CALL FOR EVIDENCE

FOR AN IMPACT ASSESSMENT

This document aims to inform the public and stakeholders on the Commission's future legislative work so they can provide feedback on the Commission's understanding of the problem and possible solutions, and give us any relevant information that they may have, including on possible impacts of the different options.

Title of the initiative

European Statistical System – making it fit for the future

Lead DG (responsible unit)

ESTAT – Unit A2

Likely type of initiative

Legislative proposal – Regulation (amendment) – Regulation (amendment)

Indicative timetable

Q1-2023

Additional information

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009R0223-20150608

A. Political context, problem definition and subsidiarity check

Political context

The current legal framework governing European statistics (Regulation No 223/2009 on European Statistics) was adopted in 2009. Although partly revised in 2015 in order to strengthen institutional aspects, such as professional independence, the framework reflects the way official statistics were produced in the early 2000s. Developments since then have created a new environment. In particular, the digital transformation has ushered in radically different realities, bringing with it major social and economic changes (e.g. new business models, the platform economy, digital services, economic integration). As a result, the expectations of users of European statistics have changed, with increasing demands for more detailed information, produced faster, at a higher frequency and offering more in-depth insights in support of evidence-based EU policies. New data protection rules (the General Data Protection Regulation), as well as new privacy protection parameters, have also become key parts of this new environment.

With current production methods limited to traditional data sources (e.g. surveys and administrative records), those increasing demands will be difficult, if not impossible, to meet, even if additional resources are allocated to statistical authorities. In order for the statistical framework legislation not to lose its relevance, a targeted revision is needed. That revision should not only enable the use of new data sources for statistical purposes. It should also complement the framework legislation with new methods and approaches to data sharing in the European Statistical System (ESS).

Finally, and because of the aspects related to new data sources, this initiative is a natural extension of the European Data Strategy. There, the Commission has also proposed initiatives to ensure that more data become available for use in the economy and society (e.g. the Data Governance Act proposal adopted in November 2020, and the Data Act proposal planned to be adopted in the near future). These initiatives will affect national statistical offices in several ways. However, the need remains to address the issue of data access for the specific purposes of official statistics and to align any general solution with the specificities of the statistical context.

Problem the initiative aims to tackle

Timely, relevant and reliable official statistics that are comparable across Member States are needed for evidence-based policy-making.

The following problems increasingly affect the production, quality and timeliness of European statistics.

1)The inability to make full use of new data sources and technologies.

2)Hampered responsiveness and agility in meeting users’ urgent demands to produce new statistics and provide additional insights based on existing data.

3)Very limited data sharing among ESS partners.

4)The need to update and specify tasks of ESS partners, as a consequence of digitalisation and the creation of data ecosystems.

5)The need to specify the roles of statistical authorities in the emerging European and national data ecosystems, as well as the implications of these roles.

Overall, consideration should be given to how the legal framework governing European statistics can be updated in a way that will make it possible to produce statistics in a quick and timely manner in response to users’ demands, improve efficiency, and reduce the burden on and costs for Member States and respondents. Specifically, the problems outlined above should be tackled by doing the following.

1.Tapping the full potential of digital data sources and technologies by enabling their re-use for official statistics, notably through applying the policy choices made in the forthcoming Data Act proposal with regard to business-to-government (B2G) statistical data sharing. New data sources stemming from the digitalisation of economies and societies in the EU are crucial for the production of more accurate and timely statistical information (e.g. high-frequency population mobility indicators based on mobile phone data, macroeconomic estimates arrived at using banking data, tourism statistics garnered from online platforms, energy consumption information obtained from smart meters, labour demand indicators developed using online job advertisements, etc.) or the measurement of new phenomena (e.g. measuring the collaborative economy or new forms of work).

2.Enhancing the capabilities of Eurostat and national statistical institutes to take prompt action in response to urgent user demands. This could include producing statistics based on new data collections or providing additional insights based on existing data. For this to happen, explicit references to statistics under development, flash estimates, modelling techniques, etc. would need to be introduced into the legal framework governing European statistics. 

