP quality overall 
may be seen as a target not only for Eurostat as producer of the co-ordinated results, but also 
for the countries themselves. 

2. 

ECONOMIC BACKGROUND 

2.1 

GDP COMPARISONS 

GDP, which is one of the vital national accounts aggregates, represents in a concise form the 
results of all activities of economic operators within a given economic territory and within a 
given  period,  usually  a  year.  GDP  is  calculated  in  accordance  with  a  system  of  national 
accounts  which,  for  the  EU,  is  the  European  system  of  integrated  economic  accounts  1995 
(ESA-95).  GDP  and  its  aggregates  are  essential  indicators  for  macroeconomic  analysis  and 
economic policy. GDP can be measured from the production, the expenditure and the income 
side. For PPP purposes the expenditure measure is particularly important. It reveals the extent 
to which the goods and services produced (or imported) by the economy of a country are used 
for private consumption, public consumption, capital formation or export. 

International comparisons of economic aggregates such as GDP require firstly that the basis 
for measuring the aggregates is consistent for the countries under comparison, and secondly 
that a comparable unit of measurement is employed.  Consistency in the basis for measuring 
the aggregates is achieved through compliance with ESA95. 

The  differences  in  GDP  expenditure  values  between  countries  correspond  not  only  to  a 
“volume of goods and services” component but also to a “level of prices” component, which 
can  sometimes  assume  sizeable  proportions  (value  is  the  product  of  price  and  volume).   In 

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order  to  obtain  a  real  comparison  of  volumes,  therefore,  it  is  essential  to  use  conversion 
factors  (spatial  deflators)  which  reflect  the  differences  in  the  level  of  prices  between 
countries. 

The use of exchange rates as conversion factors does not allow such a real comparison of the 
volumes of goods and services produced and used in the different countries. This is because 
exchange  rates  are  determined  by  the  many  factors  which  affect  demand  and  supply  for 
currencies, such as international trade and interest rate differentials. In other words, exchange 
rates usually reflect elements other than price differences alone. 

PPPs  between  various  countries’  currencies  have  been  specifically  developed  to  be 
appropriate for use as spatial conversion factors. 

2.2 

What are PPPs? 

PPPs  are  currency  conversion  rates  that  convert  economic  indicators,  expressed  in  nominal 
national currencies, to a common artificial currency called Purchasing Power Standard (PPS), 
which  equalises  the  purchasing  power  of  different  national  currencies  and  thus  allows 
meaningful pure  volume comparison of GDP and its aggregates  between  countries. In  other 
words, PPPs are both price deflators and currency converters; they remove the differences in 
price levels between countries in the process of conversion.  

Economic volume aggregates in PPS are obtained by dividing their original value in national 
currency  units  by  the  respective  PPP.  1  PPS  buys  the  same  given  volume  of  goods  and 
services in all countries, whereas different amounts of national currency units are needed to 
buy the same volume of goods and services in individual countries, depending on the national 
price level. Thus, GDPs of countries expressed in PPS by using PPPs as conversion factors 
reflect a pure volume comparison, since the price level component has been eliminated. 

With the launch of the euro in the euro-zone Member States, for the first time prices can be 
compared directly between those countries. However, the euro has different purchasing power 
in  the  individual  euro-zone  countries,  depending  on  the  national  price  levels.  Therefore,  in 
order  to  determine  pure  volume  aggregates  in PPS  it  is  still  necessary  to  calculate  PPPs.  In 
other words, for the non-euro-zone countries PPPs are currency converters and eliminate the 
effects  of  different  price  levels,  while  for  the  euro-zone  countries  they  fulfil  only  the  latter, 
price-deflator function. 

In  an  annual  multilateral  exercise,  PPPs  are  obtained  as  the  averages  of  the  price  ratios 
between  the  different  countries  for  a  basket  of  comparable  goods  and  services.  These  are 
selected  to  represent  an  entire  set  of  well-defined  expenditure  classifications,  and  to  be 
representative of consumption patterns in the various countries. 

3. 

USES OF PPPS IN THE COMMISSION 

3.1 

Structural and Cohesion Funds 

The  reform  of  the  Structural  Funds,  and  their  extension  to  new  Member  States,  has  been 
embodied  in  Council  Regulation  (EC)  No  1260/1999  and  in  Annex  II  to  the  2003  Act  of 
Accession,  of  which  Section  15  is  entitled  “Regional  Policy  and  coordination  of  structural 
instruments”. The first of these lays down general provisions on the Structural Funds for the 
current period, stating that regions whose per capita GDP measured in PPPs is less than 75% 
of the Community average are eligible for Structural Funds allocations. It also says that the 

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criteria  are  to  be  calculated  using  objective  statistical  data.  It  may  be  assumed  that  similar 
provisions  would  govern  the  following  period,  beginning  in  2007.  The  second  of  these  acts 
amends those principles to cover new Member States too. 

This  new  legal  basis  contrasts  with  the  previous  situation,  in  which  the  only  statutory 
reference to PPPs in relation to the Structural Funds was in the recital of Council Regulation 
(EEC)  No  2052/88,  which  simply  stated:  “Whereas  [.  .  .]  this  list  should  comprise 
administrative level NUTS II regions where per capita GDP measured in terms of purchasing 
power parity is less than 75% of the Community average, . . . ”. There was no implementing 
clause in the body of the Regulation. Currently, the Structural Funds requirements are met by 
combining regional GDP values and national PPPs.  

The  Regulation  establishing  a  Cohesion  Fund  (Council  Regulation  (EC)  No  1164/94  of 
25 May 1994) states that it is the Community’s task to promote economic and social cohesion 
and solidarity between the Member States, and Cohesion Fund is an instrument to accomplish 
this. Article 2(1) of the Regulation states that: “the Fund shall provide financial contributions 
to projects, which contribute to achieving the objectives laid down in the Treaty on European 
Union,  in  the  fields  of  environment  and  trans-European  infrastructure  networks  in  Member 
States with a per capita gross national product (GNP), measured in purchasing power parity, 
of less than 90% of the Community average.” Therefore, the Cohesion Fund Regulation, too, 
gives to the Commission the statutory responsibility for calculating purchasing power parities. 

3.2 

Correction coefficients 

Although  the  Regulation  focuses  on  the  specific  aim  of  obtaining  price  data  for  making 
international  GDP  comparisons,  it  is  also  a  means  of  establishing  a  statutory  basis  for  the 
price collection activity which is necessary in order to fulfil a large part of the Commission's 
legal requirements in connection with Article 64 of the Staff Regulations. In other words, the 
prices collected in the realm of the PPP exercise are also used for establishing the correction 
coefficients to be applied to the remuneration and pensions of officials and other servants of 
the  European  Communities  in  accordance  with  the  Staff  Regulations  of  Officials  and  the 
Conditions  of  Employment  of  Other  Servants  of  the  European  Communities.  Article  1  of 
Annex XI of the Staff Regulations requires that “the economic parities shall be calculated in 
such a way that each basic component can be checked by a direct survey at least once every 
five years”. 

3.3 

Price comparisons 

There is a growing need within the Commission for data concerning spatial price comparisons 
– particularly for consumer prices. This requirement is prompted by a number of policy needs, 
in particular the monitoring of  price  convergence in the Single Market, the improvement of 
price indicators to monitor the functioning of public procurement markets and the monitoring 
of price convergence in the euro-zone since the introduction of the euro. Price level indices at 
the  level  of  overall  private  household  consumption,  coming  from  the  PPP  exercise,  already 
feature as Structural Indicators in the Commission’s Communication on Structural Indicators 
and Commission’s annual Synthesis Report to the European Council. 

From  the  point  of  view  of  consumer  protection,  there  is  also  a  need  to  monitor  price 
differences for a wide range of consumer products across the EU. A substantial part of these 
requirements, particularly at more aggregated level, can be met as a by-product of the wider 
PPP programme. 

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Thus,  price  comparisons  are  of  special  importance  for  several  Community  policies,  such  as 
development of the single market and monitoring of the EMU with regard to convergence of 
prices  and  consumer  protection  concerning  the  identification  of  price  differences.  The  PPP 
work programme, as outlined in this proposed Regulation, would not necessarily provide all 
the  data  required  for  these  other  uses,  but  it  would  at  least  put  in  place  a  framework  which 
could  be  used  as  a  basis  for  additional  price  comparison  work.  Moreover,  nothing  in  this 
Regulation prevents the Commission from investigating and studying new alternative sources 
of  price  data.  These  kinds  of  studies  are  currently  being  undertaken  in  the  Commission  to 
investigate  the  appropriateness  of  bar-code  scanner  data  and  the  Internet  as  a  source  for 
international price comparisons. 

4. 

CONCLUSIONS 

Economic  aggregates  converted  into  a  common  currency  using  PPPs  have  a  wide  range  of 
uses in the Commission. PPPs are economically and politically vital indicators for the EU. 

The  Commission  has  a  statutory  responsibility  for  calculating  GDP  on  a  purchasing  power 
basis;  however,  the  Member  States  currently  have  no  legal  obligation  to  co-operate.  Given 
that the very nature of this work is multilateral, if only one country withdrew its support the 
validity of the whole exercise would be impaired. It is therefore important to provide a stable, 
binding and reliable legal framework capable of ensuring the timely availability of these data.

