EUROPEAN COMMISSION EUROSTAT Directorate C: National Accounts; prices and key indicators Unit C-3: Statistics for administrative purposes

Eurostat/C3/GNIC/264 – EN

Orig: EN

27TH MEETING OF THE GNI COMMITTEE

23-24 OCTOBER 2013 LUXEMBOURG , JMO BUILDING

ROOM M6

STATE OF PLAY ON RESERVATIONS ON GNP/GNI

Point VI.5 on the agenda

2

STATE OF PLAY ON RESERVATIONS ON GNP/GNI

1. This document summarises all the reservations that are currently in place concerning GNI data. In addition to informing the GNI Committee on the state of play, it also serves as a reporting tool to inform other stakeholders on the number of reservations per Member State, showing the years that are covered by them and the possible adjustments resulting from their lifting. In practice, the latter will only be able to be estimated reliably on very rare occasions, but when it is, this will be done in the “follow-up” column

General reservations

2. Annex 1 shows the general reservations currently in force.

3. The Greek 2013 GNI questionnaire, which the Commission received on 22 September 2013, indicates that the data for the years 2008 to 2011 remained unchanged from those that were transmitted with the GNI Questionnaire 2012. The Quality Report attached to the GNI questionnaire informs that ELSTAT elaborated new data sources for updating GDP and GNI. In this process, it identified that more quality assessment is needed in order to incorporate these data into the estimates of GNI. Therefore for the time being this data could not be used for the updating of the GNI. The Commission reserves its position on the national accounts relating to the years 2009, 2010 and 2011 pending the transmission of the revised Greek GNI data and a thorough analysis of these data by the Commission. Also the general reservation on 2008 is still in place.

GNP reservations 1995-2001

4. Most GNP reservations for the years 1995-2001 have been lifted. For Greece and the United Kingdom not all of their GNP reservations have been lifted yet. Annex 2 provides an overview on the state-of-play on GNP reservations for these two countries.

5. In the GNP/GNI Questionnaire 2013 and the accompanying Quality Report transmitted by the United Kingdom, the estimates of GNP have been revised for all the years 1995-2001 due to the work on the outstanding GNP reservation 2 on insurance. In particular, the ESA79/95 transition item has been recalculated (for more detail, see document GNIC/260A, in particular Part A.1 and the UK Quality Report in Part A.3). Thus, the last outstanding GNP reservation of the United Kingdom has been addressed. A technical opinion on lifting this reservation is being prepared by Eurostat.

6. For Greece one GNP reservation (7) relating to the transition between GDP (ESA95) and GNP (ESA79) is still in place. At the GNI follow-up mission to Greece in June 2013, ELSTAT presented further information on the remaining open point consumption of fixed capital and FISIM. The relevant data on the transition item FISIM were included in the 2013 GNI Questionnaire. The additional information is currently being assessed by Eurostat. Pending the presentation by ELSTAT of a traceable documentation of the compilation steps for consumption of fixed capital and the final assessment of the additional information, Eurostat expects that the reservation can soon be lifted.

3

GNI reservations 2002-2010 7. The verification of the sources and methods to calculate GNI is primarily based on GNI

Inventories1, as well as on GNI information visits to the countries by the Commission and subsequent information provided by the countries.

8. In January 2012, the Commission notified the EU-25 Member States that it reserved its

position as to the accuracy of GNI on country specific issues and on transversal issues, which are specific issues that are the same for all Member States. In January 2013, the Commission notified Bulgaria and Romania that it reserved its position as to the accuracy of GNI on country specific issues and on transversal issues, which are specific issues that are the same for all Member States. Detailed information can be found in Annex 3. In September 2013, two more country specific reservations were placed, one for Austria and one for United Kingdom. The reservation for Austria was following the Excessive Deficit Procedure (EDP) dialog visit for Austria. The reservation for the United Kingdom was following a recent audit carried out by the European Court of Auditors. Details can be found in Annex 3. In August and September 2013, the Commission notified EU-27 Member States that it reserved its position on two additional transversal issues. Detailed information can be found in Annex 4 and in document GNIC/265 Roadmap for transversal issues – follow-up.

9. Annex 3 provides an overview on these country specific GNI reservations and the years of their application and on the progress made until now. In 2012 and 2013, eleven Member States (Ireland, Lithuania, Luxembourg, Hungary, Malta, The Netherlands, Austria, Poland, Portugal, Slovenia and the United Kingdom) have notified to Eurostat revision impacts due to their work on their specific reservations or have provided additional information on these issues or have contacted Eurostat for further clarification (for more detail, see document GNIC/260/A, in particular Part A.1 and the Quality Reports in Part A.3). The revision impacts and information provided is being assessed and some of the country specific GNI reservations have therefore now been lifted. Annex 3 provides the details.

10. Eight transversal reservations relate to the treatment of cross-border property income, the calculation and allocation of financial intermediation services indirectly measured (FISIM), the treatment of entities with little or no physical presence, the treatment of car scrap schemes, the treatment of cooperative dwellings, the inclusion of illegal activities in national accounts, the recording of the vehicle registration tax and the calculation of IC for actual and imputed rentals in the estimation of the production of housing services. They cover the years 2002-2010, except for the reservation on FISIM which covers the year 2010 only and the reservation on the recording of the vehicle registration tax and the reservation on the calculation of IC for actual and imputed rentals which cover the years 2009 and 2010 only.

