Commission Regulation (EC) No 215/2007 of 28 February 2007 on implementing Regulation (EC) No 1177/2003 of the European Parliament and of the Council concerning Community statistics on income and living conditions (EU-SILC) as regards the list of target secondary variables relating to over-indebtedness and financial exclusion (Text with EEA relevance )
Date: 2007-02-28
Institutions: European Commission
Subjects: EU statistics, exchange of information, household income, living conditions, statistical method

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COMMISSION REGULATION (EC) No 215/2007

of 28 February 2007

on implementing Regulation (EC) No 1177/2003 of the European Parliament and of the Council
concerning Community statistics on income and living conditions (EU-SILC) as regards the list of
target secondary variables relating to over-indebtedness and financial exclusion

(Text with EEA relevance)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

Having regard to Regulation (EC) No 1177/2003 of
the
European Parliament and the Council of 16 June 2003
concerning Community
and living
statistics on income
(EU-SILC) (1), and in particular Article 15(2)(f)
conditions
thereof,

(3)

the

list of

in the cross-sectional component of EU-SILC. For the
secondary variables
year 2008,
included in the module on over-indebtedness
and
financial exclusion should be laid down. This should be
accompanied by the provision of variable codes and defi-
nitions.

target

The measures provided for in this Regulation are in
accordance with
Statistical
the
Programme Committee,

opinion

the

of

Whereas:

(1)

for

the

systematic

Regulation (EC) No 1177/2003 established a common
framework
of
Community statistics on income and living conditions,
encompassing comparable and timely cross-sectional and
longitudinal data on income, and on the level and
composition of poverty and social exclusion at national
and European Union levels.

production

HAS ADOPTED THIS REGULATION:

Article 1

The list of target secondary variables, the variable codes, and the
definitions for the 2008 module on over-indebtedness and
financial
cross-sectional
component of Community statistics on income and living
conditions (EU-SILC) shall be as laid down in the Annex.

exclusion to be

included in the

(2)

Under Article 15(2)(f) of Regulation (EC) No 1177/2003,
implementing measures are necessary for the list of target
secondary areas and variables to be included every year

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

Article 2

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

Done at Brussels, 28 February 2007.

For the Commission

Joaquín ALMUNIA
Member of the Commission

(1) OJ L 165, 3.7.2003, p. 1. Regulation as amended by Council Regu-

lation (EC) No 1791/2006 (OJ L 363, 20.12.2006, p. 1).

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ANNEX

For the purposes of this Regulation, the following units, modes of data collection, reference periods and definitions shall
apply.

1. Units

The target variables relate exclusively to the household. Where dealing with financial services, the household should be
understood as any member of the household.

2. Modes of data collection

For all target variables the mode of data collection is personal interview with the household respondent or extraction
from registers.

3. Reference periods

The target variables relate to four types of reference periods:

— last 12 months (Arrears),

— next 12 months (Future expectations),

— last three months (Uncleared balance credit/store card),

— current (All other variables).

4. Definitions
(1) Amounts

(a) Variables for collecting amounts: the amount is to be collected according to a harmonised discrete scale to be

established by the Working Group on Living Conditions.

(2) Bank account

(a) Bank current account: deposit account offering day-to-day money management facilities such as various flexible
payment methods to allow customers to distribute money directly to others. Standard services offered by
current accounts include a cheque book, the facility to arrange standing orders, direct debits and payment via a
debit card. A savings account is not a current account where no such facilities are available.

(b) Bank account overdraft: the household is currently maintaining a negative balance on one of its bank accounts
because of financial difficulties (urgent need of money, output higher than input, etc.). Interest is charged on
the amount owed. The bank account does not need to be a current account.

(3) Credit/store cards

(a) Credit cards (Visa, Amex, MasterCard, Diners, etc.) provide a specific credit facility: money is lent to people
between the time they purchase goods and the time of full repayment of the amount; interest is to be paid on
any balance that is not cleared at the end of the month. There are monthly statements for the money spent
specifying the minimum amount to be paid. Credit cards are not bank debit cards, where the money spent on
the card is immediately deducted from a linked bank account.

(b) Store cards are credit cards issued by a single company/store and can only be used for payments to that

company/store.

(c) Uncleared balance: the household has not paid in full at the ‘end of the month’ the amount spent or owed with

credit/store cards for at least the last three months because of financial difficulties.

(4) Source of credit and loans

(a) Credit and loans encompasses any commercial credit or loans with planned and scheduled repayments, except
mortgage loans for the main dwelling. Overdraft facilities, credit or store cards for which repayments are not
planned are not included. Borrowing from friends and relatives (informal credit) is not included either.

