1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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 groups obeying the above criteria
Eurostat, Unit G-1

11. 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 group members (other than global group heads) in or outside EU (more than 50 countries)
938 global group heads and group members in EU
361 global group heads and 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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