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2006/0042 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing common rules for the provision of basic information on Purchasing Power 
Parities and for their calculation and dissemination 

(Text with EEA relevance) 

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 regard to the opinion of the European Economic and Social Committee2, 

Acting in accordance with the procedure laid down in Article 251 of the Treaty3, 

Whereas:  

(1) 

(2) 

(3) 

1 
2 
3 
4 

5 

In  order  to  obtain  a  comparison  of  Gross  Domestic  Product  (GDP)  in  volume  terms 
between  Member  States,  there  is  an  essential  need  for  the  Community  to  have 
Purchasing  Power  Parities  (PPPs)  which  reflect  the  differences  in  the  level  of  prices 
between Member States. 

The  Community  PPPs  need  to  be  produced  in  accordance  with  a  harmonised 
methodology, consistent with Regulation (EC) No 2223/1996 of 25 June 1996 on the 
European  system  of  national  and  regional  accounts  in  the  Community4,  (ESA  95) 
which lays down a framework for the construction of national accounts in the Member 
States.  

Article 3(1) of Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down 
general provisions on the Structural Funds5, – must be read in conjunction with Part 15 
of Annex II of the 2003 Act of Accession, entitled “Regional Policy and coordination 
of  structural  instruments”.  That  Article  3(1)  states  that  the  regions  covered  by 
Objective  1  are  to  be  regions  corresponding  to  level  II  of  NUTS  whose  per  capita 
GDP, measured in PPPs and calculated on the basis of Community figures, is less than 
75%  of  the  Community  average.  In  the  absence  of  regional  PPPs,  national  PPPs 

OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ L 310, 30.11.1996, p. 1; Regulation as last amended by Commission Regulation (EC) No 995/2001 
(OJ L 139, 23.5.2001, p. 3). 
OJ L 161, 26.06.1999, p. 1; Regulation as last amended by the 2003 Act of Accession. 

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should  serve  to  establish  the  list  of  regions  which  could  benefit  from  the  Structural 
Funds; they can also be used to determine the amount of funds to be allocated to each 
region. 

Article  2(1)  of  Council  Regulation  (EC)  No  1164/94  of  16  May  1994  establishing  a 
Cohesion Fund6, – must be read in conjunction with Part 15 of Annex II of the 2003 
Act  of  Accession,  entitled  “Regional  Policy  and  coordination  of  structural 
instruments”.  That  Article  2(1)  states  that  the  Fund  shall  provide  financial 
contributions to projects, which contribute to achieving the objectives laid down in the 
Treaty  on  European  Union,  in  the  fields  of  the  environment  and  trans-European 
transport  infrastructure  networks  in  Member  States  with  a  per  capita  gross  national 
product  (GNP),  measured  in  purchasing  power  parities,  of  less  than  90  %  of  the 
Community  average  which  have  a  programme  leading  to  the  fulfilment  of  the 
conditions of economic convergence referred to in Article 104c of the Treaty. 

Article  1  of  Annex  XI  to  the  Staff  Regulations  of  Officials  of  the  European 
Communities states that, for the purposes of the review provided for in Article 65(1) 
of the Staff Regulations, Eurostat must draw up every year before the end of October a 
report  on  changes  in  the  cost  of  living  in  Brussels,  the  economic  parities  between 
Brussels  and  certain  places  in  the  Member  States,  and  changes  in  the  purchasing 
power of salaries in national civil services in central government. 

The  existing  methodologies  and  practices  operating  within  the  European  Union,  at 
present governed as individual statistical programmes by Council Regulation (EC) No 
322/1997 of 17 February 1997 on Community statistics,7 need in future to be put into a 
legal framework. 

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 Commission8. 

The Statistical Programme Committee, established by Council Decision 89/382/EEC, 
Euratom of 19 June 1989 establishing a Committee on the Statistical Programmes of 
the European Communities9, has been consulted in accordance with Article 3 of that 
Decision, 

(4) 

(5) 

(6) 

(7) 

(8) 

6 
7 

8 
9 

OJ L 130, 25.5.1994, p. 1; Regulation as last amended by the 2003 Act of Accession. 
OJ  L  52,  22.2.1997,  p.  1  Regulation  as  last  amended  by  Regulation  (EC)  No  1882/2003  (OJ L 284, 
31.10.2003, p. 1). 
OJ L 184, 17.7.1999, p. 23. 
OJ L 181, 28.6.1989, p. 47. 

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HAVE ADOPTED THIS REGULATION: 

Article 1 

Objective 

The  objective  of  this  Regulation  is  to  establish  common  rules  for  the  provision  of  basic 
information on Purchasing Power Parities (PPPs), and for their calculation and dissemination. 
PPPs shall reflect only differences in price levels and expenditure weights. 

Article 2 

Scope 

1. 

2. 

3. 

The basic information to be provided shall be those data necessary to calculate and 
ensure the quality of PPPs. 

That  basic  information  shall include prices, GDP expenditure breakdown  and other 
data as listed in Annex I. 

PPPs  shall  be  calculated  from  the  national  annual  average  prices  of  goods  and 
services,  using  basic  information  relating  to  the  economic  territory  of  the  Member 
States  as  laid  down  under  the  “ESA  95”  system  instituted  by  Regulation  (EC) 
No 2223/1996  of  25  June  1996  on  the  European  system  of  national  and  regional 
accounts in the Community (ESA 95). 

PPPs  shall  be  calculated  according  to  the  basic  headings  as  listed  in  Annex  II, 
consistent  with  the  related  GDP  classifications  defined  in  Regulation  (EC) 
No 2223/1996. 

Article 3 

Definitions 

For the purpose of this Regulation the following definitions shall apply: 

(a) 

(b) 

(c) 

(d) 

“Purchasing  Power  Parities”  or  “PPPs”  means  spatial  deflators  and  currency 
converters,  which  eliminate  the  effects  of  the  differences  in  price  levels  between 
countries, thus allowing volume comparisons of GDP components and comparisons 
of price levels.  

"PPS” (Purchasing Power Standard) means the artificial common reference currency 
unit used in the European Union to express the volume of economic aggregates for 
the purpose of spatial comparisons in such a way that price level differences between 
countries are eliminated.  

“Prices“ means the purchaser prices paid by the final consumers. 

“Expenditure weights” means the shares of expenditure components in current-price 
GDP. 

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(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

(k) 

(l) 

(m) 

(n) 

(o) 

(p) 

(q) 

“Basic  heading”  means  the  lowest  level  of  aggregation  of  items  in  the  GDP 
breakdown for which parities are calculated.  

“Item” means a product or service precisely defined for use in price observation. 

“Actual and imputed rentals” shall have the meaning attributed to it in Commission 
Decision 95/309/EC, Euratom10. 

“Compensation  of  employees”  shall  have  the  meaning  attributed  to  it  in  Council 
Regulation (EC) No 2223/199611 . 

“Temporal adjustment factors” means factors used to adjust average prices obtained 
at the time of survey to annual average prices.  

“Spatial  adjustment  factors”  means  factors  used  to  adjust  average  prices  obtained 
from  one  or  more  locations  within  the  economic  territory  of  a  Member  State  to 
national average prices.  

“Representative items” means those which are, or are considered to be, in terms of 
relative  total  expenditure  within  a  basic  heading,  among  the  most  important  items 
purchased in national markets. 

“Representativity  indicators”  means  markers  or  other  indicators  identifying  those 
items that countries have selected as representative. 

“Equi-representativity” means a property required of the composition of the item list 
for  a  basic  heading,  each  country  being  able  to  price  that  number  of  representative 
products  which  is  commensurate  with  the  heterogeneity  of  the  products  and  price 
levels covered by the basic heading and its expenditure on the basic heading. 

“Transitive”  means  the  property  whereby  a  direct  comparison  between  any  two 
countries yields the same result as an indirect comparison via any other country. 

“Mistake” means a use of incorrect basic information or an inappropriate application 
of the calculation procedure. 

“Reference year” means a calendar year to which the annual results refer. 

“Fixity”  means  that,  when  results  are  calculated  originally  for  a  group  of  countries 
and  then  later  the  results  are  calculated  for  a  wider  group  of  countries,  the  PPPs 
between the original group of countries shall nevertheless be preserved. 

10 
11 

OJ L 186, 5.8.1995, p. 59 
OJ L 310, 30.11.1996, p. 1. 

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Article 4 

Roles and responsibilities 

1. 

The Commission shall be responsible for: 

(a) 

co-ordinating the provision of the basic information; 

(b) 

calculating and publishing PPPs; 

(c) 

ensuring the quality of PPPs, in accordance with Article 7; 

(d)  developing methodology, in consultation with Member States; 

(e) 

ensuring  that  the  Member  States  have  the  opportunity  to  comment  on  PPP 
results  prior  to  publication  and  that  the  Commission  (Eurostat)  takes  due 
account of any such comment. 

These tasks shall be carried out by Eurostat on behalf of the Commission. 

2. 

Member States shall follow the procedure set out in Annex I when providing basic 
information. 

Member States shall provide written approval of the survey results for which they are 
responsible, once the process of data validation has been completed, as specified in 
Annex I, point 5.2. 

They  shall  approve  the  data  collection  methodology  and  check  the  plausibility  of 
data, including items of basic information provided by the Commission (Eurostat). 

Article 5 

Transmission of basic information 

1. 

2. 

3. 

Member  States  shall  transmit  the  basic  information  listed  in  Annex  I  to  the 
Commission  (Eurostat)  in  accordance  with  the  existing  Community  provisions  on 
transmission of data. 

The basic information listed in Annex I shall be transmitted in the technical format 
and within the time periods specified in that Annex. 

In  cases  where  items  of  basic  information  are  supplied  to  Member  States  by  the 
Commission (Eurostat), the Commission shall transmit a method statement to enable 
the Member States to conduct a plausibility check. 

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Article 6 

Statistical units 

1. 

2. 

1. 

2. 