(5) Arrears

(a) Arrears: amount owed (bills, rent, credit/mortgage repayment, etc.) not paid on schedule during the last 12

months for financial reasons; same concept as used for HS010, HS020 and HS030.

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(b) Total amount currently in arrears: the sum of the amounts the household currently owes that could not be

paid on schedule.

(c) Housing-related bills/payments: rent and mortgage repayment for the main dwelling and utility bills (water,

electricity, gas, heating, etc.). Should correspond to the coverage of variables HS010 and HS020.

(d) Other loans and credit repayment: cash loans (other than mortgage repayment for the main dwelling) or hire
purchase instalments and the like (e.g. mail order catalogues, car finance, etc.). Minimum credit/store card
repayments are also included. Should correspond to the coverage of variable HS030.

(e) Other non-housing household bills: education, health, any other bills not covered by housing-related bills.

(6) Drop in income

(a) Income: gross total income of the household.

(7) Financial exclusion

(a) Reasons why the household does not have a current bank account and needs one: several reasons can be
mentioned and will be reported though indicators variables MI111-MI114. Questions are filtered: households
that do have a bank current account or do not need one should not be asked the questions.

(b) Reasons why the household does not have commercial credit and needs it: several reasons can be mentioned
and will be reported though indicators variables MI122-MI125. Commercial credit: overdraft facilities, credit or
store cards, mortgages and other loans or credit linked to purchases. Borrowing from friends and relatives is
not included. Questions are filtered: households that do have commercial credit or do not need it should not
be asked the questions. Households having borrowed only from family and friends should be asked the
questions.

5. Transmission of data to Eurostat

The target secondary variables on ‘over-indebtedness and financial exclusion’ will be sent to Eurostat in the household
data file (H) after the target primary variables.

AREAS AND LIST OF TARGET VARIABLES

Module 2008

Over-indebtedness and financial exclusion

Variable name

Code

Target variable

Bank accounts and overdraft

MI010

Household has a bank current account

MI010_F

MI020

MI020_F

1

2

1

-1

1

2

1

-1

-2

Yes

No

Variable is filled

Missing

Household is overdrawn on one of its bank accounts

Yes

No

Variable is filled

Missing

N/A (no bank account)

MI025

Estimated total amount unbalanced on household's banks accounts in classes

MI025_F

1-9

1

-1

-2

Class

Variable is filled

Missing

N/A (no overdraft: MI020=2)

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Module 2008

Over-indebtedness and financial exclusion

Variable name

Code

Target variable

Credit/store cards

MI030

Household has credit card(s) and/or store card(s)

MI030_F

MI040

MI040_F

MI045

MI045_F

1

2

1

-1

1

2

1

-1

-2

1-9

1

-1

-2

Yes

No

Variable is filled

Missing

Household has credit card(s) and/or store card(s) with uncleared balances

Yes

No

Variable is filled

Missing

N/A (no credit/store card (MI030=2))

Estimated total amount unbalanced at the last monthly statement on household
credit/store cards in classes

Class

Variable is filled

Missing

N/A (no unbalanced credit/store card (MI040=2 or MI030=2))

Source of credits and loans

MI050

Household has credits or loans (other than mortgage for the main dwelling)

MI050_F

MI051

MI051_F

MI052

MI052_F

MI053

MI053_F

1

2

1

-1

1

2

1

-1

-2

1

2

1

-1

-2

1

2

1

-1

-2

Yes

No

Variable is filled

Missing

Household has mortgage for other than the main dwelling

Yes

No

Variable is filled

Missing

N/A (MI050=2)

Household has hire purchase instalments (e.g. leasing, car, technical equipment)

Yes

No

Variable is filled

Missing

N/A (MI050=2)

Household has home-related credit/loans (inventory, domestic appliances,
repairs)

Yes

No

Variable is filled

Missing

N/A (MI050=2)

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Module 2008

Over-indebtedness and financial exclusion

Variable name

Code

Target variable

MI054

Household has credit/loans to pay for holidays/leisure

MI054_F

MI055

MI055_F

MI056

MI056_F

MI057

MI057_F

MI058

MI058_F

MI060

MI060_F

MI065

1

2

1

-1

-2

1

2

1

-1

-2

1

2

1

-1

-2

1

2

1

-1

-2

1

2

1

-1

-2

1

2

1

-1

-2

Yes

No

Variable is filled

Missing

N/A (MI050=2)

Household has credit/loans to pay for education or childcare

Yes

No

Variable is filled

Missing

N/A (MI050=2)

Household has credit/loans to pay for health issues

Yes

No

Variable is filled

Missing

N/A (MI050=2)

Household has credit/loans for investment or business start-up

Yes

No

Variable is filled

Missing

N/A (MI050=2)

Household has other cash loans (debt conversion, to cover overdraft, credit
card and other bills, etc.)

