1. Directorate General for Economic and Financial Affairs
Eurostat Conference
Luxembourg, 15 October 2009
Data needs for analysis of market functioning in the EU and its Member States
Gert-Jan Koopman
Directorate General for Economic and Financial Affairs

2. Background The November 2007 Single Market Review
A need for concrete actions to modernise and complete the Single Market
Improved governance of the Single Market through evidence-based and impact-driven policy-making based on a better understanding of markets:
Acting where results will have a maximum impact
Acting when markets do not deliver
Assessing consequences of policy interventions
Identifying synergies between policy instruments

3. Market monitoring A new instrument for policy-making
Two stage analysis
Initial screening stage
In-depth analysis – food supply chain, electrical engineering, retail trade and pharmaceuticals

4. Market monitoring Highlights the importance of price data:
Price transmission along supply chains:
Commodity prices – Producer prices (i.e. net net prices) – Consumer prices (HICP)
More detailed price data
Cross-country comparisons

5. Prices along supply chains
From commodity prices to producer prices to consumer prices
A matching system of classification for these prices
Explaining how commodity and producer prices relate to consumer prices
Frequent price statistics, such as monthly data to better analyse price transmission along the chain

6. Real life example: prices evolution along the food supply chain
PRODUCERS’ LAG
120
FOOD PRICE CRISIS
RETAILERS’ LAG
STABILISATION
Food Producer Prices
115
Agricultural
Commodity Prices*
Food Consumer Prices
110
105
Overall inflation
(HICP)
100 95
2007M01
2007M02
2007M03
2007M04
2007M05
2007M06
2007M07
2007M08
2007M09
2007M10
2007M11
2007M12
2008M01
2008M02
2008M03
2008M04
2008M05
2008M06
2008M07
2008M08
2008M09
2008M10
2008M11
2008M12
2009M01
2009M02
2009M03
2009M04
2009M05
2009M06
2009M07
* Quarterly data for agricultural commodity price index; from January 2009, the index has been extrapolated based on price levels of major commodities available in Agriviews database
Source: EUROSTAT; AGRIVIEWS

7. Transparency of prices along the food supply chain
Recognised as key issue by European Parliament, Council and Commission as well as by stakeholders
Communication due out on the 28th October 2009
Simultaneous publication of European Food Prices monitoring tool
Call on National Statistical Offices to collect necessary data and work with the Commission

8. Detailed price data
Further disaggregation of existing price indices; specifically at NACE 3 level or equivalent COICOP category
For example: price data on milk, cheese and eggs and not just one figure for the entire dairy industry
Within reason, a limited number of homogenous consumer products and detailed prices would be desirable

9. Cross-country comparisons
Levels of commodity, producer and consumer prices
Consumer markets scoreboard project at the request of DG SANCO to collect consumer price level data on individual products
Especially important for the market monitoring exercise in order to assess market integration, price convergence and potential malfunctioning

10. Market monitoring – looking ahead
Manufacturing
Motor vehicles
Recycling/environmental technologies
Services
Construction
Hotels and restaurants
Health care and health industry systems
Electronic media
Intelligent (transport) network systems