11 September 2009

Government Finance Statistics (GFS) form the basis for fiscal monitoring in Europe, most notably for the statistics related to the Excessive Deficit Procedure (EDP). The EDP is established in the Treaty and specified in the Stability and Growth Pact legislation. The Member States report data related to the EDP to the Commission (Eurostat) which, in turn, is responsible for providing the data to the Council. 

European GFS, including the statistics for the EDP, are produced in accordance with the European System of Accounts 1995 (ESA95), the EU manual for national accounts, supplemented by further interpretation and guidance from Eurostat, in particular the Manual on Government Deficit and Debt. 

Council Regulation 479/2009 as amended requires that Member States report government deficit/surplus (hereinafter deficit) and debt data related to the EDP twice per year: before 1 April and 1 October for the preceding four calendar years and a forecast for the current year. The data are reported in harmonised tables. These tables are designed specifically to provide a consistent framework, with a link to national budgetary aggregates and between the deficit and changes in the debt. They should be fully consistent with GFS data delivered to Eurostat in the ESA95 transmission programme. 

The EDP notification tables contain for general government and its sub sectors:

• Table 1: Summary table on deficit and debt, including auxiliary indicators (Gross Fixed Capital Formation, Interest and Gross Domestic Product - GDP)
• Tables 2A - 2D: Transition from the working balance to the deficit/surplus for general government sub sectors
• Tables 3A - 3E: Transition from the deficit/surplus to the change in debt for general government and its sub sectors
• Table 4: Supplementary data.  

The data are presented in the Eurostat's Statistics Database in national currency, euro/ECU, and percentage of GDP.

The classification system is defined in ESA95: classification of institutional sectors and classification of transactions, other flows and balance sheet items (assets/liabilities).

Data covers the consolidated general government sector (S.13) and its sub-sectors.

The concepts for EDP statistics are explained in Council Regulation (EC) N° 479/2009, as amended and Council Regulation (EC) N° 2223/96 (ESA95) and subsequent legal amendments, supplemented by further interpretation and guidance from Eurostat, in particular the Manual on Government Deficit and Debt. 

The government deficit/surplus is the net borrowing/net lending (B.9) of general government as defined in the ESA95. It is the difference between the revenue and the expenditure of the general government sector. The government deficit data related to the EDP (EDP B.9) differs from the deficit according ESA95 (B.9) for the treatment of interest relating to swaps and forward rate agreements. The government debt is defined as the total consolidated gross debt at nominal value at the end of the year in the following categories of government liabilities (as defined in ESA95): currency and deposits (AF.2), securities other than shares excluding financial derivatives (AF.3, excluding AF.34), and loans (AF.4). At the national level, data for the general government sector are consolidated between sub sectors. The debt of the Euro area and EU aggregates is consolidated by removal of the loans that Member States have granted to other Member States. 

The working balance is the most often used concept and measure of the country's budget deficit/surplus as it generally appears in public accounts and budgetary presentations. In other words, for example, for central government it should normally correspond to the budgetary outcome voted by the parliament.

The deficit and debt data are reported by sub sectors of general government: central government (S.1311), state government (S.1312), local government (S.1313) and social security funds (S.1314). 

The transition from the working balance to the deficit/surplus (EDP tables 2A - 2D) is explained by the following items, based on example for central government:

• Financial transactions included in the working balance
• Non-financial transactions not included in the working balance
• Difference between interest paid and accrued (EDP_D.41)
• Other accounts receivable / other accounts payable
• Working balance of entities not part of central government
• Net borrowing or net lending of other central government bodies
• Other adjustments.

The transition from the deficit/surplus to the change in debt is explained by the following items:

• Net acquisition of financial assets: Currency and deposits (F.2), Securities other than shares (F.3), Loans (F.4), Shares and other equity (F.5), Other financial assets (F.1, F.6 and F.7)
• Net incurrence of liabilities in financial derivatives (F.34)
• Net incurrence of other liabilities (F.5, F.6 and F.7)
• Issuances above/below nominal value
• Difference between interest (EDP_D.41) accrued and paid
• Redemptions of debt above/below nominal value
• Appreciation/depreciation of foreign-currency debt
• Changes in sector classification (K.12.1)
• Other volume changes in financial liabilities (K.7, K.8, K.10)

• Difference between capital and financial accounts (B.9-B.9f) and other statistical discrepancies.

