ECONOMIC CLASSIFICATIONS Advanced course Day 1 – first afternoon session National versions of NACE Rev.2 Zsófia Ercsey - KSH – Hungary Marie-Madeleine Fuger - INSEE – France Hans Van Hooff - CBS - Netherlands THE CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION

National versions of NACE Rev.2 Legal context • Use of NACE Rev.2 is mandatory within the European Statistical System (Regulation (EC) No 1893/2006 of 20 December 2006) • National versions are allowed. (Article 4 (1) from Regulation (EC) No 1893/2006) AMENDMENTS: - only exact breakdowns of NACE Rev.2 classes are admitted; - when no breakdowns, the same headings as the corresponding NACE Rev.2 classes; - Commission approval prior to national publication (Article 4 (2 and 3) from Regulation (EC) No 1893/2006)

National versions of NACE Rev.2 More AMENDMENTS: In the event of incompatibility between some NACE Rev. 2 headings and the national economic structure, the Commission may authorise a Member State to use an aggregation of NACE Rev. 2 headings in a specific sector. (Article 4 (4) from Regulation (EC) No 1893/2006)

National versions of NACE Rev.2 The options for changing NACE into a national version are: A. Creation of extra headings and levels, in practice a 5th digit level B. Merging NACE-headings

National versions of NACE Rev.2 But everyone thinks his activity is special and needs a fifth digit…………… To decide for national sub-classes: Is it worthwhile: extra costs and extra response burden? (external registers?) Only for statistics or also for administrative use? Only a few isolated splits or enough to add an extra level to NACE?

National versions of NACE Rev.2 Criteria for national sub-classes ► The relative importance of the activities concerned; ► A minimum size (qua turnover and employment); In NAF (France), sub-classes were allowed when either: Turnover > 2 billions € or employment > 15 000 persons ► new splits should not be too complicated or subtle; ► activities within the class should be similar, and clearly different from other classes; ► CPA headings linked to a sub-class represent the main production of units in the sub-class (homogeneity/heterogeneity) pools

National versions of NACE Rev.2 And of course: What will be the use: Statistical; Administrative (Chamber of Commerce, banks, authorities)…..maintenance? Alternative may be CPA…….

National versions of NACE Rev.2 Building process Step 1: Gathering the needs of the users; Step 2: Checking relevance of requests; Step 3: Proposal of national structure; Step 4: Analysis and approval by organisation responsible for the national activities classification; Step 5: Proposal of explanatory notes and final approval by organisation responsible for the national activities classification; Step 6: Checking of conformity to NACE Rev.2 by the Commission; Step 7: Adoption of the national legislation.

Merging NACE-headings National versions of NACE Rev.2 Merging NACE-headings If “incompatibility between certain NACE Rev. 2 headings and the national economic structure”. (Article 4 (4) from Regulation (EC) No 1893/2006) F.i.: pre-primary and primary education are combined in NL, so….. NACE 85 Education 85.1 Pre-primary education 85.10 Pre-primary education 85.2 Primary education 85.20 Primary education Dutch NACE (SBI) 85 Education 852 Primary and special education 8520 Primary and special education

National versions of NACE Rev.2 Discussion on leaving out empty NACE-classes in the national versions: The Netherlands has for instance no: 05 Mining of coal and lignite 07 Mining of metal ores In the national version? Two schools: Yes, to be international comparable and turn-over “zero” is also a statistical fact. No, the national version should really be national and reflect the national economy.

National versions of NACE Rev.2 Thank you!