16 Statistics
| (a)
(35070)
11177/13
COM(13) 342
(b)
(35415)
14224/13
—
|
Draft Regulation on the provision and quality of statistics for the macroeconomic imbalances procedure
European Central Bank Opinion on a draft Regulation on the provision and quality of statistics for the macroeconomic imbalances procedure (CONC/2013/72)
|
| Legal base | (a) Article 338 TFEU; consultation; QMV
(b) —
|
| Deposited in Parliament
| (b) 23 October 2013 |
| Department | Office for National Statistics
|
| Basis of consideration
| EM of 30 October 2013 |
| Previous Committee Report
| (a) HC 83-xii (2013-14), chapter 10 (17 July 2013)
(b) None
|
| Discussion in Council
| Not known |
| Committee's assessment
| Politically and legally important
|
| Committee's decision
| Not cleared; further information requested
|
Background
16.1 The Macroeconomic Imbalances Procedure (MIP)
is a mechanism designed to identify and, if necessary, correct
harmful macroeconomic imbalances across the EU, which were a key
cause of the current sovereign debt crisis. Detailed rules for
the early detection, prevention and correction of macroeconomic
imbalances are set out in Regulation (EU) No. 1176/2011. Each
Member State is assessed against a "scoreboard" comprised
of 11 macroeconomic indicators that monitor the potential development
of problematic external and internal imbalances. The Commission
draws heavily on the results of the scoreboard in its evaluation
of Member States' economic performance. The information in the
scoreboard informs crucial administrative and policy actions so
its indicators need to be reliable and of high quality.
16.2 The need to have statistics of the highest quality
for inclusion in the MIP scoreboard and to develop a reliable
quality monitoring procedure for this purpose has been stressed
by the ECOFIN Council. In response in June the Commission proposed
this draft Regulation, document (a), to introduce a wide range
of new procedures and obligations based on statistical provisions
in the current Excessive Deficit Procedure (EDP) and Gross National
Income (GNI) procedures, including Commission inspections of statistical
production processes in Member States, peer reviews by EU partners,
obligations to produce detailed inventory documentation (descriptions
of sources and methods used), methodological visits, production
of extensive quality reports by Member States and potential sanctions
for negligence or deliberately misrepresenting data.
16.3 When we considered this draft Regulation in
July we heard that the Government places a high degree of importance
on high quality, robust economic statistics, including under the
MIP, but that it had considerable reservations about the proposal.
We commented that the proposal was clearly unacceptable. So we
endorsed the Government's intention to secure either a substantial
re-draft of the proposed Regulation or its removal altogether
and we looked forward to learning of progress on this in due course.
Meanwhile the document remained under scrutiny.[57]
The new document
16.4 In addition to the Commission (Eurostat) producing
EU level statistics, under the European Statistical System (ESS),
the European System of Central Banks (ESCB) produces its own relevant
EU level statistics. In that context the European Central Bank
(ECB) publishes this Opinion, document (b), on the draft Regulation.
The ECB, noting that the ESCB produces statistics relevant to
the MIP, says that:
"the ECB recommends
that rather than introducing a new quality assurance framework
by means of the proposed Regulation, the already existing quality
assurance arrangements of the ESS and the ESCB should also be
applied to statistical data for the MIP. This approach is supported
by the principles of data relevance, cost effectiveness and minimisation
of the reporting burden as laid down in [the Regulations governing
ESS and ESCB statistics].
"Since the responsibilities
for the production of the macroeconomic and financial statistics
underlying the indicators for the MIP are shared between the ESS
and the ESCB, close cooperation between the two systems is necessary
to assure their quality, as required by [the Regulations governing
ESS and ESCB statistics], and as emphasised by the Council in
its conclusions on EU statistics of 30 November 2011 and 13 November
2012.
"Considering the above,
the ECB points to the work initiated by the Committee on Monetary,
Financial and Balance of Payments Statistics (CMFB), with a view
to assessing the quality and comparability of the MIP relevant
data under the current statistical legal framework. The CMFB may
also advise on possible ways to develop public awareness of such
issues. Once the work of the CMFB has progressed, practical arrangements
for the cooperation between the ESS and the ESCB on quality assurance
frameworks for statistical data for the MIP could be laid down
in a memorandum of understanding, if considered appropriate."
The Government's view of the new document
16.5 The Minister for Civil Society, Cabinet Office
(Mr Nick Hurd) reiterates the Government's concerns about the
draft Regulation and says that the formal Opinion of the ECB is
therefore welcome as it reinforces the Government's case.
16.6 The Minister continues that:
· the UK and nearly
all other Member States have expressed similar concerns, along
with an oral report from the ECB about their Opinion, at the Council
Working Party on Statistics on 10 October;
· a decision from the
Presidency is now awaited about how to proceed with the negotiations;
· an opinion from the
Council Legal Service has yet to be received; and
· reactions by the European
Parliament to the draft Regulation are not yet known.
Conclusion
16.7 We note the helpful Opinion from the ECB
and that it is not yet clear how negotiation of the draft Regulation
will develop. We continue to support the Government's aim of securing
either a substantial re-draft of the proposed Regulation or its
removal altogether, and we look forward to learning of further
progress on this in due course. Meanwhile the documents remain
under scrutiny.
57 See headnote. Back
|
