52001PC0754

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL concerning Community statistics on income and living conditions (EU-SILC)

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. Background of the proposal

Statistics on income and living conditions and, more precisely, indicators on poverty and social exclusion have been requested at high political level. Articles 136, 137 and 285 of the Treaty establishing the European Community imply that statistics on income, living conditions and social exclusion shall be collected in the context of EU-SILC. Furthermore the conclusions of the Lisbon (23-24 March 2000) and Nice (7-9 December 2000) European Council meetings have given strong support to the eradication of poverty and invited the Council and the Commission to promote a better understanding of social exclusion through continued dialogue and exchanges of information and best practice on the basis of commonly agreed indicators also capable of measuring progress.

It is in this context that the Commission has developed the "Programme of Community action to encourage co-operation between Member States to combat social exclusion", which has been submitted in 2000 to the European Parliament and the Council to promote the "collection and dissemination of comparable statistics in Member States and at Community level". The European Commission's Communication COM(2000) 594 on Structural Indicators follows the same direction, i.e. including indicators on the inequalities of the income distribution, poverty rates before and after social transfers and the persistence of poverty, that again need to have a high degree of comparability in order to focus on progress among the European Union Member States in this policy domain.

For the 1994-2001 period, the European Community Household Panel (ECHP) survey was used to fulfil these political needs. But in view of the need to update the content according to the new political demands, and of the request for operational improvement, i.e. mainly the timeliness of the produced data, the replacement of the ECHP after 2002 was decided at the annual meeting of Directors of Social Statistics on 13 and 14 June 1999. A Task Force was set up with a mandate to carefully look at all options regarding the content and structure of EU-SILC. The work of the Task-Force was submitted to the meeting of Directors of Social Statistics on 13 and 14 June 2000, who supported the basic principles to be met by this new instrument, the list of topics to be included in it, the future steps to be followed by both, the Task Force and Working Party, and the introduction of a legal act for EU-SILC (Doc. Eurostat/E0/00/DSS/2/9/EN). A preliminary draft of the related Framework Regulation was presented and amended following decisions taken during the meetings of the Statistical Programme Committee on 30 May 2001 and of the Directors of social Statistics on 11 and 12 June 2001.

2. Content of the proposed Regulation

The aim of this Regulation is to establish a common framework for the systematic production of Community statistics on Income and Living Conditions (EU-SILC). EU-SILC is to become the reference source of comparative statistics on income distribution and social exclusion at the European Union (EU) level.

Data are required in both cross-sectional (pertaining to a given time in a certain time period) and longitudinal (pertaining to individual-level changes over time, observed periodically over a certain duration) dimensions. However, the first and clear priority is to be given to the delivery of timely and comparable cross-sectional data. Requirements for longitudinal data will be less important - in terms of both, coverage and sample size.

In order to be in a position to carry out multi-dimensional analysis at the level of households and persons, and in particular to investigate major issues of social concern that are new and require specific research, it is essential that the cross-sectional (resp. the longitudinal) information can be linked at the household and personal level.

EU-SILC has to be flexible in terms of data sources. Eurostat strongly encourages the use of existing data sources, whether they are surveys or registers. While encouraging the use of national sources, Eurostat will recommend an integrated design for EU-SILC to those countries planning to launch a new operation. This design aims to be the most cost effective and efficient for both, cross-sectional and longitudinal requirements.

EU-SILC will be launched in 2003. The cross-sectional and longitudinal micro-data sets will be updated on a yearly basis. Modules will be added to the cross-sectional component of EU-SILC starting from 2004.

3. Conclusion

The high priority given by the Council and the Commission to fight against poverty and social exclusion in the EU requires comparable and timely statistics to monitor this process. The adoption of this proposed Regulation is considered necessary to properly ensure this Community demand.

2001/0293 (COD)

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL concerning Community statistics on income and living conditions (EU-SILC)

(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 [1],

[1] OJ C [...], [...], p. [...].

Having regard to the opinion of the Economic and Social Committee [2],

[2] OJ C [...], [...], p. [...].

Acting in accordance with the procedure laid down in Article 251 of the Treaty [3],

[3] OJ C [...], [...], p. [...].

Whereas:

(1) In order to carry out the tasks assigned to it, particularly after the Lisbon and Nice European Council meetings held in March and December 2000 respectively, the Commission should be kept informed of income distribution and of the level and composition of poverty and social exclusion in the Member States.

