1. Quarterly Integrated Euro Area Accounts
ECB-RESTRICTED
FINAL
Gabriel Quirós Head of Macroeconomics
Statistics Division
European Central Bank
Quarterly Integrated Euro Area Accounts
Joint ECB NBRM Seminar on Statistics Skopje, 4 October 2013

2. Euro Area Accounts Why: ECB as a key user of statistics
What are the EAA?
How: Integration of data sources
Results + Uses
Annexes:
1 New ECB Guideline: Changes from 2014
2 Additional examples of uses
3 Links to data and publications

4. ECB as key user of European statistics
An evidence-based decision-making requires a large amount of high quality European statistics
Primary objective of price stability
(annual increase in HICP of close but below 2% over the medium term)
Governing Council takes
monetary policy decisions based
on an overall assessment of the
risks to price stability
Economic analysis focusing on a wide range of economic and financial indicators (short to medium-term risks to price stability)
Monetary analysis (medium to long-term trends in inflation)
cross-
checking
Economic and financial information 4

5. What are the EAA ? Synopsis of inputs + outputs
National Financial Accounts
National non-financial accounts
Integrated Euro Area Accounts
Financial Accounts
Non-Financial Accounts
Euro Area Building blocks : - BoP - MFI - IF + FVC - ICPF - GFS
Other :
BoP-euro area European Institutions (ECB, ESM)
Quarterly ECB Press Release on Economic and Financial Developments
Quarterly Eurostat Press Releases on Household saving + Business Investment

6. What are the EAA? Giving Indicators an Accounting Framework
GDP M3
HH Consumption
Gov Deficit
Gov Debt

7. Integrating data sources: National data and euro area building blocks
The euro area accounts integrate a large number of different data sources
Non-financial sector accounts
Financial accounts: The ECB “MUFA” Guideline
Building blocks:
Balance of Payments (BoP)
MFI Balance Sheet Items (BSI)
Quarterly Financial Accounts for General Government (QFAGG) …

8. The MUFA Guideline and building blocks
Monetary Union Financial Accounts (MUFA) are compiled by combining national data - coming through the ECB MUFA Guideline - and euro area financial building blocks
Which criteria are followed when deciding the source for each cell in the matrix ?
Data reliability
User needs and preferences
Minimize horizontal imbalances
Future development of the accounts, in particular in terms of timeliness

9. Data sources: National financial accounts and building blocks (BSI, BOP, QFAGG)

10. Uses – some example: Enriching monetary analysis
Financial investment by households
Annual growth rate
Value of analysing M3 developments by institutional sector
Closer link between M3 holdings by households and price developments (but headline M3 still better predictor of turning-points)
Looking at M3 against total financial investment / broader portfolio of assets
Role of OFIs and ICPFs for financial intermediation & monetary analysis
1) Excluding money market fund shares.
*) Percentage point contributions to annual growth of financial investment.

11. Integrating real and financial perspectives (NFC accumulation accounts : financing and investment)
Bulk of capital formation financed internally (gross saving)*
Role of equity financing modest (except )
Linked to financial investment / M&A
Resurgence of debt financing after consolidation
Reduction of debt financing in credit crisis
Percentage of GDP, four-quarter moving sum
* Internal financing (gross saving) includes retained earnings and consumption of
fixed capital. It is broadly equivalent to earnings before depreciation but after
taxes and dividend payments in business accounting.

12. Changes in 2014: The new ECB MUFA Guideline
New financial instrument and sub-sector details due to
SNA 2008 and ESA 2010
MUFA Guideline (quarterly), ESA TP (annual) and G-20 Financial accounts template are harmonised to a large degree
Additional user needs for quarterly Euro Area Accounts
Publication of Euro Area Aggregates at t+90
=> transmission of selected “supplementary” qFA data at t+85 (82)
Publication of national data
=> second transmission of detailed (revised) qFA at t+100 (97)
Other changes in volume and revaluations for all instruments
Whom-to-whom for securities (in addition to deposits and loans)
(See Annex 1 for more details)

13. Euro Area Accounts Overview
Thank you for your attention!
Any questions?

14. Annex 1: New ECB Guideline: Changes from 2014

15. Annex 2: Additional examples of uses - ESRB : Households’ debt-to-gross disposable income ratio
Notes: Gross disposable income adjusted for the change in net equity of households and pension fund reserves. For Luxembourg, the first observation refers to 2008.
For Bulgaria the last observation refers to For Cyprus, Estonia, Greece, Hungary, Lithuania, Luxembourg, Latvia, Romania, Slovakia and Slovenia the last observation refers to Data for Malta and Croatia are not available.

16. Net worth of households
Source ECB/Eurostat

17. Households gross disposable income
Source ECB/Eurostat

18. Annex 3: Where to find? ECB Website:
Euro Area Accounts in Statistics : EAA Homepage
SDW Tables and downloads
MOBU Tables: Integrated economic and financial accounts by institutional sector,  euro area non-financial accounts, households, non-financial corporations, insurance corporations and pension funds, and all euro area accounts time series
EAA Detailed Tables: Main indicators, integrated economic accounts, institutional sectors, and who-to whom detail
Country Tables : Euro area and other EU countries
Press releases : EAA – press release
Articles
MOBU Article 2007 November
MOBU Article 2011 October