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Document 32007R1445

Regulation (EC) No 1445/2007 of the European Parliament and of the Council of 11 December 2007 establishing common rules for the provision of basic information on Purchasing Power Parities and for their calculation and dissemination (Text with EEA relevance )

OJ L 336, 20.12.2007, p. 1–24 (BG, ES, CS, DA, DE, ET, EL, EN, FR, GA, IT, LV, LT, HU, MT, NL, PL, PT, RO, SK, SL, FI, SV)
Special edition in Croatian: Chapter 10 Volume 002 P. 208 - 231

Legal status of the document In force: This act has been changed. Current consolidated version: 05/08/2015

ELI: http://data.europa.eu/eli/reg/2007/1445/oj

20.12.2007   

EN

Official Journal of the European Union

L 336/1


REGULATION (EC) No 1445/2007 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 11 December 2007

establishing common rules for the provision of basic information on Purchasing Power Parities and for their calculation and dissemination

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 285(1) thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Economic and Social Committee (1),

Acting in accordance with the procedure laid down in Article 251 of the Treaty (2),

Whereas:

(1)

In order to obtain a direct comparison of Gross Domestic Product (GDP) in volume terms between Member States, it is essential for the Community to have Purchasing Power Parities (hereinafter referred to as ‘PPPs’) which eliminate the differences in the level of prices between Member States.

(2)

The Community PPPs need to be produced in accordance with a harmonised methodology, consistent with Council Regulation (EC) No 2223/96 of 25 June 1996 on the European system of national and regional accounts in the Community (3) which lays down a framework for the construction of national accounts in the Member States.

(3)

Member States are encouraged to produce data for regional PPPs.

(4)

Council Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund (4) provides that the regions eligible for funding from the Structural Funds under the convergence objective are to be regions corresponding to level 2 of the common classification of territorial units for statistics within the meaning of Regulation (EC) No 1059/2003 of the European Parliament and of the Council of 26 May 2003 on the establishment of a common classification of territorial units for statistics (NUTS) (5). The GDP per capita of such regions, measured in PPPs and calculated on the basis of Community figures for the period 2000 to 2002, is less than 75 % of the average GDP of the EU-25 for the same reference period. In the absence of regional PPPs, national PPPs should serve to establish the list of regions which could benefit from the Structural Funds. National PPPs can also be used to determine the amount of funds to be allocated to each region.

(5)

Regulation (EC) No 1083/2006 provides that the Member States eligible for funding from the Cohesion Fund are to be those whose gross national income (GNI) per capita, measured in PPPs and calculated on the basis of Community figures for the period 2001 to 2003, is less than 90 % of the average GNI of the EU-25 and which have a programme for meeting the economic convergence conditions referred to in Article 104 of the Treaty.

(6)

Article 1 of Annex XI to the Staff Regulations of officials of the European Communities, laid down in Regulation (EEC, Euratom, ECSC) No 259/68 of the Council (6) (hereinafter referred to as ‘Staff Regulations’) provides that, for the purposes of the review provided for in Article 65(1) of the Staff Regulations, the Commission (Eurostat) are to draw up every year before the end of October a report on changes in the cost of living in Brussels, the economic parities between Brussels and certain places in the Member States, and changes in the purchasing power of salaries in national civil services in central government.

(7)

Every year the Commission (Eurostat) already collects basic information on PPPs from the Member States on a voluntary basis. This operation has become an established practice in the Member States. However, a legal framework is necessary to ensure the sustainable development, production and dissemination of PPPs.

(8)

Provision of preliminary results on a regular basis, as is currently the practice, should be maintained in order to keep the most recent possible figures available.

(9)

The measures necessary for the implementation of this Regulation should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission (7).

(10)

In particular, power should be conferred on the Commission to adapt the definitions, to adjust the basic headings in Annex II and to define quality criteria. Since those measures are of general scope and designed to amend non-essential elements of this Regulation, inter alia by supplementing it with new non-essential elements, they must be adopted in accordance with the regulatory procedure with scrutiny laid down in Article 5a of Decision 1999/468/EC.

(11)

Since the objective of this Regulation, namely the establishment of common rules for the provision of basic information on purchasing power parities and for their calculation and dissemination, cannot be sufficiently achieved by the Member States and can therefore be better achieved at Community level, the Community may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.

(12)

The Statistical Programme Committee, established by Council Decision 89/382/EEC, Euratom (8), has been consulted in accordance with Article 3 of that Decision,

HAVE ADOPTED THIS REGULATION:

Article 1

Objective

The objective of this Regulation is to establish common rules for the provision of basic information on PPPs, and for their calculation and dissemination.

Article 2

Scope

1.   The basic information to be provided shall be those data necessary to calculate and ensure the quality of PPPs.

That basic information shall include prices, GDP expenditure weights and other data listed in Annex I.

Data shall be collected with the minimum frequency provided for in Annex I. More frequent collection of data shall take place only in exceptional and justified circumstances.

2.   PPPs shall be calculated from the national annual average prices of goods and services, using basic information relating to the economic territory of the Member States as provided for by the European system of national and regional accounts in the Community (hereinafter referred to as ‘ESA 95’).

3.   PPPs shall be calculated in accordance with the basic headings as listed in Annex II, consistent with the related GDP classifications defined in Regulation (EC) No 2223/96.

Article 3

Definitions

For the purpose of this Regulation the following definitions shall apply:

(a)

‘Purchasing Power Parities’ (‘PPPs’) shall mean spatial deflators and currency converters that eliminate the effects of the differences in price levels between Member States thus allowing volume comparisons of GDP components and comparisons of price levels.

(b)

‘Purchasing Power Standard’ (‘PPS’) shall mean the artificial common reference currency unit used in the European Union to express the volume of economic aggregates for the purpose of spatial comparisons in such a way that price level differences between Member States are eliminated.

(c)

‘Prices’ shall mean the purchaser prices paid by the final consumers.

(d)

‘Expenditure weights’ shall mean the shares of expenditure components in current-price GDP.

(e)

‘Basic heading’ shall mean the lowest level of aggregation of items in the GDP breakdown for which parities are calculated.