11. After analysis and exchange with the Member States, some of the transversal GNI reservations have been lifted. Annex 4 provides the details on the progress made until now.

12. Explanations of the Commission’s concerns on reservations were provided with the notification letters. The countries were asked to transmit to the Commission by 22 September 2014, except for the new specific reservation for the United Kingdom, which

1 Most Member States had to send updated or new GNI Inventories by 31 December 2006. Sweden had to send its updated inventory by 31 December 2007 and Bulgaria and Romania had to send their new inventories by end 2009.

4

has 22 September 2016 as deadline, the changes to GNI estimates required as a result of the country specific points notified, or any additional methodological information showing clearly that the points are no longer relevant.

13. The transversal issues call for a detailed comparative analysis of the solutions adopted by Member States. Recommendations for the treatment of car scrap schemes (GNIC/232) and the treatment of cooperative dwellings (GNIC/231) were agreed on by the GNIC in its meeting in July 2012 (for countries with no car scrap schemes or cooperative dwellings and/or for which their treatment was found to be justifiable the reservations have been lifted or are in the process of being lifted), as were recommendations for the illegal activities prostitution and the production and trafficking of drugs (GNIC/230). Smuggling was dealt with by the GNIC in October 2012 (GNIC/240). FISIM (GNIC/244) and treatment of entities with little or no physical presence (GNIC/243) was also discussed in the same meeting. The reservation for those countries which do not observe in their territory cases of entities with little or no physical presence or for those whose treatment of the SPEs in the national accounts corresponds to the agreed GNI Committee’s recommendations have been lifted). Regarding the issue of the treatment of cross-border property income, it was agreed at the GNIC in its meeting in April 2013 that Eurostat should send out a questionnaire. The results of the questionnaire are presented in GNIC/266.

14. If Eurostat considers that a reservation has been adequately addressed, it will send a technical opinion to DG Budget, which may notify to the Permanent Representative of the concerned Member State that the reservation is lifted. Finally, Eurostat sends a copy of the official letter to the National Statistical Institute of the Member State concerned.

ANNEX 1:

STATE OF PLAY ON GENERAL RESERVATIONS, STATUS 30/09/13

Country Reservations Years of

application Reservation

lifted Follow-up

Greece (1) General reservation on GNI data, introduced September 2012 2008

(2) General reservation on GNI data, introduced September 2013 2009-2011

6

ANNEX 2:

STATE OF PLAY ON GNP RESERVATIONS OF GREECE AND THE UNITED K INGDOM 1995-2001, STATUS 30/09/13

Country Reservations Years of

application

Revisions introduced in

GNP/GNI questionnaire

and/or additional information

provided with Quality Report

Reservation lifted

Follow-up

Greece (1) Estimates for the small business strata in the manufacturing branches need to be based on new data sources

1995-2001 2006-2008 06/07/2009

(2) Estimates for the construction industry need to be re-benchmarked and should take into account direct data sources for the construction industry

1995-2001 2006-2008 06/07/2009

(3) Estimates for wholesale and retail trade, hotel and restaurants, and other land passenger transport (tourist buses) and travel agencies need to be re-benchmarked using recent data sources

1995-2001 2006-2008 06/07/2009

(4) Estimates for dwelling services need to be re-benchmarked on the basis of the recent housing census and household budget survey

2000-2001 2006-2008 06/07/2009

(5) Estimates for activities especially within NACE K, M, N and O need to be cross-checked and if necessary revised with the use of recent and more direct data sources

1995-2001 2006-2008 06/07/2009

(6) The present estimates for final consumption expenditure of non-profit institutions serving households need to be reviewed and revised when necessary

1995-2001 2006-2008 06/07/2009

(7) The calculation of the transition between GDP (ESA95) and GNP (ESA79) needs to be reviewed

1995-2001 2005 (partially)/ 2006-2008, 2013

Is being assessed.

7

Country Reservations Years of

application

Revisions introduced in

GNP/GNI questionnaire

and/or additional information

provided with Quality Report

Reservation lifted

Follow-up

United Kingdom

(1) The results of the housing census of 2001 need to be used for the estimates of dwelling services

2000-2001 2005 (for 2001 only)/2006

24/09/2008

(2) A new methodology for estimates related to insurance has to be devised 1995-2001 2007, 2010, 2012, 2013

Technical opinion on lifting reservation in preparation.

(3) A review of the estimates of final consumption expenditure of non-profit institutions serving households, to improve coverage and quality of the data, needs to be carried out

1995-2001 2007, 2009 14/07/2011

(4) Further documentation is required on the recording of rental income of households, in particular whether sufficient allowance is made for hidden rental income

1995-2001 2007 24/09/2008

(5) Further documentation is required on the methodology for social protection expenditure by households (including collective households)

1995-2001 2007 24/09/2008

(6) Further documentation is required on the methodology of the following transition items: item 25: pension funds; item 26: changes in due payment dates; item 27: minor repairs of owner-occupiers

1995-2001 2007, 2009 26/05/2011

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ANNEX 3:

STATE OF PLAY ON GNI RESERVATIONS, STATUS 30/09/13

Country Reservations Years of

application

Revisions introduced in

GNI questionnaire

and/or additional

information provided with

Quality Report

Reservations lifted

Follow-up

Belgium (1) The balancing of the supply and use table for construction needs to be updated with new estimates of the hidden economy in order to improve the quality of the estimates for construction.

