1. A register on Multinational Enterprise groups
EUROGROUPS REGISTER
A register on Multinational Enterprise groups
Wiesbaden 22 April 2008

2. Content The EuroGroups Register (EGR) State of the art of the project
Background
Objectives
Benefits
Content
Process
State of the art of the project
Some reflections on the future
Wiesbaden 22 April 2008

3. Background
Need for figures on impact of Multi National Enterprise groups (MNE’s) on national economies.
How to assure an accurate measurement?
Worldwide statistical office or ways of working based on sharing information provided by a headquarter of an MNE?
A register of MNE’s: an instrument for a better measurement.
Wiesbaden 22 April 2008

4. Legal basis
Regulation (No 177/2008) of the EP and the Council on a business register for statistical purposes
Follow up: implementing regulations on:
Exchange of confidential data between Eurostat and National Statistical Institutes, National Banks and ECB
Measures related to data quality management
Wiesbaden 22 April 2008

5. Objectives of the EGR
A unique platform to organise, coordinate and support of data collection and production of statistics on globalisation in Member States and Eurostat
A unique facility for integration and sharing of data from different sources
Facility for taking coordinated decisions on survey frames
A basis to produce demographic statistics on MNE’s
Wiesbaden 22 April 2008

6. EGR: an efficient solution
Design based on integration of data from different sources (private as well as public)
At least 2 private sources
(using the same commercially successful concept: integrating data from different sources complemented with own data quality management)
National statistical organisations as source
Wiesbaden 22 April 2008

7. EGR: an efficient solution
Cost efficient acquisition of commercial data by central procurement
Cost efficient development and operation of technical infrastructure for integrating data from several sources
A standardised data model reducing communication costs with statistical organisations as well as MNE’s
Wiesbaden 22 April 2008

8. EGR: an effective solution
Survey frames can be co-ordinated by facilitating decision procedures on the basis of the subsidiarity principle.
For Inward and outward FATS:
Ultimate Controlling Institutional unit (UCI)
Wiesbaden 22 April 2008

9. An example: Carnival
Carnival Corporation (USA) and Carnival plc (UK) function as a single economic entity (= 1 MNE) through contractual agreements between separate legal entities
In database of private sources: 2 MNE’s
In Germany: AIDA
UK = country of UCI (according to BvD)
In United Kingdom: Carnival plc (head) and subsidiaries: P&O
UK = country of UCI (according to DnB). After UK investigation of public sources: USA = country of UCI
Conclusion: without sharing information/decisions population frames and FATS statistics will show over- and under coverage
Wiesbaden 22 April 2008

10. Content of the EGR World wide structure of MNE’s which operate in EU
Control relationships
Share holder information (10% or more)
Main units
Global enterprise group
National enterprise group
Enterprise (EU)
Legal units
Main characteristics:
Activity
Persons employed
Turnover
Balance sheet total
Country of UCI
Institutional sector
Wiesbaden 22 April 2008

11. Flow of information INPUT OUTPUT EGR network Data from NSI & NCB Data
Data quality
management
Data on
enterprise
groups By
Eurostat: By
NSI/NCB:
Integrated
network of
EU and
national
EuroGroups
Registers
Data
import,
standardisation,
transformation,
linking,
integration
NSI
Data
checking
and
completion
NCB
Data
from
commercial
providers
Eurostat
ECB
Data collection
Standardisation
Linking
Integration
Data
checking
Compilation of
population
frames
Use of
population
frames
19 December 2007

12. Time table November 2008 December 2008 February 2009 April 2009
October 2009
Acquisition of commercial data on 5000 largest enterprise groups (2 providers)
Start with the EGR operations
Start with the process of matching of the units in the EGR with the units in the national registers
Start with data quality management
First population frame of MNE’s available according to the situation end of 2008
Wiesbaden 22 April 2008

13. Some reflections on the future
Extending sharing register data on MNE’s with important and ‘safe’ non-EU countries? (discussion platform: Wiesbaden group).
Relevancy and quality of statistics can be improved by using ‘Business profiling’ for the top 500 MNE’s.
The development of a reference database with data from consolidated yearly accounts for the top 500 MNE’s could support the national compilers to produce national statistics which are mutually consistent.
Wiesbaden 22 April 2008