(f)

‘Items’ shall mean goods or services precisely defined for use in price observation.

(g)

‘Actual and imputed rentals’ shall have the meaning attributed to it in Commission Regulation (EC) No 1722/2005 (9).

(h)

‘Compensation of employees’ shall have the meaning attributed to it in Regulation (EC) No 2223/96.

(i)

‘Temporal adjustment factors’ shall mean factors used to adjust average prices obtained at the time of survey to annual average prices.

(j)

‘Spatial adjustment factors’ shall mean factors used to adjust average prices obtained from one or more locations within the economic territory of a Member State to national average prices.

(k)

‘Representative items’ shall mean those which are, or are considered to be, in terms of relative total expenditure within a basic heading, among the most important items purchased in national markets.

(l)

‘Representativity indicators’ shall mean markers or other indicators identifying those items that Member States have selected as representative.

(m)

‘Equi-representativity’ shall mean a property required of the composition of the item list for a basic heading, each Member State being able to price that number of representative products which is commensurate with the heterogeneity of the products and price levels covered by the basic heading and its expenditure on the basic heading.

(n)

‘Transitive’ shall mean the property whereby a direct comparison between any two Member States yields the same result as an indirect comparison via any other Member State.

(o)

‘Mistake’ shall mean a use of incorrect basic information or an inappropriate application of the calculation procedure.

(p)

‘Reference year’ shall mean a calendar year to which specific annual results refer.

(q)

‘Fixity’ shall mean that when results are calculated originally for a group of Member States and then later the results are calculated for a wider group of Member States, the PPPs between the original group of Member States shall nevertheless be preserved.

Article 4

Roles and responsibilities

1.   The Commission (Eurostat) shall be responsible for:

(a)

coordinating the provision of the basic information;

(b)

calculating and publishing PPPs;

(c)

ensuring the quality of PPPs, in accordance with Article 7;

(d)

developing and communicating methodology, in consultation with the Member States;

(e)

ensuring that the Member States have the opportunity to comment on PPP results prior to publication and that due account be taken of any such comment; and

(f)

drafting and disseminating the methodological manual referred to in point 1.1 of Annex I.

2.   Member States shall follow the procedure set out in Annex I when providing basic information.

Member States shall provide written approval of the survey results for which they are responsible, once the process of data validation has been completed, as specified in point 5.2 of Annex I, within a period of no longer than one month.

Member States shall approve the data collection methodology and check the plausibility of data, including items of basic information provided by the Commission (Eurostat).

Article 5

Transmission of basic information

1.   Member States shall transmit the basic information listed in Annex I to the Commission (Eurostat) in accordance with the existing Community provisions on transmission of data.

2.   The basic information listed in Annex I shall be transmitted in the technical format and within the time periods specified in that Annex.

3.   In cases where items of basic information are supplied to Member States by the Commission (Eurostat), the Commission shall transmit a method statement to enable the Member States to conduct a plausibility check.

Article 6

Statistical units

1.   The basic information listed in Annex I shall be obtained either from statistical units as defined in Council Regulation (EEC) No 696/93 (10) or from other sources which yield data meeting the quality requirements specified in point 5.1 of Annex I. Each Member State shall notify the type of the statistical unit or source to the Commission when transmitting the data.

2.   The statistical units called upon by the Member States to provide data or to cooperate in data collection shall allow monitoring of the prices actually charged and shall give honest and complete information at the time it is requested.

Article 7

Quality criteria and control

1.   The Commission (Eurostat) and the Member States shall set up a system for quality control based on reports and assessments as specified under point 5.3 of Annex I.

2.   Member States shall provide the Commission (Eurostat), at its request, with all information necessary to evaluate the quality of the basic information listed in Annex I.

Member States shall also provide the Commission (Eurostat) with the details and the reasons for any subsequent changes in the methods used or any deviation from the methodological manual specified in Annex I.

3.   Member States shall provide the Commission (Eurostat) with quality reports on the surveys for which they are responsible, as specified in Section 5 of Annex I.

4.   The common criteria on which the quality control is based and the structure of the quality reports, as specified under point 5.3 of Annex I, shall be laid down in accordance with the regulatory procedure with scrutiny specified in Article 11(3).

Article 8

Periodicity

The Commission (Eurostat) shall calculate PPPs with reference to each calendar year.

Article 9

Dissemination

1.   The Commission (Eurostat) shall publish the final annual results no later than 36 months after the end of the reference year.

Publication shall be based on data available to the Commission (Eurostat) no later than three months before the publication date.

Nothing in this paragraph shall affect the right of the Commission (Eurostat) to publish preliminary results earlier than 36 months after the end of the reference year and the Commission (Eurostat) shall make these publicly available, including on its website.

2.   The results published by the Commission (Eurostat) at an aggregated level for each Member State shall include at least the following:

(a)

PPPs at the level of GDP;

(b)

PPPs for private household consumption expenditure and actual individual consumption;

(c)

price level indices relative to the Community average; and

(d)

GDP, private household consumption expenditure and actual individual consumption and respective per capita figures in PPS.

3.   If results are calculated for a wider group of countries, the PPPs of the Member States shall nevertheless be preserved, in pursuance of the principle of fixity.

4.   Published final PPPs shall generally not be revised.

However, in the event of mistakes falling within the scope of Section 10 of Annex I, corrected results shall be published in accordance with the procedure laid down therein.

Exceptional general revisions shall be carried out if, owing to changes to the concepts underlying ESA 95 that affect PPP results, the volume index of GDP for any Member State changes by more than one percentage point.

Article 10

Correction coefficients

Member States shall not be required to undertake surveys solely for the purpose of establishing the correction coefficients to be applied to the remuneration and pensions of Community officials and other servants in accordance with the Staff Regulations.

Article 11

Committee procedure

1.   The Commission shall be assisted by the Statistical Programme Committee.

2.   Where reference is made to this paragraph, Articles 5 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.

The period laid down in Article 5(6) of Decision 1999/468/EC shall be set at three months.

3.   Where reference is made to this paragraph, Article 5a(1) to (4) and Article 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.

