Production of EU statistics on the structure and activity of foreign affiliates

 

SUMMARY OF:

Regulation (EC) No 716/2007 — EU statistics on the structure and activity of foreign affiliates

WHAT IS THE AIM OF THE REGULATION?

It aims to create common statistical standards for the systematic production of comparable statistics on the structure and activity of foreign affiliates*.

KEY POINTS

Definitions

• Foreign affiliates statistics (FATS) measure the commercial presence through affiliates in foreign markets.
• Inward FATS describe the overall activity of foreign affiliates resident in the compiling country (see Annex I of the regulation).
• Outward FATS describe the overall activity of foreign affiliates abroad controlled by residents of the compiling country, for example how many employees work in affiliates resident outside the EU and controlled by European enterprises (see Annex II of the regulation).
• FATS are compiled according to the ultimate controlling institutional unit concept. This refers to an institutional unit (enterprise, branch or natural person) under a foreign affiliate’s chain of control and not controlled by another institutional unit.

Scope

EU countries must submit to the European Commission (Eurostat) data on foreign affiliates in regard to their characteristics, economic activities and geographical breakdown (see Annex III of the regulation).

The countries collect data on 11 characteristics, including:

• number of foreign-controlled enterprises (i.e. an enterprise in one country controlled by a resident of another country);
• turnover;
• production value;
• added value;
• total purchases of goods and services;
• staff costs;
• gross investment in tangible goods;
• number of persons employed;
• total on-site research and development (R & D) expenditure; and
• total number of R & D staff.

Data sources

EU countries have to collect the required information using relevant and appropriate sources. Business registers, statistical surveys or already existing data from administrative sources are the main sources for FATS statistics (see summary of Business statistics). Where the required data cannot be collected at a reasonable cost, best estimates, including zero values, may be transmitted to Eurostat.

Quality standards and reports

EU countries must ensure that the quality of the data they transmit to Eurostat meets common quality standards. The European Commission (Eurostat) specifies the quality standards to be met and the content and frequency of quality reports to be submitted.

Recommendations manual

In close cooperation with EU countries, Eurostat prepares a manual containing the relevant definitions and supplementary guidance with regard to the production of FATS.

Timetable

A timetable for compiling the data is specified in the regulation’s Annexes I and II.

Committees

The Commission (Eurostat) is assisted and advised by the European Statistical System Committee, a committee of EU countries. In implementing this regulation, the Commission can also request the opinion of the Committee on Monetary, Financial and Balance of Payments Statistics on all matters falling within that committee’s competence, in particular about measures for adjustment to economic and technical developments concerning the collection and statistical processing of data and the processing and transmission of results.

Implementation report

In 2012 the Commission was to submit a report to the European Parliament and the Council on the implementation of the regulation.

FROM WHEN DOES THE REGULATION APPLY?

It has applied since 19 July 2007.

BACKGROUND

Although statistics on foreign direct investment record the total amount of capital invested by foreign companies in the EU, FATS provide more detailed information on the economic impact of those investments in terms of job creation, R & D, etc.

For more information, see:

• Foreign affiliates (foreign-controlled enterprises) (Eurostat).

KEY TERMS

MAIN DOCUMENT

Regulation (EC) No 716/2007 of the European Parliament and of the Council of 20 June 2007 on Community statistics on the structure and activity of foreign affiliates (OJ L 171, 29.6.2007, pp. 17-31)

Successive amendments to Regulation (EC) No 716/2007 have been incorporated into the original document. This consolidated version is of documentary value only.

RELATED DOCUMENTS

Report from the Commission to the European Parliament and the Council on the implementation of Regulation (EC) No 716/2007 of the European Parliament and of the Council of 20 June 2007 on Community statistics on the structure and activity of foreign affiliates (COM(2012) 249 final, 31.5.2012)

Commission Regulation (EC) No 834/2009 of 11 September 2009 implementing Regulation (EC) No 716/2007 of the European Parliament and of the Council on Community statistics on the structure and activity of foreign affiliates, as regards the quality reports (OJ L 241, 12.9.2009, pp. 3-4)

Regulation (EC) No 295/2008 of the European Parliament and of the Council of 11 March 2008 concerning structural business statistics (recast) (OJ L 97, 9.4.2008, pp. 13-59)

See consolidated version.

Commission Regulation (EC) No 364/2008 of 23 April 2008 implementing Regulation (EC) No 716/2007 of the European Parliament and of the Council, as regards the technical format for the transmission of foreign affiliates statistics and the derogations to be granted to Member States (OJ L 112, 24.4.2008, pp. 14-21)

Commission Regulation (EC) No 747/2008 of 30 July 2008 amending Regulation (EC) No 716/2007 of the European Parliament and of the Council on Community statistics on the structure and activity of foreign affiliates, as regards the definitions of characteristics and the implementation of NACE Rev. 2 (OJ L 202, 31.7.2008, pp. 20-27)

last update 13.11.2017