The basic information listed in Annex I shall be obtained either from statistical units 
as defined  in  Council Regulation (EC) No 696/199312 or  from  other sources  which 
yield data meeting the quality requirements specified in Annex I, point 5.1. 

The  statistical  units  called  upon  by  the  Member  States  to  provide  data  or  to  co-
operate in data collection shall allow monitoring of the prices actually charged and 
shall give honest and complete information at the time at which it is requested. 

Article 7 

Quality criteria and control 

The Commission (Eurostat) and the Member States shall set up a system for quality 
control  based  on  reports  and  assessments  as  specified  under  subheading  5.3  of 
Annex I. 

Member  States  shall  provide  the  Commission  (Eurostat),  at  its  request,  with  all 
information  necessary  to  evaluate  the  quality  of  the  basic  information  listed  in 
Annex I. 

Member States shall also provide the Commission (Eurostat) with the details of any 
subsequent changes in the methods used. 

3. 

Each Member State shall provide the Commission (Eurostat) with quality reports on 
the surveys for which they are responsible, as specified in Section 5 of Annex I. 

Article 8 

Periodicity 

The Commission (Eurostat) shall calculate PPPs relating to each calendar year. 

Article 9 

Dissemination 

1. 

The  Commission  (Eurostat)  shall  publish  the  final  annual  results  no  later  than 
36 months after the end of the reference year. 

Publication  shall  be  based  on  data  available  to  the  Commission  (Eurostat)  no  later 
than three months before the publication date. 

12 

OJ No L 76, 30.3.1993, p. 1. 

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This  paragraph  shall  not  affect  the  right  of  the  Commission  (Eurostat)  to  publish 
preliminary results earlier than 36 months after the end of the reference year. 

2. 

The results published by the Commission (Eurostat) at an aggregated level for each 
Member State shall include at least the following: 

(a)  PPPs at the level of GDP, 

(b)  PPPs  for  private  household  consumption  expenditure  and  actual  individual 

consumption, 

(c)  Price level indices relative to the Community average, 

(d)  GDP,  private  household  consumption  expenditure  and  actual  individual 

consumption and respective per capita figures in PPS. 

If  results  are  calculated  for  a  wider  group  of  countries,  the  PPPs  of  the  Member 
States shall nevertheless be preserved, in pursuance of the principle of fixity.  

Published final PPPs shall generally not be revised. 

However, in the case of mistakes falling within the scope of Section 10 of Annex I, 
corrected results shall be published according to the procedure laid down therein. 

Exceptional  general  revisions  shall  be  made  if,  owing  to  changes  to  the  concepts 
underlying  ESA 95  that  affect  PPP  results,  the  volume  index  of  GDP  for  any 
Member State changes by more than one percentage point. 

3. 

4. 

Article 10 

Correction coefficients 

Member  States  shall  not  be  required  to  undertake  surveys  solely  for  the  purpose  of 
establishing  the  correction  coefficients  to  be  applied  to  the  remuneration  and  pensions  of 
Community officials and other servants in accordance with the Staff Regulations of Officials 
and the Conditions of Employment of Other Servants of the European Communities. 

Article 11 

Committee procedure 

1. 

2. 

The  Commission  shall  be  assisted  by  the  Statistical  Programme  Committee, 
established by Article 1 of Decision 89/382/EEC, Euratom. 

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

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

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3. 

The Committee shall adopt its rules of procedure. 

Article 12 

Implementing measures 

The measures necessary for the implementation of the provisions of this Regulation, including 
measures to  take account of  economic  and technical changes, shall be laid down, insofar as 
this does not involve a disproportionate increase in costs for the Member States, in accordance 
with the procedure specified in Article 11(2). 

Such measures shall concern in particular: 

(a) 

(b) 

(c) 

(d) 

adaptation of the definitions; 

a  set  of  minimum  standards  in  order  to  achieve  the  essential  comparability  and 
representativity of the data; 

precise requirements as to the methodology to be used; 

adjustment  of  the  list  of  basic  headings  and  the  establishment  and  adjustment  of 
detailed  descriptions  of  the  content  of  basic  headings,  provided  that  these  remain 
compatible with ESA95 or any succeeding system. 

Article 13 

Review and report 

The provisions of this Regulation shall be reviewed five years after the date of its entry into 
force.  It  shall  be  revised,  if  appropriate,  on  the  basis  of  a  Commission  report  and  proposal, 
submitted to the European Parliament and the Council. 

Article 14 

Entry into force 

This Regulation shall enter into force on the twentieth day following that of 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 

EN 

13 

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ANNEX I METHODOLOGY 

1.  METHODOLOGICAL MANUAL AND WORK PROGRAMME  

1.1 

1.2 

1.3 

1.4 

A methodological manual shall be provided by the Commission (Eurostat), following 
consultation  with  the  Member  States,  describing  the  methods  used  at  the  various 
stages  of  compiling  PPPs,  including  the  methods  for  estimating  missing  basic 
information and for estimating missing parities. The methodological manual will be 
revised whenever a significant change to the methodology is made. It may introduce 
new  methods  to  improve  data  quality,  reduce  costs  or  lessen  the  burden  on  data 
suppliers.  

The  Commission  (Eurostat)  shall  establish,  by  31  October  of  each  year,  in 
consultation  with  Member  States,  an  annual  Work  Programme  for  the  following 
calendar year setting out the timetable for the specification and the provision of the 
basic information required for that year 

The annual Work Programme shall determine the format for provision of data to be 
used by the Member States, and any other actions necessary in order to accomplish 
the calculation and publication of PPPs. 

The basic information supplied according to paragraph 1.2. may be revised, but the 
results  for  the  reference  year  shall  be  calculated  from  information  available 
according to the timetable specified in Article 9. Where information is not complete 
or  not  available  at  that  date,  the  Commission  (Eurostat)  shall  estimate  the  missing 
basic information.  

EN 

14 

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2. 

BASIC INFORMATION 

2.1 

BASIC INFORMATION ITEMS 

For the purpose of this Regulation, the Basic Information according to Articles 2 and 4 and 
the minimum frequency of new data supply shall be: 

Basic Information 

Minimum Frequency 

GDP expenditure values 

Actual and imputed rentals 

Compensation of employees 

Temporal adjustment factors 

Prices of consumer goods and services 

and related representativity indicators 

Prices of equipment goods 

Prices of construction projects 

Spatial adjustment factors 

Annual 

Annual 

Annual 

Annual 

3 years1 

3 years 

3 years 

6 years 

1)  The  minimum  frequency  refers  to  the  provision  of  data  for  a  particular  product  group,  related  to  the  rolling 
cycle of surveys. 

2.2 

PROCEDURE FOR OBTAINING BASIC INFORMATION 

The  Commission  (Eurostat),  after  taking  account  of  the  views  of  the  Member  States,  shall 
determine  the  sources  and  data  suppliers  to  be  used  for  each  of  the  above  items  of  Basic 
Information.  If  the  Commission  (Eurostat)  obtains  basic  information  from  a  data  supplier 
other  than  a  Member  State,  the  latter  shall  be  relieved  of  the  obligations  set  forth  in 
paragraphs 5.1.4 to 5.1.13. 

3. 

NATIONAL AVERAGE PRICES 

3.1 

Notwithstanding  the  provisions  contained  in  Article  2(2),  data  collection  may  be 
limited  to  one  or  more  locations  within  the  economic  territory.  Such  data  may  be 
used for PPP calculations provided that they are accompanied by appropriate spatial 
adjustment  factors.  These  shall  be  used  to  adjust  survey  data  in  these  locations  to 
those representative of the national average. 

3.2 

Spatial adjustment factors shall be supplied at basic heading level. They shall not be 
more than six years old at the reference period of the survey. 

EN 

15 

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4. 

ANNUAL AVERAGE PRICES 

Notwithstanding the provisions contained in Article 2(2), data collection may be limited to a 
specific  period  of  time.  Such  data  may  be  used  for  PPP  calculations  provided  that  they  are 
accompanied by appropriate temporal adjustment factors. These shall be used to adjust survey 
data in this period to those representative of the annual average. 

5. 

QUALITY 

5.1 

MINIMUM STANDARDS FOR BASIC INFORMATION 

5.1.1 

5.1.2 

5.1.3 

The  list  of  items  to  be  priced  shall  be  designed  to  comprise  items  whose 
specifications ensure comparability between countries. 

The  list  of  items  to  be  priced  shall  be  designed  so  that  each  Member  State  can 
indicate  at  least  one  representative  item,  which  can  be  priced  in  at  least  one  other 
country for each basic heading. 

The  item  list  shall  be  designed  in  order  to  achieve  the  highest  practicable  level  of 
equi-representativity,  so  that  as  a  minimum,  each  country  has  to  price  one 
representative  item  for  each  basic  heading  and  this  representative  item  has  to  be 
priced by at least one other country.  

5.1.4 

Each Member State shall price items according to the specifications in the item list. 

5.1.5 

5.1.6 

5.1.7 

5.1.8 

5.1.9 

Each  Member  State  shall  price  a  sufficient  number  of  items  within  each  basic 
heading that are available in its market, even though they may not be considered as 
representative of that basic heading. 

Each Member State shall supply prices of at least one representative item within each 
basic  heading.  The  representative  items  shall  be  indicated  by  a  representativity 
indicator.  

Each Member State shall collect a sufficient number of price quotations for each item 
priced  to  ensure  a  reliable  average  price  per  item  taking  account  of  its  market 
structure. 

The  selection  of  outlet  types  shall  be  designed  to  adequately  reflect  the  domestic 
pattern of consumption within the Member State according to the item. 

