ESP extension to Indicative roadmap

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1 ESP extension to Indicative roadmap TITLE OF THE INITIATIVE ROADMAP Proposal for a Regulation of the European Parliament and the Council amending Regulation No 99/2013 on the European statistical programme , by extending it to to synchronise with the MFF LEAD DG RESPONSIBLE UNIT ESTAT A.TF.IP DATE OF ROADMAP 03 / 2015 This indicative roadmap is provided for information purposes only and is subject to change. It does not prejudge the final decision of the Commission on whether this initiative will be pursued or on its final content and structure. (1) What is the political context of the initiative? A. Context and problem definition (2) How does it relate to past and possible future initiatives, and to other EU policies? (3) What ex-post analysis of existing policy has been carried out? What results are relevant for this initiative? (1a) The current European statistical programme 1 defines the scope of European statistics and covers the years , while the Multiannual Financial Framework 2 (MFF) covers the years The synchronisation of the European statistical programmes with the MFF was recommended by the European Court of Auditors 3 and the European Parliament. The extension of the programme will secure the financing for the period (1b) "Evidence based" decisions are especially important in Europe for the performance management of EU policies. European statistics support the development, monitoring and evaluation of the policies of the Union, in particular policies setting quantitative objectives and thresholds making use of statistical indicators (e.g. Europe 2020). The political response to the profound economic crisis and its social impact have fuelled demands for economic and social policies based on robust and comparable evidence. Some European statistics feed almost automatically into the EU monitoring of national policies (Stability and Growth Pact and Macroeconomic Imbalances Procedure, European Semester). The political context for European statistics is the general EU policy context. This is why the initiative to be proposed in 2015 will take into account the new political agenda that will emerge to guide and shape the actions of the European Commission and of the other EU institutions. Both the Political Guidelines proposed by the new Commission President-elect and the strategic priorities 5 agreed by the European Council in June 2014 point to the consolidation and deepening of the process whereby official statistics are used at the forefront of the political debate. (2) The current programme reflects the Vision set out in the Commission Communication of 10 August 2009 on the production method of EU statistics 6. The initial vision was reviewed in 2014 to form an updated "European 1 Regulation (EU) No 99/2013 of the European Parliament and the Council of 15 January 2013, OJ L 39, , p OJ, L 347, ECA Special Report N 12/ /AUD/0092/01.12/ COM(2009) 404 final, Eurostat 3 RDG 2015/8/EN

2 Statistical System Vision 2020" with an extended scope covering other key areas like users' needs, quality, data sources, processes, dissemination and communication. (3) An evaluation of the Multi-Annual Programme has been completed in The European statistical programme represents a substantial change from the previous one, as it became an instrument for modernising the production of European statistics. A mid-term review of European statistical programme will be available in What are the main problems which this initiative will address? 1. To follow the recommendation from the ECA and the European Parliament to align the timeline of the European statistical programme with the Multiannual Financial Framework ( ). 2. The need for Eurostat and the European Statistical System to continue to deliver European statistics to elaborate and evaluate EU policies for the period The European Statistical System has already started to restructure itself through an ambitious modernisation process in the framework of the programme : instead of continuing to produce statistics for specific domains independently from each other, statistical systems at both national and European level are moving towards more integrated and comprehensive production systems. However, the statistical infrastructure still has to undergo an important transformation process to achieve major efficiency gains and quality improvements, in order to face the following challenges: The need for European statistics has been increasing during the last years and it is unlikely that this tendency will change in the future. The expectations on the quality and comparability of European statistics are also increasing, as some of these statistics have an important impact on Member States and the Union through their direct application in the implementation of European policies. With globalisation, a complex reality has emerged that has to be captured by official statistics and raises methodological challenges. Important phenomena in our society including large-scale economic, financial and political crises, new forms of organising economic production through global value chains and multinationals, global demographic trends affecting developing and developed countries in many different ways, and issues of sustainable development, ask for new statistical products, all of which go beyond the adding of separate national results and which are able to serve multiple purposes. Budget constraints, both at national and European level, have become more pertinent with the economic crisis, as well as the need to further reduce the burden on enterprises and citizens. Moreover, and as highlighted in the Commission Communication "Towards a thriving data-driven economy" i we witness a new industrial revolution driven by digital data, computation and automation. Human activities, industrial processes and research all lead to data collection and processing on an unprecedented scale, spurring new products and services as well as new business processes and scientific methodologies.this "data revolution", or "big data" is already presenting official statistics with challenges but also opportunities that need to be addressed urgently. These new data sources offer a huge potential to improve the timeliness and relevance of official statistics as well as to reduce response burden. On the other hand, there will be more competitive pressure from new data producers which can eventually change the role of official statistics due to the appearance of new actors on the information market providing new types of statistics, including those providing information in nearly real time. These challenges are not entirely new for the European Statistical System, several are partly addressed by the programme and some of them have become more acute, like budget constraints of Member States and the expectations on quality of data in the context of the EU enhanced economic governance. Who will be affected by it? - Producers of European statistics (National statistical institutes, Other National Authorities and Eurostat) and other statisticians 7 COM(2013) 883 final Eurostat 4 RDG 2015/8/EN