The statistical unit is an institutional unit as defined in ESA95. The institutional units are grouped to general government sector and its sub-sectors.

General government sector and its sub-sectors.

• EU and euro area (EA) aggregates: EU25, EU27, EA16, and EA17.
• EU Member States
• Other countries: Croatia (HR), Turkey (TR), Norway (NO) and Iceland (IS).

Data for the EU and euro area aggregates and the EU Member States are generally available from 1995. Time series are generally shorter for other countries.

Not applicable.

National currency, euro/ECU, and percentage of GDP.

The reference period is calendar year. Stocks (such as debt) are as at the end of the calendar year.

National accounts are compiled in accordance with the European System of Accounts (ESA95) adopted in the form of a Council Regulation (EC) dated 25 June 1996, N° 2223/96.  

For EDP statistics, the legal basis is the Council Regulation (EC) N° 479/2009 as amended on the application of the Protocol on the Excessive Deficit Procedure annexed to the Treaty on European Union (Maastricht Treaty). The provisions on the Excessive Deficit Procedure (Maastricht Treaty) are extended by the Stability and Growth Pact in the context of the Amsterdam Treaty.

Data may be circulated within the European Institutions, especially the European Commission, the European Central Bank and the European Council ahead of release.

Regulation (EC) No 223/2009 on European statistics (recital 24 and Article 20(4) of 11 March 2009 (OJ L 87, p. 164), stipulates the need to establish common principles and guidelines ensuring the confidentiality of data used for the production of European statistics and the access to those confidential data with due account for technical developments and the requirements of users in a democratic society.

Data are treated as confidential after reporting, during the validation process, until the news release.

The EDP statistics of the euro area, EU27 and the Member States are published in the Eurostat's news release and the Statistics Database twice per year (April and October). The precise date of data release is disseminated on Eurostat's website.

The dissemination calendar is released at Eurostat's website.

Data are disseminated simultaneously to all interested parties through a database update and on Eurostat's website.

Data for EU countries: Data may be circulated within the European Institutions, especially the European Commission, the European Central Bank and the European Council ahead of release. National governments may release their national data beforehand, though the data remain subject to verification by Eurostat.

Bi-annual.

News releases on-line.

All publications on government finance statistics are available on the dedicated section (GFS) of Eurostat's website.

Please consult free data on GFS Main Tables and GFS Database.

Not relevant.

Comments may be made by the European Commission or EU Member States on the occasion of the release of EU data.

See also: http://ec.europa.eu/eurostat

The methodology for EDP statistics is set out in the Council Regulation (EC) N° 479/2009, as amended and Council Regulation (EC) N° 2223/96 (ESA95) and subsequent legal amendments, supplemented by further interpretation and guidance from Eurostat, in particular Manual on Government Deficit and Debt.

See the page "Quality reports" of the dedicated section (GFS) of Eurostat's website. Also, the page "EDP Inventories" presents descriptions of the sources and methods used for compiling the reported EDP data, as required by Council Regulation (EC) N° 479/2009 as amended.

Quality of data is assured by adherence to the ESA95 and ESA95 Manual on Government Deficit and Debt and by the validation of the Member States' data by Eurostat.

See the page "Quality reports" of the dedicated section (GFS) of Eurostat's website.

Users of the EDP data: the European Commission (for purposes of the Stability and Growth Pact), the Council, the European Parliament, researchers, politicians, etc. 

The main purpose of collecting these data is to ensure that high quality data is provided to the main user, the European Commission, to undertake its activities in surveying the Stability and Growth Pact

Eurostat is in constant dialogue with the main users and the national statistical institutes in order to improve the EDP data.

All data required by Council Regulation (EC) No 479/2009, as amended, are available.

Not available.

Not available.

Not available.

