1. Doc. 146/2003 - Slide 1 HOUSEHOLD BUDGET SURVEYS: Summary of DSS conclusions Item IV of the agenda Household Budget Surveys Working Group - 5-6 May 2003

2. Doc. 146/2003 - Slide 2 Household Budget Surveys 1.Historical background 2. Uses at EU level 3. Current situation, options for the future and DSS opinion 4. Conclusion Household Budget Surveys Working Group - 5-6 May 2003

3. Doc. 146/2003 - Slide 3 Creation of the HBS Working Group in December 1989 n Three rounds of data collected by Eurostat: n Tables for 1988 (10 MS) n Micro-data for 1994 (15MS+3 EFTA) n Micro-data for 1999 (15MS+1 EFTA) n Gentlemen’s agreement n National surveys harmonized ex-post by Eurostat (big progress in harmonization but room for improvement) n 10 new members will join the EU in 2004 1. Historical background

4. Doc. 146/2003 - Slide 4 n Consumer protection: support to the political management of the area for DG SANCO (request to improve frequency (every two years)) n Poverty and social exclusion: complementary information to elaborate indicators and carry out analysis for DG EMPL (but ECHP/SILC now used; no longitudinal information; no access to micro-data by researchers; poverty rates not reliable due to seasonal behavior of consumption) n Control information for other statistics n Raw data for research studies (economic, nutritional, social) n Other uses (general analyses on consumers, consumption patterns, nutritional studies) 2. Uses and users at EU level

5. Doc. 146/2003 - Slide 5 3.1. HBS frequency 3. Current situation, options for the future and DSS opinion Current situation: n Seven Member States with annual or continuous surveys, eight others perform their HBS every five years (non- annual surveys reasonably well synchronized n Eurostat: collects information every five years Options for the future: n Keep HBS frequency at five years n Reduce HBS frequency to two years n Reduce HBS frequency to one year

6. Doc. 146/2003 - Slide 6 3.1. HBS frequency 3. Current situation, options for the future and DSS opinion Eurostat recommendation: n Keep HBS frequency at five years (although DG SANCO would prefer the second option) DSS opinion: n DSS agreed with the Eurostat recommendation

7. Doc. 146/2003 - Slide 7 3.2.COICOP-HBS classification 3. Current situation, options for the future and DSS opinion Current situation: n COICOP-HBS 1999 was used for the 1999 round (compatible with COICOP-OECD with an additional level of detail) n A Task Force met in June 2002 to make proposals for changes in food, housing, financial services and insurance categories Options for the future: n Use COICOP-HBS 1999 for the 2005 round n Develop a COICOP-HBS 2005 introducing changes proposed by the Task Force

8. Doc. 146/2003 - Slide 8 3.2.COICOP-HBS classification 3. Current situation, options for the future and DSS opinion Eurostat recommendation: n Develop a COICOP-HBS 2005 DSS opinion: n The development of a COICOP 2005 classification was agreed by all except Cyprus

9. Doc. 146/2003 - Slide 9 3.3. Type of data to be transmitted to Eurostat and variables list 3. Current situation, options for the future and DSS opinion Current situation: n Transmission of micro-data to Eurostat n Format of the files delivered are very different n Individual and household files (with many variables) are sent Options for the future: n Transmission of aggregated tables (would reduce Eurostat capacity to perform ex-post harmonization) n Transmission of simplified micro-data files (only household files with a limited number of variables) n Keep current situation (transmission of detailed household and individual files)

10. Doc. 146/2003 - Slide 10 3.3. Type of data to be transmitted to Eurostat and variables list 3. Current situation, options for the future and DSS opinion Eurostat recommendation: n Transmission of simplified micro-data files DSS opinion: n Agreement on the transmission of simplified micro-data files by all countries (EU and CC) except NL and Lithuania n Bilateral contacts between Eurostat and these two countries should take place

11. Doc. 146/2003 - Slide 11 3.4.Format of the micro-data files (if transmission of micro-data decided) 3. Current situation, options for the future and DSS opinion Current situation: n Format of transmission to Eurostat varies from one country to another Options for the future: n Country-specific formats of transmission n Single standardized format agreed by the HBS Working Group

12. Doc. 146/2003 - Slide 12 3.4.Format of the micro-data files (if transmission of micro-data decided) 3. Current situation, options for the future and DSS opinion Eurostat recommendation: n Single standardized format agreed by the HBS Working Group DSS opinion: n All countries that accepted to transmit simplified micro- data files agreed on the data transmission in a standardized format

13. Doc. 146/2003 - Slide 13 3.5.Responsibility for imputed consumption expenditure/rent calculation 3. Current situation, options for the future and DSS opinion Current situation: n Some Member States compute imputed expenditure/rent while Eurostat carry out this work for other countries Options for the future: n Eurostat responsibility n Member States’ responsibility n Continuation of current situation (both Eurostat and Member States)

14. Doc. 146/2003 - Slide 14 3.5.Responsibility for imputed consumption expenditure/rent calculation 3. Current situation, options for the future and DSS opinion Eurostat recommendation: n Member States’ responsibility DSS opinion: n All countries except the UK accepted to take responsibility for the calculation of imputed consumption expenditure / rent

15. Doc. 146/2003 - Slide 15 3.6. Methodological improvements 3. Current situation, options for the future and DSS opinion Current situation: n HBSs remain national surveys harmonized a posteriori by Eurostat n Frequency differs n Basic concepts remain different (household, reference person; actual final consumption/household final consumption expenditure) n Treatment of goods and services retained for own final consumption, of salaries in kind, of imputation of rentals for housing … differs n National classifications of expenditure or modified versions of COICOP classification are used

16. Doc. 146/2003 - Slide 16 3.6. Methodological improvements 3. Current situation, option for the future and DSS opinion Options for the future: n Keep the current situation in terms of harmonization (stop making any further improvements) n Go a step forward in the harmonization process focussing on the easiest possible improvements (basic concept remains household final consumption expenditure; harmonize as many concepts as possible with EU-SILC; separate monetary and non-monetary consumption expenditure) n Carry out an in-depth harmonization process (move to actual final consumption as a basic concept; health, education to be included)

17. Doc. 146/2003 - Slide 17 3.6. Methodological improvements 3. Current situation, option for the future and DSS opinion Eurostat recommendation: n Go a step forward in the harmonization process focussing on the easiest possible improvements (basic concept remains household final consumption expenditure; harmonize as many concepts as possible with EU-SILC; separate monetary and non-monetary consumption expenditure) DSS opinion: n Several countries asked Eurostat and the HBS Working Group to be cautious with the proposed changes, particularly in relation to income n No changes for Spain before 2006

18. Doc. 146/2003 - Slide 18 The Working Group is invited to give its opinion on the six options for the future of the HBSs: n HBS frequency n COICOP-HBS classification n Type of data to be transmitted and variables list n Format of the micro-data files n Responsibility for imputed expenditures/rent computations n Methodological improvements 4. Conclusion