2002-2010

(2) In activities other than construction, the coefficients used to determine the adjustments for exhaustiveness need to be re-examined and updated if necessary.

2002-2010

(3) The revision of foreign trade statistics and their use in national accounts need to be further analysed, especially the treatment of the activities of fiscal representatives.

2002-2010

Bulgaria (1) A review of the methods to ensure exhaustiveness has to be carried out with a view to validating and complementing the applied exhaustiveness adjustments. (2) A review of the methods used to calculate output and intermediate consumption in dwelling services has to be carried out. Improvements to the "stratification method" used in the calculation of output need to be made, especially with regard to the price element of the stratification model. The estimates of intermediate consumption should be revised whereas the minor repairs by owner occupiers of a kind typically carried out by tenants should be separately identified and recorded as Household Final Consumption Expenditure. (3) Improvements need to be made in the estimation of consumption of fixed capital by means of the Perpetual Inventory Method (PIM). In particular the PIM model

2007-2010

2007-2010

2007-2010

9

Country Reservations Years of

application

Revisions introduced in

GNI questionnaire

and/or additional

information provided with

Quality Report

Reservations lifted

Follow-up

should also cover Non-Profit Institutions Serving Households and include intangible fixed assets. The treatment of roads in PIM should be aligned to the recommendations of the GNP Committee on the consumption of fixed capital on roads, bridges etc. (4) The estimates of own account Gross Fixed Capital Formation (GFCF) need to be reviewed due to possible application of an incorrect formula used in the calculation of a mark-up for net operating surplus. Own-account production of software by financial corporations needs to be estimated. (5) The coverage of entertainment, literary and artistic originals in the calculation of output and GFCF should be extended to include estimations for books, musical works and artistic originals. (6) An alternative method for estimating output and intermediate consumption in construction services should be developed to allow for regular cross-checks with the main method based on the annual statistical reports of construction enterprises. Improvements need to be made in the estimation of own-account construction. (7) Improvements need to be made in the estimation of compensation of employees to and from the rest of the world. (8) Further clarifications are required in order to assess if there is a need for additional specific improvements of the calculations for the following components: - output, its allocation to users and intermediate consumption in financial

2007-2010

2007-2010

2007-2010

2007-2010

2007-2010

10

Country Reservations Years of

application

Revisions introduced in

GNI questionnaire

and/or additional

information provided with

Quality Report

Reservations lifted

Follow-up

intermediation (excluding FISIM); - components of the expenditure approach to Gross Domestic Product; - taxes and subsidies (and borderline cases).

Czech Republic

(1) The sources and methods used for the calculation of dwelling services need to be reviewed in order to assess the related national accounts estimates.

2004-2010

(2) The sources and methods used for the calculation of tips need to be reviewed in order to assess the related national accounts 2010 estimates.

2004-2010

Denmark (1) Following the discontinuation of the survey on rents for community housing, the estimation of dwelling services needs to be based on a new annual source and the issue of the continuity of the series needs to be investigated.

2002-2010

Germany (1) The estimation of dwelling services needs to be based on more recent benchmark data.

2002-2010

(2) Further investigation is needed in order to check that gross fixed capital formation in film originals and originals in radio and TV stock programmes is exhaustively recorded including any major production for own final use and that the value of these originals is measured in accordance with the recommendations of the GNI Committee.

2002-2010

Estonia (1) Estonia must improve calculations of consumption of fixed capital (CFC) for roads, bridges etc. in the following ways, in accordance with the GNI Committee recommendation (GNIC/011/Rev. 1): a) Separate roads and bridges from other structures; b) Introduce a central average lifetime estimate of 55 years for roads, bridges etc. or justify the lifetime of 35 years currently used.

2004-2010

11

Country Reservations Years of

application

Revisions introduced in

GNI questionnaire

and/or additional

information provided with

Quality Report

Reservations lifted

Follow-up

(2) Estonia must develop estimates for investments in entertainment, literary and artistic originals for all institutional sectors, and include them in its national accounts.

2004-2010

Ireland (1) Losses incurred by self-employed persons need to be estimated and included in the national accounts data for mixed income.

2002 to 2006, 2010

2012 08/08/2013

Greece (1) The use of the Structural Business Survey (SBS) and of employment data in the production approach needs to be reviewed and the national accounts data need to be revised if appropriate.

2002-2010

(2) The use of Households Budget Surveys (HBS) data in the expenditure approach needs to be reviewed and the results need to be revised if appropriate.

2002-2010

(3) The estimates for Gross Fixed Capital Formation (GFCF) in construction and for the industry of construction in the production approach need to be reviewed and the results need to be revised if appropriate.