The outlet selection in a location shall be designed to adequately reflect the pattern of 
consumption of the residents of the location and the availability of items. 

5.1.10  Each  Member  State  shall  supply  the  Commission  (Eurostat)  with  data  on 
compensation  of  employees  for  selected  occupations  with  reference  to  the  sector 
General Government (S 13) as defined in ESA95. 

5.1.11  Each  Member  State  shall  supply  the  Commission  (Eurostat)  with  temporal 
adjustment  factors  which  allow  calculation  of  PPPs  from  prices  collected  at  a 
specific time which adequately reflect the annual average price level. 

EN 

16 

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5.1.12  Each Member State shall supply the Commission (Eurostat) with spatial adjustment 
factors  which  allow  calculation  of  PPPs  with  prices  collected  in  specific  locations 
which adequately reflect the national average price level. 

5.1.13  Each Member State shall supply the Commission (Eurostat) with weights relating to 
each basic heading as specified in Annex II, which reflect the expenditure pattern in 
the Member State for the reference year.  

5.2 

MINIMUM STANDARDS FOR THE VALIDATION OF PRICE SURVEY RESULTS 

5.2.1 

Each Member State shall, before transmitting the data to the Commission (Eurostat), 
carry out a review of data validity based on: 

•  maximum and minimum prices, 

•  average price and coefficient of variation, 

•  number of priced items per basic heading, 

•  number of priced representative items per basic heading, 

•  number of prices observed per item. 

5.2.2  An  agreed  electronic  tool  containing  the  algorithms  required  for  the  purposes  of 
paragraph  5.2.1.  shall  be  supplied  by  the  Commission  (Eurostat)  to  the  Member 
States. 

5.2.3 

The  Commission  (Eurostat)  shall,  before  finalising  the  survey  results,  carry  out 
validity checks, in conjunction with Member States, based on indicators including:  

For each basic heading,  

– 

– 

– 

– 

– 

The number of items priced by each country; 

The number of items attributed a representativity indicator by each country; 

The price level index;  

The results of the previous survey covering the same basic heading. 

Price level indices in PPP terms for each country. 

For each item, 

– 

– 

The number of prices observed by each country; 

The variation coefficients of: 

(i) 

average prices in national currencies 

(ii)  price level indices in PPP terms  

(iii)  price level indices in PPP terms for each country.  

EN 

17 

   EN 

 
5.2.4 

The Commission (Eurostat) shall, before finalising the PPP results at aggregate level, 
carry out validity checks based on indicators including: 

At the level of total GDP and its main aggregates 

– 

– 

– 

Consistency  of  GDP  expenditure  values  and  population  estimates  with 
published data; 

Comparison of per capita volume indices for current and previous calculations; 

Comparison of price level indices for current and previous calculations. 

At the level of each basic heading 

– 

Comparison  of  the  GDP  weighting  structure  for  current  and  previous 
calculations; 

– 

The estimates of missing data, where relevant. 

5.3 

REPORTING AND ASSESSMENT 

5.3.1 

5.3.2 

5.3.3 

6.1 

6.2 

6.3 

Each  Member State shall maintain documentation which gives a  full description of 
the  manner  in  which  this  Regulation  has  been  implemented.  This  documentation 
shall be available to the Commission (Eurostat) and other Member States. 

Each Member State shall have its PPP process assessed at least once every six years 
by the Commission (Eurostat). The assessments, yearly planned and included in the 
annual  Work  Programme,  shall  review  compliance  with  this  Regulation.  A  report, 
based on the assessment, shall be made by the Commission (Eurostat). 

In accordance with Article 7(3), shortly after each consumer price survey, a report by 
the Member State shall be given to the Commission (Eurostat) providing information 
on  the  way  in  which  the  survey  was  conducted.  The  Commission  (Eurostat)  shall 
provide each Member State with a summary of these reports. 

6. 

CONSUMER PRICE SURVEY PROCEDURE 

Member States shall carry out the price surveys according to the Work Programme. 

For each survey, the Commission (Eurostat) shall prepare the survey item list, based 
on proposals which shall be made by each Member State for each basic heading. 

The  Commission  (Eurostat)  shall  provide,  together  with  the  item  list,  in  all  official 
languages  of  the  European  Union,  a  translation  of  all  specifications  in  each  survey 
list. 

EN 

18 

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7. 

CALCULATION PROCEDURE 

7.1 

CALCULATION OF BILATERAL PARITIES AT BASIC HEADING LEVEL 

a)  The  calculation  of  multilateral  EKS  (Èltetò-Köves-Szulc)  parities  at  basic  heading  level 
shall be based on a matrix of bilateral parities for each pair of participant countries. 

b) The calculation of bilateral parities shall be carried out by reference to the prices observed 
for, and the representativity indicators attributed to, the underlying items. 

c) The average survey price for each item shall be established as the simple arithmetic mean 
of the price observations recorded for that item. 

d) The national annual average price shall be estimated, where necessary, on the basis of the 
average survey price by using appropriate spatial and temporal adjustment factors. 

e) The ratios of the adjusted average prices shall then be calculated, where possible, for items 
and pairs of participant countries, together with their inverse. 

f) A PPP shall then be calculated, where possible, for all pairs of participant countries for the 
basic  heading.  For  each  pair  of  participant  countries,  the  PPP  shall  be  calculated  as  the 
weighted geometric mean of  

•  the  geometric  mean  of  the  price  ratios  of  items  which  are  indicated  as 

representative of both countries;  

•  the  geometric  mean  of  the  price  ratios  of  items  which  are  indicated  as 

representative of the first country but not of the second country;  

•  the  geometric  mean  of  the  price  ratios  of  items  which  are  indicated  as 

representative of the second country but not of the first country;  

using weights reflecting the relative representativity of all items priced by both countries. 

7.2 

ESTIMATION OF MISSING BILATERAL PARITIES 

If  for  any  basic  heading  the  bilateral  PPP  cannot  be  calculated,  the  missing  bilateral  PPPs 
shall be estimated, where possible, by using the standard procedure of geometric averaging of 
indirect  parities  via  third  countries.  Should  the  matrix  of  bilateral  PPPs  for  a  basic  heading 
still contain any missing values after this estimation procedure, the calculation of multilateral 
EKS parities shall then not be possible for the countries for which bilateral PPPs are missing. 
Such  missing  "EKS"  parities  shall  then  be  estimated  by  the  Commission  (Eurostat),  using 
reference PPPs from similar basic headings or any other appropriate estimation method 

7.3 

THE CALCULATION OF BILATERAL PARITIES AT AGGREGATE LEVEL 

a)  The  calculation  of  bilateral  parities  at  a  particular  level  of  national  accounts  aggregation 
shall  be  carried  out  using  the  “EKS”  parities  (see  paragraph  7.4),  and  the  GDP  expenditure 
values for, the underlying basic headings. 

EN 

19 

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b) A Laspeyres-type parity shall then be calculated for the selected level of aggregation as the 
arithmetic  mean  of  the  parities  for  the  underlying  basic  headings,  weighted  by  the  relative 
percentages (or nominal values) for the second country of each pair of participant countries. 

c) A Paasche-type parity shall then be calculated for the selected level of aggregation as the 
harmonic  mean  of  the  parities  for  the  underlying  basic  headings,  weighted  by  the  relative 
percentages (or nominal values) for the first country of each pair of participant countries. 

d)  A  Fisher-type  parity  shall  then  be  calculated  for  the  selected  level  of  aggregation  as  the 
geometric mean of the Laspeyres-type and Paasche-type parities established for each pair of 
participant countries. 

7.4 

CALCULATION OF TRANSITIVE MULTILATERAL PPPS 

The  calculation  of  multilateral  transitive  parities  shall  be  carried  out  either  at  basic  heading 
level or any aggregated level by using the “EKS” procedure based on a complete matrix of 
Fisher-type parities between each pair of participant countries as follows: 

EKS
t

s

z

t

(
= ∏

i

1
=

i

F
F

i

s

1
z

)

,

∀

,
st

where 

tEKS denotes the EKS parity between country s and country t ; 

s

tF  denotes the Fisher-type parity between country s and country t ; 

s

z denotes the number of participant countries. 

8. 

TRANSMISSION 

8.1 

8.2 

The  Commission  (Eurostat)  shall  supply  to  the  Member  States  the  templates  for 
electronic transmission of the basic information necessary to calculate PPPs. 

Member  States  shall  provide  basic  information  to  the  Commission  (Eurostat)  in 
accordance with the templates. 

9. 

PUBLICATION 

In  addition  to  the  provisions  contained  in  Article  9(2),  the  Commission  (Eurostat)  may 
publish results at a more detailed level after consultation with the Member States. 

10.  CORRECTIONS 

10.1  When a mistake is discovered by a Member State it shall immediately and at its own 
initiative  provide  the  Commission  (Eurostat)  with  correct  basic  information.  In 
addition, a Member State shall inform the Commission  (Eurostat) of any  suspected 
inappropriate application of the calculation procedure.  

EN 

20 

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10.2 

10.3 

After  becoming  aware  of  a  mistake,  made  either  by  a  Member  State  or  the 
Commission (Eurostat), the Commission (Eurostat) shall inform the Member States 
and recalculate the PPPs within one month. 

If the mistakes discovered result in a change of at least 0.5 percentage points at the 
level  of  per  capita  GDP  in  PPS  of  any  Member  State,  the  Commission  (Eurostat) 
shall  publish  a  correction  as  soon  as  possible,  unless  such  mistakes  are  discovered 
later than three months after the results have been published. 

