EuroGroups register First results of measures on advancement International Roundtable on Business Survey Frames Wiesbaden Group on Business Registers 21 – 26 October 2007 Session 6 - Multinational Groups Matthias Nahm Eurostat, Unit G-1

Agenda 1. Introduction 1.1 Background 1.2 Legal Basis 2. The EuroGroups Register Project 2.1 EuroGroups register 2.2 Project Organisation 3. Follow-up Measures 3.1 Acquisition of Data 2007 3.2 IT Enlargement 2007 4. Road Map for the Future Eurostat, Unit G-1

Introduction 1.1 Background Growing importance of multinational enterprise groups (MNE’s) in increasing globalisation of worldwide economy Need for a Community register: The EuroGroups register (EGR) The EGR as necessary infrastructure Harmonisation and development of the measurement of globalisation Serving as basis for coordinated European surveys possibly at group level on globalisation related issues Providing a source of information for demographical changes of multinational enterprise groups in and outside the EU Stakeholders of the EGR Main Stakeholders: BR domains of the Eurostat/NSI’s and ECB/NCB’s Statistical Stakeholders in Eurostat/NSI’s: FATS; FDI; Intra-group Trade; National Accounts and Balance of Payment … Eurostat, Unit G-1

Introduction 1.2 Legal Basis New BR Regulation repealing Council Regulation (EEC) No 2186/93 Exchange of confidential data on MNE’s between Commission (Eurostat) and national authorities only for statistical purposes. Commission (Eurostat) will provide data to appropriate national authorities in case of corresponding legal units are located in their territories. Implementing Commission Regulations Mandatory data exchange between Eurostat and NSI’s Format Security and confidentiality measures Procedure of data transmission Optional data exchange between Eurostat and ECB/NCB‘s Deduced from the mandatory data exchange Eurostat, Unit G-1

2. EuroGroups Register Project 2.1 EuroGroups register (1) Project: Consortium of National Statistical Institutes (NSI) of NL, DE, HU and UK and an IT company as tender partners of Eurostat; one year project ending at 21/12/2006. Objectives: Feasibility study on creating and maintaining the EGR; consolidating data from different sources; establishing a data collection in the IT environment of Eurostat; exercising iterations on confidential data exchanges between Eurostat and 4 NSI’s. The current EGR contains: 600 MNE’s; MNE’s with at least one group member of the total (about 80,000) inside the EU; MNE’s connected to the global group head inside or outside the EU by direct or indirect control links; MNE’s checked by 4 NSI’s (NL, DE, HU and UK). Main result: A mechanism of exchange of confidential data (eDAMIS) between the central EGR and 4 NSI’s (both ways) is available to complement their national business registers with relevant data on MNE’s operating on their territory. Eurostat, Unit G-1

2. EuroGroups Register Project 2.1 EuroGroups register (2) Processes of the EGR application (one cycle) Source Area Transformation Area Consolidation Area (1) Consolidation Area (2) Consolidation Area (3) Target Area Eurostat, Unit G-1

2. EuroGroups Register Project 2.1 EuroGroups register (2) Processes of the EGR application (one cycle) Source Area Transformation Area Consolidation Area (1) Consolidation Area (2) Consolidation Area (3) Target Area Eurostat, Unit G-1

2. EuroGroups Register Project 2.1 EuroGroups register (3) Communication Data I: NSI should… Check own units, Confirm existence and may correct national ID, Identify units that are dead (why and when), Check NACE, Check employment etc, Send back updated information to the EGR. Communication Data II: NSI should… Check upward and downward links (where not in EU), Confirm control relationships, Eurostat, Unit G-1

2. EuroGroups Register Project 2.2 Project Organisation Establishment of a EGR Steering Group with representatives of Eurostat (BR section and selected statistical domains), NSI’s and ECB (Oct 2007) Providing Eurostat with advice and support for strategic decisions to be made on the further development of the EGR, e. g. legal matters. Establishment of a EGR Task Force with representatives of Eurostat (BR section and selected statistical domains) and NSI’s (first quarter of 2008) Providing Eurostat with support for the further development of the EGR, e. g. data analysis. Step by step involvement of other stakeholders Eurostat, Unit G-1

3. Follow-up Measures 3.1 Acquisition of Data 2007 (1) First Call for Tender project on acquisition of private data from Bureau van Dijk (test acquisition) The bidder should select MNE’s operating in more than one country, but at least in one EU country; the majority of the selected groups should have their global group head in the EU The selection should comprise, for each EU country, the most important MNE’s (in terms of total employment); this means the most important groups whose heads are situated on their territory The selection should cover approximately the top 1300 groups obeying the above criteria Eurostat, Unit G-1