Article 12

Implementing measures

1.   The measures necessary for the implementation of the provisions of this Regulation, including measures to take account of economic and technical changes, shall be adopted, insofar as this does not involve a disproportionate increase in costs for the Member States, as laid down in paragraphs 2 and 3.

2.   The following measures necessary for implementation of this Regulation shall be adopted in accordance with the regulatory procedure referred to in Article 11(2):

(a)

the definition of a set of minimum standards in order to achieve the essential comparability and representativity of the data as specified under points 5.1 and 5.2 of Annex I;

(b)

the definition of precise requirements as to the methodology to be used as specified in Annex I; and

(c)

the establishment and adjustment of detailed descriptions of the content of basic headings, provided that these remain compatible with ESA 95 or any succeeding system.

3.   The following measures designed to amend non-essential elements of this Regulation, inter alia by supplementing it with new elements, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 11(3):

(a)

the adaptation of the definitions;

(b)

the adjustment of the list of basic headings (as specified in Annex II); and

(c)

the definition of quality criteria and the structure of the quality reports, pursuant to Article 7(4).

Article 13

Financing

1.   The Member States shall receive from the Commission a financial contribution of a maximum of 70 % of the costs eligible under the Commission's grant rules.

2.   The amount of such financial contribution shall be fixed as part of the annual budgetary procedures of the European Union. The budget authority shall determine the appropriations available each year.

Article 14

Review and report

The provisions of this Regulation shall be reviewed five years after its entry into force. It shall be revised, if appropriate, on the basis of a Commission report and proposal, submitted to the European Parliament and the Council.

Article 15

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Strasbourg, 11 December 2007.

For the European Parliament

The President

H.-G. PÖTTERING

For the Council

The President

M. LOBO ANTUNES


(1)  OJ C 318, 23.12.2006, p. 45.

(2)  Position of the European Parliament of 26 April 2007 (not yet published in the Official Journal) and Council Decision of 13 November 2007.

(3)  OJ L 310, 30.11.1996, p. 1. Regulation as last amended by Regulation (EC) No 1267/2003 of the European Parliament and of the Council (OJ L 180, 18.7.2003, p. 1).

(4)  OJ L 210, 31.7.2006, p. 25. Regulation as amended by Regulation (EC) No 1989/2006 (OJ L 411, 30.12.2006, p. 6).

(5)  OJ L 154, 21.6.2003, p. 1. Regulation as last amended by Commission Regulation (EC) No 105/2007 (OJ L 39, 10.2.2007, p. 1).

(6)  OJ L 56, 4.3.1968, p. 1. Regulation as last amended by Regulation (EC, Euratom) No 1895/2006 (OJ L 397, 30.12.2006, p. 6).

(7)  OJ L 184, 17.7.1999, p. 23. Decision as amended by Decision 2006/512/EC (OJ L 200, 22.7.2006, p. 11).

(8)  OJ L 181, 28.6.1989, p. 47.

(9)  Commission Regulation (EC) No 1722/2005 of 20 October 2005 on the principles for estimating dwelling services for the purpose of Council Regulation (EC, Euratom) No 1287/2003 on the harmonisation of gross national income at market prices (OJ L 276, 21.10.2005, p. 5).

(10)  Council Regulation (EEC) No 696/93 of 15 March 1993 on the statistical units for the observation and analysis of the production system in the Community (OJ L 76, 30.3.1993, p. 1). Regulation as last amended by Regulation (EC) No 1882/2003 of the European Parliament and of the Council (OJ L 284, 31.10.2003, p. 1).


ANNEX I

METHODOLOGY

1.   METHODOLOGICAL MANUAL AND WORK PROGRAMME

1.1.   A methodological manual will be provided by the Commission (Eurostat), following consultation with the Member States, describing the methods used at the various stages of compiling PPPs, including the methods for estimating missing basic information and for estimating missing parities. The methodological manual will be revised whenever a significant change to the methodology is made. It may introduce new methods to improve data quality, reduce costs or lessen the burden on data suppliers.

1.2.   The Commission (Eurostat) will establish, by 30 November each year and in consultation with the Member States, an annual Work Programme for the following calendar year setting out the timetable for the specification and the provision of the basic information required for that year.

1.3.   The annual Work Programme will determine the format for provision of data to be used by the Member States, and any other actions necessary in order to accomplish the calculation and publication of PPPs.

1.4.   The basic information supplied according to point 1.2 may be revised, but the results for the reference year will be calculated from information available according to the timetable specified in Article 9. Where information is not complete or not available at that date, the Commission (Eurostat) will estimate the missing basic information.

1.5.   Should a Member State fail to submit complete basic information, it will specify why the information is incomplete, when it will submit complete information or, if appropriate, why complete information cannot be provided.

2.   BASIC INFORMATION

2.1.   Basic information items

For the purpose of this Regulation, basic information pursuant to Articles 2 and 4 and the minimum frequency of new data supply will comprise and be provided as follows:

Basic information

Minimum frequency

GDP expenditure weights (1)

Annual

Actual and imputed rentals (2)

Annual

Compensation of employees

Annual

Temporal adjustment factors

Annual

Prices of consumer goods and services and related representativity indicators

3 years (3)

Prices of equipment goods

3 years

Prices of construction projects

3 years

Spatial adjustment factors

6 years

2.2.   Procedure for obtaining basic information

The Commission (Eurostat), after taking account of the views of the Member States, will determine the sources and data suppliers to be used for each of the above items of basic information. If the Commission (Eurostat) obtains basic information from a data supplier other than a Member State, the latter will be relieved of the obligations set out in points 5.1.4 to 5.1.13.

3.   NATIONAL AVERAGE PRICES

3.1.   Notwithstanding the provisions of Article 2(2), data collection may be limited to one or more locations within the economic territory. Such data may be used for PPP calculations provided that they are accompanied by appropriate spatial adjustment factors. Such spatial adjustment factors will be used to adjust survey data in the relevant locations to those representative of the national average.

3.2.   Spatial adjustment factors will be supplied at basic heading level. They will be no more than six years old at the reference period of the survey.

4.   ANNUAL AVERAGE PRICES

Notwithstanding the provisions of Article 2(2), data collection may be limited to a specific period of time. Such data may be used for PPP calculations provided that they are accompanied by appropriate temporal adjustment factors. Such temporal adjustment factors will be used to adjust survey data in this period to those representative of the annual average.

