Explanatory Memorandum to COM(2007)625 - European Statistics

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dossier COM(2007)625 - European Statistics.
source COM(2007)625 EN
date 16-10-2007
1. CONTEXT OF THE PROPOSAL

- General context

Official statistics play a fundamental role in today's society. Institutions, policy makers, economic operators, markets and individuals rely heavily on high quality statistics to describe as accurately as possible the developments in the economic, social, environmental and cultural spheres. The pace of these developments has an impact both on (i) the users of statistics, in that their information needs evolve rapidly, which means they require easy and timely access to statistical information, and on (ii) the statistical authorities, in that they need to adapt the statistical information produced to users' requirements. The availability of impartial and objective statistical information is essential for all decision-makers: for policy-makers to take well informed decisions, for business operators to run their business or simply for citizens in their daily life. Statistical information underpins transparency and openness of policy decisions, and official statistics therefore represent a public good providing a basis for the smooth functioning of democracy. Essential elements for producing such statistical information are clear structures for the functioning of statistical authorities, combined with arrangements for international cooperation, dissemination of statistical information and communication with users.

At European level, European Statistics are increasingly important for the development, implementation, monitoring and evaluation of European Union policies. The importance of European Statistics will increase even further in the future as EU policies themselves are developed. For example, reliable information to assess macroeconomic developments such as inflation, economic growth and the business cycle in general constitutes an absolute necessity in order to enable the coordination and deepened economic policy coordination among Member States. Furthermore, in order to achieve the strategic objectives of keeping Europe on the path to long-term prosperity, notably through the revised Lisbon Agenda and the integrated guidelines on growth and employment, or of reinforcing our commitment to solidarity and social justice, Europe needs a plethora of statistical data which meet the highest possible standards in terms of quality.

European Statistics thus constitute an essential contribution to building the information capacity required to sustain EU strategic objectives and the underlying policies and supporting instruments.

- Grounds for and objectives of the proposal

The objective of this proposal is to revise the existing basic legal framework governing the production of statistics at European level. In essence, this revision is led by changes in society and the need to more clearly define the role of the European Statistical System (ESS).

The production and dissemination of European Statistics are achieved through the ESS, which is the operational partnership comprising the Statistical Office of the European Communities (Eurostat), the National Statistical Institutes (NSIs) and other national or regional authorities responsible in each Member State for producing and disseminating European Statistics. European Statistics are provided also by the European Central Bank (ECB) and by the European System of Central Banks (ESCB), although it is under a separate statistical governance structure and different rules i. However, in order to enhance efficiency, reduce the statistical burden and improve quality, the close cooperation between the ESS and the ESCB must be strengthened while fully respecting their respective competences.

As noted on many occasions by both the Council and the Commission, the ESS operates efficiently and satisfies the requirements of independence, integrity and accountability. In addition to the quality of the ESS outputs, its governance has also been improved in recent years, in particular through the adoption and subsequent implementation of the European Statistics Code of Practice i. The proposals to set up a European Statistical Governance Advisory Board i and a European Statistical Advisory Committee i are also steps towards enhancing and complementing the existing governance of the ESS.

However, even if these recent developments give proof of a dynamic reality with tangible achievements, they also make even more clear the need to consolidate in Community law the institutional structure of the ESS, to re-define clearly its responsibilities and principles as well as to simplify its underpinning structures in order to enable it to better respond to the many challenges that lie ahead. In particular, the coordination and professional leadership functions of the NSIs at national level, and of Eurostat at Commission level, should be reinforced. Common answers are needed to address the increasing demands for European Statistics and to set priorities in a context where resources are becoming more and more limited.

At the same time, the role and responsibilities of Eurostat towards its national partners requires re-confirmation in order to increase the efficiency of the ESS on a basis of mutual understanding and trust. Eurostat has a primary role as the vehicle for transmitting the statistical needs of Europe's policy-makers to the statistical partners in the Member States whilst at the same time bridging the divide between what is demanded and what is feasible and realistic.

The proposal for a 'European Approach to Statistics' will enable Eurostat to respond to the challenge of ever-increasing demands for statistics. This approach whereby the production and dissemination of European Totals does not need to rely entirely on national data produced and disseminated by all NSIs represents a significant change in the structure of data collection.

Furthermore, there is a strong request from the research community to enjoy a wider access to statistical information for analysis in the interest of scientific progress in Europe. This calls for a certain degree of flexibility in the statistical confidentiality regime to allow controlled access to detailed statistical data without compromising the high level of protection that confidential statistical data require. The exchange of confidential data within the ESS and the rules for access to such data for research purposes are essential elements in this regard and require modernisation of the current legal requirements.

Finally, the revision of the basic legal framework will give a new impetus to the established cooperation between the NSIs and Eurostat in the common interest of all the ESS actors and the users of European Statistics, and to laying down the foundation to address the statistical challenges of the future.

- Existing provisions in the area of the proposal

The basic legal framework for the production and dissemination of statistics at European level is currently composed of the following legislative acts:

- Council Decision (EEC, Euratom) No 89/382 of 19 June 1989 establishing a Committee on the Statistical Programmes of the European Communities i;

- Council Regulation (EEC, Euratom) No 1588/90 of 11 June 1990 on the transmission of data subject to statistical confidentiality to the Statistical Office of the European Communities i;

- Council Regulation (EC) No 322/97 of 17 February 1997 on Community Statistics i;

- Decision No 2367/2002/EC of the European Parliament and of the Council of 16 December 2002 on the Community statistical programme 2003 to 2007 i.

