92000E0507

WRITTEN QUESTION E-0507/00

by Christopher Huhne (ELDR) to the Commission

(28 February 2000)

Subject: Measurement of regional living standards

Further to the answer to Written Question E-2223/99(1) in which the Commission detailed real per capita gross domestic product and real per capita gross regional product figures for the Union, is it convinced that these figures represent the best guide to regional living standards that is available? Is there a means of taking into account the income earned in one region by a resident of another for example, a commuter from South East England working in London to produce series based on personal incomes rather than gross regional product?

(1) OJ C 203 E, 18.7.2000, p. 150.

Answer given by Mr Solbes Mira on behalf of the Commission

(3 April 2000)

Gross domestic product (GDP) is the value of the production generated by resident production units. The production value is equal to the sum of the incomes (salaries, rents and profits) generated by the production activity. Regional GDP is therefore an overall indicator of the production activity in a region and is well suited to measuring a region's level of economic development.

However, it is true that income from production is not the same as citizens' disposable income: the difference results from taxes and transfers. In addition, regional GDP is estimated at the place of production, while disposable income should be estimated for the households' place of residence.

The Commission does not yet have information on households' disposable income at regional level. However, as part of the 1995 revision of the European System of Accounts (ESA), methodological principles for the drawing up of regional household accounts have been established. This work, carried out with the assistance of the national statistical institutes, will produce the first data in this area from 2001. The data will be published regularly and will provide users with an additional indicator to measure regional differences.