EUROSTAT
Directorate C: National Accounts; prices and key indicators
Unit C-3: Statistics for administrative purposes
Eurostat/C3/GNIC/253– EN
Orig: EN
26th Meeting of the GNI Committee
24-25-April2013
Luxembourg, Bech Building
Room Quetelet
State of play on reservations on GNP/GNI
Point V.4 on the agenda
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State of play on reservations on GNP/GNI
GNP reservations 1995-2001
1.MostGNP reservations for the years 1995-2001 have been lifted.For Greece and the United Kingdom not all of their GNP reservations have been lifted yet. Annex 1 provides an overview on the state-of-play on GNP reservations for these two countries.
2.In the GNP/GNI Questionnaire 2012 and the accompanying Quality Report transmitted by the United Kingdom the estimates of GNP have been revised for all the years 1995-2001 due to the work on the outstanding GNP reservation 2 on insurance (for more detail, see document GNIC/236/A, in particular Part A.1 and the UK Quality Report in Part A.3). Thus, the last outstanding GNP reservation of the United Kingdom has been addressed, however, due to the detected errors in the calculation of the ESA79/95 transition itemthe GNP reservation 2 covering the period 1995-2001 will have to be addressed again in the GNI Questionnaire 2013.
3.For Greece one GNP reservation (7) relating to the transition between GDP (ESA95) and GNP (ESA79) is still in place. Eurostat is continuing its work in cooperation with EL.STAT on this reservation.
GNI reservations 2002-2010
4.The verification of the sources and methods to calculate GNI is primarily based on GNI Inventories[1], as well as on GNI information visits to the countries by the Commission and subsequent information provided by the countries.The general reservationson Bulgaria's and Romania's GNI for the years 2007 and 2008have been lifted.
5.In January 2012, the Commission notified the EU-25 Member States that it reserved its position as to the accuracy of GNI on country specific issues and on transversal issues, which are specific issues that are the same for all Member States.In January 2013, the Commission notified Bulgaria and Romania that it reserved its position as to the accuracy of GNI on country specific issues and on transversal issues, which are specific issues that are the same for all Member States.Detailed information can be found in Annex 2.
6.Annex 2 provides an overview on these country specific GNI reservations and the years of their application and on the progress made until now. In 2012, ten Member States (Ireland, Lithuania, Luxembourg, Malta, The Netherlands, Austria, Poland, Portugal, Slovenia and the United Kingdom) have notified to Eurostat revision impacts due to their work on their specific reservations or have provided additional information on these issues or have contacted Eurostat for further clarification (for more detail, see document GNIC/236/A, in particular Part A.1 and the Quality Reports in Part A.3). The revision impacts and information provided is beingassessed and some of the country specific GNI reservations have therefore now been lifted. Annex 2 provides the details.
7.Six transversal reservations relate to the treatment of cross-border property income, the calculation and allocation of financial intermediation services indirectly measured (FISIM), the treatment of entities with little or no physical presence, the treatment of car scrap schemes, the treatment of cooperative dwellings and the inclusion of illegal activities in national accounts. They cover the years 2002-2010, except for the reservation on FISIM which covers the year 2010 only.
8.Explanations of the Commission’s concerns on reservations were provided with the notification letters.The countries were asked to transmit to the Commission by 22 September 2014 the changes to GNI estimates required as a result of the country specific points notified, or any additional methodological information showing clearly that the points are no longer relevant.
9.The transversal issues call for a detailed comparative analysis of the solutions adopted by Member States. Recommendations for the treatment of car scrap schemes (GNIC/232) and the treatment of cooperative dwellings (GNIC/231) were agreed on by the GNIC in its meeting in July 2012 (for countries with no car scrap schemes and/or no cheap rentals, Eurostat will propose that the concerned reservations be lifted), as were recommendations for the illegal activities prostitution and the production and trafficking of drugs (GNIC/230). Smuggling was dealt with by the GNIC in October 2012 (GNIC/240). FISIM (GNIC/244) and treatment of entities with little or no physical presence (GNIC/243) was also discussed in the same meeting (Eurostat will propose lifting the reservation for those countries which do not observe in their territory cases of entities with little or no physical presence).The issue of the treatment of cross border property income isincluded in the roadmap for the transversal issues, which is presented in document GNIC/256.
