Opinion on Work Programme 2015 Advice on the strategic priorities for the draft Annual Work Programme 2015 1/9
Introduction ESAC welcomes the opportunity to comment on the strategic priorities for 2015 and encourages Eurostat and the Member States to continue to explore how greater engagement with the wide range of stakeholders in the European Statistical system might be achieved, not only in setting the priorities but also in seeking efficiencies in times of fiscal constraint. To this end ESAC encourages Eurostat and NSIs to carry out some experimental work in order to explore new opportunities such as those provided by Big Data. Often financial restrictions lead to more cautious, conservative approaches whereas it is essential in such times to take some risks. The proposed strategic priorities for 2015 contribute to the objectives set in the multiannual programme and ESAC is content that they cover all the major issues. The priorities have taken account of previous comments from ESAC and are consistent with the multiannual programme objectives. A balance between economic, social and environmental fields is maintained. The strategic priorities in general cover the needs of the users of European statistics although a number of suggestions for the inclusion of additional data are made below. Improving access to data, including micro-data sets, remains a very high priority for users. ESAC members would encourage official statisticians to engage with the discussions about changes to the relevant legislation at European and national level so that the needs of researchers are not overlooked. A number of perennial themes are raised, in addition to that relating to access of data for researchers. These include the need for greater clarity on the implications of data collection both in terms of the within country costs and the costs at European level as well as improved information on response burden. Increased response burden, especially for businesses in Europe, can only be justified by the economic and social benefit of the additional data. The lack of information on the costs of data makes setting priorities extremely problematic. ESAC has made suggestions for the inclusion of further activities not included in the Work Programme, e.g. research and data collection on volunteering, examining the impact of aggressive tax planning by multi-national companies, and new topics for the Labour Force Survey. However ESAC is very conscious of the danger of overstretching the resources of national statistics institutes especially when many have reduced budgets. To this end we have recommended the re-use of existing data sources wherever possible as well as investing in the use of new technologies. I Statistical outputs 1. INDICATORS 1.1 Europe 2020 and GDP and beyond A high priority for the European Statistical System (ESS) is the development and provision of appropriate statistical indicators to support EU strategies and decisions in a number of policy areas which are critical for Europe 2020. However, these strategies cover such a broad range of topics that it will be a significant challenge for the ESS to deliver all the relevant statistical information. To avoid an increased burden on the NSIs 2/9
in supplying both Europe 2020 and GDP and beyond data, it would be very helpful if the processes involved could be streamlined and harmonised. Priority should be given to improving the timeliness of the 2020 indicators, with particular reference to material deprivation and energy efficiency. It is problematic for users if data relating to some Member States lags others, so the geographic coverage also needs attention. An improvement to the availability of the social indicators connected with the work on the road map for GDP and beyond would be welcome, particularly in relation to regional poverty indicators. The five targets for the EU in 2020 require specific indicators to be monitored over time, observed and estimated in disaggregated regional areas. To help in these resourcestretched times, specific small area estimation methodologies should be used to produce robust estimates. Analysis is needed which can indicate where investments will make the biggest contribution to smart, sustainable and inclusive growth. As the road map for the work on the GDP and beyond is a key element of future strategies for national and European policies, data users should continue to be involved in the dialogue. Collaboration across all stakeholders is essential to agree on the main indicators. The stakeholders include those producers of European statistics who design and implement the data collection processes as well as academics who have expertise in methodology and can contribute to innovative methods of communication. The integration of the SILC ad hoc module on well-being is a useful complement to the quality of life indicators but it would be interesting for an outline to be given on how work will progress following the release of the EU-SILC ad hoc data from 2013. Finally, the publication of indicator sets on the websites of NSIs should be coordinated within the ESS, taking into account the key principles of the Code of Practice. Economic Governance It is essential for EU policy makers to have nationally-comparable high quality statistics, which are relevant to current economic and methodological