10.4  Where  a  mistake  has  occurred,  the  responsible  body  shall  take  steps  to  prevent 

similar future occurrences.  

10.5 

Revisions  made  after  21  months  following  the  end  of  the  reference  year  to  GDP 
expenditure  values  or  to  population  estimates  shall  not  require  a  correction  to  be 
made to PPP results.  

EN 

21 

   EN 

 
ANNEX II Basic Heading as defined in Article 3 

BH  Description 

Nr. 

INDIVIDUAL CONSUMPTION EXPENDITURE BY HOUSEHOLDS 

FOOD AND NON-ALCOHOLIC BEVERAGES 

Food  

Bread and cereals [COICOP 01.1.1] 

  Rice 

  Other cereals, flour and other cereal products  

  Bread 

  Other bakery products  

Pasta products 

1 

2 

3 

4 

5 

  Meat [COICOP 01.1.2] 

6 

7 

8 

9 

  Beef and veal 

Pork 

  Lamb, mutton and goat 

Poultry 

10 

  Other meats and edible offal 

11 

  Delicatessen and other meat preparations 

Fish and seafood [COICOP 01.1.3] 

12 

13 

Fresh, chilled or frozen fish and seafood 

Preserved or processed fish and seafood 

  Milk, cheese and eggs [COICOP 01.1.4]  

14 

15 

Fresh milk 

Preserved milk and other milk products 

EN 

22 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16 

  Cheese 

17 

  Eggs and egg-based products 

  Oils and fats [COICOP 01.1.5] 

18 

  Butter 

19 

  Margarine 

20 

  Other edible oils and fats 

21 

22 

23 

24 

25 

26 

27 

28 

29 

Fruit [COICOP 01.1.6] 

Fresh or chilled fruit 

Frozen, preserved or processed fruit and fruit-based products 

Vegetables [COICOP 01.1.7] 

Fresh or chilled vegetables other than potatoes 

Fresh or chilled potatoes 

Frozen, preserved or processed vegetables and vegetable-based products 

Sugar, jam, honey, chocolate and confectionery [COICOP 01.1.8] 

Sugar 

Jams, marmalades and honey 

  Confectionery, chocolate and other cocoa preparations 

  Edible ice, ice cream and sorbet 

Food products n.e.c. [COICOP 01.1.9] 

30 

Food products n.e.c. 

  Non-alcoholic beverages  

Coffee, tea and cocoa [COICOP 01.2.1] 

31 

  Coffee, tea and cocoa 

  Mineral waters, soft drinks, fruit and vegetable juices [COICOP 01.2.2] 

32 

  Mineral waters 

33 

Soft drinks and concentrates 

EN 

23 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
34 

Fruit and vegetable juices 

  ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS 

  Alcoholic beverages  

Spirits [COICOP 02.1.1] 

35 

Spirits 

  Wine [COICOP 02.1.2] 

36 

  Wine 

Beer [COICOP 02.1.3] 

37 

  Beer 

Tobacco 

Tobacco [COICOP 02.2.0] 

38 

  Tobacco 

  Narcotics  

Narcotics [COICOP 02.3.0] 

39 

  Narcotics 

  CLOTHING AND FOOTWEAR 

  Clothing 

Clothing materials [COICOP 03.1.1] 

40 

  Clothing materials 

  Garments [COICOP 03.1.2] 

41 

  Men's clothing 

42 

  Women's clothing 

43 

  Children’s and infant’s clothing  

  Other articles of clothing and clothing accessories [COICOP 03.1.3] 

44 

  Other articles of clothing and clothing accessories 

Cleaning, repair and hire of clothing [COICOP 03.1.4] 

EN 

24 

   EN 

 
 
 
 
 
 
 
 
 
 
45 

  Cleaning, repair and hire of clothing 

Footwear 

Shoes and other footwear [COICOP 03.2.1] 

46 

  Men's footwear 

47 

  Women's footwear 

48 

  Children's and infant's footwear 

Repair and hire of footwear [COICOP 03.2.2] 

49 

  Repair and hire of footwear 

  HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS 

  Actual rentals for housing  

Actual rentals for housing [COICOP 04.1.1 and 04.1.2] 

50 

  Actual rentals for housing 

Imputed rentals for housing  

Imputed rentals for housing [COICOP 04.2.1 and 04.2.2] 

51 

Imputed rentals for housing 

  Maintenance and repair of the dwelling 

  Materials for the maintenance and repair of the dwelling [COICOP 04.3.1] 

52 

  Materials for the maintenance and repair of the dwelling 

Services for the maintenance and repair of the dwelling [COICOP 04.3.2] 

53 

Services for the maintenance and repair of the dwelling 

  Water supply and miscellaneous services relating to the dwelling 

  Water supply [COICOP 04.4.1] 

54 

  Water supply 

  Miscellaneous services relating to the dwelling [COICOP 04.4.2, 04.4.3 and 04.4.4] 

55 

  Miscellaneous services relating to the dwelling 

Electricity, gas and other fuels  

EN 

25 

   EN 

 
 
 
 
 
 
 
 
 
 
 
Electricity [COICOP 04.5.1] 

56 

  Electricity 

  Gas [COICOP 04.5.2] 

57 

  Gas 

Liquid fuels [COICOP 04.5.3] 

58 

  Liquid fuels 

Solid fuels [COICOP 04.5.4] 

59 

Solid fuels 

  Heat energy [COICOP 04.5.5] 

60 

  Heat energy 

FURNISHINGS, HOUSEHOLD EQUIPMENT AND ROUTINE HOUSEHOLD MAINTENANCE

Furniture and furnishings, carpets and other floor coverings 

Furniture and furnishings [COICOP 05.1.1] 

61 

  Kitchen furniture 

62 

  Bedroom furniture 

63 

64 

  Living-room and dining-room furniture 

  Other furniture and furnishings 

Carpets and other floor coverings [COICOP 05.1.2] 

65 

  Carpets and other floor coverings 

Repair of furniture, furnishings and floor coverings [COICOP 05.1.3] 

66 

  Repair of furniture, furnishings and floor coverings 

  Household textiles  

  Household textiles [COICOP 05.2.0] 

67 

  Household textiles 

  Household appliances 

  Major household appliances whether electric or not [COICOP 05.3.1] 

EN 

26 

   EN 

 
 
 
 
 
 
 
 
 
 
68 

  Major household appliances whether electric or not 

Small electric household appliances [COICOP 05.3.2] 

69 

Small electric household appliances 

Repair of household appliances [COICOP 05.3.3] 

70 

  Repair of household appliances 

  Glassware, tableware and household utensils 

  Glassware, tableware and household utensils [COICOP 05.4.0] 

71 

  Glassware, tableware and household utensils 

Tools and equipment for house and garden 

  Major tools and equipment [COICOP 05.5.1] 

72 

  Major tools and equipment 

Small tools and miscellaneous accessories [COICOP 05.5.2] 

73 

Small tools and miscellaneous accessories 

  Goods and services for routine household maintenance 

Non-durable household goods [COICOP 05.6.1] 

74 

  Non-durable household goods 

  Domestic services and household services [COICOP 05.6.2] 

75 

  Domestic services 

76 

  Household services 

  HEALTH 

  Medical products, appliances and equipment 

Pharmaceutical products [COICOIP 06.1.1] 

77 

Pharmaceutical products 

  Other medical products [COICOP 06.1.2] 

78 

  Other medical products 

Therapeutic appliances and equipment [COICOP 06.1.3] 

EN 

27 

   EN 

 
 
 
 
 
 
 
 
 
 
 
79 

  Therapeutic appliances and equipment 

  Out-patient services 

  Medical Services [COICOP 06.2.1] 

80 

  Medical Services 

  Dental services [COICOP 06.2.2] 

81 

  Dental services 

Paramedical services [COICOP 06.2.3] 

82 

Paramedical services 

  Hospital services 

  Hospital services [COICOP 06.3.0] 

83 

  Hospital services 

TRANSPORT 

Purchase of vehicles 

  Motor cars [COICOP 07.1.1] 

84 

85 

86 

87 

88 

  Motor cars with diesel engine 

  Motor cars with petrol engine of cubic capacity of less than 1200cc 

  Motor cars with petrol engine of cubic capacity of 1200cc to 1699cc 

  Motor cars with petrol engine of cubic capacity of 1700cc to 2999cc 

  Motor cars with petrol engine of cubic capacity of 3000cc and over 

  Motor cycles [COICOP 07.1.2] 

89 

  Motor cycles 

Bicycles [COICOP 07.1.3] 

90 

  Bicycles 

Animal drawn vehicles [COICOP 07.1.4] 

91 

  Animal drawn vehicles 

  Operation of personal transport equipment 

EN 

28 

   EN 

 
 
 
 
 
 
 
Spare parts and accessories for personal transport equipment [COICOP 07 2.1] 

92 

Spare parts and accessories for personal transport equipment 

Fuels and lubricants for personal transport equipment [COICOP 07.2.2] 

93 

Fuels and lubricants for personal transport equipment 

  Maintenance and repair of personal transport equipment [COICOP 07.2.3] 

94 

  Maintenance and repair of personal transport equipment 

  Other services in respect of personal transport equipment [COICOP 07.2.4] 

95 

  Other services in respect of personal transport equipment 

Transport services 

Passenger transport by railway [COICOP 07.3.1] 

96 

Passenger transport by railway 

Passenger transport by road [COICOP 07.3.2] 

97 

Passenger transport by road 

Passenger transport by air [COICOP 07.3.3] 

98 

Passenger transport by air 

Passenger transport by sea and inland waterway [COICOP 07.3.4] 

