REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation of Decision No 1297/2008/EC of the European Parliament and of the Council of 16 December 2008 on a Programme for the Modernisation of European Enterprise and Trade Statistics (MEETS)
Date: 2014-07-03
Institutions: European Commission
Subjects: EU statistics, company modernisation, economic statistics, information system, trade statistics













EUR-Lex - 52014DC0444 - EN











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52014DC0444

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation of Decision No 1297/2008/EC of the European Parliament and of the Council of 16 December 2008 on a Programme for the Modernisation of European Enterprise and Trade Statistics (MEETS) /* COM/2014/0444 final */










1. Introduction

This
is the fourth and final report on the implementation of a Programme for the
Modernisation of European Enterprise and Trade Statistics (MEETS).
The
decision[1]
to launch this programme in December 2008 stated that the Commission would ‘by
31 December 2010, and thereafter on an annual basis until 2013,… submit to the
European Parliament and the Council a report on the implementation of the MEETS
Programme’. It further stated that ‘by 31 July 2014, the Commission shall
submit to the European Parliament and the Council a final report on the
implementation of the MEETS Programme. That report shall assess, in the light
of the expenditure incurred by the Community, the benefits of the actions
accruing to the Community, the Member States and providers and users of
statistical information, to identify areas for potential improvement.’
Three
reports have been published, covering the annual work programmes 2009 and 2010,
2011 and 2012. This report gives a final assessment of the implementation of the
MEETS programme. More detailed information on all the results of the MEETS
programme is available on a dedicated homepage under ‘Statistics Explained’ on
the Eurostat website[2].
All
MEETS activities have been in line with the strategy set out in the Communication
of 10 August 2009 from the Commission to the European Parliament and the
Council on the production method of EU statistics: a vision for the next decade[3].
The
MEETS programme was structured to achieve the following four main objectives,
each of which included several projects.
(1)
‘Review priorities and develop target sets of indicators for new areas’
-- identifying and deciding on which new areas to describe as well as reviewing
old requirements.
(2)
‘Achieve a streamlined framework of business-related statistics’ -- the
integration of different areas of business statistics, including the
coordination of legal acts, harmonisation of methodologies, linking and
harmonising of statistical classifications and business registers with related
sources, inclusion of multinational groups and their data collection.
(3)
‘Support the implementation of a more efficient way of producing enterprise
and trade statistics’ -- more efficient use of existing data by integrating
collected data in a single system or via micro data linking, an increased use
of administrative data and taking advantage of harmonised accounting standards.
(4)
‘Modernise Intrastat’ -- improving the simplified Intrastat system
through work on harmonising methods, enhancing the use of administrative data
and Information and Communication Technology (ICT) improvements[4].

2. Implementation of objectives and actions 2009-2013
2.1 Level
of participation and financing

By
the end of 2013, most projects had been finalised and most deliverables
submitted. Over the period 2009-2013, the MEETS programme provided funding
worth EUR  42.5 million to support development within several business and
trade-related areas of statistics. The level of implementation of MEETS
operational credits during that period was 87%[5].
Collaborative
networks in the ESS, European Statistical System Networks (ESSnets), were a
major means of implementing the objectives of the programme. ESSnets are a way
to develop new projects in which a few ESS members interested in a specific
field actively collaborate on common tasks and then disseminate the results to
non-participating members. This way of working has advantages in harnessing
synergies, saving costs and sharing good practices, while developing specific
actions that are beneficial for the ESS as a whole. In all, 23 out of 32 ESS
members took part in at least one MEETS-financed ESSnet over the five years of
the programme.
Funding
was also provided for individual grant agreements concluded with National
Statistical Institutes (NSIs), and for some external studies carried out by
contractors. Other projects without specific funding were prepared by Eurostat
and the NSIs. To assist in the implementation of the programme, some funding
was also used for technical and administrative support, e.g. to organise
workshops and task forces with national experts. In total, 93 annual actions
were funded. Grants, through either ESSnets or individual grants, were the most
common instrument for financing actions (around 90 % of the operational credits).
By the end of 2013, 28 out of 32 members of the ESS had taken part in at least
one of the individual grants of the MEETS programme.