issues. In this regard ESAC welcomes the full implementation of ESA 2010 and the verification of this work. It is important to exercise the quality assurance of accounting frameworks (such as ESA2010) within a broad quality framework. Monitoring the quality of statistics for the Macroeconomic Imbalances Scoreboard should be done cost-effectively. The ESS work programme and priorities could benefit from a clear reference to the annual ECOFIN Council conclusions on statistics, clearly identifying the statistics needed for economic and monetary union. Further coordination and actions should be undertaken to increase the coherence between macro and business statistics. The European Public Sector Accounting Standards are an important step towards a harmonised accounting system. The outcome of the public consultation process should be taken into account when finalising the Framework Regulation. The transition to an accrual basis of accounting is very expensive for which institutions will need the requisite resources. 3/9
2. ACCOUNTING FRAMEWORKS 2.1 Economic and Social Performance ESAC welcomes the provision of high quality macroeconomic indicators as well as the implementation of a new methodological and production framework for macroeconomic statistics in the context of the implementation of ESA 2010. ESAC is aware of the potential trade-off between quality and timeliness. In times of financial, economic, social and political crises, social statistics are of particular value yet may suffer in terms of timeliness, quality, periodicity, etc. due to other commitments. The prioritisation between social and economic collection and monitoring is delicate. More detailed information on the work of the accounting frameworks in the fields of health, social protection and education accounts would be welcome. In particular in the case of education, more detailed information is requested on the objectives of this work as well as on the data sources that are intended to be used. It would also be useful to understand how this will build on the work of OECD who have significant education statistics programmes. It is noted that although ESA2010 is mentioned, the work programme would benefit from the inclusion of outstanding issues such as macroeconomic statistics. Reference to the Balance of Payments Manual 6 is also missing from the priorities. Attention should be given to the fact that, although the political agenda emphasises indicators, meaningful indicators can only be based upon well-founded accounting frameworks. Thus an alternative approach would be to examine the relationships among the various accounting frameworks (economic and social, globalisation, environmental) in the context of the ESA2010 (satellite accounts). 2.2. Economic Globalisation In view of the priority given to measuring economic globalisation, attention needs to be focused on the significant balance of payments surpluses and deficits that have emerged between countries in the EU. Methodological issues relating to the measurement of the balance of payments (with special attention to the magnitude of 'net errors and omissions') deserve priority. In that perspective, efforts should be made to improve comparability of data on economic competitiveness as regards the respective costs of labour and capital. Similarly the complex issue of the impact of transfer pricing by multinational enterprises on the national accounts of EU Member States should be examined more closely, with Eurostat ensuring that guidelines and methodologies are applied consistently, if and when they are introduced. 2.3 Environmental Sustainability A coherent system of environmental accounts is very welcome as are the efforts to improve the knowledge base on global material stocks and flows as these are crucial for estimating, for example, the transfer of environmental burdens between countries. However more attention must be paid to cost-benefit aspects than in the past and 4/9
attempts must also be made to use existing surveys and other data sources rather than setting up new ones. Coherence could be improved in terms of methodology, definitions, variables, frequency etc., concerning energy and waste statistics and statistics of other environment-related areas. Improved availability of data would be welcome to better understand regional typologies and functionalities including the degree of urbanisation. 3. DATA 3.1 Business ESAC welcomes the fact that the common Framework Regulation for Integrating Business Statistics (FRIBS) is highlighted and considers that it should be part of this strategic priority. However, this remains an ambitious project with a number of concerns, such as consistency, the definition of the coverage and scope of what is to be understood as business statistics, the definition of the statistical unit of business statistics and the legal basis. The legal framework of FRIBS is an important factor of success. Therefore ESAC recommends that the collection of the basic data be defined in the basic regulation. A list of variables should be included, for amendment by delegated acts when necessary. Certain statistics which constitute an important part of business statistics (such as labour, energy or transport statistics) should be included in the FRIBS. Steps should be taken to ensure that those statistics that are only partially integrated (such as tourism statistics or ICT) are not lost in the course of further methodological developments. Furthermore the role of ESA 2010 has to be clarified. The definition of the statistical unit is crucial for the availability of regional data and should be given attention. 