2002-2010

(4) The estimates of the value added of the general government sector need to be reviewed in relation to the use of more recent administrative sources.

2002-2010

(5) The estimates for Non Profit Institutions Serving Households (NPISH) need to be based on more recent and complete sources.

2002-2010

(6) The use of Balance of Payments (BoP) data for ships and maritime transport needs to be reviewed and the results need to be revised if appropriate.

2002-2010

(7) The estimates for dwelling services need to be reviewed and the results need to be revised if appropriate.

2002-2010

12

Country Reservations Years of

application

Revisions introduced in

GNI questionnaire

and/or additional

information provided with

Quality Report

Reservations lifted

Follow-up

(8) Further clarifications and documentation need to be provided on a number of specific points in order to assess if there is a need for additional specific improvements of the calculations.

2002-2010

Spain (1) The values of small tools which are considered either as intermediate consumption or as gross fixed capital formation based on the annual SBS survey must be estimated. Clarifications need to be provided whether and how the distinction between intermediate consumption and gross fixed capital formation is made with respect to small devices. In view of the results from this work the national accounts figures need to be revised if appropriate.

2002-2010

(2) The sources and methods applied for the calculation of the compensation of employees used for the transition from GDP to GNI need to be reviewed and clarification provided. In view of the results from this work the national accounts figures need to be revised if appropriate.

2002-2010

(3) The sources and methods applied for the calculation of subsidies and capital transfers from EU-Institutions and the results need to be reviewed and clarification provided.

2002-2010

France (1) The revised estimates based on the new Balance of Payments data need to be reviewed and assessed in relation to their incorporation into the national accounts. In view of the results from this work, the national accounts data need to be revised if appropriate.

2002-2010 2011 R1:Additional document-tation sent in 2011 and 2013. Revision is planned to be done in 2014. R2: Revision is planned to be done in

(2) The new sources used for the estimation of the output of friendly societies led to a significant revision of this component and need to be reviewed and assessed

2002-2010 2011

13

Country Reservations Years of

application

Revisions introduced in

GNI questionnaire

and/or additional

information provided with

Quality Report

Reservations lifted

Follow-up

2014. Italy (1) An allowance for net operating surplus must be added to estimates of work in progress based on

the data coming from the Structural Business Survey.

2002-2010

(2) The holding gains or losses must be eliminated in the calculation of changes in inventories.

2002-2010

(3) The rent on land must be excluded from intermediate consumption calculated on the basis of the results of the SBS.

2002-2010

Cyprus (1) VAT fraud without complicity needs to be estimated and included in the GDP and GNI calculations.

2004-2010

(2) The estimates of the own-account production of film, TV and radio programs must be reviewed in order to include a mark-up for operating surplus.

2004-2010

(3) The data on royalties must be used for the valuation of literary and artistic originals in accordance with the related GNIC recommendation (GNIC/022).

2004-2010

(4) The estimates of the own-account production of software must be reviewed in order to include a mark-up for operating surplus and to take into account the labour input method in accordance with the related GNIC recommendation (GNIC/015).

2004-2010

(5) The treatment of taxes and subsidies on products and production must be clarified, based in particular on the assessment of the new information available. In view of the results from this work, the national accounts data need to be revised if appropriate.

2004-2010

Latvia (1) The recording and the valuation of own account production need to be reviewed and the national accounts data improved with respect to the points explained below.

2004-2010, if not

specified otherwise in

14

Country Reservations Years of

application

Revisions introduced in

GNI questionnaire

and/or additional

information provided with

Quality Report

Reservations lifted

Follow-up

explanations (2) Transfer costs for existing dwellings need to be estimated and included in the national accounts

data.

2004-2010

(3) The estimates for consumption of fixed capital of general government and non-profit institutions serving households need to be improved.

2004-2010

(4) Further clarification on the classification of non-profit institutions to the sector of non-financial corporations' or the sector of non-profit institutions serving households needs to be provided. In view of the results of this work, the national accounts estimates need to be revised, if appropriate.

2004-2010

(5) The treatment of entertainment, literary and artistic originals needs to be clarified and the national accounts estimates improved, if appropriate.

2004-2010

(6) The estimates of intermediate consumption of non-life insurance services need to be improved.

2004-2010

(7) The treatment of software needs to be clarified and the national accounts estimates improved, if appropriate.

2004-2010

(8) Several issues relating to the exhaustiveness of national accounts need to be clarified. In view of the results of this work, the national accounts estimates need to be revised, if appropriate.

2004-2010

(9) A balancing procedure of the data and estimates of the production side and of the expenditure side needs to be further developed. In view of the results of this work, the national accounts estimates need to be revised, if appropriate.

2004-2010

(10) Further clarifications are required on several aspects of the sources and methods used in order to 2004-2010

15

Country Reservations Years of

application

Revisions introduced in

GNI questionnaire

and/or additional

information provided with

Quality Report

Reservations lifted

Follow-up

assess if there is a need for additional specific improvements of the calculations. Lithuania (1) Supply and use tables need to be fully integrated in Lithuanian national accounts. In view of the

results from this work the national accounts figures need to be revised if appropriate. 2004-2010 2012 Update

received for 2004-2007, is being assessed.