2.2.
Objective 1:  To review priorities and develop target sets of indicators for
new areas

Identifying
areas of lesser importance
In
2009, an external study was commissioned to evaluate the legal acts in
statistical areas that were identified as needing revision. The study revealed
a considerable degree of consistency in concepts and definitions between
closely related fields, but also identified some potential stand-alone
projects, and a number of inconsistencies. 
These
results were the basis for the work of the ‘ESSnet on Consistency of concepts
and methods of business and trade related statistics’ (objective 2).
In
2010, the ESS Committee adopted a new strategy-driven approach. Areas of lesser
importance in business and trade statistics were identified during the annual
strategic review of Eurostat’s priorities. Consequently, the action
‘Identifying areas of lesser importance’ was removed from the scope of the
MEETS programme. As part of a wider discussion on so-called negative priorities
within the ESS, the 2010 review resulted in the MEETS programme being
streamlined, and several actions were merged.
Developing
new areas (enterprise groups, globalisation, entrepreneurship)
Some
studies launched at the beginning of the MEETS programme resulted in
recommendations on how best to collect data in the area of statistics on
enterprise groups and economic globalisation. 
Following
the streamlining of MEETS, further methodological work and the organisation of
a pilot data collection were taken over by the ‘ESSnet on profiling of large
and complex multinational enterprise groups’ as well as the ‘ESSnet on
measuring global value chains’.
The
joint Entrepreneurship Indicator Programme (EIP) was developed in cooperation
with the OECD to underpin policies related to entrepreneurship with indicators
describing the areas of ‘access to finance’, ‘R&D’, ‘innovation and
technology’, ‘capabilities/skills’ and ‘culture for entrepreneurship’. 
The
inclusion of mandatory indicators for high-growth innovative enterprises in the
legal framework of employer business demography is currently under development.