(2) The development of the Community and the operation of the internal market increase the need for comparable and timely cross-sectional and longitudinal data on income distribution and on the level and composition of poverty and social exclusion for establishing reliable and relevant comparisons between the Member States, to be used mainly in the context of the "Programme of Community action to encourage co-operation between Member States to combat social exclusion" [4] and as one input to the Commission's Structural Indicators.

[4] OJ C [...], [...], p. [...].

(3) The decision of the European Parliament and of the Council establishing a programme of Community action to encourage co-operation between Member States to combat social exclusion [5] has established, under Action 1.2 of Strand 1 "Analysis of social exclusion", the necessary conditions in relation to the funding of measures concerning the collection and dissemination of comparable statistics and in particular supporting the improvement of surveys and analysis of poverty and social exclusion.

[5] OJ C [...], [...], p. [...].

(4) The best method of assessing the situation as regards income, poverty and social exclusion is to compile Community statistics using harmonised methods and definitions.

(5) To reflect changes taking place in the distribution of income and in the level and composition of social exclusion, the statistics need to be updated annually.

(6) To investigate major issues of social concern, especially new issues requiring specific research, the Commission needs cross-sectional and longitudinal micro-data at the household and personal level.

(7) Priority should be given to the production of timely and comparable annual cross-sectional data on income and social exclusion.

(8) Flexibility in terms of data sources, in particular the use of existing national data sources whether they be surveys or registers, and national sample designs should be encouraged and the integration of the new source(s) into established national statistical systems should be promoted.

(9) Commission Regulation (EC) N°.../... of ... implementing Council Regulation (EC) n°322/97 of 17 February 1997 on Community statistics, concerning access to confidential data for scientific purposes [6] has established, for the purpose of enabling statistical conclusions to be drawn for scientific purposes, the conditions pursuant to which access to confidential data transmitted to the Community authority may be granted.

[6] OJ C [...], [...], p. [...].

(10) The production of specific Community statistics is governed by the rules set out in Council Regulation N° 322/97 of 17 February 1997 on Community Statistics [7].

[7] OJ L 52, 22.2.1997, P;61

(11) Since the measures necessary for the implementation of this Regulation are management measures within the meaning of Article 2 of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission [8], they are to be adopted by use of the management procedure provided for in Article 4 of that Decision.

[8] OJ L 184, 17.7.1999, p. 23.

(12) The Statistical Programme Committee (SPC) has been consulted in accordance with Article 3 of Decision 89/382/EEC, Euratom [9] the aforesaid Decision,

[9] OJ L181, 28.6.1989,p.47

HAVE ADOPTED THIS REGULATION:

Article 1

Aim

The aim of this Regulation shall be to establish a common framework for the systematic production of Community Statistics on Income and Living Conditions (hereinafter referred to as 'EU-SILC'), encompassing comparable and timely cross-sectional and longitudinal data on income and on the level and composition of poverty and social exclusion at national and European levels.

Article 2

Definitions

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

(a) "Community statistics" shall have the meaning assigned to it in Article 2 of Regulation (EC) 322/97.

(b) "Production of statistics" shall have the meaning assigned to it in Regulation (EC) 322/97.

(c) "Year of survey": means the year in which the collection, or most of the collection, is carried out.

(d) "Fieldwork period": means the period of time in which the survey component is collected.

(e) "Reference period": means the period of time to which a particular item of information relates.

(f) "Private household": means a person living alone or a group of people who live together in the same private dwelling and share expenditures, including the joint provision of the essentials of living.

Small departures from this common definition, as long as they only marginally affect comparability, shall be allowed for Member States having a common household definition in their national statistical system.

The impact on comparability of any departure from the common definition shall be reported in the quality report specified in article 16.

(g) "Cross-sectional data": means the data pertaining to a given time or a certain time period. The cross-sectional data may be extracted either from a cross-sectional sample survey with or without a rotational sample or from a pure panel sample survey (on condition that cross-sectional representativeness is guaranteed); such data may be combined with register data (data on persons, households or dwellings compiled from a unit-level administrative or statistical register).

(h) "Longitudinal data": means the data pertaining to individual-level changes over time, observed periodically over a certain duration. The longitudinal data may come either from a cross-sectional survey with a rotational sample where individuals once selected are followed-up or from a pure panel survey; it may be combined with register data.

(i) "Sample persons": means the persons selected into the sample at the first wave of a longitudinal panel. They may comprise all members of an initial sample of households, or a representative sample of individuals in a survey of persons.

