Article 1 
1. Gross national income at market prices (GNI) and gross domestic product at market prices (GDP) shall be defined in accordance with the European system of national and regional accounts (ESA 95). 2. GDP is the final result of the production activity of resident producer units. It can be defined in three ways: (a) GDP is the sum of gross value added of the various institutional sectors or the various industries plus taxes and less subsidies on products (which are not allocated to sectors and industries). It is also the balancing item in the total economy production account; (b) GDP is the sum of final uses of goods and services by resident institutional units (actual final consumption and gross capital formation) plus exports and minus imports of goods and services; (c) GDP is the sum of uses in the total economy generation of income account (compensation of employees, taxes on production and imports less subsidies, gross operating surplus and mixed income of the total economy). 3. GNI represents total primary income receivable by resident institutional units: compensation of employees, taxes on production and imports less subsidies, property income (receivable less payable), gross operating surplus and gross mixed income. GNI equals GDP minus primary income payable by resident units to non-resident units plus primary income receivable by resident units from the rest of the world.
Article 2 
1. Member States shall establish GNI in accordance with Article 1 in the context of regular national accounting. 2. Before 22 September each year, Member States shall provide the Commission (Eurostat), in the context of national accounting procedures, with figures for aggregate GNI and its components, according to the definitions referred to in Article 1. Totals for GDP and its components may be presented according to the three approaches mentioned in Article 1(2). The figures provided shall cover the preceding year and any changes made to the figures for previous years. 3. When they communicate the data referred to in paragraph 2, Member States shall transmit a report on the quality of GNI data to the Commission (Eurostat). The report shall supply the information necessary to show how the aggregate was reached, and in particular describe any significant changes in the procedures and basic statistics used and explain the revisions made to earlier GNI estimates. The content and format of this report shall follow the guidelines laid down by the Commission in accordance with the procedure referred to in Article 4(2). Article 3 Member States shall provide the Commission (Eurostat), in accordance with the guidelines laid down by the latter and in accordance with the procedure referred to in Article 4(2), with an inventory of the procedures and basic statistics used to calculate GNI and its components according to ESA 95. Member States shall improve and update their inventory according to those guidelines.
Article 3 
Member States shall provide the Commission (Eurostat), in accordance with the guidelines laid down by the latter and in accordance with the procedure referred to in Article 4(2), with an inventory of the procedures and basic statistics used to calculate GNI and its components according to ESA 95. Member States shall improve and update their inventory according to those guidelines.
Article 4 
1. The Commission shall be assisted by a committee, hereinafter referred to as the "GNI Committee", composed of representatives of the Member States and chaired by the representative of the Commission. 2. Where reference is made to this paragraph, Articles 5 and 7 of Decision 1999/468/EC shall apply. The period laid down in Article 5(6) of Decision 1999/468/EC shall be set at three months. 3. The Committee shall adopt its rules of procedure. Article 5 1. The Commission shall verify the sources and methods used by Member States to calculate GNI. Measures to make GNI data more comparable, reliable and exhaustive shall be adopted in accordance with the procedure referred to in Article 4(2). 2. The GNI Committee shall examine questions raised by its Chairman, either on his own initiative or at the request of the representative of a Member State, relating to the implementation of this Regulation, in particular with regard to: (a) compliance each year with the definitions referred to in Article 1; (b) the examination each year of the data forwarded under the terms of Article 2(2) and the information forwarded under the terms of Article 2(3) concerning the statistical sources and the procedures for calculating GNI and its components. This examination shall lead to a GNI Committee opinion on the appropriateness of Member States' GNI data for own resource purposes with respect to reliability, comparability and exhaustiveness. This opinion will indicate the main documents on which the examination is based. Reliability, comparability and exhaustiveness of GNI and its components must be assessed taking account of the cost-benefit principle. In this context, the cost-benefit principle entails a judgment on the potential size and significance of specific activities or transactions based on whatever information is available. This information is often qualitative, though it may be quantitative in some cases. The Commission (Eurostat) examines the comparability in the treatment of similar cases in the Member States and reports to the GNI Committee on all cases where the cost-benefit principle is considered to apply. The application of this principle should avoid committing disproportionate resources to calculate insignificant items; (c) expressing its views, without prejudice to Article 4, on Commission proposals aiming to improve GNI calculations, including interpreting ESA 95 definitions where necessary and quantifying the impact of these proposals on GNI. 3. The GNI Committee shall dedicate particular efforts to the improvement of Member States' GNI compilation practices and to the dissemination of best practices in this domain. It shall also deal with questions relating to the revision of GNI data and the problem of the exhaustiveness of GNI. It shall, if necessary, suggest to the Commission measures to make GNI data more comparable and more reliable. Article 6 Without prejudice to the inspections provided for in Article 19 of Regulation (EC, Euratom) No 1150/2000(8), joint GNI information visits may, where deemed appropriate, be carried out in Member States by the Commission's services and representatives from other Member States in consultation with the Member States visited. The participation of Member States in these visits is voluntary.
