Directorate General for Economic and Financial Affairs Eurostat Conference Luxembourg, 15 October 2009 Data needs for analysis of market functioning in the EU and its Member States Gert-Jan Koopman Directorate General for Economic and Financial Affairs

Background The November 2007 Single Market Review A need for concrete actions to modernise and complete the Single Market Improved governance of the Single Market through evidence-based and impact-driven policy-making based on a better understanding of markets: Acting where results will have a maximum impact Acting when markets do not deliver Assessing consequences of policy interventions Identifying synergies between policy instruments

Market monitoring A new instrument for policy-making Two stage analysis Initial screening stage In-depth analysis – food supply chain, electrical engineering, retail trade and pharmaceuticals

Market monitoring Highlights the importance of price data: Price transmission along supply chains: Commodity prices – Producer prices (i.e. net net prices) – Consumer prices (HICP) More detailed price data Cross-country comparisons

Prices along supply chains From commodity prices to producer prices to consumer prices A matching system of classification for these prices Explaining how commodity and producer prices relate to consumer prices Frequent price statistics, such as monthly data to better analyse price transmission along the chain

Real life example: prices evolution along the food supply chain PRODUCERS’ LAG 120 FOOD PRICE CRISIS RETAILERS’ LAG STABILISATION Food Producer Prices 115 Agricultural Commodity Prices* Food Consumer Prices 110 105 Overall inflation (HICP) 100 95 2007M01 2007M02 2007M03 2007M04 2007M05 2007M06 2007M07 2007M08 2007M09 2007M10 2007M11 2007M12 2008M01 2008M02 2008M03 2008M04 2008M05 2008M06 2008M07 2008M08 2008M09 2008M10 2008M11 2008M12 2009M01 2009M02 2009M03 2009M04 2009M05 2009M06 2009M07 * Quarterly data for agricultural commodity price index; from January 2009, the index has been extrapolated based on price levels of major commodities available in Agriviews database Source: EUROSTAT; AGRIVIEWS

Transparency of prices along the food supply chain Recognised as key issue by European Parliament, Council and Commission as well as by stakeholders Communication due out on the 28th October 2009 Simultaneous publication of European Food Prices monitoring tool Call on National Statistical Offices to collect necessary data and work with the Commission

Detailed price data Further disaggregation of existing price indices; specifically at NACE 3 level or equivalent COICOP category For example: price data on milk, cheese and eggs and not just one figure for the entire dairy industry Within reason, a limited number of homogenous consumer products and detailed prices would be desirable

Cross-country comparisons Levels of commodity, producer and consumer prices Consumer markets scoreboard project at the request of DG SANCO to collect consumer price level data on individual products Especially important for the market monitoring exercise in order to assess market integration, price convergence and potential malfunctioning

Market monitoring – looking ahead Manufacturing Motor vehicles Recycling/environmental technologies Services Construction Hotels and restaurants Health care and health industry systems Electronic media Intelligent (transport) network systems