(j) "Target primary areas": means the subject areas to be collected on an annual basis.

(k) "Target secondary areas": means the subject areas to be collected every four years or less .

(l) "Gross income": means the total income received by the household over a specified 'income reference period', before deduction of income tax, regular taxes on wealth, employees' compulsory social insurance contributions and employers' social insurance contributions, but after taking into account inter-household transfers.

(m) "Disposable income": means gross income less income tax, regular taxes on wealth, employees' compulsory social insurance contributions and employers' social insurance contributions.

Article 3

Scope

EU-SILC shall cover comparable and timely cross-sectional data on income, poverty, social exclusion and other living conditions as well as longitudinal data restricted to income, labour and a limited number of non-monetary indicators of social exclusion.

Article 4

Time reference

1. The cross-sectional and longitudinal data shall be collected, or compiled in the case of registers, annually from the year 2003. In any given Member State, the timing of collection shall be kept the same from one year to the next as far as possible.

2. By way of exception to paragraph 1 of article 4, Germany, France, Italy, the Netherlands and the United Kingdom may start the annual cross-sectional and longitudinal data collection in 2004, provided that they supply comparable data during the transition period for the indicators requested by the Commission in those fields where an open method of co-ordination has been agreed by the Council.

3. The income reference period shall be a twelve-month period. This may be a fixed twelve-month period (such as the previous calendar or tax year) or a moving twelve-month period (such as the twelve months preceding the interview).

Limited departures from this definition are allowed for Member States having a different tradition in their national statistics, as long as the impact on comparability is marginal.

The impact on comparability of any departure from the common definition shall be reported in the quality report specified in Article 16.

4. If a fixed income reference period is used, fieldwork for the survey component shall be carried out over a limited period as close as possible to the income reference period or to the tax declaration period so as to minimise time lag between income and current variables.

Article 5

Characteristics of the data

1. In order to permit multi-dimensional analysis at the level of households and persons and in particular investigation of major issues of social concern that are new and require specific research, all the household and individual data shall be linkable in the cross-sectional component.

Similarly, all household and personal data shall be linkable in the longitudinal component.

The longitudinal micro-data do not need to be linkable with the cross-sectional micro-data.

The longitudinal component shall cover at least four years.

2. In order to reduce response burdens, to help in income imputation procedures and to test data quality, the national authorities shall have access to relevant administrative data sources in accordance with Regulation (EC) N° 322/97.

Article 6

Data required

1. The target primary areas and corresponding reference periods to be covered by the cross-sectional and the longitudinal components are laid down in Annex I.

2. Target secondary areas shall be included every year starting from 2004 only in the cross-sectional component. They shall be defined in accordance with the procedure laid down in Article 14. One secondary area shall be covered each year.

Article 7

Collection unit

1. The reference population for EU-SILC shall be all private households and their current members residing in the territory of the Member State at the time of the data collection.

2. The main information collected shall pertain to

(a) private households, including data on household size, composition and basic characteristics of its current members; and

(b) persons aged sixteen and over.

3. The collection unit, together with the mode of collection for the household and personal information, shall be as laid down in Annex I.

Article 8

Sampling and tracing rules

1. The cross-sectional and longitudinal data shall be based on nationally representative probability samples.

2. In the longitudinal component, individuals included in the initial sample, that is to say, sample persons, shall be followed over the duration of the panel. Every sample person who has moved to a private household within the national boundaries shall be followed-up to the new location following tracing rules and procedures to be defined in accordance with the procedure specified in Article 14.

Article 9

Sample sizes

1. On the basis of diverse statistical and practical considerations and the precision requirements for the most critical variables, the minimum effective sample sizes to be achieved shall be as set out in the table in Annex II.

2. Sample size for the longitudinal component refers, for any pair of consecutive years, to the number of households successfully interviewed in the first year in which all or at least a majority of the household members aged 16+ are successfully interviewed in both the years.

3. Member States using registers for income and other data may use a sample of persons rather than a sample of complete households in the interview survey. The minimum effective sample size in terms of the number of detailed personal interviews shall be taken as 75% of the figures shown in columns 3 and 4 of the table set out in Annex II, for the cross-sectional and longitudinal components respectively.

Information on income and other data shall also be collected for the household of each selected respondent and for all its members.

Article 10

Transmission of data

1. Member States shall transmit to the Commission (Eurostat) in the form of micro-data files weighted cross-sectional and longitudinal data which has been fully checked, edited and imputed in relation to income.