3. Follow-up Measures 3.1 Acquisition of Data 2007 (2) Results of the first data acquisition of Eurostat: EU coverage 1299 global group heads and 203481 group members (other than global group heads) in or outside EU (more than 50 countries) 938 global group heads and 134097 group members in EU 361 global group heads and 69384 group members outside EU The BvD data will be integrated into the EGR database and send to some NSI’s for checking and providing feedback (to be coordinated in the EGR Task Force) Further data acquisition for EU 27 countries in 2008 (about 10,000 MNE’s) Eurostat, Unit G-1

3. Follow-up Measures 3.1 Acquisition of Data 2007 (3) Results of the first data acquisition of Eurostat by Member States Country Number of global group heads Number of group members* BE 19 3127 BG 6 391 CZ 7 1186 DK 13 1432 DE 171 18478 EE 279 IE 14 3578 EL 941 ES 78 8672 FR 102 21599 IT 96 5484 CY 5 184 LV 178 LT 9 209 Eurostat, Unit G-1 * Other than global group heads

3. Follow-up Measures 3.1 Acquisition of Data 2007 (4) Results of the first data acquisition of Eurostat by Member States Country Number of global group heads Number of group members* LU 17 1320 HU 19 1078 MT 3 62 NL 53 10614 AT 21 3030 PL 51 2139 PT 23 2123 RO 5 802 SI 9 214 SK 14 466 FI 1185 SE 25 3222 UK 133 42104 * Other than global group heads Eurostat, Unit G-1

3. Follow-up Measures 3.2 IT Enlargement 2007 (1) IT enlargement of the EGR at Eurostat (part 1) including the following tasks Development of interfaces for Eurostat’s end users (FATS, FDI…) and administrative users Development of a structured data communication Further tasks Revision of the EGR database Analysis of the pilot products and its documentation Development of an administration tool User support and training at Eurostat Testing and development of software deliverables IT enlargement of the EGR at Eurostat (part 2) focusing on extension to NSI’s, data communication and database maintenance Eurostat, Unit G-1

3. Follow-up Measures 3.2 IT Enlargement 2007 (2) Development of interfaces for Eurostat’s end users (FATS, FDI…) and administrative users: High-level overview, presence and possible future Eurostat, Unit G-1

3. Follow-up Measures 3.2 IT Enlargement (2) Development of interfaces for Eurostat’s end users (FATS, FDI…) and administrative users: High-level overview, present and possible future Eurostat, Unit G-1

3. Follow-up Measures 3.2 IT Enlargement 2007 (3) Development of a structured data communication The following communication cases will be available Communication Meta Data (one-way): data sets will be created in the central EGR to be provided to NSI’s, e. g. legal form, high level constraints and data model. Communication Data I (two-way): see before Communication Data II (two-way): see before Communication Data III (one-way): providing NSI’s with relevant data (on groups, units and their links) on their territory. Eurostat, Unit G-1

3. Follow-up Measures 3.2 IT Enlargement 2007 (4) Development of a structured data communication Source Area Transformation Area Consolidation Area (1) Consolidation Area (2) Consolidation Area (3) Target Area Eurostat, Unit G-1

3. Follow-up Measures 3.2 IT Enlargement 2007 (4) Development of a structured data communication Source Area Transformation Area Consolidation Area (1) Consolidation Area (2) Consolidation Area (3) Target Area Eurostat, Unit G-1

3. Follow-up Measures 3.2 IT Enlargement 2007 (5) Development of a structured data communication A common structured data communication between the EGR and the environment of NSI’s in both directions will be prepared. The communication cases will be based on exchanges of SDMX-ML files via eDAMIS containing data and SDMX-ML schemas. An interface to the database to translate the data output into SDMX-ML, and retranslate and validate the SDMX-XML input (including SDMX-ML meta data) on the controlled upload into the database of the central EGR will be created. Eurostat, Unit G-1

4. Road Map for the Future Plan for Eurostat on the EGR development Measure IT Enlargement I: Acquisition of Data II: Acquisition of Data III: Acquisition of Data … I: Commission Regulation on mandatory data exchange with NSI’s II: Com. Reg. on opt. data exchange with ECB/NCB’s Time 03 06 09 03 06 09 03 06 09 2007 2008 2009 2010 Eurostat, Unit G-1