3.2 People s Europe The proposal for a process towards a framework for the regulation of social surveys to increase their coordination and consistency across Europe is welcomed. This should also provide researchers with a wider range of data for empirical analysis. Such coordinated surveys and framework regulations have the additional advantage in that they could mitigate the risk of social surveys being abandoned in times of economic or financial crises. Additional, carefully selected labour market topics could be included in the Labour Force Survey to increase its usefulness. The focus should be on three areas: Job-onjob mobility, Over-qualification/Mismatch in the labour market and Flexible working time and working time arrangements. The planned modernisation of population statistics is welcomed. It is suggested that some problems in social statistics should be given priority. For example, the absence of reliable data concerning the Roma population in Europe undermines the development 5/9
of sound programmes directed to this section of society. The lack of data also makes it impossible to evaluate the efficiency and effectiveness of the funds allocated to this group and to assess progress. ESAC welcomes the ESSnet ESeG project aiming at establishing a European socioeconomic classification. In terms of the balance between the economic, social and environmental fields, and the needs of users and citizens, more attention should be given to measuring the contribution of volunteering. This plays a key role in generating inclusive growth and strengthening social cohesion, social and human capital, informal education, integration into the labour market and inter-generational solidarity. The European Commission has been called on to undertake work on a standardised methodology for research into volunteering on the basis of the ILO Manual on the Measurement of Volunteer Work. This might best be done by combining research into volunteer work with one of the other areas of research currently carried out by the National Statistical Institutes of the Member States. One possibility for gathering information on volunteering could be, for example, the inclusion of a volunteering module in the Labour Force Survey. ESAC supports further improvements to the availability and quality of data on the different dimensions of quality of life, taking into account the recommendations of the ESAC Workshop on "Measuring and Comparing the Quality of Life within Europe". 3.3 Geospatial, environmental, agricultural and other sectoral statistics There should be recognition of the fact that environmental agencies are also players in the delivery of environment statistics in many countries. The use of administrative data from these agencies and from other sources should be maximised in order to reduce the burden for data collectors and respondents alike. New cost-efficient methodologies which utilise technology for collecting data are developing fast. Remote sensing technologies for land use and land cover can provide relevant data at lower cost than traditional statistical methods. In this context, LUCAS would be a candidate for negative priority. More detailed information on the optimisation and adaptation of the energy project would be welcome. The strengthening of cooperation with other organisations is a further instrument to reduce response burden and is therefore supported by ESAC. 3.4. Regional Data The availability of data and indicators at the regional level and their improved timeliness are necessary for an effective implementation of the cohesion policy. Being able to measure disparities between and within regions on a wide range of economic, social and environmental phenomena would facilitate assessing the progress towards targets and adjusting policies properly. According to the principles of multilevel governance, the availability of data at regional and sometimes local level is essential to allow policy makers in the area of their 6/9
competences to allocate resources efficiently and to create synergies. Regional and local data are also needed for the production of pertinent territorial impact assessments on future EU policies and strategies. II New methods for production of European statistics 4.1 ESS quality management European statistics determined under European statistical work programmes are developed, produced and disseminated in conformity with the European Statistics Code of Practice. The issue concerning the role of other statistics and their inclusion in the Annual Work Programme 2015 needs to be addressed. The relationship between the National Statistical Institutes and other providers has not yet been defined. Whether data emanating from other European Commission Directorates General (DGs), are considered to be European statistics should be clarified on a case-by-case basis. This is also important if there is a possibility, in the future, that the use or dissemination of some data which is gathered under the auspices of external agencies will fall under the responsibility of the National Statistical Institutes. This is a growing issue as increasingly NSIs are seeking to use other sources of data which are not under their control. ESAC would welcome a discussion of the scope of official statistics and the implication for both branding and for quality assurance, as well as for access. The use of private data for official statistical purposes could inadvertently disenfranchise users. 