(2) The sources and methods applied for the estimates of entertainment, literary and artistic originals need to be reviewed and clarifications provided. In view of the results from this work the national accounts figures need to be revised if appropriate.

2004-2010

Luxembourg (1) Luxembourg makes an upward adjustment of 15% to cover undeclared labour and own account work of households in construction. This estimate needs to be reviewed and updated. In view of the results from this work the national accounts figures need to be revised if appropriate.

2002-2010 2012 05/08/2013

(2) Concerning households' own-account construction of dwellings as well as repairs and improvements to dwellings, Luxembourg is asked to provide clarifications and to investigate the possibilities for improvements in data collection.

2002-2010

Hungary (1) The coverage and valuation of own-account GFCF need to be reviewed. In view of the results from this work, the national accounts data need to be revised if appropriate.

2004-2010 May 2012: Replies on HCSO note and email on specific reser-vations (1)-(10).

(2) The estimates for originals need to be improved.

2004-2010

(3) The treatment of recyclable waste needs to be clarified and corrected if necessary.

2004-2010

(4) The calculations for value-added of insurance, pension funds and of financial intermediation need to be reviewed and the results need to be revised if appropriate.

2004-2010

(5) Holding gains and losses need to be properly estimated and excluded from changes in 2004-2010

16

Country Reservations Years of

application

Revisions introduced in

GNI questionnaire

and/or additional

information provided with

Quality Report

Reservations lifted

Follow-up

inventories and trade margins.

(6) The estimates for the value added of sole proprietors in the Households sector need to be reviewed and the results need to be revised if appropriate. In this context, the consistency with final consumption estimates of households needs to be confirmed.

2004-2010

(7) The cross-validation of the production approach with the expenditure approach needs to be reviewed in the context of the integration of supply and use tables (SUT) for 2008, which was achieved in 2011, and the results need to be revised if appropriate.

2004-2010

(8) The methods to ensure exhaustiveness need to be reviewed in the context of the integration of supply and use tables (SUT) for 2008, which was achieved in 2011, and the results need to be revised if appropriate.

2004-2010

(9) The estimates for consumption of fixed capital (CFC) in roads, bridges, etc. need to be reviewed. In view of the results from this work, the national accounts data need to be revised if appropriate

2004-2010

(10) Further clarifications are required for a number of identified activities in order to assess if there

is a need for additional specific improvements of the calculations. 2004-2010

Malta (1) Small durable tools which do not exceed EUR 500 (in prices of 1995) per item (or, when bought in quantities, for the total amount bought) should be recorded as intermediate consumption.

2004-2010

(2) Changes in inventories need to be measured net of holding gains and losses.

2004-2010

(3) It needs to be checked whether output of health services includes any significant health service expenditure directly paid by private sickness insurance schemes to resident private medical and dental

2004-2010

17

Country Reservations Years of

application

Revisions introduced in

GNI questionnaire

and/or additional

information provided with

Quality Report

Reservations lifted

Follow-up

practices, nurses, physiotherapists and medical laboratories.

(4) Own-account construction of dwellings (including major repairs, renovation and extensions of existing dwellings) by households should be included in the output measure.

2004-2010

(5) Volume trends should be taken into account for the extrapolation of restaurant and bars output consumed by residents.

2004-2010

(6) Output and gross fixed capital formation in film originals and originals in radio and TV stock programmes need to be investigated in order to check that they are exhaustively recorded including any major production for own final use and that the value of these originals is measured in accordance with the recommendations of the GNI Committee.

2004-2010

(7) The estimates for insurance services need to be improved on the following aspects: a) The use of non-life insurance services must be included in intermediate consumption according to the service charge concept in line with the recommendations of the GNI Committee. b) Claim management expenses of insurance companies must be separated into intermediate consumption and wages. c) Income attributed to resident holders of foreign insurance policies and income attributed to non-resident holders of domestic insurance policies must be included in cross-border flows of property income.

2004-2010

(8) Malta applies the user cost method to estimate dwelling service output. Further clarification should be provided regarding the justification for applying the user cost method.

2004-2010 2012 03/09/2013

The Netherlands

(1) The estimation of own-account construction and small-scale building maintenance needs to be 2002-2010 2012 05/02/2013

18

Country Reservations Years of

application

Revisions introduced in

GNI questionnaire

and/or additional

information provided with

Quality Report

Reservations lifted

Follow-up

based on more recent benchmark data.

(2) The payments for the use of motorways (Eurovignette) should be reclassified from taxes on production to transactions in services.

2002-2010 2012 05/02/2013

(3) In the context of the use of foreign trade statistics for national accounts, the estimation of "re-exports" and of "transit trade" transactions needs to be based on more recent benchmark data.

2002-2010 2012 05/08/2013

(4) The estimation of imports and exports of government services needs to be based on more recent administrative sources.

2002-2010 2013 Is being assessed.

Austria (1) Further clarifications need to be provided on the estimation at basic prices for own account software, in particular the treatment of other taxes less other subsidies on production.

