Title: / EGR 2.0 / Version 1.0p3
Author: / Andrew Allen and Harrie van der Ven / Date: / 10/04/2013

in partnership with


EuroGroups Register

EGR 2.0: method, process and organisation

Ahigh level overview

Working group on Business RegistersApril 2013

  1. Introduction

This document provides a high level overview of the population methodology used by the EGR 2.0, the process to produce the populations and the functions with tasks needed for the production process.

The ESSnet EGR will organise a workshop on 19 and 20 June 2013 providing detailed explanation and guidelines.

  1. Frame population methodology

2.1.Introduction

In the Steering group EGR of September 2013 and the Business Register Working group of October 2012 the ESSnet introduced its high level view on an EGR methodology for coordination of FATS populations. The concept of ‘frame population methodology’ refers to a method, rules and procedures for defining and using frame populations in statistical activities.

The presented approach implies a main shift compared with EGR 1.0 from an approach based on the present (different) production oriented processes to a user oriented approach: ‘providing populations when needed for coordination of national populations’. Taking into account that priority is given to FATS statistics a user oriented approach means that:

  1. Regarding OFATS: the survey population of reporting units (UCI’s) should be available at the start of the survey process for a certain statistical reference year. ESSnet EGR proposes: for statistical reference year T: April T+1
  2. Regarding IFATS: the country of the UCI attached to the SBS population of enterprises in the phase after the collection of SBS data for a certain reference year:ESSnet EGR proposes: for statistical reference year T: November T+1

Note: the proposed delivery dates need agreement of business register staff as well as FATS statisticians. The EGR workshop in June and a consultation of the FATS working group also in June will provide the input for a final proposal.

EGR 2.0 is a network of central and national statistical business registers with complementary functions. In this concept the overall quality of the EGR is very much depending on the quality of every part of this network.

A main role of a statistical business register is facilitating the integration of data produced by different statistical activities by offering populations of uniquely and well identified statistical units classified according to common used categories like NACE or Institutional sector code. Traditionally this role has been filled in on the national level by the national statistical business register within the national statistical institutions (facilitating horizontal integration) by offering frame populations for sampling etc.

The EGR aims to offer an infrastructure for data integration by offering populations of uniquely and well identified statistical units involved in cross border transactions and/or positions. The central EGR role has to be considered as complementary to the national role of the national statistical business registers by adding the cross border dimension.

The EGR can not be considered as an independent central register system but as a network of central en national statistical business registers.

To implement this approach a super arching (at national and European level) agreement is needed that statistical activities use the statistical business registers as the authentic backbone for business population elements and their common used descriptive characteristics.

The backbone function requires also rules on the selection of the business population (here called: frame population methodology). The business population is a very dynamic one which makes it very complex to monitor and to interpret events timely and right. In practice this means that a user (statistical activity) of a statistical business register is confronted with imperfections in the population provided. To allow data integration it is required to have rules for dealing with these imperfections (here called: frame population error procedure which is part of theframe population methodology). These rules should take into account the organizational and methodological consequences of correcting populations (e.g. change the country of an UCI means that another country has to add this unit to its population or sampling methods can prohibit updating the population from which the sample has been drawn).

  1. EGR and FATS

3.1.Definitions of the target and frame population for Outward FATS

The FATS target populations are defined in Regulation (EC) No 716/2007 and the FATS recommendation manual version 2012.

‘The Outward FATS target population of statistical units is composed of all foreign affiliates located in extra-EU countries that are controlled by an institutional unit resident in an EU Member State. ‘Foreign affiliate’ shall mean an enterprise resident in the compiling country over which an institutional unit not resident in the compiling country has control’.

‘The population of reporting units differs from the population of statistical units. To identify the relevant target population of reporting units and to unambiguously associate the statistical units with them, Member States should apply the ‘Ultimate Controlling Institutional unit approach’ (UCI)’.

The population of UCI’s as reporting units is derived from the EGR population of Global Enterprise Groups. The ID of the UCI is one of the characteristics. Table 1 contains the list of attributes to be provided

The objective of EGR 2.0 is to provide by EU+EFTA countryFinal Outward FATS frame populations of reporting units (called: Final National Outward FATS frame population of reporting units) for reference year T in April T+1.

Table 1 describes the content of this list.

Table 1 Descriptive coordinated characteristics of the National Outward FATS frame population of reporting units reference year T

Characteristic / Explanation
1 / Frame reference year / Reference year of the frame population
2 / EGR ID of the UCI / A meaningless ID assigned by the EGR system to a legal unit which is defined as Ultimate Controlling Institutional Unit and assigned as reporting unit for Outward FATS to be applied for the period of the frame reference year. In the EGR version 1.0 it is called EU_LEU_ID. This number will stay in EGR version 2.0.
3 / Name of the UCI / Legal name a legal unit which is defined as Ultimate Controlling Institutional Unit.
4 / EGR ID of the Global Enterprise Group / A meaningless ID assigned by the EGR system to global enterprise groups. In case of changes in the structure of a group (merging, take-over etc.) the assigned of new ID or the continuation of an ID will be based on the methodology for economic demographic statistics
5 / Name of the Global Enterprise Group / The name is included because it is used in the communication between staff.
6 / Date in population (month/-year) / The annual population is defined as a volume amount: all groups active in whole or part of the reference year. The date defines from which month the unit has to be included in the frame population.
7 / Date out of population (month/-year) / This date defines the last month of inclusion in the frame population

The EGR can and (depending on the user needs) will provide more information e.g. attributes on global enterprise group, which can be used for stratification of samples or defining thresholds: employment, turnover and assets by reference year and information on links to enterprises and legal units.

3.2.Definitions of the target and frame population for Inward FATS

The FATStarget populations are defined in Regulation (EC) No 716/2007 and the FATS recommendation manual version 2012.

The target population of statistical units as defined in the FATS regulation comprises all enterprises and all branches[1] under foreign control. It is a subset of the target population of Structural Business Statistics (SBS). Target populations of statistical and reporting units are equal in inward FATS, as data are collected directly from enterprises and branches on which information is needed.

Presently the scope of Inward FATS is restricted to enterprises resident in EU/EFTA country classified in B to N and PQRS of NACE rev.2. The reference period is the calendar year.

The objective of the EGR is to provide frame populations in accordance with de definition of the target population which meet the quality requirements of FATS.

The target population is the conceptual population of units at which the survey is aimed and for which statistics should be produced.

The objective of EGR 2.0 is to provide by EU+EFTA country an inward FATS frame population of enterprises (called: National Inward FATS frame population of enterprises) for reference year T at the end of November T+1.

The population of enterprises is defined according to the SBS criterions:

Active in reference year T ( = volume population)

Resident in compiling country

Classified in B to N and PQRS of NACE rev.2

Belonging to SBS frame population of compiling country for reference year T.

Table 2 Descriptive coordinated characteristics of the National Inward FATS frame population of enterprises

Characteristic / Explanation
1 / Frame reference year / Reference year of the frame population
2 / EGR ID of the Enterprise / The ID is needed in electronically data exchange.
3 / NSA ID of the Enterprise / ID assigned by a NSA to an Enterprise
4 / Name of the Enterprise / The name is included because of its use in the communication between users.
5 / Date in population (month/-year) / The annual population is defined as a volume amount: all enterprises active in whole or part of the reference year. The date defines from which month the unit has to be included in the frame population.
6 / Date out of population (month/-year) / This date defines the last month of inclusion in the frame population
7 / EGR ID of the Global Enterprise Group / A meaningless ID assigned by the EGR system to global enterprise groups. In case of changes in the structure of a group (merging, take-over etc.) the assigned of new ID or the continuation of an ID will be based on the methodology for economic demographic statistics
8 / Country of the UCI / Country of the Ultimate Controlling Institutional unit defined in accordance with the FATS Recommendations Manual
9 / NACE code / According to NACE Rev 2
10 / Institutional sector code / According to ESA2010
11 / Size class / Employment classes according to SME definition, used in SBS

The EGR can and will provide more information, e.g. address state of activity, employment, turnover, link to global enterprise group and links to legal units and units in administrative registers. This kind of information will be the most topical information available. For example: updates are possible for attributes like employment, whether the enterprise was active in the reference year or turnover are possible after November T+1.

3.3.Number of instances of FATS frame populations

The critical milestones are April T+1 for Outward FATS and November T+1 for Inward FATS. The disseminated frame populations of those dates are called: ‘Final frame populations’.

Final disseminated frame populations are the product of data collection, data processing and data analyse (including validation)[2]. To produce a final population two or more iterations are needed. The frame populations produced in the iterations before the production of a final population are called initial and intermediate versions of frame populations. The initial and intermediate frame populations serve data quality management (see next chapter).

Regarding the National Outward FATS Frame population of reporting units an initial version for reference year T will be provided by the EGR in September year T. An intermediate version will be provided in January/February year T+1.

Regarding the National Inward FATS Frame population of enterprises an initial version for reference year T will be provided together with the Final Outward Frame population of reporting units in April T+1. At least one intermediate version will be provided in the period September/November T+1 for validation after which a final version is published.

The content of a final frame population (as defined in tables 1 and 2) will be in principle ‘frozen’. Changes in the content of units and characteristics as described in tables 1 and 2 give serious complications in statistical production process. For example a change in a the UCI and its residency implies a change in a national Outward FATS frame population which implies a change in the survey populations of compiling countries/statistical authorities, (e.g. sending a new questionnaire, deleting data, grossing-up procedures etc.). The frame population error procedure provides rules for dealing with changes after the dissemination of final frame populations. Accepted changes will be processed in the final frame populations. The frame population error procedures have to be agreed with FATS statisticians and Business Register Management. First versions will be presented in the EGR workshop and FATS Working group in June.

  1. Description of EGR functions and tasks

The ESSnet has identified the following high level functions and tasks that will be required to be done by Eurostat and member states in order for the efficient running of the EGR. More detailed operational guidelines will follow, but this overview is intended to raise awareness of the tasks, so that Member states can start planning for working on the EGR Version 2.0 basis.

Managing national relationship with EGR / Tasks include organizing the national resources (National Statistical Institutes and National Central Banks) to deliver data, quality assuring and validating frames as required by the EGR annual cycle. Will also represent NSA at meetings with Eurostat about the EGR etc.
EGR Data Quality Manager NSI / Tasks will include:
  1. Exercising care over the EGR data assets including data acquisition, data processing, data dissemination, data archiving and data monitoring
  2. Planning, execution and evaluation of the annual EGR cycle
  3. Managing data quality issues cross organization boundaries
  4. Managing a EGR DQM team
  5. Liaising with the ESTAT DQM manager on the results of the NSI contribution to the annual EGR cycle

EGR National Validator / Tasks will include :
  1. Validating the quality of the EGR output regarding the national frame populations in relationship with the expected quality (checking coverage, comparing with previous cycles, comparing with other relevant data, investigating quality issues)
  2. Escalating and interacting on quality issues to EGR Macro Validator and/or Global-National profilers
  3. Resolving quality issues by preparing data sets with change proposals
  4. Scrutinizing and explaining the figures on the national EGR frame populations
  5. Finalizing the production of a release by completing quality checks and preparing a national quality report.

Global Profiler / Tasks here relate to global enterprise groups subject of global profiling and the task will be conducted by country of UCI:
  1. Validating the descriptive characteristics (among which the UCI) of the global enterprise groups
  2. Validating the countries in which the global enterprise group carries out activities
  3. Regarding the EU/EFTA area: validating the link between the (national) ‘Enterprises’ and the global enterprise group
  4. Escalating and interacting on quality issues with EGR Macro-national Validator and/or Global-National profilers
  5. Resolving quality issues by making change proposals
  6. Validating global enterprises with their descriptive characteristics and the link with the national ‘Enterprises’ (optional)

National Profiler / Task here relate to global enterprise groups NOT subject to global profiling but subjected to national profiling and country undertaking the tasks is the country of UCI:
  1. Validating the descriptive characteristics (among which the UCI) of the global enterprise groups
  2. Validating the link between the national ‘Enterprises’ and the global enterprise group
  3. Escalating and interacting on quality issues with EGR Macro/ national Validator and/or Global/National profilers
  4. Resolving quality issues by making change proposals

Profile Partner / Tasks here are for countries with a legal unit of an MNE in their territory , but where the UCI is not in your country.
  1. Works with UCI country responsible for the MNE, and provides data and validation required related to the MNE in the partner country.

