Documents considered by the Committee on 18 March 2015 - European Scrutiny Contents


19 Statistics

Committee's assessment (a)-(b) and (d) Legally and politically important

(c) and (e) Politically important

Committee's decision(a) Cleared from scrutiny (by Resolution of the House on 20 January 2014) (b)-(e) Not cleared from scrutiny; further information requested
Document details(a) Draft Regulation to amend the European Statistical Law, (b) Draft Regulation on statistics for the macroeconomic imbalances procedure, (c) Draft Regulation about Commission powers in relation to EU external trade statistics, (d) European Central Bank Opinion on document (b), (e) Draft Regulation concerning harmonised indices of consumer prices
Legal base(a)-(c) and (e) Article 338 TFEU; co-decision; QMV

(d) —

Department

Document numbers

Office for National Statistics

(a) (33844), 9122/12, COM(12) 167, (b) (35070), 11177/13, COM(13) 342, (c) (35303), 13517/13, COM(13) 579, (d) (35415), 14224/13, —, (e) (36570), 16612/14 + ADD 1, COM(14) 724

Summary and Committee's conclusions

19.1 At present we have under scrutiny three draft Regulations and an associated European Central Bank Opinion concerned with the EU statistical system. We have also had occasion recently to report again on another draft Regulation, which was cleared from scrutiny in January 2014.

19.2 The Government gives us now, in anticipation of the Dissolution of Parliament, an update on the situation in relation to these five documents.

19.3 We are grateful to the Government for this information. We note that the Government may vote in favour of two of the draft Regulations, even if they have not been cleared from scrutiny. We remind the Government that if this occurs our successor Committee will have to have the circumstances explained to it.

Full details of the documents: (a) Draft Regulation amending Regulation (EC) No. 223/2009 on European statistics: (33844), 9122/12, COM(12) 167; (b) Draft Regulation on the provision and quality of statistics for the macroeconomic imbalances procedure: (35070), 11177/13, COM(13) 342; (c) Draft Regulation amending Regulation (EC) No. 471/2009 on Community statistics relating to external trade with non-member countries as regards conferring of delegated and implementing powers upon the Commission for the adoption of certain measures: (35303), 13517/13, COM(13) 579; (d) European Central Bank Opinion on a draft Regulation on the provision and quality of statistics for the macroeconomic imbalances procedure (CONC/2013/72): (35415), 14224/13, —; (e) Draft Regulation on harmonised indices of consumer prices and repealing Council Regulation (EC) No. 2494/95: (36570), 16612/14 + ADD 1, COM(14) 724.

Background

19.4 We consider a fairly steady stream of documents concerned with the EU statistical system. At present we have under scrutiny three draft Regulations, documents (b), (c) and (e) and an associated European Central Bank Opinion, document (d). We have also had occasion recently to report again on another draft Regulation, document (a), which was cleared from scrutiny in January 2014.

The Ministers' letters of 9 February and 9 March 2015

19.5 In their separate letters the Minister for the Cabinet Office and Paymaster General (Mr Francis Maude) and the Minister for Civil Society, Cabinet Office (Mr Rob Wilson), update us on these five documents. In the following paragraphs we conflate their comments.

Draft Regulation to amend the European Statistical Law, document (a)

19.6 Regulation (EC) 223/2009 is the framework legislation for the European Statistical System. All other legislation under which EU statistics are produced must be made in accordance with that Regulation. In April 2012, the Commission proposed, in this draft Regulation, which was cleared from scrutiny after debate in January 2014, amendments to four key features of the framework Regulation.

19.7 The Government reminds us that:

·  it told us recently about unwelcome developments with the text, which introduces provisions for sanctions regimes in future statistical Regulations;

·  the Government believes these provisions would be illegal and it could not support them; and

·  in February the Government confirmed to us that it does not intend to challenge immediately the provisions in the European Court of Justice.

19.8 We are told now that:

·  following consideration of legal-linguist revisions to the text, the draft Regulation was approved by Coreper on 4 March and final adoption was agreed by the Energy Council on 5 March;

·  the Government voted against the proposal and laid a minute statement to the effect that Article 338(1) TFEU does not constitute an appropriate legal basis for Article 12.3(b) of the proposed Regulation; and

·  the Presidency then transmitted the Council position to the European Parliament for its approval during its March plenary.

Draft Regulation on statistics for the macroeconomic imbalances procedure and a European Central Bank Opinion on the draft Regulation, documents (b) and (d)

19.9 The macroeconomic imbalances procedure (MIP) is a mechanism designed to identify and, if necessary, correct harmful macroeconomic imbalances across the EU. 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 information in the scoreboard informs crucial administrative and policy actions so its indicators need to be reliable and of high quality. So the Commission has presented this draft Regulation to introduce a wide range of new procedures and obligations based on statistical provisions in the current Excessive Deficit Procedure and Gross National Income 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.