3.Promoting data sharing and strengthening coordination. The data sharing enablers in Regulation (EC) No 223/2009 need to be clarified and made stronger in order to remove barriers resulting from diverging EU and national rules and practices. In particular, data sharing for the production of statistics should be enabled in areas with a high degree of European integration, such as business and trade.

4.Updating the tasks of ESS partners, for instance creating a possibility for national statistical institutes to further use data that is available at EU level and enabling Eurostat to access data more easily and directly.

5.Specifying, in the statistical domain, the new functions in the emerging European and national data ecosystems and outlining the roles statistical authorities could play. The revised framework should include provisions to enable statistical authorities to be more active in the new data ecosystems in re-using data for public interest purposes acting as data providers, data users and data intermediaries.

Basis for EU action (legal basis and subsidiarity check)

Legal basis

Article 338 of the Treaty on the Functioning of the European Union provides the legal basis for the production of European statistics. Acting in accordance with the ordinary legislative procedure, the European Parliament and the Council adopt measures for the production of these statistics as and when necessary. Article 338 sets out the requirements for the production of European statistics, stating that they must conform to standards of impartiality, reliability, objectivity, scientific independence, cost-effectiveness and statistical confidentiality.

Practical need for EU action

The subsidiarity principle applies insofar as the new initiative does not fall within the exclusive competence of the EU. The ESS provides high quality statistical information that is comparable across Member States and is designed to meet the needs of multiple users and support democratic decision-making and debate.

Regulation (EC) No 223/2009, the legal framework for European statistics, is a reference regulation for all other statistical regulations. This revision of Regulation (EC) No 223/2009 aims to make it fit for the digital age, strengthening the capacity of statistical offices to make them more responsive and able to produce statistics faster. This aim cannot be sufficiently achieved by the Member States alone. It can be better achieved at EU level since the underlying phenomena, digitalisation and the creation of a common digital market, are already within the scope of EU action. The EU may therefore adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this initiative is a targeted revision limited to the minimum required to achieve the stated objective and not going beyond what is necessary to do so.

B. Objectives and policy options

The initiative aims to better respond to new information needs and user expectations, through a combination of bringing the existing legal framework for European statistics into line with the developments that have arisen out of the European Data Strategy, and incrementally modernising statistical production.

To do this, the Commission will consider the following options.

Option 1: Baseline scenario, no policy change

If no action were taken, the ESS would continue to produce high quality data based on the sources and data collections available today. However, the long-term impact of this would need to be analysed in terms of the attendant risks of increasing the gap between traditional and cutting edge, up-to-date production processes, with the ultimate result that users would rely less and less on official statistics and the public and businesses be less and less willing to participate in traditional methods of data collection.

Option 2: Non-legislative measures

One measure that would have an immediate impact on current shortcomings in data availability, would be to ensure access to privately held data by non-legislative means. For instance, the Commission could issue recommendations and promote best practice while encouraging national statistical authorities to work with private sector data owners on voluntary statistical joint partnership projects.

Option 3: Address specific issues through a targeted revision (amendments) of Regulation (EC) No 223/2009

The general structure of the Regulation (EC) No 223/2009 would be left largely untouched, but several of its provisions would be adapted in order to enable statistical authorities to tap the full potential of new data sources and digital technologies. This would also include mechanisms to make the ESS more responsive. Specifying the new roles of statistical authorities in the emerging data ecosystems, as well as updating the tasks of ESS partners, would also be considered as part of this option.

Option 4: Introducing fully harmonised measures by completely overhauling Regulation (EC) No 223/2009

Another option would be to completely overhaul Regulation (EC) No 223/2009 in order to analyse in depth what other aspects of it could be improved, going beyond making it fit for the digital age. In this case, the issues addressed by option 3 would also be considered, but through actions that entail greater legal obligations or are broader in scope.

C. Likely impacts

The overall impact of the initiative is expected to make itself felt in terms of timelier, richer data and statistical insights supporting EU policy decisions, as well as in efficiency gains and a diminution of the reporting burden on businesses and the public.

In the context of B2G data sharing, the initiative will be designed in such a way as to ensure that adequate safeguards and technical measures are put in place to protect the legitimate interests of all stakeholders (i.e. data confidentiality, the protection of sensitive business information and, in the case of personal data, data subjects’ privacy).

