The Macroeconomic Imbalances Procedure: Quality framework and reporting ESTP course - MIP Luxembourg 1-3 December 2015 Peter Parlasca and Ivana Jablonska

Outline Draft MIP regulation CMFB quality framework ESS-ESCB generic template for national reports Current reporting on metadata and quality Survey of existing quality information on MIP relevant statistics ESS quality reporting standards Proposal for a new standard on Inventories

Draft MIP Regulation Commission proposal for legal act on MIP quality 7 June 2013 Elements of the proposal related to statistics: Quality reports Inventories of data sources and methods Missions

CMFB quality framework The ESS and the ESCB responsible for the production of MIP relevant statistics Ensure the quality of these statistics ESS-ESCB communication and work programme Level 1: ESS-ESCB quality report Level 2: around 7 reports for MIP relevant domains Level 3: Reports of 28 MSs per MIP relevant domain Endorsed by ECOFIN Council on 7 Nov. 2014

CMFB quality framework (cont.) State of play Level 1 report: Finalised in 2015 – sent to ECOFIN in November Level 2 reports: To be developed based on generic template filled, deadline tbc Level 3 reports: generic template already available for bop/iip, for other domains to be developed during 2016

Level 3 work Mandate The July 2014 CMFB plenary meeting mandated the set-up of a Technical Group to design a "Generic template for national reports on statistics underlying the MIP indicators" Output presented in January 2015: A generic template applicable to all statistics

The generic template shall: Foster alignment of ESS and ESCB quality monitoring frameworks; Contribute to the overall quality assurance framework of the MIP related statistics; Provide information on quality, sources and methods + information on statistical processes in compliance with existing metadata standards (SDDS, SIMS)

Timeframe for further work FA templates End January 2016 – to be sent to CMFB HPI templates End May 2016 – to be sent to Eurostat LFS templates Ongoing

Current reporting on metadata and quality Draft MIP Regulation Requires Inventories of data sources and methods and Quality reports. Member States already provide Eurostat with inventories or quality reports GFS (EDP), GNI, LFS, BOP In accordance with existing legislation but are they comparable? For a few statistical domains there is no legal framework for quality assessment (e.g. FA, Employment data in NA).

Request to review Early 2013 the DMES called upon Eurostat to review the existing quality information of MIP relevant statistics Reuse existing domain specific information and make use of existing standards.

Survey of existing reporting In summer 2013 the MIP team carried out a survey to collect the existing quality information on MIP underlying statistics Idea to identify best practices, to identify areas of missing or incomplete information

Survey of existing reporting (cont.) Covered six statistical domains relevant for the MIP indicators: Balance of payments (BOP/IIP, share of world exports) National non-financial accounts (Nominal unit labour cost, GDP) National financial accounts (Total financial sector liabilities, private sector credit flow, private sector debt) Government finance statistics (GG gross debt) Price statistics (House price index) Labour statistics (Unemployment rate) The MIP indicator on Real effective exchange rate (REER) was not surveyed Cooperation with relevant Eurostat productions units

Survey of existing reporting (cont.) Balance of payments ‘BOP book’ – 2007 (ECB); Quality report – annual National non-financial accounts GNI Inventory – every 5 year; Quality report – annual OECD/Eurostat questionnaire on national accounts employment and hours worked National financial accounts Manual on sources and methods for the compilation of the ESA95 financial accounts – 2011; Euro Area quarterly financial accounts – annual quality report (ECB) Government finance statistics EDP Inventory – 2013; Questionnaire to the EDP notification – biannual Price statistics Quality report on HPI – from 2014 Labour statistics Quality report of the European Union - Labour Force Survey - annual

Outcome of survey Some quality information exists for MIP indicators either in the form of inventories or quality reports Situation is very heterogeneous across domains general consensus on the structure and content of an inventory of sources and methods contents of quality reports are much more diverse Most legal frameworks have explicit requirements for some quality reporting level of detail is very heterogeneous and not necessarily sufficient

Conclusions after survey Need further harmonisation building on existing quality frameworks Use of appropriate IT tools and also reporting standards

ESS reporting standards Euro-SDMX Metadata Structure (ESMS) ESS Standard for Quality Reports Structure (ESQRS) Single Integrated Metadata Structure (SIMS)

ESS reporting standards (cont.) ESMS broad but light information about statistical concepts used for the compilation of the statistics and summary information on quality – user oriented ESQRS mainly focused on statistical outputs – peer/producer oriented Proposal to develop a new standard focusing mainly on data sources and compilation processes and to link the existing inventories Drafted common template for Inventories (ESS Standard for Sources and Methods - ESSM) – peer/producer oriented

What is the situation in your country concerning publication of metadata and quality reports?