5.   QUALITY

5.1.   Minimum standards for basic information

5.1.1.   The list of items to be priced will be designed to comprise items whose specifications ensure comparability between countries.

5.1.2.   The list of items to be priced will be designed so that each Member State can indicate at least one representative item which can be priced in at least one other Member State for each basic heading.

5.1.3.   The item list will be designed in order to achieve the highest practicable level of equi-representativity so that, as a minimum, each country has to price one representative item for each basic heading and this representative item has to be priced by at least one other country.

5.1.4.   Each Member State will price items according to the specifications in the item list.

5.1.5.   Each Member State will price a sufficient number of items within each basic heading that are available in its market, even though they may not be considered as representative of that basic heading.

5.1.6.   Each Member State will supply prices of at least one representative item within each basic heading. The representative items will be indicated by a representativity indicator.

5.1.7.   Each Member State will collect a sufficient number of price quotations for each item priced to ensure a reliable average price per item taking account of its market structure.

5.1.8.   The selection of outlet types will be designed to adequately reflect the domestic pattern of consumption within the Member State according to the item.

5.1.9.   The outlet selection in a location will be designed to adequately reflect the pattern of consumption of the residents of the location and the availability of items.

5.1.10.   Each Member State will supply the Commission (Eurostat) with data on compensation of employees for selected occupations with reference to the sector General Government (S 13) as defined in ESA 95.

5.1.11.   Each Member State will supply the Commission (Eurostat) with temporal adjustment factors which allow calculation of PPPs from prices collected at a specific time which adequately reflect the annual average price level.

5.1.12.   Each Member State will supply the Commission (Eurostat) with spatial adjustment factors which allow calculation of PPPs with prices collected in specific locations which adequately reflect the national average price level.

5.1.13.   Each Member State will supply the Commission (Eurostat) with weights relating to each basic heading as specified in Annex II which reflect the expenditure pattern in the Member State for the reference year.

5.2.   Minimum standards for the validation of price survey results

5.2.1.   Each Member State will, before transmitting the data to the Commission (Eurostat), carry out a review of data validity based on:

maximum and minimum prices,

the average price and coefficient of variation,

the number of priced items per basic heading,

the number of priced representative items per basic heading, and

the number of prices observed per item.

5.2.2.   An electronic tool containing the algorithms required for the purposes of point 5.2.1 will be supplied by the Commission (Eurostat) to the Member States.

5.2.3.   The Commission (Eurostat) will, before finalising the survey results, carry out validity checks, in conjunction with the Member States, based on indicators including:

For each basic heading:

the number of items priced by each country,

the number of items attributed a representativity indicator by each country,

the price level index,

the results of the previous survey covering the same basic heading, and

price level indices in PPP terms for each country.

For each item:

the number of prices observed by each country, and

the variation coefficients of:

(i)

average prices in national currencies,

(ii)

price level indices in PPP terms, and

(iii)

price level indices in PPP terms for each country.

5.2.4.   The Commission (Eurostat) will, before finalising the PPP results at aggregate level, carry out validity checks based on indicators including:

At the level of total GDP and its main aggregates:

the consistency of GDP expenditure weights and population estimates with published data,

a comparison of per capita volume indices for current and previous calculations, and

a comparison of price level indices for current and previous calculations.

At the level of each basic heading:

a comparison of the GDP weighting structure for current and previous calculations, and

estimates of missing data, where relevant.

5.3.   Reporting and assessment

5.3.1.   Each Member State will maintain documentation which gives a full description of the manner in which this Regulation has been implemented. This documentation will be available to the Commission (Eurostat) and the other Member States.

5.3.2.   Each Member State will have its PPP process assessed at least once every six years by the Commission (Eurostat). The assessments, planned annually and included in the annual Work Programme, will review compliance with this Regulation. A report, based on the assessments, will be made by the Commission (Eurostat) and be made publicly available, including on its website.

5.3.3.   In accordance with Article 7(3), shortly after each consumer price survey, a report by the Member State responsible will be given to the Commission (Eurostat) providing information on the way in which the survey was conducted. The Commission (Eurostat) will provide each Member State with a summary of these reports.

6.   CONSUMER PRICE SURVEY PROCEDURE

6.1.   Member States will carry out the price surveys according to the Work Programme.

6.2.   For each survey, the Commission (Eurostat) will prepare the survey item list, based on proposals which will be made by each Member State for each basic heading.

6.3.   The Commission (Eurostat) will provide, together with the item list, in all official languages of the European Union, a translation of all specifications in each survey list.

7.   CALCULATION PROCEDURE

7.1.   Calculation of bilateral parities at basic heading level

(a)

The calculation of multilateral Èltetò-Köves-Szulc (hereinafter referred to as ‘EKS’) parities at basic heading level will be based on a matrix of bilateral parities for each pair of participant countries.

(b)

The calculation of bilateral parities will be carried out by reference to the prices observed for, and the representativity indicators attributed to, the underlying items.

(c)

The average survey price for each item will be established as the simple arithmetic mean of the price observations recorded for that item.

(d)

The national annual average price will be estimated, where necessary, on the basis of the average survey price by using appropriate spatial and temporal adjustment factors.

(e)

The ratios of the adjusted average prices will then be calculated, where possible, for items and pairs of participant countries, together with their inverse.

(f)

PPPs will then be calculated, where possible, for all pairs of participant countries for the basic heading. For each pair of participant countries, PPPs will be calculated as the weighted geometric mean of:

the geometric mean of the price ratios of items which are indicated as representative of both countries,

the geometric mean of the price ratios of items which are indicated as representative of the first country but not of the second country,

the geometric mean of the price ratios of items which are indicated as representative of the second country but not of the first country,

using weights reflecting the relative representativity of all items priced by both countries.

