1. PROPOSALS OF CHANGE IN NACE REV.2
Item 6.5 of agenda Standards Working Group Meeting July Luxembourg
Ana Franco
Eurostat, Unit B.5
Data and Metadata Services and Standards

2. Background
Statistical classification of economic activities (NACE Rev. 2) dates from 2006
Changes in the economic structures and organisation as well as technological developments give rise to new activities and products
Several Member States have informally informed Eurostat that the relevance of NACE Rev. 2 is diminishing and that some parts of the classification do not describe accurately the present economy.
For this reason, Eurostat have conducted a first consultation of the EU Member States on the needs for change.

3. The consultation Conducted between the 7/2/2018 and the 7/3/2018
26 countries out of the 28 Member States answer
Five Member States did not have any proposals of change
395 proposals of change
We have made a first classification in terms of type of proposal:
Split,
aggregation,
deletion of codes,
new code,
restructuration,
improvement of explanatory notes,
correction of mistakes and
other change

4. Main messages from the consultation (1)
Completeness/exhaustiveness of the classification
New activities
Update of the explanatory notes or case laws
The production process and the technology used is rather different from any existing class and a new class/group could be relevant
Most changes took place in IT
Internet trade
Internet retail trade is a different activity from the usual retail trade in stores, stalls or markets.
Most companies have both channels and are therefore classified in sales via internet – incomplete picture and loss of detail
Need to have internet sales for wholesale also

5. Main messages from the consultation (2)
Completeness/exhaustiveness of the classification
Activities based on digital platforms
Enterprises putting in contact customers and providers of services
IT services are increasingly being produced outside the traditional IT industries
New web based activities
Internet of things
Misclassification of certain activities due to their numerical or cyber dimension (Deezer, Art2M, KazoArt)
Residual classes

6. Main messages from the consultation (3)
Activities that gained or lost importance
Services have grown in all countries but the classification do not reflect this
Some activities have raised their importance
Language teaching
Aerospace
Photovoltaic products and equipment
Production of electricity from renewable sources
Game industry
Storage of energy
Some industries have lost importance
Printing and reproduction of recorded media
Retail sale of music and video recordings in specialized stores
Rental of video tapes and disks
Repair of personal and household goods

7. Main messages from the consultation (4)
Profit of the revision to correct errors
Blur areas: clarify these issues either by a better delimitation of classes or by a restructuration of the classification
Improve consistency with other classifications
CPA
ISCED
ESA – Have more granularity in Division K
PRODCOM and CN
Factory less goods producers
Section remarks

8. Groups split Group 1 BG, EE, NO, FR, IT, NL, PL, SI, IE, ME and AL
AT, CZ, DK, ES, HR, LV, MK, RO, RS, TR, UK and SK
Group 3
BE, DE, CH, FI, HU, LT, MT, PT, SE, LU, BA and XK
Each group should have a rapporteur
30 minutes of discussion

9. Discussion
Would we need a revision or an update of the classification?
If yes, what would be the scope of this revision or update?
What are the main aspects of the present classification that would need to be revised?