WRITTEN QUESTION P-1784/97 by José Pomés Ruiz (PPE) to the Commission (14 May 1997)

Subject: Eurostat

The black economy clearly represents a challenge from a statistical point of view. The difficulties involved in its assessment are mirrored by those of the economic, fiscal and labour authorities charged with its control, which are unable to put an end to such activities, despite constant inspections.

Is Eurostat engaged in assessing the EU's black economy?

If so, what method is it using to do so?

How reliable are its estimates?

Are the statistical data produced directly by the countries concerned taken into account?

Answer given by Mr de Silguy on behalf of the Commission (12 June 1997)

The underground economy is indeed very difficult to measure and to control. In order to address the issue of the measurement and coverage of underground activity in the statistical data, the Member States make many explicit and implicit corrections to their calculations of gross national product (GNP), the precise nature of which varies from one Member State to another.

Eurostat itself is not engaged in measuring directly the size of the underground economy in the Member States. However, the Commission has required that the Member States complete the coverage of the underground economy by carrying out a number of procedures to verify and to improve estimates of GNP ((Commission Decision 94/168/EC, Euratom. )). A description of this work can be found in a report to the Council and the Parliament ((COM(96) 124 final. )) which describes the responses made to the requirements of the GNP Directive (89/130/EEC, Euratom) ((OJ L 49, 21.2.1989. )), and in particular to Article 7, which calls for special attention to be given to the verification and improvement of the exhaustiveness of the estimates of gross domestic product (GDP) and GNP, and to the coverage of the underground economy.

The results from this programme will be transmitted by the Member States to Eurostat towards the end of 1998, at which point Eurostat will verify the work completed. It is not expected that reliability or variability indicators will be attached to the results.