7.2.   Estimation of missing bilateral parities

If for any basic heading the bilateral PPPs cannot be calculated, the missing bilateral PPPs will be estimated, where possible, by using the standard procedure of geometric averaging of indirect parities via third countries. Should the matrix of bilateral PPPs for a basic heading still contain any missing values after this estimation procedure, the calculation of multilateral EKS parities will then not be possible for the countries for which bilateral PPPs are missing. Such missing EKS parities will then be estimated by the Commission (Eurostat), using reference PPPs from similar basic headings or any other appropriate estimation method.

7.3.   The calculation of bilateral parities at aggregate level

(a)

The calculation of bilateral parities at a particular level of national accounts aggregation will be carried out using the EKS parities (see point 7.4), and the GDP expenditure weights, for the underlying basic headings.

(b)

A Laspeyres-type parity will then be calculated for the selected level of aggregation as the arithmetic mean of the parities for the underlying basic headings, weighted by the relative percentages (or nominal values) for the second country of each pair of participant countries.

(c)

A Paasche-type parity will then be calculated for the selected level of aggregation as the harmonic mean of the parities for the underlying basic headings, weighted by the relative percentages (or nominal values) for the first country of each pair of participant countries.

(d)

A Fisher-type parity will then be calculated for the selected level of aggregation as the geometric mean of the Laspeyres-type and Paasche-type parities established for each pair of participant countries.

7.4.   Calculation of transitive multilateral PPPS

The calculation of transitive multilateral parities will be carried out either at basic heading level or any aggregated level by using the EKS procedure based on a complete matrix of Fisher-type parities between each pair of participant countries as follows:

Image

where tEKSs denotes the EKS parity between country s and country t;

tFs denotes the Fisher-type parity between country s and country t;

z denotes the number of participant countries.

8.   TRANSMISSION

8.1.   The Commission (Eurostat) will supply to the Member States the templates for electronic transmission of the basic information necessary to calculate PPPs.

8.2.   Member States will provide basic information to the Commission (Eurostat) in accordance with the templates.

9.   PUBLICATION

In addition to the provisions contained in Article 9(2), the Commission (Eurostat) may publish results at a more detailed level after consultation with the Member States.

10.   CORRECTIONS

10.1.   When a mistake is discovered by a Member State, it will immediately and on its own initiative provide the Commission (Eurostat) with correct basic information. In addition, a Member State will inform the Commission (Eurostat) of any suspected inappropriate application of the calculation procedure.

10.2.   After becoming aware of a mistake, made either by a Member State or the Commission (Eurostat), the Commission (Eurostat) will inform the Member States and recalculate the PPPs within one month.

10.3.   If the mistakes discovered result in a change of at least 0,5 percentage points at the level of per capita GDP in PPS of any Member State, the Commission (Eurostat) will publish a correction as soon as possible, unless such mistakes are discovered later than three months after the results have been published.

10.4.   Where a mistake has occurred, the responsible body will take steps to prevent similar future occurrences.

10.5.   Revisions carried out after 33 months following the end of the reference year to GDP expenditure weights or to population estimates will not require a correction to be made to PPP results.


(1)  These weights shall be consistent with the lowest level of available aggregates from national accounts. If the required detail is not available, the Member State may provide best estimates for the missing positions.

(2)  The dwellings stock quantity approach, as described in the methodological manual, may be used instead of the price approach in cases where actual rentals are missing or are statistically unreliable in line with Regulation (EC) No 1722/2005.

(3)  The minimum frequency refers to the provision of data for a particular product group, related to the rolling cycle of surveys.


ANNEX II

Basic headings as defined in Article 3(e)

BH No

Description

INDIVIDUAL CONSUMPTION EXPENDITURE BY HOUSEHOLDS

FOOD AND NON-ALCOHOLIC BEVERAGES

 

Food

 

Bread and cereals [COICOP 01.1.1]

1

Rice

2

Other cereals, flour and other cereal products

3

Bread

4

Other bakery products

5

Pasta products

 

Meat [COICOP 01.1.2]

6

Beef and veal

7

Pork

8

Lamb, mutton and goat

9

Poultry

10

Other meats and edible offal

11

Delicatessen and other meat preparations

 

Fish and seafood [COICOP 01.1.3]

12

Fresh, chilled or frozen fish and seafood

13

Preserved or processed fish and seafood

 

Milk, cheese and eggs [COICOP 01.1.4]

14

Fresh milk

15

Preserved milk and other milk products

16

Cheese

17

Eggs and egg-based products

 

Oils and fats [COICOP 01.1.5]

18

Butter

19

Margarine

20

Other edible oils and fats

 

Fruit [COICOP 01.1.6]

21

Fresh or chilled fruit

22

Frozen, preserved or processed fruit and fruit-based products

 

Vegetables [COICOP 01.1.7]

23

Fresh or chilled vegetables other than potatoes

24

Fresh or chilled potatoes

25

Frozen, preserved or processed vegetables and vegetable-based products

 

Sugar, jam, honey, chocolate and confectionery [COICOP 01.1.8]

26

Sugar

27

Jams, marmalades and honey

28

Confectionery, chocolate and other cocoa preparations

29

Edible ice, ice-cream and sorbet

 

Food products n.e.c. [COICOP 01.1.9]

30

Food products n.e.c.

 

Non-alcoholic beverages

 

Coffee, tea and cocoa [COICOP 01.2.1]

31

Coffee, tea and cocoa

 

Mineral waters, soft drinks, fruit and vegetable juices [COICOP 01.2.2]

32

Mineral waters

33

Soft drinks and concentrates

34

Fruit and vegetable juices

ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS

 

Alcoholic beverages

 

Spirits [COICOP 02.1.1]

35

Spirits

 

Wine [COICOP 02.1.2]

36

Wine

 

Beer [COICOP 02.1.3]

37

Beer

 

Tobacco

 

Tobacco [COICOP 02.2.0]

38

Tobacco

 

Narcotics

 

Narcotics [COICOP 02.3.0]

39

Narcotics

CLOTHING AND FOOTWEAR

 

Clothing

 

Clothing materials [COICOP 03.1.1]

40

Clothing materials

 

Garments [COICOP 03.1.2]

41

Men's clothing

42

Women's clothing

43

Children's and infants' clothing

 

Other articles of clothing and clothing accessories [COICOP 03.1.3]

44

Other articles of clothing and clothing accessories

 