2.3.
Objective 2:  To achieve a streamlined framework of business-related statistics

Integrating
concepts and methods within the legal framework
Business
statistics are compiled in accordance with Union legislation, which has
developed over the years and is not necessarily consistent in terms of concepts,
scope, definitions, methodology, etc. The ESSnet on Consistency analysed
potential lack of consistency of concepts and methods of business and trade
related statistics.
The
ESSnet proposed revised draft definitions of the statistical units ‘enterprise’,
‘enterprises group’, ‘kind-of-activity unit’ and ‘local kind-of-activity unit’
together with operational rules and a data model to enforce a uniform
implementation. The proposals are currently being fine-tuned by a Task Force on
Statistical Units, launched by Eurostat in 2013. 
In
addition, Eurostat and Member States began work to investigate the impact of
implementing the revised definition of enterprises in business statistics.
There will be further testing of the impact of the revised definitions and
methodology in 2014 and in subsequent years, with the aim to implement them if
the testing proves successful. 
Other
results of this ESSnet are recommendations for a method to classify statistical
units applied in a comparable manner over all statistical domains, and
comparable breakdowns as well as a methodology for a frame population in
business statistics. In addition, the ESSnet provided recommendations for a
system of variables with consistent and standardised terminology, and common definitions
cross-cutting domains, including explanatory notes.
The
results will feed into the framework regulation integrating business
statistics, which will simplify and harmonise the existing legislation.
Developing
statistics on enterprise groups
The
aim of the EuroGroups Register (EGR)[6]
was to provide consistent, coordinated survey frames for producing quality
statistics measuring globalisation, mainly for Foreign Affiliates Statistics
and Foreign Direct Investments.
In
2009, the ESSnet on EGR methodology set up EGR version 1.0 as well as the
organisational network for data exchange between Eurostat and ESS members. The
yearly frame population produced by the EGR was extended from the largest 5000
multinational enterprise groups (MNEs) with an interest in the EU in 2009 and
2010, to 10 000 MNEs in 2011. In 2012, the EGR 1.0 was upgraded partially
to version 2.0, thus improving the efficiency, timeliness and consistency of
the output. National central banks were associated in 2012. EGR 2.0 requires
users and producers to have remote access to the ESS, so it has to operate in a
secure environment. Due to delays in the Secured Infrastructure for
Confidential Data Access (SICON) project, EGR 2.0 was not fully operational in
2013, even though the methodological development had been completed.
At
national level, implementation of the EGR was co-financed by individual grant
agreements.
The
ESSnet on profiling of large and complex multinational enterprise groups
developed a methodology and guidelines. The ESSnet also involved ESS members
that did not participate in the ESSnet on testing of operating methods for the
profiling model and provided training and assistance for this purpose. Eurostat
is developing an Interactive Profiling Tool to facilitate the exchange of
information between ESS members, while respecting confidentiality rules. The
ESSnet worked closely together with the ESSnet on Consistency in the
development of revised definitions of the enterprise and operational rules.
Conducting
EU surveys to minimise the burden on enterprises
EU
sampling schemes aim to provide reliable EU aggregates based on a sample of
some Member States for statistical data for which an EU aggregate satisfies
users’ needs. Some methodologies for EU sampling schemes were developed for
selected business statistics domains such as space-related activities including
e.g. space transport, structural business statistics for enterprises with
250-499 employees, outward Foreign Affiliates Statistics, ICT investment and
expenditure and culture statistics. A pilot data collection for space related
activities and Structural Business Statistics for enterprises with 250-499
employees to test and evaluate the methodology had to be cancelled because of
the poor response to the call for proposals.
2.4
Objective 3:  To support the implementation of a more efficient method of
producing enterprise
and trade statistics
Making
better use of data that already exist in the statistical system, including the
possibility of estimates
The
work on ‘data warehousing and data linking in the production of business
statistics’ was carried out by an ESSnet set up in 2010. The ESSnet first
established an overview of the state of the art and future needs in integrated
business data systems of ESS members.
Its
work programme focused on creating a set of guidelines, models and
recommendations for building a statistical data warehouse. The results include
a generic architecture, detailing its processes and metadata, and providing
some insight into methodological aspects. The comprehensive set of deliverables
was presented in a handbook to provide guidance to users during the entire
process of setting up a statistical data warehouse. As developing integrated
systems requires a lot of time, and as the ESS members should be able to
continue benefiting from each other’s experience after the end of the MEETS
programme, Eurostat and the ESSnet have created a centre of competence for data
warehousing.
In
2009, the project on ‘data linking of trade and business statistics’ used an
external study to develop the methodological framework for producing
statistical indicators on external trade by business characteristics. The
feasibility of a pilot data collection was also tested. In 2013, ESS members
developed and compiled an extended set of indicators based on trade and
business micro data. The plan is to include the new indicators in the TEC
(trade by enterprise characteristics) database. A compilers’ guide for the
production of statistics on international trade by enterprise characteristics
based on the linkage between trade data and business register information was
made available. A first set of indicators for trade by enterprise
characteristics for services was also developed.
In
2009 and 2010, an approach to link micro-data on international sourcing was
developed to do preliminary analysis on the economic impact of international sourcing.
Based on the results of these actions, the ‘ESSnet on measuring global value
chains’ was set up in 2011. The ESSnet further developed and implemented a
redesigned survey on international sourcing followed by micro-data linking
exercises with existing statistical data (structural business statistics,
foreign trade, foreign affiliates statistics). 
The
ESSnet also provided a methodology of linked micro-datasets that could be used
in the impact analysis on enterprises of internationally fragmented production
chains on e.g. economic performance, employment and international trade in