3 - Users of European statistics (in particular EU Institutions and other decision makers, researchers) - Survey Respondents (in particular businesses and households) Is EU action justified on grounds of subsidiarity? Why can Member States not achieve the objectives of the proposed action sufficiently by themselves? Can the EU achieve the objectives better? Union statistics and the right for the Commission to propose actions have their basis in Article 338 of the Treaty on the Functioning of the European Union. The shared competence between Union and national levels is justified by the need to ensure high quality statistics underpinning EU policies as well as the transnational character of many aspects of statistics in general and of European statistics in particular. Pursuant to Regulation (EC) No 223/2009 of the European Parliament and of the Council of 11 March 2009 on European statistics 8, a multiannual European statistical programme (the multiannual programme ) should be established, providing a framework for funding. While Member States ensure the actual collection of the statistical information at national level, they need to collect statistics following the same harmonized principles to ensure that the data used to support European policies are comparable. Therefore only a coordinated approach to the development, production and dissemination of European statistics as foreseen in the European statistical programme will guarantee the required coherence and comparability of the statistics relevant for the activities of the Union. Only the Commission can coordinate the necessary harmonisation of statistical information at the European level in all statistical domains covered by this act, while, as mentioned above, the data collection itself can be carried out by the Member States. Consequently, the European Union may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union (TEU). The added value of EU action is that it allows to concentrate the statistical activities on EU policies and issues of relevance for the European Statistical System as a whole. In addition it contributes to an effective use of resources allowing for economies of scale and to helping national authorities to do what they need to do but do not always have the capacity to do, for instance in terms of harmonisation and methodological development. Furthermore, a specific added value of the proposed action would be to make essential contributions to some priority Union activities, such as the enhanced economic governance and Europe What are the main policy objectives? B. Objectives of the initiative Beyond securing financing for the period , the main policy objectives are the same as the objectives of the ESP : (1) Provide high quality statistical information relevant to support the development, monitoring and evaluation of the policies of the Union properly reflecting priorities, and serving the needs of the wide range of users. Implement new methods of production of European statistics aiming at efficiency gains, and quality improvements. Strengthen the partnership within the European Statistical System (ESS) and beyond in order to further enhance its productivity and its leading role in official statistics worldwide. Do the objectives imply developing EU policy in new areas? No C. Options (1) What are the policy options (including exemptions/adapted regimes e.g. for SMEs) being considered? (2) What legislative or 'soft law' instruments could be considered? 8 OJ L 87, , p Eurostat 5 RDG 2015/8/EN

4 (3) How do the options respect the proportionality principle? Several options can be considered: Option 1: "no change" policy: same European statistical programme extended for 3 years This option means no change in terms of statistics planned in the current European statistical programme, nor in terms of budget. This could be considered as the baseline scenario against which the other options can be compared. Option 2: Extension of the current European statistical programme with adaptations An extended ESP, that will keep the structure of the current ESP while taking into account the changes in the environment, ways to harness the potential of big data for producing statistics, the European Statistical System Vision 2020 and the new emerging needs of users. It will cover the remaining of the MFF period (until 2020). Option 2.a: amendments and reduced budget Option 2.b: amendments and same budget (possibly requiring a re-prioritisation of the current statistical outputs if new statistics need to be developed). Option 2.c: amendments and higher budget (to strengthen the European statistical infrastructure). Option 3: several statistical programmes Several programmes could be jointly proposed: 3.a. an extension of the current programme to cover the years and align with the timeline of the MFF, without the modernisation aspects (Objective II). 3.b. a separate programme focusing on modernisation and development of the European statistical infrastructure, with possibly a different timeline and budget. D. Initial assessment of impacts What are the benefits and costs of each of the policy options? The decisions to produce European statistics are driven by policy-making. The objective is to support policymaking by providing European Institutions and the governments of Member States with relevant high quality statistical information needed to design, implement, monitor and evaluate EU policies. The "impact of statistics" is linked to the fact that it is an infrastructure serving many purposes in modern information societies. The social, economic and environmental impact of statistics or a statistical legislative proposal is not measurable since the role of European statistics is a basic precondition for evidence based decision-making. How important high quality statistical figures are, has become more than evident throughout recent years, in particular since some European statistics feed almost automatically into the EU monitoring of national policies (Stability and Growth Pact and Macroeconomic Imbalances Procedure, European Semester). The design and the evaluation of European policies are significantly depending on reliable statistics. Statistical information help political decision-makers assess the expected impact of and measure the actual impact of EU policies. Statistics are needed to help drive the outcomes that policies are aiming at and measure progress towards these outcomes. Statistics must continue to be fit for purpose in under-pinning decision-making for those critical policies which are most relevant to European citizens and where wrong decisions would have a very high cost for Europe. For most statistical legislative proposals, the formal requirements for Impact Assessments as concerns analysis of impact are not applicable as the impact of statistical programming is on Commission policies. However, the production of European statistics has an impact in terms of administrative burden on national institutions and response burden of enterprises and citizens. Therefore an Impact Assessment will be carried out (see below). Eurostat 6 RDG 2015/8/EN