Member States shall transmit the data in electronic form, in conformity with an appropriate technical format to be proposed by the Commission .

2. Regarding the cross-sectional component, Member States shall transmit the micro-data files relating to year of survey N to the Commission (Eurostat), preferably within ten months after the end of the data collection. The extreme deadline for the transmission of micro-data to Eurostat shall be 31 October (N+1) for Member States where data are collected at the end of year N or through a continuous survey or through registers and 1 September (N+1) for other Member States.

By way of exception, cross-sectional micro-data files relating to year 2003 shall be transmitted to the Commission (Eurostat) by 31 December 2004.

Together with the micro-data files, Member States shall transmit social cohesion indicators based on the cross-sectional sample of year N that will be included in the annual Spring report of year (N+2) to the European Council.

3. As for the longitudinal component, Member States shall transmit the micro-data files up to year N to the Commission (Eurostat) preferably within fifteen months after the end of the fieldwork. The mandatory deadline for the transmission of micro-data to Eurostat shall be the end of March (N+2), each year starting from the second year of EU-SILC. The first transmission of data (covering longitudinally linked data for the survey years 2003 and 2004) shall take place by end March 2006. The next transmission shall cover the first three survey years 2003-2005; thereafter, each year longitudinal data covering the preceding four survey years (revised from previous releases as necessary) shall be provided.

Article 11

Publication

For the cross-sectional component, the Commission (Eurostat) shall publish an annual cross-sectional report at Community level by the end of June N+2, based on the data collected during year N.

By way of exception for the first EU-SILC year (collection during 2003), cross-sectional report at Community level shall be produced, by Eurostat, by September 2005.

Article 12

Access for scientific purposes to EU-SILC confidential data

1. The Community authority (Eurostat) may grant access for scientific purposes to EU-SILC micro-data in compliance with Regulation (EC) N°.../... [of ... implementing Council Regulation (EC) N°322/97 of 17 February 1997 on Community statistics, concerning access to confidential data for scientific purposes].

2. For the cross-sectional component, micro-data files at Community level for data collected during year N shall be made available for scientific purposes by the end of February N+2.

By way of exception, cross-sectional micro-data files at Community level relating to year 2003 shall be made available for scientific purposes by the end of April 2005.

3. For the longitudinal component, micro-data files at Community level for data collected up to year N shall be made available for scientific purposes by the end of July N+2.

The first issue of longitudinal micro-data files at Community level shall cover 2003 and 2004 and shall take place at the end of July 2006. The second issue in July 2007 shall cover years 2003-2005; thereafter, each July release shall cover longitudinal data for the four most recent years available.

Article 13

Financing

1. For the first four years for which data provided for in this Regulation are collected, Member States shall receive a financial contribution from the Community towards the cost of the work involved.

2. The amount of the appropriations allocated annually for the financial contribution referred to in paragraph 1 shall be fixed as part of the annual budgetary procedures.

3. The budget authority shall determine the appropriations available for each year.

Article 14

Committee

1. The Commission shall be assisted by the Statistical Programme Committee, instituted by Decision 89/382 (EEC/Euratom), composed of representatives of the Member States and chaired by the representative of the Commission.

2. Where reference is made to this paragraph, the management procedure laid down in Article 4 of Decision 1999/468/EC shall apply, in compliance with Article 7 and Article 8 thereof.

3. The period provided for in Article 4 (3) of Decision 1999/468/EC shall be 3 months.

Article 15

Implementing measures

1. The measures necessary for the implementation of this Regulation, including measures to take account of economic and technical changes, shall be laid down, at least nine months before the beginning of the year of the survey, in accordance with the procedure specified in Article 14. Such measures shall concern:

(a) the definition of the list of target primary variables to be included in each area for the cross-sectional component and the list of target variables included in the longitudinal component, including the specification of variable codes and the technical format of transmission to Eurostat;

(b) the detailed content of the quality report;

(c) the updating of the definitions, in particular the operationalisation of the income definitions given in points (l) and (m) of Article 2 (including the timetable for the inclusion of the different components);

(d) the sampling aspects, including tracing rules;

(e) the fieldwork aspects;

(f) the list of target secondary areas and variables.

2. By way of exception to the provisions of paragraph 1, for the data collection carried out in year 2003, the measures necessary for the implementation of this Regulation, including measures to take account of economic and technical changes, shall be laid down at least six months before the beginning of the year of the survey and shall only relate to points (a) to (e) of paragraph 1.

