eurogroups register project – further development in 2008/2009

24-27/11/2008 21st Meeting of the Wiesbaden Group on Business Registers – OECD, Paris

EuroGroups Register Project –Further Development in 2008/2009

Matthias Nahm

Session 6c Measurement of multinationals and enterprise groups


Contents

1. Introduction1.1 Background1.2 Legal Basis

2. The EuroGroups Register Project2.1 Approach2.2 Project Organisation

3. Further Development3.1 Data Acquisition3.2 IT Development3.3 ESSnet

4. Road Map for the Future4.1 Time Schedule in 20094.2 Potential Access to the EGR for NSIs4.3 Related MEETS Project


1.1 Background Growing importance of multinational enterprise groups

(MNEs) in increasing globalisation of worldwide economy Fragmented picture of MNEs at NSIs (mainly only links

between resident units) Need for a Community register: The EuroGroups register

(EGR) The EGR as necessary infrastructure

Harmonisation and development of the measurement of globalisation Serving as basis for coordinated European surveys at group level on globalisation related issues Providing a source of information for demographical changes of MNEs in and outside the EU

Stakeholders in Eurostat/NSIs: BR domains, FATS, FDI, Intra-group Trade, National Accounts and Balance of Payment…; further stakeholders in ECB/NCBs

1. Introduction


1.2 Legal Basis New BR Regulation (EC) No 177/2008 was adopted on 21

January 2008 by the European Parliament and Council (repealing Council Regulation (EEC) No 2186/93)

Exchange of confidential data on MNEs between Eurostat and national authorities only for statistical purposes. Eurostat will provide data to appropriate national authorities in case of corresponding legal units are located in their territories.

Implementing Commission Regulations Mandatory data exchange between Eurostat and NSIs

Format Security and confidentiality measures Procedure of data transmission

Optional data exchange between Eurostat and ECB/NCBs

Deduced from the mandatory data exchange

1. Introduction


2.1 Approach (1)

2. The EuroGroups Register Project

EGR will be established as a network of registers in Member States and on the EU level, the national BRs of NSIs and the central EGR at Eurostat

An efficient process flow has to be established, including clear responsibilities (Eurostat/NSIs and NSIs themselves)

Common task for the EU Eurostat will acquire data on MNEs from private sources and consolidates it in the central EGR A subset of the merged data will be sent to NSIs for correction and updating the provided data; feedback to Eurostat by NSIs Eurostat will send data received before to other concerned NSIs to ensure that the data kept at Eurostat will be identical to all subsets kept in NSIs

Up-to-date EGR network of linked and coordinated statistical registers of MNEs active in the EU, exclusively for statistical purposes becomes available


2.1 Approach (2)


Although the EGR is in the interest of several statistics related to globalisation it has, for practical reasons, to limit its scope in the starting phase to certain statistics

A first stakeholder analysis was made in spring 2008. Statisticians in Member States and in Eurostat working with Foreign Affiliates Statistics (FATS) and Foreign Direct Investment (FDI) were approached

Compilers of statistics consider as critical features (selection)

Identification of units (including matching of units in different registers) Sharing of information as well as the access to the central EGR Coverage and content of the EGR Cost/benefit analysis


2.2 Project Organisation


BR Working Group(NSIs, EFTA, Candidates)

EGR Program ManagerEurostat (unit G-1)

EGR Steering Group(Eurostat, ECB, NSIs, NCBs)

ESSnet(methodology)

IT Development(at Eurostat serving for NSIs)

Legal Affaires(Commission Reg. on data exchange)

EGR Operation(exchange with NSIs)

Data Acquisition(from private data providers)

The overall project organisation of the EGR network can be described in the following way


3.1 Data Acquisition (1)

3. Further Development

Call for Tender on ‘Acquisition of data on MNEs’ Two lots

Lot 1: Acquisition of global data on controlled enterprises for 5 000 MNEs Lot 2: Acquisition of European data on share ownership for 5 000 MNEs

Published in the Official Journal 2008/S 103-137368 on 12 June 2008

Awarded contracts Lot 1 to Dun & Bradstreet Ltd Lot 2 to Bureau van Dijk Electronic Publishing GmbH

Contract signed in mid October 2008 Next Steps

Delivery of test data in November 2008 Delivery of final data by mid of December 2008


3.1 Data Acquisition (2)


Starting population for the EGR Version 1.0 From the input of the EU and the EFTA countries starting population was defined for 22 European countries consisting in 2700 European MNEs In addition 9 countries partly defined, further groups will be acquired from the commercial data providers Outside country specific selection 300 further European groups will be selected by the data providers 200 non-European groups with DUNS number and BvD ID number from FDI and FATS lists are available 500 further non-European groups will be acquired from the data providers Starting population of the EGR will consist of at least 5 000 MNEs in total


3.2 IT Development (1)


EGR IT development is outsourced to a IT service provider (IBM Belgium)

Last IT contract was closed in August 2008 including (selection)

EGR Administrator web application interface (first version): Structured communication basing on SDMX (data and metadata), progress bar, error handling, user management EGR End User web application interface (first draft): Advanced search, tree structure, export search results

The next IT contract will include the following tasks (selection)

Technical Maintenance (e. g. update of EGR according to data changes (structure and/or format) of private sources) Evolutionary Maintenance (e. g. updated use cases provided by Eurostat and ESSnet) Analysing and improving the data exchange (automating eDAMIS and encryption/decryption process, see next 2 pages)


