Eurostat, Unit G-1 1 EuroGroups Register project UNECE/Eurostat/OECD June 2007 Road Map for the Future

Eurostat, Unit G-1 2 Agenda 1. Introduction 1.1 Need for Data on Globalisation 1.2 New BR regulation 2. Pilot project in Road Map and Follow-up 3.1 Road Map for Eurostat 3.2Follow-up Measures

Eurostat, Unit G Introduction 1.1 Need for Data on Globalisation Growing importance of multinational enterprise groups (MNE) in increasing globalisation of worldwide economy Community Statistical Programme 2008 – 2012: Need for a Community register, the EuroGroups Register (EGR); Full implementation of the EGR (2009 and onwards) The EGR as necessary infrastructure for: Harmonisation and development of the measurement of globalisation in various statistics Serving as basis for possible coordinated European surveys at group level on globalisation related issues Providing a source of information for demographical changes of MNEs in and outside of EU

Eurostat, Unit G Introduction 1.2 New BR regulation Timetable: In force 3 rd quarter of 2007 (repeals the existing one) Scope: whole economy. Enterprises below ½ person employed and small all-resident groups can be excluded New definitions: Definition when a unit is active, different types of enterprise groups, branches New characteristics: mainly for enterprise groups, compulsory, optional or conditional (subject to availability) Long transition period: Possible up to 5 years concerning new compulsory coverage and enterprise group characteristics Comitology: Various practical issues must/may be decided by Statistical Programme Committee: transmission of data and quality reports (annual inquiry) to Eurostat and feedback to Member States, possible updating of characteristics, …

Eurostat, Unit G Introduction 1.2 New BR regulation New BR Regulation implies creation of a database at European level: the EGR Article 3: BRs shall include all-resident and multinational enterprise groups, data at truncated and global level (from EGR feedback) Article 10: Exchange of confidential data between Member States voluntary, only for statistical purposes in accordance with national law Article 11: Exchange of individual confidential data between Eurostat and Member States’ NSIs compulsory, only for statistical purposes Article 12: Exchange of confidential data between Eurostat and central banks (ECB, NCBs) voluntary and need to be authorized by appropriate national authority, only for statistical purposes Article 13: Eurostat, ECB and the Member States shall treat confidential data confidentially

Eurostat, Unit G Pilot project in 2006 In another presentation

Eurostat, Unit G IT Framework Contract I II Road Map for Eurostat 3. Road Map and Follow-up Time Measure EGR Development Drawing Up 3. Commission Regulations 2. Acquisition of Data I II III II/III I: Data exchange with NSIs

Eurostat, Unit G Follow-up Measures (1) IT framework contract for the technical enlargement of the EGR at Eurostat (part 1) including the following tasks: Analysis of the pilot products and its documentation Revision of EGR database Development of a web application and end user interface for Eurostat (first steps: FATS, FDI, International trade) Development of the administration tool Development of a structured data communication via XML User support and training at Eurostat Testing and development of software deliverables 3. Road Map and Follow-up

Eurostat, Unit G Follow-up Measures (2) First Call for Tender project on acquisition of private data from one single data provider (test acquisition) The bidder should select MNEs 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 MNEs (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 1000 groups obeying the above criteria Eurostat intends to provide NSIs (BR) with consolidated private data coming from EGR 3. Road Map and Follow-up

Eurostat, Unit G-1 10 Creating a result-oriented Steering Group with representatives of Eurostat, ECB and NSIs, starting as EGR Task Force (Oct 2007). Combining national and European expertise in order to ensure and improve quality of the EGR for the needs of Eurostat and NSIs by provision of advices on Sharing responsibilities/information Identifying difficulties and solving them Confidentiality and data security issues Monitoring quality and time schedule Standardisation of processes Consolidation of contacts to external partners (e. g. NCBs) Step by step involvement of stakeholders (Eurostat and/or NSIs), e. g. FATS, FDI, Int. Trade 3.2 Follow-up Measures (3) 3. Road Map and Follow-up

Eurostat, Unit G-1 11 Risks concerning the EGR: Complexity of integration of data from different sources: a flexible solution needed Different opinions on the contents of the Commission Regulation defining the details of the data exchange; Restrictions to use confidential data may involve double work (to survey the same unit twice) Insufficient availability of human and financial resources Chances concerning the EGR: Harmonisation of data at European level for statistics related to globalisation (foreign affiliates, direct investment… EGR: a source regarding the role of MNEs at national, EU and global level Enrichment of the BR quality at NSIs 3.3 Chances and Risks for the EGR 3. Road Map and Follow-up