5 Option 1: "no change" policy: same European statistical programme extended for 3 years Repeating the ESP would not give room to reflect new statistical needs emerging from EU policies (e.g. solical indicators). An identical programme would not specifically cover the financing of significant projects to harness the potential of new data sources such as "big data". The increased need for quality statistics, as reflected in the European Statistical System Vision 2020 could also be better reflected. Option 2: Extension of the current European statistical programme with adaptations This option would allow to take into account some of the evolutions of the environment and needs, considering that the general and specific objectives of the European statistical programme can encompass a large part of the actions foreseen in the European Statistical System Vision The Impact Assessment will analyse the potential effects of a lower, stable and higher budgets as well as the impact on businesses as data providers. Such an extension could also accommodate the need for setting-up of an infrastructure which would then require a higher budget. Option 3: several statistical programmes Two programmes could have different timelines and levels of ambition, separating the multiannual programming of statistics foreseen in the Regulation N 223/2009 and standard support to the harmonization of European statistics, from the modernization actions building a specific infrastructure for the production of European statistics. However, there is a risk of overlap between the two programmes since "traditional" production processes will enter gradually into a modernization phase. There is also an increased overhead in terms of the management of programme. This is the reason why the objectives of the MEETS programme (focusing on business statistics) which ended in 2013 are now included in the European statistical programme. Could any or all of the options have significant impacts on (i) simplification, (ii) administrative burden and (iii) on relations with other countries, (iv) implementation arrangements? And (v) could any be difficult to transpose for certain Member States? Most of the data is collected based on individual legislation in force, therefore the European statistical programme does not add in terms of burden from data collections. On the contrary, some of the objectives of the programme (such as the reengineering of statistical production or the better use of administrative data and big data) could have a positive impact in terms of simplification or reduction of administrative burden. (1) Will an IA be carried out for this initiative and/or possible follow-up initiatives? (2) When will the IA work start? (3) When will you set up the IA Steering Group and how often will it meet? (4) What DGs will be invited? (1) Eurostat foresees to carry out an impact assessment of the three options mentioned above. It is worth noting that most data collections are regulated by individual legislation, which makes the impact assessment more challenging. (2) The IA work is foreseen to start in March (3) In 2013, Eurostat has set up an Inter-Service Group on Statistical Coordination, which has the following objectives : - To facilitate Eurostat s cooperation and consultation of services of the Commission on European statistics, with a view to taking into account user needs and relevant policy developments. - To coordinate activities of the Commission in the field of statistics with a view to optimising the use of existing information Eurostat intends to use this group as the IA steering group. (4) All DGs with an interest in European statistics are invited to participate in Inter-Service Group on Statistical Coordination (1) Is any option likely to have impacts on the EU budget above 5m? Eurostat 7 RDG 2015/8/EN

6 (2) If so, will this IA serve also as an ex-ante evaluation, as required by the Financial Regulation? If not, provide information about the timing of the ex-ante evaluation. (1) All options would have an impact on the EU budget (2) yes E. Evidence base, planning of further work and consultation (1) What information and data are already available? Will existing IA and evaluation work be used? (2) What further information needs to be gathered, how will this be done (e.g. internally or by an external contractor), and by when? (3) What is the timing for the procurement process & the contract for any external contracts that you are planning (e.g. for analytical studies, information gathering, etc.)? (4) Is any particular communication or information activity foreseen? If so, what, and by when? The evaluation of the Community Statistical programme , mid-term evaluation of the European statistical programme (available in 2015), and final evaluations of the MEETS programme will be used, as well as the document on the European Statistical System 2020 Vision elaborated by the European Statistical System. The main recommendations of the evaluation of the programme were the following: A more specific formulation of general, specific and operational objectives, with causal link and hierarchical relations explicitly mentioned, should be the basis for drafting the multi-annual programme It was recommended that careful analysis of costs and merits is developed by Eurostat in collaboration with the Member States to base the strategic choices as well as to inform the users on the decisions regarding negative priorities In order to facilitate the implementation of the Vision, an explicit mandate should be entitled to Eurostat. A five-year action plan (rather than an annual review by the ESSC) for the implementation of the Vision is needed. Eurostat will gather further information from stakeholders through conferences (e.g. Conference of European statistics stakeholders organised by Eurostat and the European Statistical Advisory Committee ESAC). Commission DGs and the European Central Bank will also be asked for their needs. Eurostat will also collect input from the National Statistical Institutes. Eurostat will also use information collected in the context of other Impact Assessments such as the one currently carried out on FRIBS (Framework Regulation on the Integration of Business Statistics). Which stakeholders & experts have been or will be consulted, how, and at what stage? National statistical Institutes have been involved in the elaboration of the European Statistical System Vision 2020 and will continue to be consulted through the European Statistical System Committee and experts groups. Commission DGs, the ECB and the European Parliament will be consulted through specific meetings. Other users and respondents (including businesses) will be consulted via ESAC (European Statistical Advisory Committee) and stakeholder conferences. i COM(2014) 442 final Eurostat 8 RDG 2015/8/EN

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