10.On 21 September 2012, the Commission was informed by the Greek National Statistical Institute EL.STAT that the process of validating the data, which have been compiled for the transmission of GNI, was on-going and that this work would not allow the data to be transmitted before 22 September 2012. The Commission observed that the data had not been transmitted within the time foreseen and notified the authorities of Greece by letter of 27 September 2012 that the Commission reserved its position as to the accuracy of the national accounts relating to year 2008 pending the transmission of the Greek GNI data and a thorough analysis of these data by the Commission. On 30 September 2012 ELSTAT transmitted the data of GNI Questionnaire 2012 and the accompanying Quality Report to Eurostat.
11.If Eurostat considers that a reservation has been adequately addressed, it will send a technical opinion to DG Budget, which may notify to the Permanent Representative of the concerned Member State that the reservation is lifted. Finally, Eurostat sends a copy of the official letter to the National Statistical Institute of the Member State concerned.
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Annex 1:
State of Play on GNP Reservations of Greece and the United Kingdom 1995-2001,status 27/03/13
Country / Reservations / Years of application / Revisions introduced in GNP/GNI questionnaire and/or additional information provided with Quality Report / Reservationlifted / Follow-upGreece / (1) Estimates for the small business strata in the manufacturing branches need to be based on new data sources / 1995-2001 / 2006-2008 / 06/07/2009
(2) Estimates for the construction industry need to be re-benchmarked and should take into account direct data sources for the construction industry / 1995-2001 / 2006-2008 / 06/07/2009
(3) Estimates for wholesale and retail trade, hotel and restaurants, and other land passenger transport (tourist buses) and travel agencies need to be re-benchmarked using recent data sources / 1995-2001 / 2006-2008 / 06/07/2009
(4) Estimates for dwelling services need to be re-benchmarked on the basis of the recent housing census and household budget survey / 2000-2001 / 2006-2008 / 06/07/2009
(5) Estimates for activities especially within NACE K, M, N and O need to be cross-checked and if necessary revised with the use of recent and more direct data sources / 1995-2001 / 2006-2008 / 06/07/2009
(6)The present estimates for final consumption expenditure of non-profit institutions serving households need to be reviewed and revised when necessary / 1995-2001 / 2006-2008 / 06/07/2009
(7)The calculation of the transition between GDP (ESA95) and GNP (ESA79) needs to be reviewed / 1995-2001 / 2005 (partially)/ 2006-2008 / Cooperation ongoing between EL.STAT and Eurostat.
Country / Reservations / Years of application / Revisions introduced in GNP/GNI questionnaire and/or additional information provided with Quality Report / Reservationlifted / Follow-up
United Kingdom / (1) The results of the housing census of 2001 need to be used for the estimates of dwelling services / 2000-2001 / 2005 (for 2001 only)/2006 / 24/09/2008
(2) A new methodology for estimates related to insurance has to be devised / 1995-2001 / 2007, 2010, 2012 / Is being assessed (direct verification visit January 2013).
(3) A review of the estimates of final consumption expenditure of non-profit institutions serving households, to improve coverage and quality of the data, needs to be carried out / 1995-2001 / 2007, 2009 / 14/07/2011
(4) Further documentation is required on the recording of rental income of households, in particular whether sufficient allowance is made for hidden rental income / 1995-2001 / 2007 / 24/09/2008
(5) Further documentation is required on the methodology for social protection expenditure by households (including collective households) / 1995-2001 / 2007 / 24/09/2008
(6) Further documentation is required on the methodology of the following transition items: item 25: pension funds; item 26: changes in due payment dates; item 27: minor repairs of owner-occupiers / 1995-2001 / 2007, 2009 / 26/05/2011
Annex 2:
State of Play on GNI Reservations,status 27/03/13
Country / Reservations / Years of application / Revisions introduced in GNI questionnaire and/or additional information provided with Quality Report / Reservationslifted / Follow-upBulgaria / (1) A review of the methods to ensure exhaustiveness has to be carried out with a
view to validating and complementing the applied exhaustiveness adjustments.