(2) Correct classification of public hospitals in national accounts

2002-2010

2009-2010

2012 Technical opinion on lifting of reservation 1 is being prepared.

Poland (1) The sources and methods used for the estimation of output need to be reviewed. In view of the results on this work the national accounts estimates need to be revised, if appropriate.

2004-2010 2013 Information concerning 1d, 4, 8 and 9 provided in the QR, is currently being assessed.

(2) The calculation method for non-market producers' output (general government S.13 and NPISH S.15) and related variables needs to be reviewed and corrected.

2004-2010

(3) The method of calculating nominal holding gains/losses for changes in inventories should be improved.

2004-2010

(4) The correct recording of research & development in national accounts needs to be verified. 2004-2010 2013

19

Country Reservations Years of

application

Revisions introduced in

GNI questionnaire

and/or additional

information provided with

Quality Report

Reservations lifted

Follow-up

(5) The method of estimating tips needs to be reviewed and adapted more specifically to the activities concerned and the situation in Poland.

2004-2010

(6) Imputed social contributions should be included in the estimate of compensation of employees. 2004-2010

(7) The proper allocation of some taxes needs to be implemented in national accounts estimates. 2004-2010

(8) For a final assessment on the exhaustiveness adjustments for producers deliberately not registering and producers deliberately misreporting more detailed and clear descriptions of the methods implemented in written are considered necessary. In view of the results on this work the national accounts estimates need to be revised, if appropriate.

2004-2010 2013

(9) The treatment of withholding taxes in the recording of cross-border interest and dividend flows needs follow-up.

2004-2009 2013

(10) The insurance output estimate needs to be corrected and included into national accounts estimates. 2004-2010

(11) The estimate on software, in particular on own-account produced software, needs to be revised. 2004-2010

Portugal (1) The measurement and valuation of output for own final use should be further investigated in order to check that it is exhaustive and valued at basic prices of similar products sold on the market or by costs of production including net operating surplus or mixed income. In addition, the recommendations of the GNI Committee on the measurement of gross fixed capital formation in software and on entertainment, artistic and literary originals must also be applied.

2002-2010 Follow-up on-going.

(2) The gross fixed capital formation time profiles for the retiring and the new vintages of infrastructure assets should be further investigated in order to check that they are sufficiently stable to justify the simultaneous exit assumption in the PIM model used to estimate capital stocks and

2002-2010

20

Country Reservations Years of

application

Revisions introduced in

GNI questionnaire

and/or additional

information provided with

Quality Report

Reservations lifted

Follow-up

consumption of fixed capital for infrastructure assets.

(3) The imputed rate of employers' social contributions to the Civil Service Pension Scheme (CGA) should be reviewed regularly considering in particular the evolution of the economic and demographic situations.

Romania (1) An allowance for net operating surplus must be added to the market producer's estimates of output, measured by the sum of production costs. (2) The estimates for intermediate consumption of unincorporated enterprises need to be improved by taking aside all expenses on goods and services which are not consumed as inputs in the process of production. Within this context, gross fixed capital formation for unincorporated enterprises needs to be estimated. (3) The sources and methods applied to the estimation of self-build of new dwellings need to be clarified and national accounts estimates improved, if appropriate. (4) The sources and methods applied and the national accounts estimates of insurance need to be improved. (5) The estimation of services of owner-occupied dwellings needs to be improved and calculation procedure clarified. (6) The sources and methods used to estimate entertainment, literary and artistic originals, including estimation of CFC for originals, need to be clarified and improved.

2007-2010

2007-2010

2007-2010

2007-2010

2007-2010

2007-2010

21

Country Reservations Years of

application

Revisions introduced in

GNI questionnaire

and/or additional

information provided with

Quality Report

Reservations lifted

Follow-up

(7) The sources and methods used to estimate software, in particular own-account produced software, need to be clarified. (8) Several issues relating to the exhaustiveness adjustments need to be improved and methods further investigated. (9) The estimates for consumption of fixed capital (CFC) should be improved, notably for intangible fixed assets (mineral exploration, computer software, originals) and public infrastructure (roads, bridges etc.) (10) The sources and methods applied for the estimation of compensation of employees used for the transition from GDP to GNI need to be improved. (11) Further clarifications on the sources and methods and improvement of the national accounts estimates, if appropriate, are required for the following components: − Coverage of the business register (REGIS); − Treatment of agricultural output as a result of institutional unit's secondary activity and consistent treatment of wine production in the Economic Accounts for Agriculture (EAA) and national accounts; − Valuation principles of tour operator's services; − The sources and methods applied to the estimation of financial leasing; − Criteria applied for the classification of subsidies.

2007-2010

2007-2010

2007-2010

2007-2010

2007-2010

Slovenia (1) The results of the October 2011 revision of Economic Accounts of Agriculture need to be incorporated into the Value Added of agriculture.

2007-2010 2012 16/08/2013

22

Country Reservations Years of

application

Revisions introduced in

GNI questionnaire

and/or additional

information provided with

Quality Report

Reservations lifted

Follow-up

(2) Property Income from real estate owned by Slovenian natural persons abroad needs to be incorporated into GNI estimates.