3. The total duration of the interview relating to the target primary and target secondary variables of the cross-sectional component, including household and individual interviews, shall not exceed one hour on average in each country.

Article 16

Reports

Member States shall produce by the end of year N+2, as defined in the second subparagraph of Article 10(2), quality reports that cover both cross-sectional and longitudinal components in relation to the year of the survey N, focussing on the internal accuracy. By way of exception, the 2003 report shall only cover the cross-sectional component.

The Commission (Eurostat) shall produce by 30 June N+3 a comparative quality report that covers both cross-sectional and longitudinal components in relation to the year of the survey N. By way of exception, the 2003 report shall only cover the cross-sectional component.

No later than 31 December 2007, the Commission will submit a report to the European Parliament and the Council on the work done under this Regulation.

Article 17

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 Communities.

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

Done at Brussels,

For the European Parliament For the Council

The President The President

ANNEX I

Primary areas covered in the cross-sectional component and areas covered in the longitudinal component

1. Household information

>TABLE POSITION>

2. Personal information

>TABLE POSITION>

>TABLE POSITION>

ANNEX II

Minimum effective sample sizes

>TABLE POSITION>

Note:

The reference is to the effective sample size which is the size required if the survey were based on simple random sampling (design effect=1.0). The actual sample sizes will have to be larger to the extent that the design effects exceed 1.0 to compensate for non-response of all kinds. Furthermore, the sample size refers to the number of valid households which are households for which, and for all members of which, all or nearly all the required information has been obtained.

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): Statistics

Activity(ies): Social Statistics

Title of action: EU-SILC (Community Statistics on Income and Living Conditions)

1. BUDGET LINE(S) + HEADING(S) B5-6000 (ESTAT) + B3-4105 (DG EMPL)

2002: 1.8 million EUR on B5-6000 (ESTAT)

1.8 million EUR on B3-4105 (DG EMPL)

2003: 3.3 million EUR on B5-6000 (ESTAT)

3.3 million EUR on B3-4105 (DG EMPL)

2004: 3.3 million EUR on B5-6000 (ESTAT)

3.3 million EUR on B3-4105 (DG EMPL)

2005: 3.3 million EUR on B5-6000 (ESTAT)

3.3 million EUR on B3-4105 (DG EMPL)

2006: 1.5 million EUR on B5-6000 (ESTAT)

1.5 million EUR on B3-4105 (DG EMPL)

2. OVERALL FIGURES

2.1. Total allocation for action (Part B): 26.4 million EUR for commitment

2.2. Period of application: 2002 - 2008

2.3. Overall multiannual estimate on expenditure:

a) Schedule of commitment appropriations/payment appropriations (financial intervention) (see point 6.1.1)

EUR Million

>TABLE POSITION>

b) Overall financial impact of human resources and other administrative expenditure

EUR Million

>TABLE POSITION>

EUR Million

>TABLE POSITION>

2.4. Compatibility with the financial programming and the financial perspective

Proposal compatible with the existing financial programming

2.5. Financial impact on revenue [10]:

[10] For further information see a separate guidance paper

No financial implications (involves technical aspects regarding implementation of a measure)

3. BUDGET CHARACTERISTICS

>TABLE POSITION>

4. LEGAL BASIS

- Articles 285, 136, 137 and 284 of the Amsterdam Treaty establishing the European Community

- Council Regulation (EC) N°322/97 on Community Statistics

- Council Decision (1999/126/EC) of 22 December 1998 on the Community Statistical Programme 1998 to 2002

- ( Lisbon (23-24/03/00) and Nice (7-9/12/00) European Councils )

5. DESCRIPTION AND GROUNDS

5.1. Need for Community intervention [11]

[11] For further information see a separate guidance paper

5.1.1. Objectives pursued

The general objective of EU-SILC (Community Statistics on Income and Living Conditions) is to produce timely and comparable cross-sectional and longitudinal data on income and on the level and composition of poverty and social exclusion at national and EU levels.

The high priority given by the Council and the Commission to the fight against poverty and social exclusion in the EU requires comparable and timely statistics to monitor this process.

5.1.2. Measures taken in connection with ex ante evaluation

The EU-SILC project will be launched in 2003 in replacement of the European Community Household Panel (ECHP) survey that runs for the 1994-2001 period.