Cleaning, repair and hire of clothing [COICOP 03.1.4]

45

Cleaning, repair and hire of clothing

 

Footwear

 

Shoes and other footwear [COICOP 03.2.1]

46

Men's footwear

47

Women's footwear

48

Children's and infants' footwear

 

Repair and hire of footwear [COICOP 03.2.2]

49

Repair and hire of footwear

HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS

 

Actual rentals for housing

 

Actual rentals for housing [COICOP 04.1.1 and 04.1.2]

50

Actual rentals for housing

 

Imputed rentals for housing

 

Imputed rentals for housing [COICOP 04.2.1 and 04.2.2]

51

Imputed rentals for housing

 

Maintenance and repair of the dwelling

 

Materials for the maintenance and repair of the dwelling [COICOP 04.3.1]

52

Materials for the maintenance and repair of the dwelling

 

Services for the maintenance and repair of the dwelling [COICOP 04.3.2]

53

Services for the maintenance and repair of the dwelling

 

Water supply and miscellaneous services relating to the dwelling

 

Water supply [COICOP 04.4.1]

54

Water supply

 

Miscellaneous services relating to the dwelling [COICOP 04.4.2, 04.4.3 and 04.4.4]

55

Miscellaneous services relating to the dwelling

 

Electricity, gas and other fuels

 

Electricity [COICOP 04.5.1]

56

Electricity

 

Gas [COICOP 04.5.2]

57

Gas

 

Liquid fuels [COICOP 04.5.3]

58

Liquid fuels

 

Solid fuels [COICOP 04.5.4]

59

Solid fuels

 

Heat energy [COICOP 04.5.5]

60

Heat energy

FURNISHINGS, HOUSEHOLD EQUIPMENT AND ROUTINE HOUSEHOLD MAINTENANCE

 

Furniture and furnishings, carpets and other floor coverings

 

Furniture and furnishings [COICOP 05.1.1]

61

Kitchen furniture

62

Bedroom furniture

63

Living-room and dining-room furniture

64

Other furniture and furnishings

 

Carpets and other floor coverings [COICOP 05.1.2]

65

Carpets and other floor coverings

 

Repair of furniture, furnishings and floor coverings [COICOP 05.1.3]

66

Repair of furniture, furnishings and floor coverings

 

Household textiles

 

Household textiles [COICOP 05.2.0]

67

Household textiles

 

Household appliances

 

Major household appliances whether electric or not [COICOP 05.3.1]

68

Major household appliances whether electric or not

 

Small electric household appliances [COICOP 05.3.2]

69

Small electric household appliances

 

Repair of household appliances [COICOP 05.3.3]

70

Repair of household appliances

 

Glassware, tableware and household utensils

 

Glassware, tableware and household utensils [COICOP 05.4.0]

71

Glassware, tableware and household utensils

 

Tools and equipment for house and garden

 

Major tools and equipment [COICOP 05.5.1]

72

Major tools and equipment

 

Small tools and miscellaneous accessories [COICOP 05.5.2]

73

Small tools and miscellaneous accessories

 

Goods and services for routine household maintenance

 

Non-durable household goods [COICOP 05.6.1]

74

Non-durable household goods

 

Domestic services and household services [COICOP 05.6.2]

75

Domestic services

76

Household services

HEALTH

 

Medical products, appliances and equipment

 

Pharmaceutical products [COICOIP 06.1.1]

77

Pharmaceutical products

 

Other medical products [COICOP 06.1.2]

78

Other medical products

 

Therapeutic appliances and equipment [COICOP 06.1.3]

79

Therapeutic appliances and equipment

 

Out-patient services

 

Medical Services [COICOP 06.2.1]

80

Medical Services

 

Dental services [COICOP 06.2.2]

81

Dental services

 

Paramedical services [COICOP 06.2.3]

82

Paramedical services

 

Hospital services

 

Hospital services [COICOP 06.3.0]

83

Hospital services

TRANSPORT

 

Purchase of vehicles

 

Motor cars [COICOP 07.1.1]

84

Motor cars with diesel engine

85

Motor cars with petrol engine of cubic capacity of less than 1 200cc

86

Motor cars with petrol engine of cubic capacity of 1 200cc to 1 699cc

87

Motor cars with petrol engine of cubic capacity of 1 700cc to 2 999cc

88

Motor cars with petrol engine of cubic capacity of 3 000cc and over

 

Motor cycles [COICOP 07.1.2]

89

Motor cycles

 

Bicycles [COICOP 07.1.3]

90

Bicycles

 

Animal-drawn vehicles [COICOP 07.1.4]

91

Animal-drawn vehicles

 

Operation of personal transport equipment

 

Spare parts and accessories for personal transport equipment [COICOP 07.2.1]

92

Spare parts and accessories for personal transport equipment

 

Fuels and lubricants for personal transport equipment [COICOP 07.2.2]

93

Fuels and lubricants for personal transport equipment

 

Maintenance and repair of personal transport equipment [COICOP 07.2.3]

94

Maintenance and repair of personal transport equipment

 

Other services in respect of personal transport equipment [COICOP 07.2.4]

95

Other services in respect of personal transport equipment

 

Transport services

 

Passenger transport by railway [COICOP 07.3.1]

96

Passenger transport by railway

 

Passenger transport by road [COICOP 07.3.2]

97

Passenger transport by road

 

Passenger transport by air [COICOP 07.3.3]

98

Passenger transport by air

 

Passenger transport by sea and inland waterway [COICOP 07.3.4]

99

Passenger transport by sea and inland waterway

 

Combined passenger transport [COICOP 07.3.5]

100

Combined passenger transport

 

Other purchased transport services [COICOP 07.3.6]

101

Other purchased transport services

 

COMMUNICATION

 

Postal services

 

Postal service s [COICOP 08.1.0]

102

Postal services

 

Telephone and telefax equipment

 

Telephone and telefax equipment [COICOP 08.2.0]

103

Telephone and telefax equipment

 

Telephone and telefax services

 

Telephone and telefax services [COICOP 08.3.0]

104

Telephone and telefax services

RECREATION AND CULTURE

 

Audio-visual, photographic and information processing equipment

 