Article 5 
1. The Commission shall verify the sources and methods used by Member States to calculate GNI. Measures to make GNI data more comparable, reliable and exhaustive shall be adopted in accordance with the procedure referred to in Article 4(2). 2. The GNI Committee shall examine questions raised by its Chairman, either on his own initiative or at the request of the representative of a Member State, relating to the implementation of this Regulation, in particular with regard to: (a) compliance each year with the definitions referred to in Article 1; (b) the examination each year of the data forwarded under the terms of Article 2(2) and the information forwarded under the terms of Article 2(3) concerning the statistical sources and the procedures for calculating GNI and its components. This examination shall lead to a GNI Committee opinion on the appropriateness of Member States' GNI data for own resource purposes with respect to reliability, comparability and exhaustiveness. This opinion will indicate the main documents on which the examination is based. Reliability, comparability and exhaustiveness of GNI and its components must be assessed taking account of the cost-benefit principle. In this context, the cost-benefit principle entails a judgment on the potential size and significance of specific activities or transactions based on whatever information is available. This information is often qualitative, though it may be quantitative in some cases. The Commission (Eurostat) examines the comparability in the treatment of similar cases in the Member States and reports to the GNI Committee on all cases where the cost-benefit principle is considered to apply. The application of this principle should avoid committing disproportionate resources to calculate insignificant items; (c) expressing its views, without prejudice to Article 4, on Commission proposals aiming to improve GNI calculations, including interpreting ESA 95 definitions where necessary and quantifying the impact of these proposals on GNI. 3. The GNI Committee shall dedicate particular efforts to the improvement of Member States' GNI compilation practices and to the dissemination of best practices in this domain. It shall also deal with questions relating to the revision of GNI data and the problem of the exhaustiveness of GNI. It shall, if necessary, suggest to the Commission measures to make GNI data more comparable and more reliable. Article 6 Without prejudice to the inspections provided for in Article 19 of Regulation (EC, Euratom) No 1150/2000(8), joint GNI information visits may, where deemed appropriate, be carried out in Member States by the Commission's services and representatives from other Member States in consultation with the Member States visited. The participation of Member States in these visits is voluntary.
Article 6 
Without prejudice to the inspections provided for in Article 19 of Regulation (EC, Euratom) No 1150/2000(8), joint GNI information visits may, where deemed appropriate, be carried out in Member States by the Commission's services and representatives from other Member States in consultation with the Member States visited. The participation of Member States in these visits is voluntary.
Article 7 
Before the end of 2005, the Commission shall submit a report on the application of this Regulation to the European Parliament and to the Council. Article 8 This Regulation shall enter into force on the day 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, 15 July 2003. For the Council The President G. Tremonti (1) OJ L 253, 7.10.2000, p. 42. (2) OJ C 45 E, 25.2.2003, p. 61. (3) Opinion of 12 March 2003 (not yet published in the Official Journal). (4) OJ L 310, 30.11.1996, p. 1. Regulation as last amended by Regulation (EC) No 359/2002 of the European Parliament and of the Council (OJ L 58, 28.2.2002, p. 1). (5) OJ L 49, 21.2.1989, p. 26. (6) OJ L 184, 17.7.1999, p. 23. (7) OJ L 181, 28.6.1989, p. 47. (8) OJ L 130, 31.5.2000, p. 1.
Article 8 
This Regulation shall enter into force on the day 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, 15 July 2003