(2) A review of the methods used to calculate output and intermediate consumption
in dwelling services has to be carried out. Improvements to the "stratification
method" used in the calculation of output need to be made, especially with regard
to the price element of the stratification model. The estimates of intermediate
consumption should be revised whereas the minor repairs by owner occupiers of a
kind typically carried out by tenants should be separately identified and recorded
as Household Final Consumption Expenditure.
(3) Improvements need to be made in the estimation of consumption of fixed capital
by means of the Perpetual Inventory Method (PIM). In particular the PIM model
should also cover Non-Profit Institutions Serving Households and include
intangible fixed assets. The treatment of roads in PIM should be aligned to the
recommendations of the GNP Committee on the consumption of fixed capital on
roads, bridges etc.
(4) The estimates of own account Gross Fixed Capital Formation (GFCF) need to be
reviewed due to possible application of an incorrect formula used in the
calculation of a mark-up for net operating surplus. Own-account production of
software by financial corporations needs to be estimated.
(5) The coverage of entertainment, literary and artistic originals in the calculation of
output and GFCF should be extended to include estimations for books, musical
works and artistic originals.
(6) An alternative method for estimating output and intermediate consumption in
construction services should be developed to allow for regular cross-checks with
the main method based on the annual statistical reports of construction
enterprises. Improvements need to be made in the estimation of own-account
construction.
(7) Improvements need to be made in the estimation of compensation of employees
to and from the rest of the world.
(8) Further clarifications are required in order to assess if there is a need for
additional specific improvements of the calculations for the following
components:
- output, its allocation to users and intermediate consumption in financial
intermediation (excluding FISIM);
- components of the expenditure approach to Gross Domestic Product;
- taxes and subsidies (and borderline cases). / 2007-2010
2007-2010
2007-2010
2007-2010
2007-2010
2007-2010
2007-2010
2007-2010
Romania / (1) An allowance for net operating surplus must be added to the market producer's
estimates of output, measured by the sum of production costs.
(2) The estimates for intermediate consumption of unincorporated enterprises need to
be improved by taking aside all expenses on goods and services which are not
consumed as inputs in the process of production. Within this context, gross fixed
capital formation for unincorporated enterprises needs to be estimated.
(3) The sources and methods applied to the estimation of self-build of new dwellings
need to be clarified and national accounts estimates improved, if appropriate.
(4) The sources and methods applied and the national accounts estimates of insurance
need to be improved.
(5) The estimation of services of owner-occupied dwellings needs to be improved and
calculation procedure clarified .
(6) The sources and methods used to estimate entertainment, literary and artistic
originals, including estimation of CFC for originals, need to be clarified and
improved.
(7) The sources and methods used to estimate software, in particular own-account
produced software, need to be clarified.
(8) Several issues relating to the exhaustiveness adjustments need to be improved and
methods further investigated.
(9) The estimates for consumption of fixed capital (CFC) should be improved, notably
for intangible fixed assets (mineral exploration, computer software, originals) and
public infrastructure (roads, bridges etc.)
(10) The sources and methods applied for the estimation of compensation of employees
used for the transition from GDP to GNI need to be improved.
(11) Further clarifications on the sources and methods and improvement of the national
accounts estimates, if appropriate, are required for the following components:
− Coverage of the business register (REGIS);
− Treatment of agricultural output as a result of institutional unit's secondary
activity and consistent treatment of wine production in the Economic Accounts
for Agriculture (EAA) and national accounts;
− Valuation principles of tour operator's services;
− The sources and methods applied to the estimation of financial leasing;
− Criteria applied for the classification of subsidies. / 2007-2010
2007-2010
2007-2010
2007-2010
2007-2010
2007-2010
2007-2010
2007-2010
2007-2010
2007-2010
2007-2010
Belgium / (1)The balancing of the supply and use table for construction needs to be updated with new estimates of the hidden economy in order to improve the quality of the estimates for construction. / 2002-2010
(2)In activities other than construction, the coefficients used to determine the adjustments for exhaustiveness need to be re-examined and updated if necessary. / 2002-2010
(3)The revision of foreign trade statistics and their use in national accounts need to be further analysed, especially the treatment of the activities of fiscal representatives. / 2002-2010
CzechRepublic / (1)The sources and methods used for the calculation of dwelling services need to be reviewed in order to assess the related national accounts estimates. / 2004-2010