19.10 Reminding us that the Government's aims are to secure either a substantial re-draft of the proposed Regulation or its removal altogether, a position we have supported, we are told now that:

·  the proposal is still under negotiation at Council working party level, where most Member States are currently overwhelmingly opposed to the Commission's proposals, and there has been no substantive progress at the committee stage in the European Parliament;

·  related to this matter, late in 2014, the Economic and Finance Committee called for stakeholders to evaluate whether the Commission's proposal was the best means of achieving the objectives;

·  the Committee on Monetary, Finance and Balance of Payments (CMFB), has produced a firm proposal for an alternative, less burdensome, approach to achieve the aims of the Commission`s proposal, which would not necessarily require legislation at all;

·  this proposal is now being further refined by the CMFB, with good progress made;

·  it is, however, still not clear how the Commission will respond to these developments; and

·  the Latvian Presidency has stated that discussions are currently on hold.

Draft Regulation about Commission powers in relation to EU external trade statistics, document (c)

19.11 Regulation (EC) 471/2009 concerning statistics on EU trade with non-Member States, contains pre-Lisbon Treaty provisions about the comitology powers of the Commission. This draft Regulation would replace the remaining pre-Lisbon comitology provisions in Regulation (EC) 471/2009 with powers allowing the Commission to adopt delegated and implementing acts. The Government is generally supportive of the proposal, but intends to secure improvements in the text in order to properly circumscribe the Commission's use of delegated acts.

19.12 We heard recently that there had been rapid progress on this proposal under the Italian Presidency but that it was not yet known what priority the Latvian Presidency would give it. We are told now that:

·  there have been no further significant developments, although the Presidency has indicated that it will consider holding a technical meeting with the European Parliament to clarify the available options for a final compromise text;

·  it is possible that negotiations will be completed and the proposal brought to Council before our successor Committee first meets in the next Parliament; and

·  in that event the Government would be inclined to vote in favour of the proposal, if the final text is brought into line with similar Regulations, by including an obligation on the Commission to consult Member States' experts, which should adequately minimise the risks associated with the Commission's use of delegated acts.

Draft Regulation concerning harmonised indices of consumer prices, document (e)

19.13 The Harmonised Index of Consumer Prices (HICP), otherwise known as the Consumer Prices Index, provides a measure of inflation used for effective economic policy-making, and particularly in the area of monetary policy. The aim of this draft Regulation is to rationalise the existing legal framework and implement some new provisions to reflect developments in consumer prices statistics and the EU legal framework over the last 20 years. Whilst acknowledging the Government's favourable view of the proposal, we have noted its concern about delegated acts aspects of the draft Regulation.

19.14 We are told now that:

·  given that this is a new proposal, there have been no significant developments so far;

·  initial consideration of the proposal at Council working party level began on 18 February and is scheduled to continue at the next meeting on 17 March;

·  it is possible that discussions will be completed and the proposal brought to Council before our successor Committee first meets in the next Parliament; and

·  in that event the Government would be inclined to vote in favour of the proposal if the final text adequately minimises the risks associated with the Commission`s use of delegated acts and fully retains measures which provide for improved efficiencies and quality in price statistics.

New business

19.15 We are also told that:

·  no further new business is expected to arise from the Presidency plans;

·  in February the European Statistical System Committee considered two draft delegated acts — a delegated Regulation amending the methodology for the classification of products by activity and a delegated Regulation setting out the format in which national accounts research and development expenditure data shall be transmitted by Member States to the Commission;

·  the Government is satisfied that the delegated acts do not go beyond what is provided for by the basic act and does not foresee any difficulty or significant costs; and

·  our staff will be consulted in the usual way when the delegated acts have been published as to whether they need to be deposited for scrutiny.

Previous Committee Reports

Third Report HC 86-iii (2012-13), chapter 10 (23 May 2012), Nineteenth Report HC 86-xix (2012-13), chapter 9 (7 November 2012); Twenty-seventh Report HC 86-xxvii (2012-13), chapter 5 (16 January 2013); Twenty-ninth Report HC 86-xxix (2012-13), chapter 6 (23 January 2013); Thirty-eighth Report HC 86-xxxvii (2012-13), chapter 5 (26 March 2013); Twelfth Report HC 83-xii (2013-14), chapter 10 (17 July 2013); Thirteenth Report HC 83-xiii (2013-14), chapter 5 (4 September 2013); Seventeenth Report HC 83-xvi (2013-14), chapter 13 (9 October 2013); Twenty-second Report HC 83-xx (2013-14), chapter 16 (6 November 2013); Twenty-eighth Report HC 219-xxvii (2014-15), chapter 11 and chapter 18 (7 January 2015); Twenty-ninth Report HC 219-xxviii (2014-15), chapter 8 , chapter 9 and chapter 15 (14 January 2015) and Thirty-fourth Report HC 219-xxxiii (2014-15), chapter 22 (25 February 2015).



 
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Prepared 27 March 2015