Equipment for the reception, recording and reproduction of sound and pictures [COICOP 09.1.1]

105

Equipment for the reception, recording and reproduction of sound and pictures

 

Photographic and cinematographic equipment and optical instruments [COICOP 09.1.2]

106

Photographic and cinematographic equipment and optical instruments

 

Information processing equipment [COICOP 09.1.3]

107

Information processing equipment

 

Recording media [COICOP 09.1.4]

108

Pre-recorded recording media

109

Unrecorded recording media

 

Repair of audio-visual, photographic and information processing equipment [COICOP 09.1.5]

110

Repair of audio-visual, photographic and information processing equipment

 

Other major durables for recreation and culture

 

Major durables for outdoor recreation [COICOP 09.2.1]

111

Major durables for outdoor recreation

 

Musical instruments and major durables for indoor recreation [COICOP 09.2.2]

112

Musical instruments and major durables for indoor recreation

 

Maintenance and repair of other major durables for recreation and culture [COICOP 09.2.3]

113

Maintenance and repair of other major durables for recreation and culture

 

Other recreational items and equipment, gardens and pets

 

Games, toys and hobbies [COICOP 09.3.1]

114

Games, toys and hobbies

 

Equipment for sport, camping and open-air recreation [COICOP 09.3.2]

115

Equipment for sport, camping and open-air recreation

 

Gardens, plants and flowers [COICOP 09.3.3]

116

Gardens, plants and flowers

 

Pets and related products [COICOP 09.3.4]

117

Pets and related products

 

Veterinary and other services for pets [COICOP 09.3.5]

118

Veterinary and other services for pets

 

Recreational and cultural services

 

Recreational and sporting services [COICOP 09.4.1]

119

Recreational and sporting services

 

Cultural services [COICOP 09.4.2]

120

Photographic services

121

Other cultural services

 

Games of chance [COICOP 09.4.3]

122

Games of chance

 

Newspapers, books and stationery

 

Books [COICOP 09.5.1]

123

Books

 

Newspapers and periodicals [COICOP 09.5.2]

124

Newspapers and periodicals

 

Miscellaneous printed matter, stationery and drawing materials [COICOP 09.5.3 and 09.5.4]

125

Miscellaneous printed matter, stationery and drawing materials

 

Package holidays

 

Package holidays [COICOP 09.6.0]

126

Package holidays

EDUCATION

 

Pre-primary and primary education

 

Pre-primary and primary education [COICOP 10.1.0]

127

Pre-primary and primary education

 

Secondary education

 

Secondary education [COICOP 10.2.0]

128

Secondary education

 

Post-secondary non-tertiary education

 

Post-secondary non-tertiary education [COICOP 10.3.0]

129

Post-secondary non-tertiary education

 

Tertiary education

 

Tertiary education [COICOP 10.4.0]

130

Tertiary education

 

Education not definable by level

 

Education not definable by level [COICOP 10.5.0]

131

Education not definable by level

RESTAURANTS AND HOTELS

 

Catering services

 

Restaurants, cafés and the like [COICOP 11.1.1]

132

Restaurant services whatever the type of establishment

133

Pubs, bars, cafés, tea rooms and the like

 

Canteens [COICOP 11.1.2]

134

Canteens

 

Accommodation services

 

Accommodation services [COICOP 11.2.0]

135

Accommodation services

MISCELLANEOUS GOODS AND SERVICES

 

Personal care

 

Hairdressing salons and personal grooming establishments [COICOP 12.1.1]

136

Hairdressing salons and personal grooming establishments

 

Electric appliances for personal care [COICOP 12.1.2]

137

Electric appliances for personal care

 

Other appliances, articles and products for personal care [COICOP 12.1.3]

138

Other appliances, articles and products for personal care

 

Prostitution

 

Prostitution [COICOP 12.2.0]

139

Prostitution

 

Personal effects n.e.c.

 

Jewellery, clocks and watches [COICOP 12.3.1]

140

Jewellery, clocks and watches

 

Other personal effects [COICOP 12.3.2]

141

Other personal effects

 

Social protection

 

Social protection [COICOP 12.4.0]

142

Social protection

 

Insurance

 

Insurance [COICOP 12.5.1, 12.5.2, 12.5.3, 12.5.4 and 12.5.5]

143

Insurance

 

Financial services n.e.c.

 

FISIM [COICOP 12.6.1]

144

FISIM

 

Other financial services n.e.c. [COICOP 12.6.2]

145

Other financial services n.e.c.

 

Other services n.e.c.

 

Other services n.e.c. [COICOP 12.7.0]

146

Other services n.e.c.

BALANCE OF EXPENDITURE OF RESIDENT ABROAD AND EXPENDITURE OF NON-RESIDENTS ON THE ECONOMIC TERRITORY

 

Final consumption expenditure of resident households in the rest of the world

 

Final consumption expenditure of resident households in the rest of the world

147

Final consumption expenditure of resident households in the rest of the world

 

Final consumption expenditure of non-resident households on the economic territory

 

Final consumption expenditure of non-resident households on the economic territory

148

Final consumption expenditure of non-resident households on the economic territory

INDIVIDUAL CONSUMPTION EXPENDITURE BY NON-PROFIT INSTITUTIONS SERVING HOUSEHOLDS

HOUSING

 

Housing

 

Housing [COPNI 01.0.0]

149

Housing

HEALTH

 

Health

 

Health [COPNI 02.1.1 to 02.6.0]

150

Health

RECREATION AND CULTURE

 

Recreation and culture

 

Recreation and culture [COPNI 03.1.0 and 03.2.0]

151

Recreation and culture

EDUCATION

 

Education

 

Education [COPNI 04.1.0 to 04.7.0]

152

Education

SOCIAL PROTECTION

 

Social protection

 

Social protection [COPNI 05.1.0 and 05.2.0]

153

Social protection

OTHER SERVICES

 

Other services

 

Other services [COPNI 06.0.0 to 09.2.0]

154

Other services

INDIVIDUAL CONSUMPTION EXPENDITURE BY GOVERNMENT

HOUSING

 

Housing

 

Housing

155

Housing

HEALTH

 

Health benefits and reimbursements

 

Medical products, appliances and equipment

156

Pharmaceutical products

157

Other medical products

158

Therapeutic appliances and equipment

 

Health services

159

Out-patient medical services

160

Out-patient dental services

161

Out-patient paramedical services

162

Hospital services

 

Production of health services

 

Compensation of employees

163

Physicians

164

Nurses and other medical staff

165

Non-medical staff

 

Intermediate consumption

166

Pharmaceutical products

167

Other medical goods

168

Therapeutic appliances and equipment

169

Intermediate consumption n.e.c.