The above-mentioned legislation provides an overall framework which is supplemented by sectoral legislation in specific statistical domains.

3.

2. CONSULTATION OF INTERESTED PARTIES AND ANALYSIS OF CONSEQUENCES


- Consultation of interested parties

The proposal is based on extensive preparatory work carried out over recent years. In particular, the building blocks and draft texts were thoroughly discussed and reviewed with the most directly concerned parties i.e. the National Statistical Institutes and the other partners in the ESS, including the ECB.

The proposal largely builds on the results of several Task Forces set up since 2003 by the Statistical Programme Committee (SPC) to reflect on the various aspects of the subject. Member States systematically participated in the work of these Task Forces, the SPC was regularly kept informed about the progress made and a wide consultation of all Member States was systematically undertaken. This proposal reflects to a very large extent all these consultations. The Statistical Programme Committee was formally consulted on a draft text of this proposal.

- Analysis of consequences

In considering the possible options, the following alternatives seemed clear:

- keeping the legal framework as it is at the moment:

- This solution would certainly not undermine the current production of European Statistics as the existing legislation does provide a framework of reference. However, this option would probably have meant an increasing gap between the existing general rules and diverging arrangements in specific cases. In the long term, this situation could even adversely affect the general trust of the public in statistics and put in question the very raison d'ĂȘtre of an overall framework. Additionally, opportunities would have been missed to enhance the functioning of the ESS as explained above.

- proposing a revision that would meet the concerns expressed and realise the existing potential for a clear and more efficient operation of the ESS along the lines described in the preceding paragraphs:

- It is evident that this proposal would achieve its objectives only if it is not substantially modified in the process.

1.

LEGAL ELEMENTS OF THE PROPOSAL



- Summary of the proposed act

The proposal aims to revise the existing basic legal framework for European Statistics with a view to adapting it to the current reality and also to improving it to meet future developments and challenges.

It is proposed among other things, to improve statistical governance by adapting the relevant definitions to the requirements of the Treaty, to consolidate the activities and the ESS itself in Community Law, to further clarify the role of the NSIs and of Eurostat, to strengthen the reference to the existing European Statistics Code of Practice, to formally recognise the European Approach to Statistics and to reinforce the quality aspects related to European Statistics.

The proposal also addresses the operation of the ESS notably through the establishment of the ESS Committee and of the ESS Partnership Group and an enhanced cooperation with other bodies of the ESS as well as with the ESCB.

The planning and implementation of the multi-annual programmes are also revised. In particular, it is proposed that individual statistical actions be carried out by the Commission under less restrictive conditions.

Finally, it is proposed to introduce more flexibility in the current rules on statistical confidentiality whilst preserving a high level of data protection.

- Legal basis

Article 285 of the Treaty establishing the European Community provides the legal basis for Community statistics. The Council, acting in accordance with the co-decision procedure, is to adopt measures for the production of statistics where necessary for the performance of the activities of the Community. This Article sets out requirements relating to the production of Community statistics and requires conformity to standards of impartiality, reliability, objectivity, scientific independence, cost-effectiveness and statistical confidentiality.

- Subsidiarity principle

The proposal fully complies with the subsidiarity principle to the extent that the revision of the existing legal framework for the development, production and dissemination of European Statistics is by its very nature an action that can only be achieved at Community level.

The subsidiarity principle is also at the basis of the definition of the responsibilities to be shared between the national and the Community level as far as the development, production and dissemination of European Statistics are concerned.

2.

BUDGETARY IMPLICATION



The proposal has no implication for the Community budget.

4.

5. ADDITIONAL INFORMATION


Simplification

The proposal constitutes a simplification from a legal, institutional and operational viewpoint. First, the proposal aims to simplify the existing legal framework for the production and dissemination of statistics at European level, in particular through consolidating into one single instrument a number of separate texts of Community statistical legislation. Secondly, institutional simplification will also be achieved by merging the Statistical Programme Committee and the Committee on Statistical Confidentiality into a single Committee. Thirdly, simplification within the ESS will also result, in operational terms, from the recognition and more extensive use of new simplification tools such as the promotion of European aggregates on the basis of the European Approach to Statistics as described in Article 17 of the proposal or of the improved planning process leading to the definition of the annual statistical programmes. These instruments have already been identified as a means for simplification in the Communication of the Commission on reduction of the response burden, simplification and priority-setting in the field of Community statistics i. In this context, it should also be recalled that European Statistics is one of the priority areas for the Commission's measurement of administrative burdens deriving from information obligations i. Finally, this initiative is not new in that the possible revision of the Statistical Law, i.e. Council Regulation (EC) No 322/97 of 17 February 1997 on Community statistics, was initially contemplated in the first report on the implementation of the framework action 'Updating and simplifying the Community acquis', adopted by the Commission in 2003 i.

European Economic Area The proposed act concerns an EEA matter and should therefore extend to the European Economic Area.