In 1999, the Directors of Social Statistics of the National Statistical Institutes decided to replace the ECHP project in 2003. This decision was taken in view of the need to update the content according to the new political demands, and of the request for operational improvement, i.e. mainly the timeliness of the produced data.

In 2000, the Directors of Social Statistics supported the introduction of a legal act for EU-SILC. The draft of the related Framework Regulation was then presented and amended following decisions taken during the meetings of the Statistical Programme Committee (SPC) on 30/05/01 and of the Directors of Social Statistics on 11-12/06/01.

The total costs for the data collection of the EU-SILC data will be around 10 million EUR per year. Two thirds of the data collection costs will be supported by the Commission, given that it is a new project.

The yearly data collection costs for the ECHP project were similar (10 million EUR), however the Commission was only financing half of the costs.

EU-SILC evaluation

It is planned to carry out a regular evaluation of the EU-SILC project:

- Annual quality reports covering both cross-sectional and longitudinal components of EU-SILC, and focussing on the internal accuracy will be produced by each Member State;

- In addition, after five years, the Commission will submit a report to the European Parliament and the Council on the work done in the preceding years under the Regulation.

5.2. Actions envisaged and arrangements for budget intervention

- The target population(s): Community policies, national governments, businesses, universities, research organisations, and the general public;

- The concrete measures to be taken to implement the action: launching of household/individual surveys in all EU Member States, combined with register information in some countries;

- Member States will support one third of the costs;

- The immediate outputs of each action: annual production of survey (combined with register) data.

- The expected outcomes solving needs or problems: annual production of comparable and timely data on income and on the level and composition of poverty and social exclusion for the EU as a whole and for each EU Member State.

5.3. Methods of implementation

Method used to implement the planned actions: direct management by the Commission using either regular or outside staff.

6. FINANCIAL IMPACT

6.1. Total financial impact on Part B - (over the entire programming period)

6.1.1. Financial intervention

Commitments in EUR million (to the 3rd decimal place)

>TABLE POSITION>

6.2. Calculation of costs by measure envisaged in Part B (over the entire programming period) [12]

[12] For further information see a separate guidance paper

Commitments in EUR million

>TABLE POSITION>

1 In most countries, the cross-sectional and longitudinal components will be combined into one operation; in a few countries, two separate operations will be carried out: the additional number of households corresponding to the additional data collection for the longitudinal component will be around 20.000 households.

2 13.6 million EUR will be borne by Member States (3.4 million EUR per year)

7. IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1. Impact on human resources

>TABLE POSITION>

7.2. Overall financial impact of human resources

>TABLE POSITION>

The amounts are the total expenditure for twelve months.

7.3. Other administrative expenditure deriving from the action

>TABLE POSITION>

The amounts are the total expenditure for twelve months.

I. Annual total (7.2 + 7.3)

II. Duration of action

III. Total cost of action (I x II) // 1.080.000 EUR

4 Years

4.320.000 EUR

8. FOLLOW-UP AND EVALUATION

8.1. Follow-up arrangements

The implementation of the EU-SILC project will be treated in a comitology procedure. Commissions' Regulations will be developed in relation to the list of variables to be included in EU-SILC, the updated definitions, the sampling and fieldwork aspects, and the content of the quality reports to be transmitted by Member States to Eurostat.

8.2. Arrangements and schedule for the planned evaluation

The main instruments used for the evaluation of the EU-SILC project are the annual quality reports covering both cross-sectional and longitudinal components of EU-SILC. They will also focus on the internal accuracy produced by each Member State, as well as the report produced after five years by the Commission to the European Parliament and the Council on the work done in the preceding years under the Regulation.

In addition, rolling reviews will be used for the evaluation of the EU-SILC project during its implementation.

Users surveys will be carried out in order to give a clear picture of strengths and weaknesses. These evaluation activities will take place in the context of Eurostat's Corporate Plan.

9. ANTI-FRAUD MEASURES

A revised system of internal management and control was put in place following the Commission's Reform initiative on financial management. This system included a reinforced internal audit capability.

Annual monitoring of progress with implementation of the Commission's Internal Control Standards is designed to give assurance on the existence and functioning of procedures for prevention and detection of fraud and irregularities.

New rules and procedures have been adopted for the principal budgetary process: calls for tenders, grants, commitments, contracts and payments. The manual of procedures are made available to all those intervening in financial acts with a view to clarify responsibilities, simplify workflows and indicate key control points. Training on their use is provided. The manuals are subject to regular review and updating.