September 12-14, 2006OECD-Eurostat Expert Meeting1 OECD-Eurostat Expert Meeting on Trade in Services Statistics Foreign Affiliates Statistics in Eurostat Item 15a

September 12-14, 2006OECD-Eurostat Expert Meeting2 Content  Draft regulation on FATS  Pilot study programme  Recommendations manual on the production of FATS  Data availability

September 12-14, 2006OECD-Eurostat Expert Meeting3 Draft Regulation  In March 2005 the Commission presented a formal proposal to the Council and the European Parliament.  Discussions between the Commission, the Council and the Parliament led to some minor changes.  The proposal provides for a collection of inward and outward FATS statistics on a mandatory basis, and pilot studies on a voluntary basis.  The main point under discussion concerns the procedure for taking decisions after evaluating the results of the pilot studies.

September 12-14, 2006OECD-Eurostat Expert Meeting4 Draft Regulation  The Council voted and approved the new text on 6 September  The Parliament will vote on 26 September It is expected that the new proposal will also be approved.  It is still possible that the new regulation will be adopted before the end of the year.  In that case the first reference year for data collection might be 2006 (or 2007).

September 12-14, 2006OECD-Eurostat Expert Meeting5 Variables for inward FATS (mandatory)  Number of enterprises  Turnover  Production value  Value added at factor cost  Total purchases of goods and services  Purchases of goods and services purchased for resale in the same condition as received  Personnel costs  Gross investment in tangible goods  Number of persons employed  Total intra-mural R&D expenditure  Total number of R&D personnel

September 12-14, 2006OECD-Eurostat Expert Meeting6 Variables for outward FATS  Turnover  Number of employeesmandatory  Number of enterprises  Personnel costs  Export of goods and services  Import of goods and services  Intra-group export of goods and services  Intra-group import of goods and services  Value added at factor costs  Gross investment in tangible goods

September 12-14, 2006OECD-Eurostat Expert Meeting7 Pilot studies  Member States shall carry out pilot studies, on a voluntary basis, to investigate the feasibility and costs of collecting data on additional variables and breakdowns for statistics on foreign affiliates.  A programme for pilot studies has been worked out by the Commission. Pilots for outward FATS will start in December, subject to the Financial Decision for  On the basis of the conclusions of the pilot studies, the Commission, the Council and the European Parliament shall adopt the necessary amendment of the regulation.

September 12-14, 2006OECD-Eurostat Expert Meeting8 Recommendations manual  Eurostat has, in close co-operation with the Member States, prepared a recommendations manual on the production of FATS.  The manual provides a common methodological framework for collection, compilation, transmission and analysis of FATS.  The objective is to help to compile FATS in all Member States on a consistent basis, ensuring thereby comparability and quality.

September 12-14, 2006OECD-Eurostat Expert Meeting9 Recommendations manual The manual is divided in 3 sections: Section I: covers information relevant for the compilation of both inward and outward FATS; in particular, definitions and characteristics. Definition of control Chain of control Ultimate controlling institutional unit (UCI) Definitions of variables Quality aspects

September 12-14, 2006OECD-Eurostat Expert Meeting10 Recommendations manual Section II: inward FATS Section III: outward FATS Definitions: statistical unit, target population, etc. Special cases: Joint ventures, multiple minority ownership, natural persons as owners, etc. Deliverables: data on geographical and activity breakdown, metadata, etc. Data sources: statistical registers, surveys, administrative sources, etc.

September 12-14, 2006OECD-Eurostat Expert Meeting11 Target populations …of statistical units The target population is composed by all affiliates located in extra-EU countries that are controlled by an institutional unit resident in an EU Member State. … of reporting units To identify the relevant population of reporting units and to unambiguously associate the statistical units to them Member States shall apply the „ultimate controlling institutional unit (UCI) approach.

September 12-14, 2006OECD-Eurostat Expert Meeting12 Example of EU-UCI E U MS2 MS4 MS3 MS1 X Z Y W

September 12-14, 2006OECD-Eurostat Expert Meeting13 Example of EU-UCI E U MS2 MS4 MS3 MS1 X Z Y W

September 12-14, 2006OECD-Eurostat Expert Meeting14 Data availability

September 12-14, 2006OECD-Eurostat Expert Meeting15 Eurostat/OECD co-operation In order to reduce the burden of responses for Member States, and avoid Member States sending different data sets to Eurostat and OECD the questionnaires for outward FATS concerning data requests and the deadlines for data transmission of both institutions are identical.

September 12-14, 2006OECD-Eurostat Expert Meeting16 Thank you for your attention