99 

Passenger transport by sea and inland waterway 

Combined passenger transport [COICOP 07.3.5] 

100 

  Combined passenger transport 

  Other purchased transport services [COICOP 07.3.6] 

101 

  Other purchased transport services 

  COMMUNICATION 

Postal services 

Postal service s [COICOP 08.1.0] 

102 

Postal services 

Telephone and telefax equipment 

EN 

29 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Telephone and telefax equipment [COICOP 08.2.0] 

103 

  Telephone and telefax equipment 

Telephone and telefax services 

Telephone and telefax services [COICOP 08.3.0] 

104 

  Telephone and telefax services 

  RECREATION AND CULTURE 

  Audio-visual, photographic and information processing equipment 

Equipment for the reception, recording and reproduction of sound and pictures [COICOP 09.1.1] 

105 

  Equipment for the reception, recording and reproduction of sound and pictures 

Photographic and cinematographic equipment and optical instruments [COICOP 09.1.2] 

106 

Photographic and cinematographic equipment and optical instruments 

Information processing equipment [COICOP 09.1.3] 

107 

Information processing equipment 

Recording media [COICOP 09.1.4] 

108 

Pre-recorded recording media 

109 

  Unrecorded recording media 

Repair of audio-visual, photographic and information processing equipment [COICOP 09.1.5] 

110 

  Repair of audio-visual, photographic and information processing equipment  

  Other major durables for recreation and culture 

  Major durables for outdoor recreation [COICOP 09.2.1] 

111 

  Major durables for outdoor recreation 

  Musical instruments and major durables for indoor recreation [COICOP 09.2.2] 

112 

  Musical instruments and major durables for indoor recreation 

  Maintenance and repair of other major durables for recreation and culture [COICOP 09.2.3] 

113 

  Maintenance and repair of other major durables for recreation and culture  

  Other recreational items and equipment, gardens and pets 

EN 

30 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
  Games, toys and hobbies [COICOP 09.3.1 

114 

  Games, toys and hobbies 

Equipment for sport, camping and open-air recreation [COICOP 09.3.2] 

115 

  Equipment for sport, camping and open-air recreation 

  Gardens, plants and flowers [COICOP 09.3.3] 

116 

  Gardens, plants and flowers 

Pets and related products [COICOP 09.3.4] 

117 

Pets and related products 

Veterinary and other services for pets [COICOP 09.3.5] 

118 

  Veterinary and other services for pets 

  Recreational and cultural services 

Recreational and sporting services [COICOP 09.4.1] 

119 

  Recreational and sporting services 

Cultural services [COICOP 09.4.2] 

120 

Photographic services 

121 

  Other cultural services 

  Games of chance [COICOP 09.4.3] 

122 

  Games of chance 

  Newspapers, books and stationery 

Books [COICOP 09.5.1] 

123 

  Books 

Newspapers and periodicals [COICOP 09.5.2]  

124 

  Newspapers and periodicals 

  Miscellaneous printed matter, stationery and drawing materials [COICOP 09 5.3 and 09.5.4]  

125 

  Miscellaneous printed matter, stationery and drawing materials 

Package holidays 

EN 

31 

   EN 

 
 
 
 
 
 
 
 
 
 
 
Package holidays [COICOP 09.6.0] 

126 

Package holidays 

EDUCATION 

Pre-primary and primary education 

Pre-primary and primary education [COICOP 10.1.0] 

127 

Pre-primary and primary education 

Secondary education 

Secondary education [COICOP 10.2.0] 

128 

Secondary education 

Post-secondary non-tertiary education 

Post-secondary non-tertiary education [COICOP 10.3.0] 

129 

Post-secondary non-tertiary education 

Tertiary education 

Tertiary education [COICOP 10.4.0] 

130 

  Tertiary education 

Education not definable by level 

Education not definable by level [COICOP 10.5.0] 

131 

  Education not definable by level 

  RESTAURANTS AND HOTELS 

  Catering services 

Restaurants, cafés and the like [COICOP 11.1.1] 

132 

  Restaurant services whatever the type of establishment 

133 

Pubs, bars, cafés, tea rooms and the like  

Canteens [COICOP 11.1.2] 

134 

  Canteens 

  Accommodation services 

EN 

32 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accommodation services [COICOP 11.2.0] 

135 

  Accommodation services 

  MISCELLANEOUS GOODS AND SERVICES 

Personal care 

  Hairdressing salons and personal grooming establishments [COICOP 12.1.1] 

136 

  Hairdressing salons and personal grooming establishments 

Electric appliances for personal care [COICOP 12.1.2] 

137 

  Electric appliances for personal care 

  Other appliances, articles and products for personal care [COICOP 12.1.3] 

138 

  Other appliances, articles and products for personal care  

Prostitution 

Prostitution [COICOP 12.2.0] 

139 

Prostitution 

Personal effects n.e.c. 

Jewellery, clocks and watches [COICOP 12.3.1] 

140 

Jewellery, clocks and watches 

  Other personal effects [COICOP 12.3.2] 

141 

  Other personal effects 

Social protection 

Social protection [COICOP 12.4.0] 

142 

Social protection 

Insurance 

Insurance [COICOP 12.5.1, 12.5.2, 12.5.3, 12.5.4 and 12.5.5] 

143 

Insurance  

Financial services n.e.c. 

FISIM [COICOP 12.6.1] 

EN 

33 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
144 

FISIM 

  Other financial services n.e.c. [COICOP 12.6.2] 

145 

  Other financial services n.e.c. 

  Other services n.e.c. 

  Other services n.e.c. [COICOP 12.7.0] 

146 

  Other services n.e.c. 

BALANCE  OF  EXPENDITURE  OF  RESIDENT  ABROAD  AND  EXPEDITURE  OF  NON 
RESIDENTS ON THE ECONOMIC TERRITORY 

Final consumption expenditure of resident households in the rest of the world 

Final consumption expenditure of resident households in the rest of the world 

147 

Final consumption expenditure of resident households in the rest of the world 

Final consumption expenditure of non-resident households on the economic territory 

Final consumption expenditure of non-resident households on the economic territory 

148 

Final consumption expenditure of non-resident households on the economic territory 

INDIVIDUAL CONSUMPTION EXPENDITURE BY NPISHS 

  HOUSING 

  Housing 

  Housing [COPNI 01.0.0] 

149 

  Housing 

  HEALTH 

  Health 

  Health [COPNI 02.1.1 to 02.6.0] 

150 

  Health 

  RECREATION AND CULTURE 

  Recreation and culture 

Recreation and culture [COPNI 03.1.0 and 03.2.0] 

EN 

34 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
151 

  Recreation and culture 

EDUCATION 

Education 

Education [COPNI 04.1.0 to 04.7.0] 

152 

  Education 

SOCIAL PROTECTION 

Social protection 

Social protection [COPNI 05.1.0 and 05.2.0] 

153 

Social protection 

  OTHER SERVICES 

  Other services 

  Other services [COPNI 06.0.0 to 09.2.0] 

154 

  Other services 

INDIVIDUAL CONSUMPTION EXPENDITURE BY GOVERNMENT 

  HOUSING 

  Housing 

  Housing 

155 

  Housing 

  HEALTH 

  Health benefits and reimbursements 

  Medical products, appliances and equipment 

156 

Pharmaceutical products 

157 

  Other medical products 

158 

  Therapeutic appliances and equipment 

  Health services 

EN 

35 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
159 

  Out-patient medical services 

160 

  Out-patient dental services 

161 

  Out-patient paramedical services 

162 

  Hospital services 

Production of health services 

Compensation of employees  

163 

Physicians 

164 

  Nurses and other medical staff 

165 

  Non-medical staff 

Intermediate consumption 

166 

Pharmaceutical products 

167 

  Other medical goods 

168 

  Therapeutic appliances and equipment 

169 

Intermediate consumption n.e.c. 

  Gross operating surplus 

170 

  Gross operating surplus 

Net taxes on production 

171 

  Net taxes on production 

Receipts from sales 

172 

  Receipts from sales 

  RECREATION AND CULTURE 

  Recreation and culture  

Recreation and culture  

173 

  Recreation and culture 

EDUCATION 

Education benefits and reimbursements 

EN 

36 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
Education benefits and reimbursements 

174 

  Education benefits and reimbursements 

Production of education services 

Compensation of employees  

175 

176 

177 

Pre-primary and primary education 

Secondary education 

Post-secondary non-tertiary education 

178 

  Tertiary education 

Intermediate consumption 

179 

Intermediate consumption 

  Gross operating surplus 

180 

  Gross operating surplus 

Net taxes on production 

181 

  Net taxes on production 

Receipts from sales 

182 

  Receipt from sales 

SOCIAL PROTECTION 

Social protection  

Social protection  

183 

Social protection 

  COLLECTIVE CONSUMPTION EXPENDITURE BY GOVERNMENT 

  COLLECTIVE SERVICES 

  Collective services 

Compensation of employees 

184 

  Compensation of employees (collective services relating to defence) 

EN 

37 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
185 

  Compensation of employees (collective services other than defence) 

Intermediate consumption 

186 

187 

Intermediate consumption (collective services relating to defence) 

Intermediate consumption (collective services other than defence) 

  Gross operating surplus 

188 

  Gross operating surplus (collective services relating to defence) 

Net taxes on production 

189 

  Net taxes on production (collective services relating to defence) 

Receipts from sales 

190 

  Receipts from sales (collective services relating to defence) 

  EXPENDITURE ON GROSS FIXED CAPITAL FORMATION 

  MACHINERY AND EQUIPMENT 

  Metal products and equipment 

Fabricated metal products, except machinery and equipment [CPA 28.11 to 28.75] 

191 

Fabricated metal products, except machinery and equipment 

  General purpose machinery [CPA 29.11 to 29.24] 

192 

  Engines and turbines, pumps and compressors 

193 

  Other general purpose machinery 

Special purpose machinery [CPA 29.31 to 29.72] 

194 

  Agricultural and forestry machinery 

195 

  Machine tools 

196 

  Machinery for metallurgy, mining, quarrying and construction 

197 

  Machinery for food, beverages and tobacco processing 

198 

  Machinery for textile, apparel and leather production 

199 

  Other special purpose machinery 

EN 

38 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
Electrical and optical equipment [CPA 30.01 to 33.50] 

200 

  Office machinery 

201 

  Computers and other information processing equipment 

202 

  Electrical machinery and apparatus 

203 

  Radio, television and communications equipment and apparatus 

204 

  Medical, precision and optical instruments, watches and clocks 

  Other manufactured goods n.e.c. [CPA 36.11 to 36.63] 

205 

  Other manufactured goods n.e.c. 