(2)The sources and methods used for the calculation of tips need to be reviewed in order to assess the related national accounts 2010 estimates. / 2004-2010
Denmark / (1)Following the discontinuation of the survey on rents for community housing, the estimation of dwelling services needs to be based on a new annual source and the issue of the continuity of the series needs to be investigated. / 2002-2010
Germany / (1)The estimation of dwelling services needs to be based on more recent benchmark data. / 2002-2010
(2)Further investigation is needed in order to check that gross fixed capital formation in film originals and originals in radio and TV stock programmes is exhaustively recorded including any major production for own final use and that the value of these originals is measured in accordance with the recommendations of the GNI Committee. / 2002-2010
Country / Reservations / Years of application / Revisions introduced in GNI questionnaire and/or additional information provided with Quality Report / Reservationslifted / Follow-up
Estonia / (1)Estonia must improve calculations of consumption of fixed capital (CFC) for roads, bridges etc. in the following ways, in accordance with the GNI Committee recommendation (GNIC/011/Rev. 1): a) Separate roads and bridges from other structures; b) Introduce a central average lifetime estimate of 55 years for roads, bridges etc. or justify the lifetime of 35 years currently used. / 2004-2010
(2)Estonia must develop estimates for investments in entertainment, literary and artistic originals for all institutional sectors, and include them in its national accounts. / 2004-2010
Greece / (1)The use of the Structural Business Survey (SBS) and of employment data in the production approach needs to be reviewed and the national accounts data need to be revised if appropriate. / 2002-2010
(2)The use of Households Budget Surveys (HBS) data in the expenditure approach needs to be reviewed and the results need to be revised if appropriate. / 2002-2010
(3)The estimates for Gross Fixed Capital Formation (GFCF) in construction and for the industry of construction in the production approach need to be reviewed and the results need to be revised if appropriate. / 2002-2010
(4)The estimates of the value added of the general government sector need to be reviewed in relation to the use of more recent administrative sources. / 2002-2010
(5)The estimates for Non Profit Institutions Serving Households (NPISH) need to be based on more recent and complete sources. / 2002-2010
(6)The use of Balance of Payments (BoP) data for ships and maritime transport needs to be reviewed and the results need to be revised if appropriate. / 2002-2010
(7)The estimates for dwelling services need to be reviewed and the results need to be revised if appropriate. / 2002-2010
(8)Further clarifications and documentation need to be provided on a number of specific points in order to assess if there is a need for additional specific improvements of the calculations. / 2002-2010
Country / Reservations / Years of application / Revisions introduced in GNI questionnaire and/or additional information provided with Quality Report / Reservationslifted / Follow-up
Spain / (1)The values of small tools which are considered either as intermediate consumption or as gross fixed capital formation based on the annual SBS survey must be estimated. Clarifications need to be provided whether and how the distinction between intermediate consumption and gross fixed capital formation is made with respect to small devices. In view of the results from this work the national accounts figures need to be revised if appropriate. / 2002-2010
(2)The sources and methods applied for the calculation of the compensation of employees used for the transition from GDP to GNI need to be reviewed and clarification provided. In view of the results from this work the national accounts figures need to be revised if appropriate. / 2002-2010
(3)The sources and methods applied for the calculation of subsidies and capital transfers from EU-Institutions and the results need to be reviewed and clarification provided. / 2002-2010
France / (1)The revised estimates based on the new Balance of Payments data need to be reviewed and assessed in relation to their incorporation into the national accounts. In view of the results from this work, the national accounts data need to be revised if appropriate. / 2002-2010 / 2011 / R1:Additionaldocument-tation sent in 2011 and 2013. Revision is planned to be done in 2014.
R2: Revision is planned to be done in 2014.
(2)The new sources used for the estimation of the output of friendly societies led to a significant revision of this component and need to be reviewed and assessed / 2002-2010 / 2011
Country / Reservations / Years of application / Revisions introduced in GNI questionnaire and/or additional information provided with Quality Report / Reservationslifted / Follow-up
Ireland / (1)Losses incurred by self-employed persons need to be estimated and included in the national accounts data for mixed income. / 2002 to 2006, 2010 / 2012 / Technical opinion on lifting reservation in preparation.
Italy / (1)An allowance for net operating surplus must be added to estimates of work in progress based on the data coming from the Structural Business Survey. / 2002-2010