2004-2010

(3) In view of the results of a project on capital stock carried out in 2010, the estimates on consumption of fixed capital of general government and of dwellings activities need to be clarified and revised.

2004-2010

Slovakia (1) The treatment of reinsurance commissions needs to be reviewed and clarifications need to be provided on this issue for the years 2004 and 2005, for which direct sources are not available. From year 2006 onwards data is directly available from administrative sources.

2004-2005

(2) Improvements are needed in statistics for assets included in government gross fixed capital formation. Sources need to be reviewed to be used for the various categories of consumption of fixed capital in the Perpetual Inventory Model (PIM) calculations. Plausibility checks of estimates for consumption of fixed capital on roads, bridges etc. should be made. In view of the results of this work, the national accounts estimates may need to be revised, if appropriate.

2004-2010

Finland (1) The estimation of output from renovations within construction activity needs to be based on more recent benchmark data.

2002-2010

Sweden (1) The estimates made for the transition from GDP to GNI need to be improved with respect to the estimates of compensation of employees exchanged with the rest of the world.

2002-2010

(2) Further clarification is needed with respect to the estimates for entertainment, literary and artistic originals. In view of the results of this work, the national accounts estimates need to be revised, if appropriate.

2002-2010

23

Country Reservations Years of

application

Revisions introduced in

GNI questionnaire

and/or additional

information provided with

Quality Report

Reservations lifted

Follow-up

(3) Further clarification is needed with respect to the estimates on software. In view of the results of this work, the national accounts estimates need to be revised, if appropriate.

2002-2010

(4) Further clarifications need to be provided on the treatment of reinsurance commissions. In view of the results of this work, the national accounts estimates need to be revised, if appropriate.

2002-2010

United Kingdom

(1) Minor repairs and maintenance of dwellings by owner-occupiers of a kind typically carried out by owners need to be separately identified and classified as intermediate consumption in the production of dwelling services.

2002-2010 2013 Is being assessed.

(2) A review of the new compilation process of Non-Profit Institutions Serving Households (NPISH) has to be carried out with a view to improving the estimation methods and the coverage of the NPISH units.

2002-2010

(3) A review of the methods to ensure exhaustiveness has to be carried out with a view to updating the benchmarks and/or modifying the methods where needed.

2002-2010

(4) The valuation of the own-account construction output needs to be improved with the inclusion of a mark-up for net operating surplus.

2002-2010

(5) A new method of estimating insurance output, intermediate consumption and value added, that is in line with the ESA95 provisions and with the recommendations of the GNI Committee on insurance measurement, has to be implemented.

2002-2010 2012 26/07/2013

(6) The United Kingdom needs to include the creation of cinematographic film originals in the estimates of output and gross fixed capital formation.

2002-2010 2013 Is being assessed.

(7) A mark-up for net operating surplus must be included in the estimates of own-account software. The treatment of consumption of fixed capital in the calculation of own-account software should

2002-2010 2013 Is being assessed.

24

Country Reservations Years of

application

Revisions introduced in

GNI questionnaire

and/or additional

information provided with

Quality Report

Reservations lifted

Follow-up

be clarified.

(8) Improvements need to be made in the estimation of consumption of fixed capital on roads, bridges, etc.

2002-2010

(9) The impact of the use of list prices in the calculation of the household final consumption expenditure on the purchase of new cars has to be investigated. In view of the results from this work, the national accounts data need to be corrected, if appropriate.

2002-2010

(10) The GNI data for the period from 2002 onwards (transmitted with the 2011 GNI Questionnaire) need to be reconciled with the nationally published national accounts data.

(11) The compilation process to make the transition from producer's prices to basic prices in order to value output in accordance with ESA95 should be reviewed. Furthermore, the consistency between the scope of taxes and subsidies in the aforementioned transition and the scope of taxes and subsidies from the government accounts used in the estimation of GDP should be ensured. In view of the results from this work, the national accounts data need to be revised, if appropriate.

2002-2010

2009-2010

2012 26/07/2013

25

ANNEX 4:

STATE OF PLAY ON TRANSVERSAL RESERVATIONS, STATUS 30/09/13 More detailed explanation about each transversal reservation in document GNIC/265. Country

Reservations Years of

application

Reservations lifted

Belgium I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing services

2002-2010 2010 2002-2010 2002-2010 2002-2010 2002-2010 2009-2010 2009-2010

17/09/2013

Bulgaria I. The treatment of cross-border property income

II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes

2007-2010 2010 2007-2010 2007-2010

17/09/2013

17/09/2013

26

Country

Reservations Years of

application

Reservations lifted

V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing

services

2007-2010 2007-2010 2009-2010 2009-2010

17/09/2013

Czech Republic

I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing services

2004-2010 2010 2004-2010 2004-2010 2004-2010 2004-2010 2009-2010 2009-2010

17/09/2013

Denmark I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM)