4.2 Priority setting and simplification ESAC members recognise that all of the strategic priorities set out in the document are relevant but we also feel that this is an ambitious programme in times of austerity and falling budgets. It remains difficult for ESAC to suggest negative priorities in the absence of financial information, or estimates of response burden. However the fact that this is difficult does not mean that ESAC shirks this responsibility and we look forward to partnership with the NSIs and Eurostat to improve the methodology for prioritisation. ESAC supports the proposal discuss in earlier years that all new data collection initiatives should have a sunset clause and should have to demonstrate value before they are continued. In summary ESAC would like to stress the fact that the priorities in the work programme should reflect the resources available. 4.3 Multipurpose statistics and efficiency gains in production ESAC repeats its opinions on the topic of the exchange of micro-data within the scope of SIMSTAT given on 21 November 2012. The demonstration of the technical feasibility of the exchange of micro-data on intra-eu trade is an important milestone for the SIMSTAT project. But the legal bases for the legitimate use of this data have to be established at European level and misuse prevented. The demand for timely statistical data of high quality has increased, as well as the need for new, cost-effective solutions to reducing response burden. To this end statisticians will have to determine how official statistics might incorporate Big Data effectively. 7/9
There are legal and public acceptability aspects to this issue which need to be addressed alongside the technical aspects. ESAC is keen to work with NSIs and Eurostat to bring the skills of a broader community to bear on the methodological developments in the use of Big Data. 4.4 Dissemination and communication Whilst the Annual Work Programme is far-reaching and of interest to a wide range of users, it would be helpful if the data collected and disseminated were more accessible through the provision of user-friendly tools to help with the sorting of data, classification of objects etc. It would useful to establish a Eurostat data end-users group to monitor and to comment on the availability of data availability, the ease of downloading, consistency with the other relevant sources and primary manipulation. Researchers also require fast access to micro-data for their analytical studies. More attention to the availability of data for the user community would be welcomed. There are currently long application processes and many restrictions are placed on researchers. ESAC recommends greater involvement in the EU programme Data without Boundaries, in order to ensure that its results and recommendations address the concerns of both users and producers of official statistics. 4.5 Training, innovation and research ESAC endorses projects such as the European Master of Official Statistics which encourage cooperation between universities, Eurostat and NSIs, in order to identify the best skills and competences in the training of experts in official statistics. As confirmed by the Programme for the International Assessment of Adult Competencies (PIAAC), 2013 OECD survey on adult skills, workers in the 21st century must have a stock of information-processing skills, one of which is the ability to deal with statistical data. This skill could be promoted by including Statistics specifically as part of the Mathematical competence and basic competences in science and technology Key Competence for lifelong learning. Generally statistics literacy in education, training and retraining should be encouraged. To meet the objectives of the 2015 Work programme the research communities must be involved. A systemic approach is recommended, involving European and National Statistical Institutes and networks of Universities. These could focus on tools to aid decision-making, methods for analysing big data, new methodologies for analysing unstructured digital data as well as visualising and communicating data. ESAC is keen to ensure that the views of users are taken into account in the development of common or shared training, and offers assistance in this regard. ESAC supports the EU-research and innovation programme to create a unique market for knowledge, research and innovation. 8/9
III Partnership 5.1 Partnership with in the ESS and beyond ESAC welcomes the steps towards reinforcing collaboration with the European System of Central Banks (ESCB). The areas of shared responsibility between the ESS and ESCB as reflected in the tasks identified by the European Statistical Forum (ESF) and the Committee of Monetary, Financial and Balance of Payments Statistics (CMFB) should be reflected in the strategic priorities of the ESS. Closer partnership and cooperation between statistics and academia would be similarly welcomed. 9/9