KLEMS, the ESA, and Eurostat Jukka Jalava Unit C2: National accounts – Production Eurostat/European Commission

EU KLEMS – from research to statistics In July 2007, the ECOFIN Council underlined the relevance of the project for productivity and growth analysis and invited the Commission (Eurostat) to develop an appropriate implementation and financing plan in cooperation with the NSIs in order to make progress and proceed towards the fulfilment of the primary objectives established in the genesis of the project and to report to the ECOFIN Council for further endorsement. The EU KLEMS Task Force explored the issues underlined by the ECOFIN Council conclusions and contributed to the input for the EU KLEMS Implementation Plan prepared by Eurostat. On 4 November 2008, the ECOFIN Council welcomed the report on the progress on the EU KLEMS project and underlined the importance of changing the nature of the EU KLEMS from a research driven project to an ESS project. It called upon Member States and Eurostat to further elaborate its details, including the question of financing and quality aspects to set up the necessary actions.

Implementation plan three layer approach: –the first layer will mainly consist in data already transmitted according to the ESA95 transmission programme –which will be complemented, in the second layer by additional official statistics –while the third layer will consist in an analytical module encompassing growth accounting A step-by-step approach to translate the Implementation Plan into concrete activities starting with a more limited but relatively timely dataset that would then be complemented as more detailed data become available in accordance with the ESA transmission programme.

Financial issues the maintenance of the EU KLEMS Consortium database until 2012 should be ensured as a by-product of the 7th EU Framework Programme – World Input- Output Database WIOD project. Eurostat set up appropriate actions (grants) to co- finance projects for the implementation of statistical modules for EU KLEMS in MS (to set up the system and start the production of data) – total amount in : 750 k (+ further grants on NACE Rev.2 revision, balance sheets, etc.) Follow up on the political commitments given by Member States

K & L & EMS K: Forthcoming TF on Capital services L: Eurostat has started to investigate the possible synergies between national accounts and other relevant official statistics, in particular by bridging national accounts data and labour market statistics indicators for quantifying labour services EMS:Considerable progress has been made in the compilation of Supply and Use tables (EU27: , at basic prices, 60 products by 60 industries) in the framework of the joint Eurostat-Institute for Prospective Technological Studies (one of the European Commissions Joint Research Centres seven scientific institutes) project. Also cooperation with Groningen University on consolidating intra EU trade in use tables

Revised transmission programme (2014-) Still under discussion, but Eurostat proposed in May 2010 to include elements to facilitate compilation of EU KLEMS statistics, notably: –Increase amount of compulsory items in non-financial balance sheets (at present only dwellings compulsory) to include also produced non-financial assets (t26) –Require breakdown of ICT equipment into computer hardware & telecommunications equipment as well as to show computer software and databases separately from total intellectual property products; in annual tables for gfcf (t20) and fixed assets (t22), however, only at total economy level –Negative priorities?

New IT architecture A specific module of the new NAPS (National Accounts Production System) is dedicated to EU KLEMS and should be available in June The NAPS project is now into year 2 (of 4), and therefore still work in progress.

NACE Rev.2 Progressively introduced already in basic statistics and will be introduced in national accounts starting in September 2011 (for backdata in September 2012); Regulation 715/2010 –New industry and product aggregations levels: 3, 10, 21, 38 and 64

Next steps Finalise conceptual issues Progress on IT issues; coding, etc Environmental dimension? 2012 medium-term target for preliminary EU KLEMS database in Eurostat