1. Item 19a: European Sector Accounts
ESTP course on National Accounts ESA 2010
Luxembourg, 30 May - 03 June Eurostat

2. Content Purpose of the Sector Accounts
Overview of compilation of the European Sector Accounts
Data dissemination and data sharing with the international organisations
Future prospects

3. 1. Purpose of the Sector Accounts
To analyse the behaviour of economic agents, in particular how their income is:
earned, spent, saved
Transactions (non-financial)
Covered (in this session):
Goods and Services
Distributive transactions

4. 1. Purpose of the Sector Accounts
The matrix lay-out
Example: the sector accounts of BE, See hand out # 1

5. 1. Purpose of the Sector Accounts
Key indicators
Households
Saving rate: Gross Saving/(GDI + D8net)
Investment rate: GFCF/(GDI + D8net)
Non-financial corporations
Investment rate: GFCF/GVA
Profit share: GOS/GVA

7. Business profit share 7

8. 2. Overview of compilation of the European Sec.Acc
from national to European accounts
Data transmission to Eurostat:
Annual financial and non-financial Sector Accounts – countries are obliged (according to ESA 2010 TP) to submit full set of sector accounts by t+9 months with minimum time-span from 1995 onwards;
Quarterly non-financial Sector Accounts – countries are obliged (according to Regulation 1161/2005) to submit set of sector accounts by t+85 (EA countries) and t+3m (EA finalized & non-EA countries), with minimum time-span from 1999Q1 onwards;
Confidentiality of data is determined by the use of flags. Data sent by the countries as free for publication are shared with other international organisations (ECB & OECD).

9. 2. Overview of compilation of the European Sec.Acc
from national to European accounts
The compilation of European aggregates (ESA 2010, Chapter 19):
conversion to euro;
estimation of missing (small) countries;
incorporation of the European institutions;

10. 2. Overview of compilation of the European Sec.Acc
from national to European accounts
EU Institutions
ECB resident of the euro area and EU (sector S12)
ESM resident of the euro area and EU (sector S12)
EIB resident of the EU (sector S12) but not euro area
European institutions whose accounts are recorded in the General Budget are resident of the EU but not euro area (sector S13)

11. 2. Overview of compilation of the European Sec.Acc
from national to European accounts
The compilation of European aggregates (ESA 2010, Chapter 19):
conversion to euro;
estimation of missing (small) countries;
incorporation of the European institutions;
consolidation of intra-euro area / EU flows;

12. 2. Overview of compilation of the European Sec.Acc
from national to European accounts
The RoW
The European RoW should gather flows between European residents and third countries =>
European RoW ≠ Σ National RoWs
« Intra-flows » between European residents are:
(1) estimated using the BoP geographical breakdown
(2) removed from the summation of national RoWs

13. 2. Overview of compilation of the European Sec.Acc
from national to European accounts
Before consolidation
After consolidation

14. 2. Overview of compilation of the European Sec.Acc
from national to European accounts
The RoW: example
Compensation of employees paid to the RoW
D1 / S2 / uses = 26,5 billion € (see hand-out #2)
BoP310 / credits / Intra-EU = 14,1 billion €
BoP310 / credits / Extra-EU = 11,3 billion €
=> EU/D1/S2-Intra/uses = 14,7 billion €
=> EU/D1/S2-Extra/uses = 11,8 billion €

15. 2. Overview of compilation of the European Sec.Acc
from national to European accounts
Asymmetries
Definition: Intra_resources – Intra_uses
Example:
EU/D1/S2-Intra/uses = 14,7 billion €
EU/D1/S2-Intra/resources = 18,1 billion €
Asymmetries for D = 3,5 billion €
European sector accounts do not balance
Asymmetries must be allocated to sectors to re- balance the accounts =>
European accounts ≠ Σ national accounts
(even for domestic sectors)

16. 2. Overview of compilation of the European Sec.Acc
from national to European accounts
The compilation of European aggregates (ESA 2010, Chapter 19):
conversion to euro;
estimation of missing (small) countries;
incorporation of the European institutions;
consolidation of intra- euro area / EU flows;
re-balancing of the accounts; and
seasonal adjustment of key series.

17. 2. Overview of compilation of the European Sec.Acc
from national to European accounts
Example: European accounts unbalanced
See hand-out #2
European sector accounts balanced
See hand-out #3
Based on the two hand-outs provided, calculate:
the European (EU) GDP and GNI before balancing
the European (EU) GDP and GNI after balancing

18. 3. Data dissemination and data sharing with the international organisations;
Annual financial and non-financial Sector Accounts EA/EU key indicators released by around t+10 months. Key indicators includes:
Households: saving rate, investment rate and debt-to-income ratio, net financial asset ratio;
Businesses: profit share, investment rate, debt-to-income ratio, return on capital employed, return on equity;
Quarterly non-financial Sector Accounts EA/EU data:
releases at around t+102 days (preliminary), including news releases (hand-out # 4 & 5) (seasonally adjusted), on:
Households: saving rate and investment rate;
Businesses: profit share and investment rate.
release at around t+120 days (final), including (hand-out # 6) (seasonally adjusted):
Households: real income and real consumption per capita;
ECB publishes Quarterly Financial Sector Accounts for EA at around t+120 days

19. In cooperation with the Member States:
4. Future prospects
In cooperation with the Member States:
Improve the timeliness.
In cooperation with the Member States and OECD, give more attention to the household perspective, and in particular on the distributional aspects (t+120 press release/ Stiglitz-Fitoussi-Sen report).

20. Thanks for your attention!!
For more information, please visit our dedicated Eurostat's website on the Sector Accounts at: