MEE TSMEETS Modernisation of European Enterprise and Trade Statistics - MEETS and EGR Q2010 Conference in Quality Helsinki, May 2010 Eduardo Barredo Capelot

Problem statement New requirements for statistics emerge Reduction of response burden Limited or decreasing resources in national statistical authorities Need for efficiency gains at the ESS level Revision of outdated requirements New methods for producing statistics Initiative is needed to handle these changes efficiently Commission Communication (404) 2009 describing the vision for European statistics in the next decade 2

Communication (404) 2009 Fundamental dilemma between new demands (mostly multi-dimensional) and limited resources Only possible way forward – more efficient data production systems Integration – from stovepipes to integrated production systems – data warehouses and linking Use of data currently existing in the statistical system (warehouses and linking) and in the economy (admin data) – from collectors to re-users Development of joint “statistical infrastructure” (methodology, metadata, common revision, dissemination, etc.) ICT developments – current tools to be exchanged Legal and financial developments Cooperative networks - ESSnets 3

MEETS programme To move along the strategy mentioned above for the area of business and trade statistics Regulation of the European Parliament and of the Council of end 2008 on MEETS Articulated in annual programmes, which are adopted through Commission Decisions after endorsement by the ESS Committee The 2011 programme will be brought to BSDG in June 40 million euro; programme running until 2013 Strategy of the “elephant” – declined in objectives, programs and actions. Accompanied by FP7 BLUE project 4

5 Objectives of the MEETS programme -1 - To review priorities and develop target sets of indicators for new areas -2 - To achieve a streamlined framework for business-related statistics -3 - To support implementation of a more efficient way of producing enterprise and trade statistics -4 - To modernise Intrastat  Further broken down into ~ 25 projects

6 Objective 1 – Development of new areas of indicators and identification of areas of lesser importance define priority areas and define target set of indicators (globalisation, entrepreneurship); support Member States in developing and testing statistics in the priority areas in a harmonised manner (with financing); conduct a regular review of priorities, and identify areas and characteristics which are of lesser importance – not much success!.

Objective 2 – Action 2.1 – Integration of the legal framework and the methodology Review existing legal acts – ESSnet on consistency to be launched – analysis of statistical units, characteristics, variables, etc; Main objective – analysis of inconsistencies and possible proposals for changing legislation Launch studies aimed at harmonisation of methodologies Studies on consistency between areas of business and trade and balance of payments statistics 7

Objective 2 – Action 2.2 – Development of statistics on enterprise groups Complete the Community register of multinational enterprise groups - EGR Support of actions in Member States to develop more efficient data collection methods for enterprise groups Set up specific EU surveys on enterprise groups 8

Objective 3 – The implementation of smarter ways to collect data Action 3.1: make better use of data that already exist in the statistical system, including the possibility of estimations – support actions in Member States to create data warehouses, and methodological studies on linking data from different sources - ESSnet Action 3.2: make better use of data that already exist in the economy – support actions on the use of administrative data – ESSnet and individual grants Action 3.3: develop tools for a more efficient data production – support actions that facilitate the data transfer from enterprises to NSI 9

Objective 4 – the modernisation and simplification of Intrastat Action 4.1: analysis and reduction of asymmetries Action 4.2: better use of administrative data Action 4.3: data exchange 10

11 What is the EuroGroup Register EGR Central system

12 27 April Problem Statement The problem of The growing importance of multinational enterprises and a lack of information on globalization processes Affects Eurostat, NSIs, ECB and NCBs the impact of which is new ways of collecting of data and compiling statistics on enterprise groups, active in the EU, are needed a successful solution would  provide an infrastructure for the production of coordinated and consistent statistical output on globalisation  provide an infrastructure for co- ordinated statistical output at group level on globalisation related issues. 27 April

13 27 April EGR ambitions to become a platform that supports the production of micro based statistics on globalisation in Europe by offering compilers access to integrated and up-to-date register data on multinational enterprise groups by way of collecting, comparing and selecting information from different commercial and institutional sources the EGR provides a set of pooled information that allows compilers of statistics to organise the data collection and to produce statistics on the basis of shared and coordinated information basis.

