1. Mission of EGR and legal framework ESTP Course on the EGR 3-4-5 December 2014 1. Mission of EGR and legal framework

What is EuroGroup Register? It is the statistical business register of multinational groups in the EU It is created by the cooperation between Eurostat and the national statistical offices of European Member States and EFTA countries, by pooling together micro data on legal units + cross border information on who controls whom It contains structural economic information on enterprises that are part of multinational groups with an interest in Europe

From preparatory studies… In June 2003 in Geneva, Statistics Canada organized a Seminar on globalization within the fifty-first plenary session of the Conference of European Statisticians: the MNE Project – Seeing the whole elephant! was launched The MNE Project was an experiment on measuring the activities of MNEs using a mirror exercise: measuring some economic data on individual enterprises in one country (traditional data collection) vis-à-vis measuring the same data from the top MNE (new top down data collection) Five national statistical institutes participated: Statistics Canada, INSEE (France), ISTAT (Italy), CBS (Netherlands), and ONS (UK). The results showed that it was necessary to start building an information systems integrating information across countries on MNE and share them to have better quality

… to the EGR As a follow up of the MNE Project in 2006 Eurostat launched the EGR Pilot project for the creation of a European Business Register on Multinational Enterprise Groups Consortium among Eurostat, CBS (Netherlands), ONS (UK), DESTATIS (Germany), KSH (Hungary) and a private IT company In 2008 Regulation (EC) N. 177/2008 on business registers allows micro data exchanges for the creation of the EGR EGR set up in 2008 (version 1.0) In 2011 the new concept of EGR (version 2.0) was launched (development is still on-going) Complete EGR 2.0 in 2015/2016 – all applications New project for 2014 – 2017, the ESBRs – European System of interoperable Business registers (coordinator Statistics Austria)

The EGR mission It is the statistical business register of multinational groups in the EU Its mission is to become the supranational statistical registers of multinational enterprise groups among MS in the ESS It will offer statistical compilers access to integrated and up-to-date statistical register on the enterprise groups which have relevant transnational operations (financial and non-financial) in at least one of the European countries

Purpose, accessibility, dissemination Statistical purpose The EGR is created for statistical purposes only To improve the quality of information on multinational groups to the ESS Accessibility to ESS The EGR frames are accessible to all European statistical authorities responsible for producing official statistics Dissemination via secure environment Data from the EGR is disseminated to MS only via secure means of the Commission

EGR use Coordination frame for all European statistical authorities, both National Statistical Institutes and National Central Banks, for sampling populations in the production of statistics on globalization, namely I-FATS O-FATS FDI Provide NSI cross border information on who controls whom across the different national statistical registers to support a better view on the global structure and activities of the enterprise groups in the EU and a better delineation of the statistical units at national level

Legal framework Business Registers – general overview 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

First group: general Article 1 Purpose Article 2 Definitions Article 3 Scope Article 4 Data sources Article 5 Register characteristics Article 6 Quality standards and reports Article 7 Recommendations manual Article 8 Time reference and periodicity Article 9 Transmission of reports

Second group: data exchange – MOST IMPORTANT Article 10 Exchange of confidential data between Member States Article 11 Exchange of confidential data between the Commission (Eurostat) and Member States Article 12 Exchange of confidential data between the Commission (Eurostat) and central banks Article 13 Confidentiality and access to identifiable data

Third group: final Article 14 Transition period and derogations Article 15 Implementing measures Article 16 Committee Article 17 Repeal Article 18 Entry into force

Article 1 Purpose This Regulation establishes a common framework for business registers for statistical purposes in the Community. one or more harmonised registers as a tool for the preparation and coordination of surveys as a source of information for the statistical analysis of the business population and its demography for the use of administrative data for the identification and construction of statistical units

Article 2 Definitions (a) ‘legal unit’, ‘enterprise’, ‘local unit’ and ‘enterprise group’ : Regulation No 696/93; (b) ‘national authorities’ (c) ‘statistical purposes’ (d) ‘multinational enterprise group’ : at least two enterprises or legal units located in different countries; (e) ‘truncated enterprise group’ : enterprises and the legal units in the same country. It may comprise only one unit, if the other units are non-resident. An enterprise may be the truncated enterprise group or part thereof.

Article 3 Scope Registers shall be compiled of: (a) all enterprises carrying on economic activities contributing to the gross domestic product (GDP), and their local units; (b) the legal units of which those enterprises consist; (c) truncated enterprise groups and multinational enterprise groups; (d) all-resident enterprise groups. The requirement in paragraph 1 shall not, however, apply to households insofar as the goods and services they produce are for their own consumption, or involve the letting of own property

Article 10 Exchange of confidential data between Member States May take place, exclusively for statistical purposes, between the appropriate national authorities of different Member States, in accordance with national legislation, where the exchange is to ensure the quality of the multinational enterprise group information National central banks may be party to the exchange in accordance with national legislation

EGR legal framework EP&C Regulation 177/2008 – Article 10 Statistical purpose of data exchanges Where it is to ensure the quality of the MNEs in the EU EP&C Regulation 177/2008 – Article 11 Data exchange between the Commission (Eurostat) and Statistical Offices EP&C Regulation 177/2008 – Article 12 Data exchange between the Commission (Eurostat) and the Central Banks Commission Regulation N. 192/2009 11 March 2009 Commission Regulation N. 1097/2010 26 Nov. 2010

Article 11 Exchange of confidential data between the Commission (Eurostat) and MS 1. National authorities transmit data on groups and their units to the Commission (Eurostat) 2. The Commission (Eurostat) transmit data on groups and their units to the appropriate national authorities of each MS, when at least one legal unit of the group is located in the territory of that Member State 3. Data transmitted is exclusively for statistical purposes - format, security, confidentiality measures, and procedure

Article 12 Exchange of confidential data between the Commission (Eurostat) and central banks Exclusively for statistical purposes, between the Commission (Eurostat) and NCB and ECB to ensure the quality of multinational enterprise group information where the exchange is explicitly authorised - format, security, confidentiality measures, and procedure

EGR network: Statistical BR Austria EU EuroGroups Register Statistical BR Belgium Statistical BR Switzerland Statistical BR Germany Statistical BR …….. Statistical BR Bulgaria Statistical BR Cyprus First time that Eurostat exchange (IN and OUT) micro data with 29 NSI and use them to create ONE SINGLE European product All data files are exchanged using eDamis and a double-encription procedure

Article 13 Confidentiality and access to identifiable data When receiving confidential data they shall that information confidentially Transmission of confidential data is necessary for the production of specific Community statistics Any further transmission must be explicitly authorised by the national authority that collected the data

Annex Units Legal units Enterprises Local Units Enterprise Groups List of characteristics Compulsory Optional or Conditional

COMMISSION REGULATION (EC) No 192/2009 implementing Regulation (EC) No 177/2008 as regards the exchange of confidential data between the Commission (Eurostat) and Member States

COMMISSION REGULATION (EU) No 1097/2010 implementing Regulation (EC) No 177/2008 as regards the exchange of confidential data between the Commission (Eurostat) and central banks

Thanks for your attention Questions? enrica.morganti@ec.europa.eu