24 September 2008 Eurostat activities in trade in services and related balance of payments areas...

24 September 2008

Eurostat activities in trade in services and related balance of payments areas

OECD Working Group on Trade in Goods and Trade in Services

24 September 2008 OECD Working Group on Trade in Goods and Services 2

1. Balance of payments quality report

In October 2007 Eurostat launched the first quality reporting cycle.

The reports addressed: methodological soundness, stability, plausibility, consistency, and reconciliation BoP/FTS.

The assessment procedure was based on two pillars:– an individual country assessment by Eurostat– a more general assessment of BoP data quality in the EU

The individual country assessment reports and the summary report were discussed and approved at the meeting of the Eurostat BoP Committee in July 2008.


2. Revision of international standards

Active participation in the revision process (BD4, BPM6, MSITS, 2008 SNA, ESA95)

Implementation of the manuals

The CMFB in July 2008:– proposed simultaneous implementation of BPM6 and ESA

(scheduled for 2014);– an exception for FDI statistics: may be implemented in line

with OECD recommendations (scheduled for 2010);

The ECB and Eurostat are currently preparing a road map

Eurostat is also planning to organise two workshops in 2009 to discuss concrete implementation issues


3. Implementation of NACE rev.2 in BoP

The Eurostat BoP Committee approved the final implementation plan for the NACE Rev.2 for BOP domain:

– First reference year will be 2010, and first data are to be delivered in September 2011

– Activity breakdown for reporting data on FDI is modified to reflect NACE rev.2

– Back-casting will be carried out for reference years 2008 and 2009 and delivered in September 2011

In order to assist in the implementation and the back casting, Eurostat will organise a seminar in November 2008


4. Foreign affiliates statistics (FATS)

FATS Regulation was adopted in June 2007

Outward FATS: Transmission of data on turnover, persons employed and no. of enterprises on a mandatory basis (first reference year: 2007)

Pilot studies on some additional variables in order to assess the relevance and feasibility of collecting data

Eurostat has published a recommendation manual which contains definitions and supplementary guidance

The next meeting of the FATS WG is scheduled for 25-26 September 2008. Will focus on quality standards and quality reporting.


5. Remittances

Ad-hoc survey was carried out in May 2007

In December 2007 data on remittance flows to and from the EU-27 were published for the first time

In addition, major corridors of both remittances and "net CoE" flows were identified and quantified

Eurostat will propose Member States to provide data on a regular basis

The draft version of the compilation guide, prepared by “Luxembourg Group on Remittances”, will be made available soon on the IMF's website for comments.


6. Technical Group Travel

Activities concentrates on follow-up and monitoring of the implementation of national collection systems

Multilateral forum to analyse bilateral travel figures

May 2008 meeting concentrated on the following issues:– State of implementation of national plans to collect data – Common methodological problems – Bilateral comparison of travel figures and related physical

indicators – Action plan for reducing asymmetries

The next meeting is scheduled for early June 2009


7. Task Force on RoW account

TF-RoW was created to support work on reconciliation of BoP and RoW account, addressed methodological aspects and ran a survey on empirical differences

Although a final report was presented in 2007, was asked to give further clarification on following points: – the issue of price gaps in transit trade activities,

– legal aspects related to the use of credit card data and

– guidelines for the implementation of the recommendations.

it is foreseen that questionnaires for biannual monitoring will be sent in October 2008 and that the results will be reported back in January 2009


8. Task Force reconciliation BoP/FTS

The main objective is to improve coherence between BOP and FTS statistics

During the last meeting, on 29-30 May 2008, the TF: – developed recommendations on minimum quality

considerations for making the CIF/FOB adjustment;

– analysed data related to goods for processing;

– discussed possible ways for introducing concepts suited to BoP needs in the drafts of the Intrastat and Extrastat implementing provisions;

– analysed how to record aircraft leasing in NA, BoP and FTS;

– considered the problems that non-residents with a national VAT number were posing to BoP and FTS statistics.


9. EuroGroup register

The EGR aims for covering MNE groups with heads in and outside EU and their members in EU.

currently contains 600 MNE groups with at least one group member in the EU

In 2008, a stakeholder analysis of the need of FATS and BoP compilers was carried out.

The EGR coverage will be increased to cover 5000 largest enterprise groups by the end of 2008.

Extension of the coverage to 10 000 MNEs in 2010-2011

Full coverage to be reached in 2013.


10. Work on asymmetries

Asymmetries are a main concern for Eurostat as they reflect on the quality and credibility of the BoP data.

In the BoP WG of March 2008, Eurostat presented a document illustrating developments, scale and the persistence of asymmetries.

Eurostat is facilitating a 3-country exercise involving LU, NL and UK concerning exchange of FDI data.

A report on this reconciliation exercise will be presented at October 2008 Eurostat BOP Working Group meeting.

Eurostat is cooperating with the ECB in enhancing consistency of BOP data.


11. Network group direct reporting

The aim is to facilitate exchange of experience on implementation of direct reporting procedures and organising workshops on specific issues.

The first workshop was held in 2007 and was considered to be very fruitful and informative. The formula of a workshop was considered adequate as it allows focusing on strategic BoP data collection issues, besides establishing a network of informal contacts.

A second workshop is planned for spring 2009.


12. Threshold for statistical reporting

EU Regulation sets a threshold of €12 500 below which banks are exempted from reporting obligations.

Commission drafted a new draft Regulation asking: – to increase the reporting threshold up to 50 000 € by 1/1/2010

– complete exemption of payment service providers from BoP reporting by 1/1/2012

– This will not prevent the collection of readily available information and aggregated data which have no impact on the straight through processing of the payments

The European Commission is expected to adopt the new draft regulation before the end of the year, which will then be proposed to the European Parliament and Council.


13. PHARE projects

The purpose is to assist countries to attain better quality of data and timeliness.

One project involving HU, SK, LT and RO and concerning compilation of FATS data ended in 2007 with the delivery of data set, methodological report and final report.

A second involving TR and HR started on 1st January 2007.

The final report on results achieved, compliance with the FATS Regulation and remaining issues to be solved in each country, are due by end of September 2008.


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24 September 2008 Eurostat activities in trade in services and related balance of payments areas...

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