goods patterns. The ESSnet also developed a set of economic globalisation
indicators. Once implemented, they will help policy makers to take decisions
based on better evidence and to monitor the globalisation/internationalisation
of economies. The results also include a publication about the development of a
measurement framework for economic globalisation[7].
The
project ‘linking data from ICT usage, innovation, structural business
statistics and business registers’ was conducted from 2011 to 2013. The main
achievements are:
·                        
the set-up of an infrastructure for a
distributed micro data analysis,
·                        
the production of metadata for data
warehousing purposes,
·                        
the generation of linked micro data at
national level,
·                        
the analysis of topics for seven
priority areas of the Digital Agenda for Europe,
·                        
the production of data at industry level
across multiple countries and time periods,
·                        
a study on survey methodologies to
improve the quality of linked datasets, and
·                        
a protocol on the access to partially
confidential data. 
The
new approach enables the production of indicators that are comparable across
countries as with a clear audit trail back to the source data, but it also
enables data generation. These data can be used for analysing the performance
differences in ICT use across countries and industries. The micro-aggregated
dataset, an output of the data linking process and the analysis of the linked
datasets, will be made available for research purposes via the safe centre
facilities of Eurostat. The work on survey strategies was used as input for the
coordination and harmonisation of business statistics within the framework
regulation integrating business statistics (FRIBS).
The
ESSnet on ‘Methodology for modern business statistics (optimal sampling, model
based estimation, data integration)’, set up in 2010, provided methodological
guidance to support the modernisation and integration of business statistics in
the ESS. As well as methodological developments concerning specific production
steps (design, data collection and estimation), the project summarised the body
of business statistics methods in an electronic handbook. The handbook will
serve both as a reference and as a basis for training. There is the possibility
of follow-up by a centre of competence. This is under consideration.
Making
better use of data that already exist in the economy
The
‘ESSnet on the use of administrative and accounts data’ was launched in 2009
and investigated practical issues regarding use of these data for business
statistics purposes. The main results achieved comprise:
·                        
an overview of national practices on the
use of administrative data,
·                        
a description of the methods used for
estimation of incomplete data sets when using administrative data for
short-term statistics, and
·                        
a list of indicators for assessing the
quality of business statistics based on administrative data. 
The
ESSnet also provided information on links from statistical characteristics to
the International Accounting Standard (IAS)/International Financial Reporting
Standard (IFRS) and EU accounting directives.
ICT
and the internet are generating huge amounts of data that could potentially be
used as statistical data. In 2013, Eurostat launched a project to assess the
feasibility of employing modern methodologies and indicators for collecting
high quality statistics from non-traditional sources such as the internet or
other big data sources. The experiences were summarised in a preliminary
handbook, which can be applied by NSIs. Big data repositories were also
identified and their potential for official statistics analysed. This included
negotiations with big data owners on conditions for data usage by NSIs and the
development of criteria for assessing the quality required. The results of the
project will contribute to a broader initiative from the ESS on ‘Big Data and
Official Statistics’[8].
Developing
tools for more efficient extraction, transmission and treatment of data
Some
NSIs received financial support to implement online data collection systems and
electronic questionnaires, conversion tables between GAAP (Generally Accepted
Accounting Principles) and statistical characteristics as well as Extensible
Business Reporting Language (XBRL). The project ‘Making better use of customs
data in external trade statistics (Extrastat)’ helped ESS members adapt their
data collection systems to the new customs systems as per the customs
legislation.
2.5
Objective 4: To modernise Intrastat
Harmonising
methods to improve quality under a simplified Intrastat
The
project ‘Harmonising methods to improve quality in intra EU-trade statistics’
was a result of a streamlining exercise in which two projects, ‘Improvement of
data quality under a simplified Intrastat system’ and ‘Reduction of asymmetries
in Intrastat’, were merged. Guidelines for implementing the Intrastat and
Extrastat legislation were developed between 2009 and 2013 to promote harmonised
and desirable practices. 
Some
Member States received grants to implement these methods and practices to
improve quality in intra-EU trade statistics. The work to reduce asymmetries at
detailed and aggregated level was continued by organising EU-wide
reconciliation rounds in 2009 to 2012. In 2013 the results were assessed before
carrying out further steps. Some Member States received grants to conduct
bilateral or multilateral reconciliation studies.
Making
better use of administrative data
Between
2009 and 2013, financial support was also provided to enhance Member States’
use of administrative data when producing intra-EU trade statistics. The
objectives were to reduce the response burden and improve the quality of
intra-EU trade statistics. The work focused on better use of administrative
data — VAT (Value Added Tax) and VIES (Value Added Tax Information Exchange) —
in various phases of the Intrastat data collection and compilation systems. 
The
potential to use other existing administrative data was investigated for
specific transactions, such as trade in ships and aircraft or gas and
electricity. Co-financed by grant agreements, ten Member States managed to
implement tools and methods to make better use of administrative data, and were
able to reduce the administrative burden for providers of statistical
information, as well as improving data quality.
Improving
and facilitating data exchange within Intrastat
Projects
to develop tools and methods for the data exchange within Intrastat for ESS
members, financed by grants and contracts in 2009 to 2012, resulted in more use
of electronic technologies for the exchange, validation and primary data
collection through automated, secure processes at national and EU level.
National systems of data collection and production were improved and optimised.

