1. NUTS levels below level 3

2. Structure of my talk Article 2 § 5 of the NUTS Regulation
Member State consultation
Next steps

3. AIM OF THIS TALK:
Inform about the Member State views concerning a further level in the European Regional classification NUTS

4. Chapter 1
Legal background

5. No consensus on the number of NUTS levels
During the Council discussions of the NUTS Regulation: conflicting views on the number of regional levels to be covered
Hence Article 2 § 5
Within two years …, the Commission, after consulting the Member States, shall submit a communication to the European Parliament and the Council on the appropriateness of establishing rules on a Europe-wide basis for more detailed levels in the NUTS classification.

6. The rules of the game
An additional NUTS level would mean the application of the following rules:
NUTS level 4 would be a subdivision of NUTS 3 regions
NUTS level 4 regions should cover the country 100%
The regional breakdown would be kept stable for at least three years before the next possible amendments
Minimum and maximum population thresholds would apply
Supply of complete lists of names and identities for level 4 regions
Development of additional rules to cover modifications of NUTS level 4 in Article 5

7. Chapter 2
Member State views

8. The Member State views (1)
The consultation of the Member States in summer 2004 can be summarised as follows:
In the statistical system of a large majority there is a regional breakdown between NUTS 3 and LAU 2 (= a LAU level 1)
This LAU level 1 is also used for the collection and dissemination of regional statistics
Only a very small minority of countries has more than one regional breakdown between NUTS 3 and LAU 2
The Commission can therefore concentrate its possible proposal on a single level

9. The Member State views (2)
The consultation of the Member States in summer 2004 can be summarised as follows:
In a majority of countries the boundaries of LAU level 1 change never or rarely (= stability)
Population thresholds for the NUTS level 4 regions are very difficult to define (no answer by most countries)
Opinions continue to be split on the question of whether a NUTS level 4 at the EU level should be added
8 yes – 12 no – 3 maybe – 2 functional regions

10. Member State view (3)

11. Chapter 3
Next steps

12. Main questions that need to be answered
Is there an EU policy requirement that justifies the creation of an additional level?
Are there advantages in including this in the formal requirements of the NUTS Regulation
Are the Member States and Eurostat in a position to ensure the necessary information flows?
Are we able to provide the resources necessary for making use of NUTS 4 statistics
Is this expenditure justified?

13. Time Table Formulate a Eurostat view February 05
Present this to the SPC May 05
Interservice consultation June 05
Transmit the report to Parliament and Council July 05

14. Thanks for listening !
Any Questions ?