Yes

No

Variable is filled

Missing

N/A (MI050=2)

Arrears

Arrears on other non-housing household bills

Yes

No

Variable is filled

Missing

N/A (no other non-housing household bills)

Estimated total amount currently in arrears for other non-housing household
bills in classes

1-9

Class

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Module 2008

Over-indebtedness and financial exclusion

Variable name

MI065_F

MI075

MI075_F

MI085

MI085_F

Code

1

-1

-2

1-9

1

-1

-2

1-9

1

-1

-2

Target variable

Variable is filled

Missing

N/A (no arrears currently (MI060=2 or current amount owed is zero) or no other
non-housing household bills (MI060_F=-2))

Estimated total amount currently in arrears for household housing bills/
repayments in classes

Class

Variable is filled

Missing

N/A (no arrears currently (HS010=2 and HS020=2 or current amount owed is zero)
or no housing household bills/repayments (HS010_F=-2 and HS020_F=-2))

Estimated total amount currently in arrears for household other loans and
credit repayment in classes

Class

Variable is filled

Missing

N/A (no arrears currently (HS030=2 or current amount owed is zero) or no other
loans and credit repayment (HS030_F=-2))

Drop in income

MI090

Major drop in household income during the last 12 months

MI090_F

MI095

MI095_F

MI100

MI100_F

1

2

1

-1

1

2

3

4

5

6

7

8

1

-1

-2

1

2

3

4

1

-1

Yes

No

Variable is filled

Missing

Main reason for drop in income

Job loss/redundancy

Change in hours worked and/or in wages

Inability to work through sickness or disability
Maternity — parental leave — childcare

Retirement

Marriage/relationship breakdown

Other change in household composition

Other reason

Variable is filled

Missing

N/A (no drop in income (MI090=2))

Future expectations

Expectation of financial situation in the next 12 months; do you expect your
financial situation

To improve

To stay about the same

To get worse

Don't know

Variable is filled

Missing

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Module 2008

Over-indebtedness and financial exclusion

Variable name

Code

Target variable

Financial exclusion

Reasons why the household does not have a bank current account

MI110

Household doesn't need an account and prefers to deal in cash

MI110_F

MI111

MI111_F

MI112

MI112_F

MI113

MI113_F

MI114

MI114_F

1

2

1

-1

-2

1

2

1

-1

-2

1

2

1

-1

-2

1

2

1

-1

-2

1

2

1

-1

-2

Yes

No

Variable is filled

Missing

N/A (household has bank current account (MI010=1))

The charges are too high

Yes

No

Variable is filled

Missing

N/A (household has bank current account
(MI110=1))

(MI010=1) or does not need one

There is no bank branch near where household lives or works

Yes

No

Variable is filled

Missing

N/A (household has bank current account
(MI110=1))

(MI010=1) or does not need one

Household has applied for an account and been turned down

Yes

No

Variable is filled

Missing

N/A (household has bank current account
(MI110=1))

(MI010=1) or does not need one

Banks would refuse household

Yes

No

Variable is filled

Missing

N/A (household has bank current account
(MI110=1))

(MI010=1) or does not need one

Reasons why the household does not have commercial credit

MI120

Household doesn't need to borrow at all

MI120_F

1

2

1

-1

-2

Yes

No

Variable is filled

Missing

N/A (household has commercial credit)

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Module 2008

Over-indebtedness and financial exclusion

Variable name

Code

Target variable

MI121

Household can borrow from family or friends

MI121_F

MI122

MI122_F

MI123

MI123_F

MI124

MI124_F

MI125

MI125_F

1

2

1

-1

-2

1

2

1

-1

-2

1

2

1

-1

-2

1

2

1

-1

-2

1

2

1

-1

-2

Yes

No

Variable is filled

Missing

N/A (household has commercial credit)

Household will not be able to repay debt

Yes

No

Variable is filled

Missing

N/A (household has commercial credit or does not need it (MI120=1))

Household has applied for credit and been turned down

Yes

No

Variable is filled

Missing

N/A (household has commercial credit or does not need it (MI120=1))

Household used to have credit but the facility was withdrawn

Yes

No

Variable is filled

Missing

N/A (household has commercial credit or does not need it (MI120=1))

Banks would refuse to give credit to household

Yes

No

Variable is filled

Missing

N/A (household has commercial credit or does not need it (MI120=1))