3. Conclusion

The
MEETS Decision described actions to be financed over the five years of the
MEETS programme. A relatively large number of initiatives could have been
undertaken in the first two years of the programme. However, there were budget
cuts and a lack of human resources in the NSIs. 
This
meant the programme had to be streamlined by merging certain activities and/or
focusing on six main areas covered by ESSnets: consistency of concepts and
methods, EGR, profiling large and complex multinational enterprise groups,
micro-data linking and data warehousing in statistical production, methodology
for business statistics, and the use of administrative and accounting data.
By
the end of 2013, these ESSnets accomplished an impressive amount of work within
areas such as EGR methodology, profiling, use of administrative data,
consistency of legal acts, data warehousing and data linking initiatives. The
most important outputs are methodological recommendations for a wide spectrum
of business and trade statistics related areas. The recommendations are meant
to facilitate the integration of data sets and might, if implemented, reduce
the statistical burden on businesses.
In
parallel, a substantial number of individual grants were used to support the
work of ESS members within areas such as EGR, linking of micro data, use of
administrative data, facilitation of data transfer from enterprises to NSIs, and
better use of administrative data and development of tools and methods for data
exchange in Intrastat.
A
limited number of contracts were awarded with the aim of acquiring services
within areas such as better data exchange systems in Intrastat, implementation
and testing of profiling, and development of EU sampling schemes to produce EU
aggregates.
Both
grants and contracts contributed to the output of the ESSnets, in the main by
preparing the methodology or by testing the feasibility. Furthermore, they have
led to improvements in the areas mentioned on national level.
The
benefits of the MEETS programme for the Union, Member States, providers and
users of related statistics are difficult to quantify, as returns on
investments will only materialise gradually over time. Most actions focused
directly or indirectly on improving efficiency in the production of business
statistics, e.g. through fostering integration, innovation of key production
processes and knowledge transfer across the ESS. Improving efficiency will
reduce the administrative burden for enterprises. This should be done in line
with the Commission’s on-going effort to improve Union legislation to stimulate
extra growth for the EU economy[9].
The MEETS programme was part of the statistical community’s contribution in
this respect.
Without
the MEETS programme, some Member States would have invested budget in the
modernisation of business and trade statistics in an uncoordinated way. This
would have produced results that would not have been comparable to those in
other EU Member States, making aggregation to European aggregates problematic.
Some Member States would not have taken appropriate action, and would be
lagging behind in developments in areas such as globalisation, and would have
been missing in the European picture. Some Member States would have duplicated
efforts, carrying out similar exercises and repeating mistakes. 
The
marginal costs of implementing approaches for successfully modernising systems
of business and trade statistics of some Member States might be lower than
developing completely new systems. Uncoordinated efforts would have led to a
situation where potential savings would not have been possible.
The
aim of the MEETS programme was not only to reduce the response burden, but also
to look into the possibility of creating new statistical production processes
and new statistical information, to stay relevant for users. New information
requirements might increase the response burden for different sectors. Also,
the re-engineering of statistical operations and statistical processes requires
further efforts and investments. 
To
fully exploit opportunities to provide the EU with better, relevant business
and trade statistics, while reducing the burden on businesses that statistics
generate, there was a need for investment to enable a renewed system to become operational.
Some new, more cost-effective data collection systems (by linking existing data
and alternative ways of collecting data other than traditional surveys) were
tested in a number of Member States with the aim of creating models applicable
for all. Sharing experiences and good practices (ESSnets) were the core of this
programme.
As
direct follow-up to the MEETS programme, Eurostat has launched a fundamental
revision and integration of business-related statistics via a common legal
framework for collecting, compiling, transmitting and disseminating statistics
on the economic activities of the business sector, FRIBS. Currently, Intrastat
is considered to be the most time-consuming area, imposing more than 50 %
of the entire statistical burden on businesses[10]. As part of
FRIBS, Eurostat’s aim is to reform Intrastat[11] by means of
the so-called international trade package or Single Market Statistics
(SIMSTAT). Special attention will be given to smaller EU Member States. This
tackles the simplification of Intrastat and the quality of related statistical
data.
[1]               Under
the terms of Article 6 of Decision No 1297/2008/EC of the European Parliament
and of the Council of 16 December 2008 on a Programme for the Modernisation of
European Enterprise and Trade Statistics (MEETS).
[2]               http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/MEETS_programme.
[3]               COM(2009)
404.
[4]               http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/MEETS_programme.
[5]               Including
internal transfers. Eurostat signalled in the Annual Activity Report 2010 an
exception regarding the use of MEETS credits on the budget of 2010. This
exception was taken into account in the calculation of the level of execution
of MEETS operational credits for the first two years.
[6]               The
legal basis was established by Regulation (EC) No 177/2008 of the European
Parliament and of the Council of 20 February 2008 establishing a common
framework for business registers for statistical purposes and repealing Council
Regulation (EEC) No 2186/93. OJ L 61, 5.3.2008, p. 6.
[7]               Eurostat,
Sturgeon, Timothy J.: Global Value Chains and Economic Globalisation — Towards
a new measurement framework. Luxembourg 2013.
[8]               http://epp.eurostat.ec.europa.eu/portal/page/portal/pgp_ess/about_ess/statistical_committees/dgins.
[9]               http://ec.europa.eu/smart-regulation/index_en.htm.
[10]             http://ec.europa.eu/smart-regulation/refit/admin_burden/docs/enterprise/files/abst09_statistics_en.pdf.
[11]             Regulation
(EC) No 638/2004 of the European Parliament and of the Council of 31 March 2004
relating to the trading of goods between Member States and repealing Council
Regulation (EEC) No 3330/91 (OJ L 102, 7.4.2004, p. 1).