PROPOSALS OF CHANGE IN NACE REV.2 Item 6.5 of agenda Standards Working Group Meeting July 2018 - Luxembourg Ana Franco Eurostat, Unit B.5 Data and Metadata Services and Standards

Background Statistical classification of economic activities (NACE Rev. 2) dates from 2006 Changes in the economic structures and organisation as well as technological developments give rise to new activities and products Several Member States have informally informed Eurostat that the relevance of NACE Rev. 2 is diminishing and that some parts of the classification do not describe accurately the present economy. For this reason, Eurostat have conducted a first consultation of the EU Member States on the needs for change.

The consultation Conducted between the 7/2/2018 and the 7/3/2018 26 countries out of the 28 Member States answer Five Member States did not have any proposals of change 395 proposals of change We have made a first classification in terms of type of proposal: Split, aggregation, deletion of codes, new code, restructuration, improvement of explanatory notes, correction of mistakes and other change

Main messages from the consultation (1) Completeness/exhaustiveness of the classification New activities Update of the explanatory notes or case laws The production process and the technology used is rather different from any existing class and a new class/group could be relevant Most changes took place in IT Internet trade Internet retail trade is a different activity from the usual retail trade in stores, stalls or markets. Most companies have both channels and are therefore classified in sales via internet – incomplete picture and loss of detail Need to have internet sales for wholesale also

Main messages from the consultation (2) Completeness/exhaustiveness of the classification Activities based on digital platforms Enterprises putting in contact customers and providers of services IT services are increasingly being produced outside the traditional IT industries New web based activities Internet of things Misclassification of certain activities due to their numerical or cyber dimension (Deezer, Art2M, KazoArt) Residual classes

Main messages from the consultation (3) Activities that gained or lost importance Services have grown in all countries but the classification do not reflect this Some activities have raised their importance Language teaching Aerospace Photovoltaic products and equipment Production of electricity from renewable sources Game industry Storage of energy Some industries have lost importance Printing and reproduction of recorded media Retail sale of music and video recordings in specialized stores Rental of video tapes and disks Repair of personal and household goods

Main messages from the consultation (4) Profit of the revision to correct errors Blur areas: clarify these issues either by a better delimitation of classes or by a restructuration of the classification Improve consistency with other classifications CPA ISCED ESA – Have more granularity in Division K PRODCOM and CN Factory less goods producers Section remarks

Groups split Group 1 BG, EE, NO, FR, IT, NL, PL, SI, IE, ME and AL AT, CZ, DK, ES, HR, LV, MK, RO, RS, TR, UK and SK Group 3 BE, DE, CH, FI, HU, LT, MT, PT, SE, LU, BA and XK Each group should have a rapporteur 30 minutes of discussion

Discussion Would we need a revision or an update of the classification? If yes, what would be the scope of this revision or update? What are the main aspects of the present classification that would need to be revised?