 

Gross operating surplus

170

Gross operating surplus

 

Net taxes on production

171

Net taxes on production

 

Receipts from sales

172

Receipts from sales

RECREATION AND CULTURE

 

Recreation and culture

 

Recreation and culture

173

Recreation and culture

EDUCATION

 

Education benefits and reimbursements

 

Education benefits and reimbursements

174

Education benefits and reimbursements

 

Production of education services

 

Compensation of employees

175

Pre-primary and primary education

176

Secondary education

177

Post-secondary non-tertiary education

178

Tertiary education

 

Intermediate consumption

179

Intermediate consumption

 

Gross operating surplus

180

Gross operating surplus

 

Net taxes on production

181

Net taxes on production

 

Receipts from sales

182

Receipt from sales

SOCIAL PROTECTION

 

Social protection

 

Social protection

183

Social protection

COLLECTIVE CONSUMPTION EXPENDITURE BY GOVERNMENT

COLLECTIVE SERVICES

 

Collective services

 

Compensation of employees

184

Compensation of employees (collective services relating to defence)

185

Compensation of employees (collective services other than defence)

 

Intermediate consumption

186

Intermediate consumption (collective services relating to defence)

187

Intermediate consumption (collective services other than defence)

 

Gross operating surplus

188

Gross operating surplus

 

Net taxes on production

189

Net taxes on production

 

Receipts from sales

190

Receipts from sales

EXPENDITURE ON GROSS FIXED CAPITAL FORMATION

MACHINERY AND EQUIPMENT

 

Metal products and equipment

 

Fabricated metal products, except machinery and equipment [CPA 28.11 to 28.75]

191

Fabricated metal products, except machinery and equipment

 

General purpose machinery [CPA 29.11 to 29.24]

192

Engines and turbines, pumps and compressors

193

Other general purpose machinery

 

Special purpose machinery [CPA 29.31 to 29.72]

194

Agricultural and forestry machinery

195

Machine tools

196

Machinery for metallurgy, mining, quarrying and construction

197

Machinery for food, beverages and tobacco processing

198

Machinery for textile, apparel and leather production

199

Other special purpose machinery

 

Electrical and optical equipment [CPA 30.01 to 33.50]

200

Office machinery

201

Computers and other information processing equipment

202

Electrical machinery and apparatus

203

Radio, television and communications equipment and apparatus

204

Medical, precision and optical instruments, watches and clocks

 

Other manufactured goods n.e.c. [CPA 36.11 to 36.63]

205

Other manufactured goods n.e.c.

 

Transport equipment

 

Road transport equipment [CPA 34.10 to 34.30 and 35.41 to 35.50]

206

Motor vehicles, trailers and semi-trailers

207

Other road transport

 

Other transport equipment [CPA 35.11 to 35.30]

208

Ships, boats, steamers, tugs, floating platforms, rigs

209

Locomotives and rolling stock

210

Aircraft, helicopters and other aeronautical equipment

CONSTRUCTION

 

Residential buildings

 

One and two dwelling buildings [CPA division 45]

211

One or two dwelling buildings

 

Multi-dwelling buildings [CPA division 45]

212

Multi-dwelling buildings

 

Non-residential buildings

 

Agricultural buildings [CPA division 45]

213

Agricultural buildings

 

Industrial buildings and warehouses [CPA division 45]

214

Industrial buildings and warehouses

 

Commercial buildings [CPA division 45]

215

Commercial buildings

 

Other non-residential buildings [CPA division 45]

216

Other non-residential buildings

 

Civil engineering works

 

Transport infrastructures [CPA division 45]

217

Transport infrastructures

 

Pipelines, communication and power lines [CPA division 45]

218

Pipelines, communication and power lines

 

Other civil engineering works [CPA division 45]

219

Other civil engineering works

OTHER PRODUCTS

 

Other products

 

Products of agriculture, forestry, fisheries and aquaculture [CPA divisions 01, 02 and 05]

220

Products of agriculture, forestry, fisheries and aquaculture

 

Software [CPA 72.20]

221

Software

 

Other products n.e.c. [CPA n.e.c.]

222

Other products n.e.c.

CHANGES IN INVENTORIES AND ACQUISITIONS LESS DISPOSALS OF VALUABLES

CHANGES IN INVENTORIES

 

Changes in inventories

 

Changes in inventories

223

Changes in inventories

ACQUISITIONS LESS DISPOSALS OF VALUABLES

 

Acquisitions less disposals of valuables

 

Acquisitions less disposals of valuables

224

Acquisitions less disposals of valuables

BALANCE OF EXPORTS AND IMPORTS

EXPORTS OF GOODS AND SERVICES

 

Exports of goods

 

Exports of goods to the EU and institutions of the EU

225

Exports of goods to EU countries

226

Exports of goods to institutions of the EU

 

Exports of goods to third countries and international organisations

227

Exports of goods to third countries and international organisations

 

Exports of services

 

Exports of services to the EU and institutions of the EU

228

Exports of services to EU countries

229

Exports of services to institutions of the EU

 

Exports of services to third countries and international organisations

230

Exports of services to third countries and international organisations

IMPORTS OF GOODS AND SERVICES

 

Imports of goods

 

Imports of goods from the EU and institutions of the EU

231

Imports of goods from EU countries

232

Imports of goods from institutions of the EU

 

Imports of goods from third countries and international organisations

233

Imports of goods from third countries and international organisations

 

Imports of services

 

Imports of services from the EU and institutions of the EU

234

Imports of services from EU countries

235

Imports of services from institutions of the EU

 

Imports of services from third countries and international organisations

236

Imports of services from third countries and international organisations


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