14 The objectives “Seeing the whole elephant” Benefits: Units: have a common coordination frame on multinational groups  Identifying correct population in scope for surveys Variables: improve quality by sharing information available (only) at national level  Complete group structures and crucial variables (ex. UCI, etc.)  Major events of transformation Costs: coordinate the use (and acquisition) of commercial data  Avoid “double – buying”  Coordinated use of information about affiliates outside EU

15 What are the main stakeholders? All those compilers dealing with globalisation Inward and outward FATS Foreign Direct Investment External trade statistics

16 Brief History for EGR Project 2004: Feasibility Study of identifying and recording Multinational Enterprise Group 2006: Pilot project of EuroGroup Register (Prototype) 2008: Revised Business Register Regulation 177/2008  Data exchanges (micro level) CSP : Community statistical register on multinational enterprise groups The EGR is part of the MEETS Programme 2008: Start the EGR Project  ESSnet on EGR 2009: the EGR network is established  1° EGR Cycle: Data Exchange Eurostat/NSI  First population frame (ref. 2008)

17 Legal frame for Data Exchanges REGULATION (CE) N. 177/2008 OF THE PARLIAMENT AND THE COUNCIL 20 February 2008 Art. 11 Data Exchange b/w Commission (Eurostat) and National Statistical Institute Art. 12 Data Exchange b/w Commission (Eurostat) and National Central Banks Implementing Regulation N. 192/ March 2009 Implementing Regulation N. …./20…

18 First EGR Cycle in 2009 (Ref. Year 2008) Commercial Data Providers Duns & Bradstreet Bureau van Dijk EGR central system First data flow Second data flow Third data flow National registers Linking the units & assign unique ID Pair wise control relationships Repair groups’ structures & validation Year 2009/2010 1° EGR population Frame (Ref. Year 2008) February – April 2009 May – September 2009 December – March 2010

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20 Work conducted by countries - First data exchange – NSA linked units in data Sets to units in their registers, and evaluated the quality of the national ID - Second data exchange – NSA confirmed the status of LeU (active, duplicate, liquidated, inactive, etc.), and confirmed relationships between resident units and foreign parents (active, ceased, wrong, etc) They also added missing LeU and relationships - Third data exchange – identification of top 500 MNE (number of employees, subsidiaries located in several countries, threshold for member units) and identification of UCI

21 Information stored in the EGR (v.1.0) Legal Unit ID information Control relationship Ownership shares Enterprise Economic characteristics (Employment, Turnover, NACE Rev. 2, etc.) Multinational Groups Global Group Head (GGH) Ultimate Institutional Unit (UCI) Reporting Unit (RU) Nationality Starting with a population of 5000 EU MNEs Enlarge to EU MNEs

22 ESSnet on EuroGroups Register EGR workshop, April 2010 Rome 22 EGR Project: Actors & Roles IT company IT development of the Central system National Central Banks National Statistical Institutes ESSnet METHODOLOGY AND PROFILING TECHNICAL SPECIFICATION DATA QUALITY MANAGEMENT NETWORK EGR DISSEMINATION Data providers to NSI EGR Users/ stakeholders EGR national registers operations EGR users/ stakeholders EGR Programme Manager EGR Steering Group Working Group BR & Statistical Units BvD & Duns Bradstreet Commercial Data Sources Eurostat: EGR Central System operations Supervise ESSnet Manage contracts Coordination of stakeholders

23 ESSnet on EGR methodology ESSnet on EuroGroups Register EGR workshop, April 2010 Rome “The concept of the EGR ESSnet is that of a partnership of Member States cooperating to develop products and to disseminate the results to the whole ESS” ISTAT - Italy: Coordination Methodology Dissemination CBS – Netherlands: EGR business model Technical Specifications ONS – UK: Organisation of the Network Technical Guidelines ES – Estonia: Quality indicators & metrics /data analysis Legal basis: - Framework Partnership Agreement ISTAT- Eurostat (4 Years) - 3 Multi Beneficiary Grant Agreement (financing)

24 ESSnet on EuroGroups Register Documetation

Next steps October 2010: 1.Definition of the 2010 EGR population of MNEs 2.Main features and content of EGR version 2.0 FATS and FDI requirements 3.IT architecture EGR version 2.0 Remote access January 2012: Start implementation of EGR version