Main achievements in 2003-2004

Eurostat is currently engaged in the so called “Operation 2007”, dealing with the revision of the EU classifications of economic activities (NACE) and products (CPA). The revisions are strictly linked to the revisions of ISIC and CPC, respectively.

The work in 2004 focused on the revision of NACE, and in cooperation with the NACE/CPA Task Force a draft structure of NACE was produced and submitted for consultation to all Member States, to Industrial Associations and other EU institutions. Such a consultation was launched in May 2004 in conjunction with the UN consultation on the draft ISIC, which included many questions on the proposed structure and explanatory notes. Eurostat received comments and proposals from 65 institutions, including the European Central Bank. The ECB welcomed the increasing detail for the service sector. The replies are being analysed and an EU common position will be presented at the UN Technical Subgroup.

The consultation launched by Eurostat included a call for proposals for CPA, in view of its revision. The number of replies is less than expected, and proposals are being analysed.

Concerns have been expressed on the consequences of the classifications revisions on statistical data, in particular on possible breaks in time series. Eurostat has set up two task forces (an internal one and one with Member States) to deal with implementation aspects, e.g. the possibility of providing back-data.

Main issues and challenges

Eurostat plans for 2005 focus on the approval of the NACE and CPA Regulations by the Statistical Programme Committee, the drafting of the explanatory notes, the preparation of correspondence tables and related translations in 20 languages. In 2005 the implementation date of the revised classifications will also be decided. The implementation aspects will also be discussed and possibly solved.

Future topics of interest for next program

One of the main concerns related to the revision of classifications refers to the change in time series and this issue could be one of the topics to be included in the next program.

Mandates of the Task Forces

Task Force: Drafting of the revised NACE and CPA

Mandate:        To assist Eurostat in:
Ø        Defining the structure of the revised NACE and CPA
Ø        Drafting the explanatory notes for the two classifications
Ø        Preparing the correspondence tables between the old-new classifications as well as the correspondence tables between the various revised classifications
Ø        Checking the translations

Frequency:       Work started in September 2004, meetings three times a year
Duration:            2 years
Participants:      9 experts from NSIs.

Task Force: Implementation of the revised NACE and CPA

Mandate:        - To analyse the issues related to the implementation of NACE in Business Registers
                        - To analyse the impact of the revised classifications on the different types of Statistics (Structural Business Statistics; Short-Term Statistics; National Accounts, etc.)
                        - To identify and propose best practices in related areas (e.g. back-casting for broken time series)
Frequency:    Work will start in January 2005, meetings three times per year
Duration:       3 years
Participants:  Experts from National Statistical Institutes of Member States, covering various areas (Business Registers, Business Statistics, National Accounts etc.)

A challenge for business registers

The finalised NACE classification should be available after mid-2005 and the Member States can start its implementation in their business registers.

The main concerns from the Member States focus on the cost of the change, as well as on the possible lack of time to prepare it. The decision on the implementation date will be done at the Statistical Programme Committee in May 2005 (and it may be that the SPC will postpone the implementation from 2007 to 2008).

The Eurostat Business Registers – Statistical Units Working Group will follow and discuss the implementation of the new NACE in its meetings.

As the change of the activity classification happens worldwide, its operationalisation in the business registers should be on the agenda of the Roundtable while it is taking place during the next few years.