Transport equipment 

Road transport equipment [CPA 34.10 to 34.30 and 35.41 to 35.50] 

206 

  Motor vehicles, trailers and semi-trailers 

207 

  Other road transport 

  Other transport equipment [CPA 35.11 to 35.30] 

208 

Ships, boats, steamers, tugs, floating platforms, rigs 

209 

  Locomotives and rolling stock 

210 

  Aircraft, helicopters and other aeronautical equipment 

  CONSTRUCTION 

  Residential buildings 

  One and two dwelling buildings [CPA division 45] 

211 

  One or two dwelling buildings 

  Multi-dwelling buildings [CPA division 45] 

212 

  Multi-dwelling buildings 

  Non-residential buildings 

Agricultural buildings [CPA division 45] 

213 

  Agricultural buildings 

Industrial buildings and warehouses [CPA division 45] 

EN 

39 

   EN 

 
 
 
 
 
 
 
214 

Industrial buildings and warehouses 

Commercial buildings [CPA division 45] 

215 

  Commercial buildings 

  Other non-residential buildings [CPA division 45] 

216 

  Other non-residential buildings 

  Civil engineering works 

Transport infrastructures [CPA division 45] 

217 

  Transport infrastructures 

Pipelines, communication and power lines [CPA division 45] 

218 

Pipelines, communication and power lines 

  Other civil engineering works [CPA division 45] 

219 

  Other civil engineering works 

  OTHER PRODUCTS 

  Other products 

Products of agriculture, forestry, fisheries and aquaculture [CPA divisions 01, 02 and 05] 

220 

Products of agriculture, forestry, fisheries and aquaculture 

Software [CPA 72.20] 

221 

Software 

  Other products n.e.c. [CPA n.e.c.] 

222 

  Other products n.e.c. 

  CHANGES  IN  INVENTORIES  AND  ACQUISITIONS  LESS  DISPOSALS  OF 

VALUABLES 

  CHANGES IN INVENTORIES 

  Changes in inventories 

Changes in inventories 

223 

  Changes in inventories 

EN 

40 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  ACQUISITIONS LESS DISPOSALS OF VALUABLES 

  Acquisitions less disposals of valuables 

Acquisitions less disposals of valuables 

224 

  Acquisitions less disposals of valuables 

  BALANCE OF EXPORTS AND IMPORTS 

EXPORTS OF GOODS AND SERVICES 

Exports of goods 

Exports of goods to the EU and institutions of the EU 

225 

  Exports of goods to EU countries 

226 

  Exports of goods to institutions of the EU 

Exports of goods to third countries and international organisations 

227 

  Exports of goods to third countries and international organisations 

Exports of services 

Exports of services to the EU and institutions of the EU 

228 

  Exports of services to EU countries 

229 

  Exports of services to institutions of the EU 

Exports of services to third countries and international organisations 

230 

  Exports of services to third countries and international organisations 

IMPORTS OF GOODS AND SERVICES 

Imports of goods 

Imports of goods from the EU and institutions of the EU 

231 

232 

Imports of goods from EU countries 

Imports of goods from institutions of the EU 

Imports of goods from third countries and international organisations 

233 

Imports of goods from third countries and international organisations 

EN 

41 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Imports of services 

Imports of services from the EU and institutions of the EU 

234 

235 

Imports of services from EU countries 

Imports of services from institutions of the EU 

Imports of services from third countries and international organisations 

236 

Imports of services from third countries and international organisations 

EN 

42 

   EN 

 
 
 
 
 
 
 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

NAME OF THE PROPOSAL 

Regulation  of  the  European  Parliament  and  of  the  Council  establishing  common  rules 
for  the  provision  of  basic  information  on  Purchasing  Power  Parities  and  for  their 
calculation and dissemination 

2. 

ABM / ABB FRAMEWORK 

Policy Areas concerned and associated Activities: 

Title 01: Economic and Financial Affairs: Economic and monetary union (204) 

Title  13:  Regional  Policy:  European  regional  development  fund  and  other  regional 
interventions (1603), Cohesion fund (1604) 

Title 26: Administration: Personnel policy and management, Pensions management 

Title 27: Budget: Budgetary policy 

Title 29: Statistics: Production of statistical information (3403) 

3. 

BUDGET LINES 

3.1. 

Budget lines (operational lines and related technical and administrative assistance lines 
(ex- B..A lines)) including headings: 

29.01.01 

Expenditure related to staff in active employment of ‘Statistics’ policy area 

29 01 02 
policy area 

External staff and other management expenditure in support of ‘Statistics’ 

29.02.01 

Statistical information policy 

3.2. 

Duration of the action and of the financial impact: 

The proposal does not foresee a termination of the action. Grants for Members States are 
limited to five years: 2007-2011 with the exception for actions needed in establishing the 
correction coefficients that are applied to the remuneration and pensions in EC (Art 64. 
of Staff Regulation).  

EN 

43 

   EN 

 
3.3. 

Budgetary characteristics: 

Budget line 

Type of expenditure 

New 

EFTA 
contribution 

Contributions 
from applicant 
countries 

Heading in 
financial 
perspective 

29.01.01 

29 01 02 

29.02.01 

Non-
comp 

Non-
comp 

Non-
comp 

Non-
Diff 

Non-
Diff 

NO 

NO 

NO 

NO 

Diff 

NO 

YES 

NO 

NO 

NO 

No 3 

No 3 

No 3 

4. 

SUMMARY OF RESOURCES 

4.1. 

Financial Resources 

The  financial  implications  given  is  this  statement  are  indicative,  i.e.  the  resources  and 
budget needed for the work under the Purchasing Power Parity regulation are included in 
the  five  year  statistical  programmes  of  the  Commission  (currently  Decision  no 
2367/2002/EC of the European Parliament and of the Council of 16 December 2002 on 
the  Community  statistical  programme  2003  to  2007,  OJ  L358,  p.  1.)  The  financial 
statement  of  the  PPP  regulation  shows  the  amount  of  resources  that  the  Purchasing 
Power Parities require from the total of ‘Statistics’ policy. 

4.1.1.  Summary of commitment appropriations (CA) and payment appropriations (PA) 

Expenditure type 

Section 
no. 

Operational expenditure13 

Commitment 
Appropriations (CA) 

Payment Appropriations 
(PA) 

8.1 

a 

b 

EUR million (to 3 decimal places) 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

Total 

5.180  3.615 

3.315 

3.315 

3.315 

1.965 

1.965 

22.670 

1.680  5.005 

3.405 

3.315 

3.315 

3.315 

1.965 

22.000 

Administrative expenditure within reference amount14 

Technical & 
administrative assistance 
(NDA) 

8.2.4 

c 

0 

13 
14 

Expenditure that does not fall under Chapter 1of the Title 29 concerned. 
Expenditure within 29.1.04. 

EN 

44 

   EN 

 
 
 
 
 
 
 
 
 
 
 
                                                 
TOTAL REFERENCE AMOUNT 

Commitment 
Appropriations 

Payment 
Appropriations 

A+c 

5.180 

3.615 

3.315 

3.315 

3.315 

1.965 

1.965

B+c 

1.680 

5.005 

3.405 

3.315 

3.315 

3.315 

1.965

22.670

22.000

Administrative expenditure not included in reference amount15 

Human resources and 
associated expenditure 
(NDA) 

Administrative costs, other 
than human resources and 
associated costs, not 
included in reference amount 
(NDA) 

8.2.5 

d 

1.080 

1.080 

1.080 

1.080 

1.080  1.080 

1.080 

7.560 

8.2.6 

e 

0.100 

0.100 

0.100 

0.100 

0.100  0.100 

0.100 

0.700 

Total indicative financial cost of intervention 

TOTAL CA including 
cost of Human 
Resources 

TOTAL PA including 
cost of Human 
Resources 

A+c+
d+e 

B+c+
d+e 

Co-financing details 

6.360 

4.795 

4.495 

4.495 

4.495 

3.145 

3.145 

30.930 

2.860 

6.185 

4.585 

4.495 

4.495 

4.495 

3.145 

27.115 

The  Commission  will  finance  the  implementation  of  the  PPP  Regulation  via  grants 
2007-2011. 

The co-financing is an hypothetical estimate based on the required amount of resources 
assuming that the NSIs expend the whole budgeted grant amounts (see table 8.1) and the 
NSIs has to finance a minimum of 30% of eligible costs of the grants by themselves.  