@

DataeWA eDAMIS

WebApplication

DataSend dataeDAMIS

server

Notifies

NSI

Encryption

Eurostat

Decryption

@



Transfer of data from Eurostat to NSIs via eDAMIS By using the public key provided from each participating NSI Eurostat will encrypt the data and send it via eDAMIS to the corresponding NSI The NSIs will use the corresponding private key to decrypt the received data




Transfer of data from NSIs to Eurostat via eDAMIS NSI will encrypt the data by using eWA for sending the files (the public key of Eurostat is integrated into the eWA (accessible by NSIs)) Eurostat will receive the encrypted files and will decrypt them by using the private key

NSI

@

Data eWA (eDAMIS

WebApplication), encryption integrated

DataSend data

eDAMISserver

Notifies

Eurostat

Decryption


3.3 ESSnet


ESSnet is based on a Frame Work Partnership Agreement with a 4 years working program with ES, IT (coordinator), NL and UK

Development of methodology and specifications Development of data quality management program Support integration of EGR in statistical production processes

ESSnet will carry out the necessary methodological work and produces detailed specifications according to functional and non-functional requirements of Eurostat

IT service provider should be enabled to program the updated or new functionalities (use cases) for the EGR at Eurostat from the detailed specifications of ESSnet

It is essential that both, ESSnet and IT service provider, will guarantee an efficient cooperation: The ESSnet will offer understandable and high quality specifications and the IT service provider will make available high quality in terms of programming and documentation


4.1 Time Schedule in 2009 (1)

4. Road Map for the Future

Step 1 (January): Loading, standardising and transforming the data from private sources (5 000 MNEs from BvD and DnB, situation end of 2008) in the EGR at Eurostat

Step 2 (January): Matching of the units from private sources and the creation of unique EU legal units in the EGR

Step 3 (February): Data sets with results of the matching and the creation of unique EU legal units to be sent to NSIs

Step 4 (April): NSIs check the results of the matching, the creation of unique EU legal units, carry out the matching with their BR and prepare data sets with feedback to the central EGR including data on legal units and relationships as registered in the national BR

Step 5 (April): Processing of NSIs feedback in the EGR on the results of the checking of the central matching and matching with the national BR


4.1 Time Schedule in 2009 (2)


Step 6 (November): Data sets with results of the processed data and the compilation of the cluster of control and preliminary enterprise groups to be sent to NSIs

Step 7 (December): Consolidation of NSIs feedback in the EGR and compilation of the cluster of control and preliminary enterprise groups

Step 8 (December): Building up of the EGR quality: NSIs check the results of the consolidation process, the compilation of the cluster of control and preliminary enterprise groups and prepare feedback to Eurostat

Step 9 (December): Processing of feedback from the NSIs to improve the quality in the EGR

Step 10 (December): Compilation of the final population frame of enterprise groups at Eurostat

Step 11 (to be defined): Data sets with final population frame of enterprise groups for compilers of statistics are available


4.2 Potential Access to the EGR for NSIs


One thinkable basic alternative

Secure Environment in Eurostat

Eurostat Environment

EGR Annex B subset- all process areasEGR Annex B subset- all process areas

NSI BR User

EGR Full Content- all process areas

Annex B subset selection


Firewall

Eurostat User

WebClientWebClient

National data extractNational data extract

Corrected nat. dataCorrected nat. data

Stadium / StatelStadium / Statel



National dataNational data


Corrected nat. dataCorrected nat. data eDAMIS



NSI Compiler of Statistics

Authorised accessAuthorised access

…

WebClientWebClient

WebClientWebClient

Firewall


Secure Environment in Eurostat

Eurostat Environment

EGR Annex B subset- all process areasEGR Annex B subset- all process areas

NSI BR User

EGR Full Content- all process areas



Firewall

Eurostat User

WebClientWebClient



Stadium / StatelStadium / Statel





Corrected nat. dataCorrected nat. data eDAMIS



NSI Compiler of Statistics

Authorised accessAuthorised access

…

WebClientWebClient

WebClientWebClient

Firewall


MEETS (Modernisation of European Enterprise and Trade Statistics) project 1.2.2: Development of Statistics on Enterprise Groups

Objectives To identify useful and meaningful indicators based on the enterprise group as the observation unit in co-operation with OECD, where appropriate To test the collection of a set of indicators in feasibility studies To make available statistical data on enterprise groups Methodological guidelines for collection and compilation of sets of indicators on enterprise groups

Project leader Eurostat Project team covering FATS, BOP, Foreign Trade, National Accounts, Business Statistics, Methodology

4.3 Related MEETS Project (1)



Some data needs Trade Statistics: Intra-group trade, contribution of enterprise groups to trade FATS: performance of MNEs, profitability of foreign-owned versus domestic groups National Accounts: Merchanting, toll/global manufacturing, special purpose entities Business Statistics: SME data (SME not controlled by EG)

Seminar in 2009 Exchange experience with completed/ongoing data collections Identify useful indicators Provide input for further development of the MEETS project concerning scope, indicators, methods

4.3 Related MEETS Project (2)


eurogroups register project – further development in 2008/2009

Documents

wiesbaden group

business registers oecd

nsis eurostat

group level

merged data

data acquisition3

eu eurostat

network of registers