EUROZONE:How are the fiscal data compiled?

Excessive Deficit Procedure – How are the fiscal data compiled?

23/04/2013

Eurostat, the European Union's statistical office, publishes statistics on public debt and deficits in the euro area and the EU as a whole, based on figures reported by the member states. The Commission uses the Eurostat data to assess whether member states' deficits and debt levels comply with EU legislation.

What data are notified and published? When does this take place?

EU member states notify their fiscal data to the European Commission (Eurostat) twice a year, by:

• 1 April
• 1 October.

Eurostat checks the data and publishes the outcome within three weeks after these deadlines.

It issues a press release summarising:

• the main aggregate statistics for individual member states
• the averages for the euro area and the EU as a whole.

While the press release provides aggregate statistics such as headline figures for government debt and deficits as percentages of GDP, more detailed information can be found in the Eurostat public database.

• Eurostat government statistics database

• Eurostat press release (Excessive Deficit Procedure - News)

Why are fiscal data notified?

The data represent an important input for the Excessive Deficit Procedure (EDP) as defined by the Stability and Growth Pact – hence the name "EDP notifications".

The Stability and Growth Pact lays down the following reference values:

• government debt: 60% of GDP
• government deficit: 3% of GDP.

If an EU member state exceeds these values, the Council of the EU can, upon recommendation of the European Commission, open an Excessive Deficit Procedure setting a deadline by which the country concerned should correct the deficit or debt.

• Stability and Growth Pact

How is the quality of data ensured?

EU rules ensure that the data reported are correct, harmonised and consistent across the member states.

The European System of Accounts (ESA) defines which data contained in government accounts at national and regional levels countries must report. It details:

• the information to collect
• the methodology to follow
• the timeline for reporting to Eurostat.   

The current reference manual for EDP notifications is called ESA 95.

In the spring of 2013, the European Parliament and the Council adopted a new regulation establishing ESA 2010, to replace ESA 95. The new ESA will become the reference manual for EDP notifications as from September 2014.

While the ESA covers a wide range of areas, Council Regulations 479/2009 and 679/2010 focus on thequality of statistical data required in the context of the EDP. They lay down further details on the data to be reported and measures to ensure that member states follow the agreed methodology in this specific area.

• Council Regulation 2223/96 – ESA 95
• Regulation of the European Parliament and the Council – ESA 2010  
• Council Regulation 479/2009 – application of the Protocol on the EDP
• Council Regulation 679/2010 ­– quality of statistical data in the context of the EDP

How does Eurostat validate the data?

Once the data are submitted, Eurostat checks that they comply with the agreed methodology and, if needed, asks the member states concerned for clarifications. It may amend actual reported figures when there is evidence that they do not comply with the agreed methodology. If the clarifications are not sufficient at this stage, Eurostat may maintain a reservation on the data until the matter is clarified.

Quarterly data

Eurostat also publishes quarterly data on short term trends in government debt, on top of the April and October EDP notification releases. They are published at the end of the months of January, April, July and October.

Eurostat has been releasing quarterly data since 2012.