2002-2010 2010

27

Country

Reservations Years of

application

Reservations lifted

III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing services

2002-2010 2002-2010 2002-2010 2002-2010 2009-2010 2009-2010

17/09/2013

17/09/2013

Germany I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing services

2002-2010 2010 2002-2010 2002-2010 2002-2010 2002-2010 2009-2010 2009-2010

29/08/2013

29/08/2013

28

Country

Reservations Years of

application

Reservations lifted

Estonia I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing services

2004-2010 2010 2004-2010 2004-2010 2004-2010 2004-2010 2009-2010 2009-2010

18/09/2013

18/09/2013

Ireland I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax

2002-2010 2010 2002-2010 2002-2010 2002-2010 2002-2010 2009-2010

18/09/2013

29

Country

Reservations Years of

application

Reservations lifted

VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing

services

2009-2010

Greece I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing

services

2002-2010 2010 2002-2010 2002-2010 2002-2010 2002-2010 2009-2010 2009-2010

Spain I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings

2002-2010 2010 2002-2010 2002-2010 2002-2010

17/09/2013

30

Country

Reservations Years of

application

Reservations lifted

VI. The inclusion of illegal activities in national accounts VII.The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing

services

2002-2010 2009-2010 2009-2010

France I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII.The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing

services

2002-2010 2010 2002-2010 2002-2010 2002-2010 2002-2010 2009-2010 2009-2010

17/09/2013

17/09/2013

Italy I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes

2002-2010 2010 2002-2010 2002-2010

31

Country

Reservations Years of

application

Reservations lifted

V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing

services

2002-2010 2002-2010 2009-2010 2009-2010

Cyprus I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing

services

2004-2010 2010 2004-2010 2004-2010 2004-2010 2004-2010 2009-2010 2009-2010

17/09/2013

Latvia I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM)

2004-2010 2010

32

Country

Reservations Years of

application

Reservations lifted

III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing

services

2004-2010 2004-2010 2004-2010 2004-2010 2009-2010 2009-2010

17/09/2013

Lithuania I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing

services

2004-2010 2010 2004-2010 2004-2010 2004-2010 2004-2010 2009-2010 2009-2010

17/09/2013

17/09/2013

Luxembourg I. The treatment of cross-border property income

2002-2010

33

Country

Reservations Years of

application

Reservations lifted

II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII.The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing

services

2010 2002-2010 2002-2010 2002-2010 2002-2010 2009-2010 2009-2010

17/09/2013

Hungary I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing

services

2004-2010 2010 2004-2010 2004-2010 2004-2010 2004-2010 2009-2010 2009-2010

17/09/2013

17/09/2013

17/09/2013

34

Country

Reservations Years of

application

Reservations lifted

Malta I. The treatment of cross-border property income

II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing

services

2004-2010 2010 2004-2010 2004-2010 2004-2010 2004-2010 2009-2010 2009-2010

17/09/2013

The Netherlands

I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax

2002-2010 2010 2002-2010 2002-2010 2002-2010 2002-2010 2009-2010

17/09/2013

17/09/2013

35

Country

Reservations Years of

application

Reservations lifted

VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing

services

2009-2010

Austria I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax

VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing services

2002-2010 2010 2002-2010 2002-2010 2002-2010 2002-2010 2009-2010 2009-2010

17/09/2013

17/09/2013

17/09/2013

Poland I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings

2004-2010 2010 2004-2010 2004-2010 2004-2010

17/09/2013

17/09/2013

36

Country

Reservations Years of

application

Reservations lifted

VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing

services

2004-2010 2009-2010 2009-2010

Portugal I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing

services

2002-2010 2010 2002-2010 2002-2010 2002-2010 2002-2010 2009-2010 2009-2010

Romania I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence

2007-2010 2010 2007-2010

17/09/2013

37

Country

Reservations Years of

application

Reservations lifted

IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing services

2007-2010 2007-2010 2007-2010 2009-2010 2009-2010

Slovenia I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing

services

2004-2010 2010 2004-2010 2004-2010 2004-2010 2004-2010 2009-2010 2009-2010

17/09/2013

17/09/2013

17/09/2013

Slovakia I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM)

2004-2010 2010

38

Country

Reservations Years of

application

Reservations lifted

III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing

services

2004-2010 2004-2010 2004-2010 2004-2010 2009-2010 2009-2010

20/09/2013

20/09/2013

Finland I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing

services

2002-2010 2010 2002-2010 2002-2010 2002-2010 2002-2010 2009-2010 2009-2010

17/09/2013

17/09/2013

Sweden I. The treatment of cross-border property income 2002-2010

39

Country

Reservations Years of

application

Reservations lifted

II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing

services

2010 2002-2010 2002-2010 2002-2010 2002-2010 2009-2010 2009-2010

17/09/2013

United Kingdom

I. The treatment of cross-border property income II. The calculation and allocation of financial intermediation services indirectly measured (FISIM) III. The treatment of entities with little or no physical presence IV. The treatment of car scrap schemes V. The treatment of cooperative dwellings VI. The inclusion of illegal activities in national accounts VII. The recording of the vehicle registration tax VIII. The calculation of IC for actual and imputed rentals in the estimation of the production of housing

2002-2010 2010 2002-2010 2002-2010 2002-2010 2002-2010 2009-2010 2009-2010

07/08/2013

07/08/2013

40

Country

Reservations Years of

application

Reservations lifted

services