Several studies have shown how significant are the economic benefits of B2G data-sharing mechanisms, including the ones leading to a more comprehensive and timely supply of official statistics. Based on the methodology used in a 2019 Organisation for Economic Cooperation and Development report to assess the economic impacts of data-sharing arrangements across and within sectors, there could be positive effects from re-using data on data producers and their suppliers, the users of official statistics, and society in general. Indirect impacts represent 10-20 times more value for data users, while induced and non-monetary benefits are estimated to be 20-50 times higher than the direct benefits for the overall economy. An analysis carried out by the European Commission in the preparation of the Data Act proposal shows, for example, that a 20% increase in the supply of official statistics would generate an additional EUR 4-12 billion a year in the EU from direct and indirect effects alone. Respondents are also likely to benefit from a diminution of the reporting burden as a result of the various proposed changes.

The social and environmental impacts of the initiative are expected to be quicker reaction to new user demands thanks to better data availability and more efficient mechanisms for launching joint innovative ESS actions and producing experimental statistics. Official statistics can therefore be produced quickly and provide real-time support for policies such as those required in crisis management situations and new policy areas such as the European Green Deal.

D. Better regulation instruments

Impact assessment

An impact assessment will help to prepare the policy initiative, supported by an evidence collection exercise and a stakeholder consultation process. The final results of the study are expected during the autumn of 2022.

The impact assessment will likely be able to draw on some of the conclusions of the impact assessment for the Data Act proposal.

Consultation strategy

Consultations will be carried out to ensure that the widest range of stakeholders can provide their views and opinions. The main stakeholders are data producers, specifically national statistical institutes and other national authorities, data holders and data users.

A separate online public consultation lasting a minimum of 12 weeks will be part of the consultation strategy. It will be accessible on the European Commission’s central public consultations page and Eurostat’s website. The questionnaire will be available in all EU languages; replies can be in any EU language. In addition to the factual summary report of the consultation, a synopsis report will also be drafted summarising the results of all consultation activities.

Finally, in a study supporting the impact assessment, which will include targeted stakeholder consultations, additional evidence will be gathered on the specific costs and benefits of the various aspects of the proposed measures. These costs, benefits and the burden diminution/simplification potential will be identified and quantified.

In accordance with Regulation (EC) No 223/2009, an evaluation of the European Statistical Programme (ESP) pursuant to Regulation (EC) 99/2013 was carried out in 2021. The ESP is the framework for the development, production and dissemination of European statistics for a period corresponding to that of the multiannual financial framework. It is the operational part of Regulation (EC) No 223/2009. The ESP evaluation recommends to focus on innovation, new methods and new data sources as innovation is key to satisfying the increasing demands for new and timelier statistics while reducing production costs and administrative burden.

A public online consultation on the Data Act, held between 3 June to 3 September 2021, establishes a long list of cases where business-to-government data sharing should be compulsory, including for official statistics.

An ESS position paper was also issued in June 2021. It concluded that legislatively grounded access to and the re-use of privately held data for official statistical purposes by national statistical authorities and Eurostat must be sustainably regulated and organised, with fair and clear rules that ensure a level playing field.

Why are we consulting?

A public consultation in line with the Commission’s Better Regulation Guidelines is appropriate considering that the aims of the revision of the legislative framework will affect stakeholders in a novel way. Given the relevance, use and political importance of European statistics, the opinion of relevant stakeholders, such as businesses, citizens and researchers, is crucial.

In support of the upcoming impact assessment, the consultation will gather input on issues resulting from the re-use of data from digital data sources for the development, production and dissemination of European statistics, These include processes, safeguards and dispute resolution mechanisms, as well as identification of the main cost items and benefits for stakeholders or possible participatory models in developing, producing and disseminating European statistics. Additional items include thinking of and implementing ways to increase the responsiveness and agility of the ESS, possible task distribution adaptations within the ESS, and specifying the possible roles of statistical authorities in the emerging European and national data ecosystems.

Target audience

The main stakeholders are data producers, institutional users, businesses and other private data holders, other professional users and the general public.