8 Fiscal statistics
| (26419)
6924/05
COM(05) 71
| Draft Regulation amending Regulation (EC) No. 3605/93 as regards the quality of statistical data in the context of the excessive deficit procedure
|
| Legal base | Article 104 (14) EC; consultation; QMV
|
| Document originated | 2 March 2005
|
| Deposited in Parliament | 10 March 2005
|
| Department | Office of National Statistics
|
| Basis of consideration | EM of 23 March 2005
|
| Previous Committee Report | None; but see (26253) 5049/05: HC 38-vii (2004-05), para 12 (2 February 2005)
|
| To be discussed in Council | June 2005
|
| Committee's assessment | Politically important
|
| Committee's decision | Not cleared; information on progress requested
|
Background
8.1 In 2004, Greek budgetary statistics underwent significant
revisions. In January 2005 we considered a consequent Commission
Communication on the accountability issue related to these revisions.[19]
In February 2005, we considered a further Commission Communication
about improvements in the production of fiscal statistics, which
outlined proposals in three areas:
- legislation to improve the quality of statistical data used
in the context of the Excessive Deficit Procedure,[20]
including supplementing the existing legislation so as to give
the Commission (Eurostat) power to monitor government accounts
directly;
- improving the operational capacity of the Commission
(Eurostat and the Directorate-General for Economic and Financial
Affairs), including systematic planning of in-depth verification
missions and use of national expertise in support of Eurostat;
and
- establishing Europe-wide standards to reinforce
the independence, integrity and accountability of the national
statistical authorities.
We noted and endorsed the Government's view that
the response to difficulties with fiscal statistics should be
proportionate.[21]
The document
8.2 This draft Regulation is designed to address
both the quality of statistical data used in the context of the
Excessive Deficit Procedure and the operational capacity of the
Commission. It would:
- provide a legal basis for the
Code of Best Practice 2003 for compiling and reporting data on
government deficit and debt;
- allow for audit visits in addition to the regular
missions currently carried out by Eurostat; and
- require the publication by the Member States
of the inventories of sources and methods used to compile data.
The Government's view
8.3 The Financial Secretary to the Treasury (Mr Stephen
Timms) says that it is the Government's view that there is no
need for legislation. The issues could be tackled by establishing
Community-wide protocols, which, although not legally binding,
would underpin the Code of Best Practice. The protocols should
focus attention on key issues and clarify the responsibilities
of statisticians in data certification. Eurostat audits should
occur only in cases of deliberate obfuscation or inadequate data.
Conclusion
8.4 The Commission has tabled a clearly disproportionate
response to the problem, which breaches the principle of subsidiarity.
The document does not show any attempt by the Commission to produce
a justification for its breach of the principle of subsidiarity
or an impact assessment of the proposal. We ask the Minister to
demand of the Commission fulfilment of these standard requirements,
and urge him to resist strongly the adoption of the draft Regulation.
We also ask him to keep us informed of developments, and meanwhile
we do not clear the document.
19 See (26193) 15553/04 + ADD 1: HC 38-iv (2004-05),
para 15 (19 January 2005). Back
20
Action, in relation to the Stability and Growth Pact, under Article
104 EC and the relevant Protocol on an excessive government deficit. Back
21
See headnote. Back
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