Council Regulation 479/2009 as amended requires that Member States report government deficit and debt data related to the EDP twice per year: before 1 April and before 1 October.

Member States normally meet the deadlines.

Data are comparable across Europe, as harmonised European rules (ESA95, and ESA95 Manual on government deficit and debt) are used by all Member States for compiling the EDP data.

Comparability over time is ensured.

Council Regulation 479/2009 as amended requires consistency of reported EDP data with the GFS data delivered to Eurostat in the ESA95 transmission programme. This consistency is verified by Eurostat in the course of validation of the Member States' EDP data.

Consistency is ensured within and between the EDP tables reported by the Member States.

Not available.

Data are revised as necessary, in line with national accounts principles. At the time of each EDP notification Member States can revise years back to t-4 and must inform Eurostat about details of revisions since the previous EDP notification:

- size of revisions

- sub sector of general government

- what is the type of revisions: revisions to source data, methodological revisions or elimination of possible errors.

Data for earlier years (before t-4) are revised in the database by Eurostat whenever Member States provide revised data.

Under the Excessive Deficit Procedure (EDP), the data reported before 1 April are preliminary since revised annual data are notified before 1 October. These revisions may affect all reported years. Further revisions may be necessary due to updated data sources or other reasons.

Major changes in methodology may occur as a result of EU legislation or Eurostat decisions (following a consultation procedure with Member States). Major changes in methodology which occur at the national level to comply with existing EU requirements, may be mentioned in Eurostat's news release.

Data are based on annual national accounts of general government, derived primarily from administrative and other records of general government. Basic data are in national currency.

Twice per year.

Data are collected primarily from administrative reports, but sometimes also with statistical surveys (especially for extra budgetary units and local government units etc.).

Eurostat validates data twice per year during the period of three weeks after the EDP notification by the Member States. The validation process consists of arithmetic and quality checks as well as checks on consistency with ESA95 methodology and with the GFS data delivered to Eurostat in the ESA95 transmission programme.

Valuation principles are in accordance with ESA 95. However, debt is recorded at nominal (face) value. Foreign currency debt is converted into national currency using end-year market exchange rates (though special rules apply to contractual agreements). The debt of the Euro area and EU aggregates is consolidated by removal of the loans that Member States have granted for support operations to other Member States.

Data are in principle compiled on an accrual basis, according to ESA 95 rules. For recording of taxes and social contributions, the common principles of ESA 95 are modified by Commission Regulation (EC) N° 995/01 implementing EP and Council Regulation (EC) N° 2516/00.

For series transmitted in national currencies other than euro, the data are converted by Eurostat into euro using annual average exchange rates (supplied by ECB) in the case of general government flows (net borrowing/net lending, gross fixed capital formation etc.). Eurostat converts national currency into euro using end-year exchange rates (supplied by ECB) in the case of general government debt and its breakdown by financial instrument.

Ratios as a percentage of GDP are based on annual GDP data submitted to Eurostat in the EDP notification (for years going back to t-4), and from GDP reporting to Eurostat (for earlier years). GDP is gross domestic product at current market prices, as defined in ESA95 (B.1*g). See also note on GDP used in the government debt table of the "Imbalances scoreboard" page under part "21. Comment".

Euro area and EU aggregates are formed by the aggregation of the country data in euro (ECU), with consolidation where appropriate.

Please consult the news releases for information on the reservations and amendments by Eurostat to the individual countries' data.

The government deficit data related to the EDP (EDP B.9) differs from the deficit according ESA95 (B.9) for the treatment of interest relating to swaps and forward rate agreements.

For the years not covered by the latest EDP notification (which provides data back to year t-4), the series EDP B.9 may differ from the data in General government main aggregates. In this case the data in the General government main aggregates domain are normally more reliable.

GDP used as denominator in the government debt table published on "Imbalance scoreboard" website comes from the ESA95 transmission programme, not from EDP submissions, thus the differences between the EDP debt and Scoreboard debt as % GDP may arise as a result of different timetables in the transmission of the revised GDP data.

Please consult the news releases for information on the reservations and amendments by Eurostat to the individual countries' data.