ESSnet ESSnet Workshop ‘EGR Methodology’ Rome 3-4 December 2012 V What is the EuroGroups Register?

V What is the EuroGroups Register for?

V The two ESSnet on EGR

V The objectives of the ESSnet (2008 – 2012) coord. by ISTAT

V The results achieved in 2008 - 2012

V Next steps in 2013 and 2014

V What are countries going to do with the results?

V Outstanding issues The Eurogroups Register is the European statistical register of multinational groups created by Eurostat and the statistical authorities of European Member States and EFTA countries. It contains structural economic information on enterprises that are part of the largest multinational groups in Europe.

The EGR is built up as a network composed of a central system located at Eurostat and local systems located in the participating countries. The EuroGroups Register is foreseen to become the common frame for all European statistical authorities (National Statistical Institutes and National Central Banks) for sampling coordinated populations in the production of statistics on globalization.

It will offer statistical compilers remote access to an integrated and up-to-date statistical register on enterprise groups which have relevant transnational operations in at least one of the European countries.

Statistical users will be able to consult, retrieve and update EGR data according to different permissions, roles and responsibilities. The EGR project started in 2008 Two ESSnet have been set up for building up the EGR central system and the Network:

FIRST ESSnet 2008 ––– 2012

} Coordinated by ISTAT (Italy) } Partners: CBS (Netherland), ONS (United Kingdom), ES (Estonia) } 1 Framework contract for 4 years + 3 Specific Grant Agreements

SECOND ESSnet 2012 ––– 2013

} Coordinated by CBS (Netherland) } Partners: ONS (United Kingdom), ISTAT (Italy), INE (Portugal) } 1 Multi Beneficiary Grant Agreement

This presentation isisis mainly on the results of the FIRST ESSnet } Building upupup aaa European statistical business register ononon multinational groups ◦ by defining the methodology and the technical specifications to create the central EGR system (located at Eurostat) ◦ by supporting Eurostat to control the physical development of the system done by an external IT company

} Setting upupup the Network between National Statistical Institues and Eurostat for exchanging files ofofof micro data ◦ by defining and supporting the organisation of: ñ data flows between NSI and Eurostat ñ timetable of the data exchange ñ structure of the micro data files ñ standards to be respected ñ activities that all National Statistical Institute should do. Before describing thethethe resultsresults, ,,,ititit isisis necessary tototo answer aaa common questionquestion: :::

"IS THE EGR JUST A PROJECT OR A PRODUCTPRODUCT?"?"

The answer isisis: is ::: BOTH!

V THE EGR ISISISA IS AAAPROJECT

V Because itsitsitsdevelopment isisis continuing ,,,thethethe second ESSnet isisis still working ononon ititit and there will bebebe aaa new version ininin 20132013////20142014 (version 222. 2...0000))))

V THE EGR ISISISA IS AAAPRODUCT

V Because 444EGR Frames have been already producedproduced: ::: 2008 ––– 2009 ––– 2010 (((2011 (2011 isisisininin progressprogress) )))

V The EGR Frames areareare distributed every year atatat beginning ofofof March tototo thethethe NSI (Business Register departmentsdepartments) ))) and ininin 2012 forforfor thethethe first time also tototo 141414 National Central Banks AtAtAtaaa more general levellevel: :::

V First time that Eurostatexchange (IN and OUT)micro data with292929 NSI and use them to createONE SINGLE European productproduct: EGR Frame

V All data files are exchanged usingeDamis and a double-encription procedure

V EGR isisis available forforfor being used by statisticians in NSI, it is the Business Register department in each country responsible to distribute it internally

V In about101010 countries EGR isisis already used for regular statistical production (by FATS and FDI statisticians)

V Guidelines forforfor coordinating the activity of NSI have been produced

V 292929NSI contribute to the EGRdata micromicro- ---validationvalidation (several data exchanges are necessary because it is done in batch mode)

V All information have been disseminated in777 Workshops and web site: wwwwww....egregregr....istatistatistat....itititit Facts and figures about EGR production cycles

9 DisseminationDissemination:: Web site EGR http://egr.istat.it

10 11 The second ESSnetESSnet, ,,,coordinated bybyby CBS Netherlands, will complete thethethe realisation ofofof thethethe EGR vvv. v...2222....0000

Main objectives areareare aiming atatat: at ::: V Improving theefficiency of the EGR production cycle for NSIs V NationalBusiness Registers will bebebe used asasas authentic data sources in place of Commercial Sources V Acccentral central identification system will issue a unique code to all legal units to be used by all NSI (according to international ISO standard) V Improving thequality of the EGR final frames V MicroMicro----validationvalidation of EGR data will be possible by using an interface to access data from remote access by all the NSI V Involve users in measuring EGR quality V Quality indicators on EGR quality will be developed together withFATS FATS users and tested by users V The objective is to involve users in data quality management and make EGR accepted and integrated in statistical production processes

12 } EGR version 2.0 will receive truncated multinational groups by NSI and "connect" them by trans-border control relationships (parent-affiliates)

To do sososo:so :::

} EGR version 2.0 integrates an EGR Identification Service (EGR IS) to issue a unique identification number (LEID number) to all legal units of the EGR

} To be processed by EGR version 2.0 and be includede in a group structure all legal units will have to be previously identified with the LEID number.

} The EGR IS will coordinate requests and answers of identification:

◦ Requests from: EGR process itself (when processing relationships) and from NSIs (both on line and batch)

◦ Answers from: EGR IS central database, a private commercial provider, and in future NSIs via web services.

13 When EGR 2.0 will be finished (2014):

• National staff (not necessarily only business register) will have a platform on remote access to share and exchange information in order to take coordinated decisions on some crucial characteristics (Ultimate Controlling Unit, NACE, employment, etc.) of the largest Global Enterprise Groups in EU

• All statistics on enterprise being part of Global Group (for instance I-O FATS, FDI) should be based on the same view (Frame) and therefore will be coherent and comparable

• A common methodology on how to use the EGR frames will be proposed and developed together with users in order to use the frames in a coordinated manner

• The largest Global Groups in EU will be updated in the EGR according to the methodology of international Profiling in order to provide users a Top Down view on the statistical units and their characteristics • Coordination with other stakeholders and projectsprojects::::

There are other projects similar to EGR (RIAD, EBR, FSB), and it is useful to share best practises and keep contacts

• Remote accessaccess::::

EGR version 2.0 needs a secure infrastructure at Eurostat (SICON)

• Information sharingsharing::::

EGR is based on the concept that sharing information among MS improves the quality of EU statistics. There is a trade off between engagement of MS in EGR and confidentiality

Coordination with other ESSnetsESSnets: :::

At the end their results have to converge

• Administrative burdenburden: :

Coordinating an and working in ESSnet is a very time consuming ESSnet activity, rotation is a good practise (ISTAT >>> CBS)

15 … but ESSnets are a great opportunityopportunity! !!!

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