Co-financing body 

NSIs of the Member 
States 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

Total 

EUR million (to 3 decimal places) 

f 

1.191 

0.628 

0.628 

0.628 

0.628 

1.978 

1.978 

7.659 

TOTAL CA including co-
financing 

a+c+d
+e+f 

7.551 

5.423 

5.123 

5.123 

5.123 

5.123 

5.123 

38.589 

15 

Expenditure within 29.1.01 and 29.1.02 

EN 

45 

   EN 

 
 
 
 
 
 
                                                 
4.1.2.  Compatibility with Financial Programming 

(cid:58) 

(cid:133) 

(cid:133) 

Proposal is compatible with existing financial programming. 

Proposal  will  entail  reprogramming  of  the  relevant  heading  in  the  financial 
perspective. 

Proposal  may  require  application  of  the  provisions  of  the  Interinstitutional 
Agreement16 (i.e. flexibility instrument or revision of the financial perspective). 

4.1.3.  Financial impact on Revenue 

(cid:58) 

(cid:133) 

Proposal has no financial implications on revenue 

Proposal has financial impact 

4.2. 

Human  Resources  FTE  (including  officials,  temporary  and  external  staff)  –  see  detail 
under point 8.2.1. 

Annual requirements 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

Total number of 
human resources 

10 

10 

10 

10 

10 

10 

10 

5. 

CHARACTERISTICS AND OBJECTIVES 

Details of the context of the proposal are given in the Explanatory Memorandum. 

5.1. 

Need to be met in the short or long term 

To meet the data needs of the Commission policies, particularly in the area of regional 
policy 

5.2. 

Value-added  of  Community  involvement  and  coherence  of  the  proposal  with  other 
financial instruments and possible synergy 

Without Community involvement, these statistics would not be produced 

5.3. 

Objectives, expected results and related indicators of the proposal in the context of the 
ABM framework 

To  guarantee  continuous  annual  production  of  Purchasing  Power  Parities  for  every 
Member State 

16 

See points 19 and 24 of the Interinstitutional agreement. 

EN 

46 

   EN 

 
 
 
                                                 
5.4.  Method of Implementation (indicative) 

Centralised Management by the Commission 

6. 

MONITORING AND EVALUATION 

6.1.  Monitoring system 

The implementation of the Regulation will be monitored using standardised reports that 
describe national methods and practices. The reports will be done at six years intervals. 
Country reports are assessed by the Commission.  

The  PPP  price  surveys  are  also  monitored  continuously.  The  NSIs  submit  to  the 
Commission a survey report after each survey. 

The implementation of the Regulation and possible technical changes will be done in a 
Comitology procedure foreseen in article 11 of the Regulation. 

6.2. 

Evaluation 

6.2.1.  Ex-ante evaluation 

The  Regulation  proposal  is  continuation  of  existing  actions,  currently  done  on  a 
voluntary basis by the Member States  

6.2.2.  Measures  taken  following  an  intermediate/ex-post  evaluation  (lessons  learned  from 

similar experiences in the past) 

N/A 

6.2.3.  Terms and frequency of future evaluation 

The provisions of the Regulation shall be reviewed five years after the date of its entry 
into force and revised, if appropriate, on the basis of a report transmitted to the European 
Parliament and the Council and a proposal from the Commission. 

7. 

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 capacity. 

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. 

EN 

47 

   EN 

 
8. 

DETAILS OF RESOURCES 

8.1. 

Objectives of the proposal in terms of their financial cost 

(Headings of 
Objectives, actions and 
outputs should be 
provided) 

Type of 
output 

Av. 
Cost 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

TOTAL 

No. 
outputs 

Total 
cost 

No. 
output
s 

Total 
cost 

No. 
output
s 

Total 
cost 

No. 
output
s 

Total 
cost 

No. 
output
s 

Total 
cost 

No. 
output
s 

Total 
cost 

No. 
output
s 

Total 
cost 

No. 
outputs 

Total 
cost 

Commitment appropriations in EUR million (to 3 decimal places) 

OPERATIONAL 
OBJECTIVE No. 1 – 
Production of statistics 
on PPPs and the 
implementation of the 
PPP Regulation 

Subvention to Member 
States NSIs 

OPERATIONAL 
OBJECTIVE No. 2 – 
Statistical support for 
Eurostat in carrying out 
PPP programme 

Grants 

0.063 

27 

2.780 

27 

1.465 

27 

1.465 

27 

1.465 

27 

1.465 

3 

0.115 

3 

0.115 

141 

8.870 

Service contracts to third 
parties 

Technical 
assistance 

0.248 

9 

2.100 

9 

2.100 

7 

1.800 

7 

1.800 

7 

1.800 

7 

1.800 

7 

1.800 

53 

13.200 

OPERATIONAL 
OBJECTIVE No. 3 – 
Production of annual 
statistics on PPPs 

IT - development of a 
database 

IT - maintenance of a 
database 

Software 

0.300 

1 

0.300 

Software 

0.050 

1 

0.050 

1 

0.050 

1 

0.050 

1 

0.050 

1 

0.050 

1 

0.050 

1 

6 

0.300 

0.300 

TOTAL COST 

0.109 

37 

5.180 

37 

3.615 

35 

3.315 

35 

3.315 

35 

3.315 

11 

1.965 

11 

1.965 

201 

22.670 

EN 

48 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
8.2. 

Administrative Expenditure 

The actual yearly needs for human and administrative resources shall be covered within 
the allocation granted to the managing service in the framework of the annual allocation 
procedure. 

8.2.1.  Number and type of human resources 

The posts included in the table exist and are currently allocated to the tasks covered by 
the proposed Regulation. 

Types of 
post 

Staff to be assigned to management of the action using existing and/or additional 
resources (number of posts/FTEs) 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

Officials17 
(29 01 01) 

A*/AD 

B*, C*/AST 

Staff financed18 by  
art. 29 01 02 
Other staff19 financed by  
art. 29 01 04/05 

3 

3 

4 

0 

3 

3 

4 

0 

3 

3 

4 

0 

3 

3 

4 

0 

3 

3 

4 

0 

3 

3 

4 

0 

3 

3 

4 

0 

TOTAL 

10 

10 

10 

10 

10 

10 

10 

8.2.2.  Description of tasks deriving from the action 

Statistics production tasks: 

•  Methodological development in order to ensure comparability of results 

•  Methodological assistance to the NSIs 

•  Design of questionnaires and guidelines 

•  Data collection from the Member States and other participant countries 

•  Data check and validation 

•  Data dissemination and publication 

•  Quality analysis 

•  Supervision of contractors 

Administrative tasks: 

•  Contract/Grant management  

17 
18 
19 

Cost of which is NOT covered by the reference amount. 
Cost of which is NOT covered by the reference amount. 
Cost of which is included within the reference amount. 

EN 

49 

   EN 

 
 
 
 
                                                 
8.2.3.  Sources of human resources (statutory) 

(cid:58) 

(cid:133) 

(cid:133) 

(cid:133) 

(cid:133) 

Posts  currently  allocated  to  the  management  of  the  programme  to  be  replaced  or 
extended 

Posts pre-allocated within the APS/PDB exercise for year n 

Posts to be requested in the next APS/PDB procedure 

Posts  to  be  redeployed  using  existing  resources  within  the  managing  service 
(internal redeployment) 

Posts  required  for  year  n  although  not  foreseen  in  the  APS/PDB  exercise  of  the 
year in question 

8.2.4.  Other 

Administrative 

expenditure 

included 

in 

reference 

amount 

(29 01 04/05 – Expenditure on administrative management) 

EUR million (to 3 decimal places) 

Year 
n 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year 
n+5 
and 
later 

TOTAL 

Budget line 
(number and heading) 

1  Technical and administrative 

assistance (including related staff 
costs) 

Executive agencies 

Other technical and administrative 
assistance 

intra muros  

extra muros 

Total Technical and administrative 
assistance 

EN 

50 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.2.5.  Financial  cost  of  human  resources  and  associated  costs  not  included  in  the  reference 

amount 

Type of human 
resources 

and 
Officials 
temporary staff (29 
01 01) 
Staff financed by 
Art 29 01 02 
(auxiliary, END, 
contract 
staff, etc.) 

Total cost of 
Human Resources 
and associated 
costs (NOT in 
reference amount) 

EUR million (to 3 decimal places) 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

0.648 

0.648 

0.648 

0.648 

0.648 

0.648 

0.648 

0.432 

0.432 

0.432 

0.432 

0.432 

0.432 

0.432 

1.080 

1.080 

1.080

1.080

1.080

1.080 

1.080 

Calculation – Officials and Temporary agents 

An average of 0.108 EUR million per person and per year 

Calculation – Staff financed under art. 29 01 02 

An average of 0.108 EUR million per person and per year 

8.2.6.  Other administrative expenditure not included in reference amount 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

TOTAL 

EUR million (to 3 decimal places) 

29 01 02 11 01  Missions 

0.050 

0.050

0.050

0.050

0.050

0.050 

0.050 

0.350 

29 01 02 11 02  Meetings & Conferences 

0.050 

0.050

0.050

0.050

0.050

0.050 

0.050 

0.350 

29 01 02 11 03 

Committees 

29 01 02 11 04 

Studies & consultations 

29 01 02 11 05 

Information systems 

2.  Total Other Management 
Expenditure (29 01 02 11) 

3  Other expenditure of an 

administrative nature (specify 
including reference to budget line) 

Total Administrative expenditure, other 
than human resources and associated 
costs (NOT included in reference 
amount) 

0.100 

0.100

0.100

0.100

0.100

0.100 

0.100 

0.700 

0.100 

0.100

0.100

0.100

0.100

0.100 

0.100 

0.700 

Calculation - Other administrative expenditure not included in reference amount 

EN 

51 

   EN