Business Register Staff / Tasks here will be carried out by business register staff in each country
Validating the cross-border relationship (direct or indirect) between resident legal units and foreign legal units
  1. Escalating and interacting on quality issues with EGR Macro/national Validator and/or Global/National profilers
  2. Resolving quality issues by making change proposals

Statisticians
(National Statistical Institute and National central Bank) / It is expected that survey statisticians in domains such as FATS and FDI will use their survey knowledge to identify quality issues and make change proposals :
  1. Escalating and interacting on quality issues with EGR Macro/national Validator and/or Global/National profilers
  2. Resolving quality issues by making change proposals

  1. EGR data quality management process for production of FATS frame populations for statistical reference year T (head lines)

The process description refers to the situation after implementation of EGR 2.0. The years 2013 and 2014 will be a period of transition of EGR 1.0 to EGR 2.0.

Step / Timing / Description of (sub) process
1 / June year T / Eurostat ‘EGR Data Quality Manager’ produces a data quality management plan for the cycle statistical reference year T and communicates this plan to ‘EGR data quality manager (NSI)’.
2 / September year T / Eurostat ‘EGR Macro Validator’ compiles and validates an initial EGR Outward FATS frame population for reference year T.
Eurostat ‘EGR Data Quality Manager’ sends to ‘EGR data quality manager (NSI)’ the initial National Outward FATS frame population for reference year T to the ‘EGR data quality manager (NSI)’ with a request to start the preparation of the first data delivery to be send in December year T.
This list is based on the topical information in the EGR. The main part will of this list will refer to the situation at the end of reference year T-1. The purpose of this list is to support the preparation of the first data delivery.
3 / September – November year T / The ‘EGR data quality manager (NSI)’ prepares in cooperation with the ‘EGR NSA team’[3]the preliminary population of national enterprise groups for reference year T consisting of:
  1. National enterprise groups belonging to global enterprise groups domestically controlled
  2. National enterprise groups belonging to global enterprise groups foreign controlled.
Note: national truncated parts of global enterprise groups
4 / December T – January T+1 / The ‘EGR data quality manager (NSI)’ produces the first data set based on the lists of national enterprise groups as compiled in step 2:
  1. Resident legal units belonging to or associated (10% - 50%) to these national enterprise groups
  2. The relationships between the resident legal units of 1.
  3. (If identified): upward and downward cross border relationships (10% or more) between foreign legal units and resident legal units of 1.
  4. Enterprises belonging to these national enterprise groups.
  5. Updates of global enterprise groups in the EGR
Important: the selection of the data set should take place on the same version of national business register as is used for the selection of SBS population for year T.
The data set should be sent via eDamis in SDMX format and should meet the validation rules. ESSnet EGR recommends using the generic Eurostat tool ‘EDIT’ for validation.
5 / January T+1 – March T+1 / ‘ESTAT EGR team’ processes the data sets from NSI’s and CDP’s.
‘EGR Macro Validator’ compiles and validates an intermediate version of the EGR Outward FATS frame populationof reporting units for reference year T.
Eurostat ‘EGR Data Quality Manager’ sends to ‘EGR data quality manager (NSI)’ the intermediate version of the National Outward FATS frame population of reporting units for reference year T with a request for validation.
‘EGR National Validator’ validates the intermediate version of the National Outward FATS population of reporting units for reference year T.
6 / End of March T+1 / Eurostat ‘EGR Macro Validator’ compiles and validates the final version of the EGR Outward FATS frame population of reporting units for reference year T.
‘EGR Data Quality Manager’ sends to ‘EGR data quality manager (NSI)’ the final version of the National Outward FATS frame population of reporting units for reference year T via eDamis (SDMX format) to the EGR data quality manager (NSI)’ with a request to disseminate it to OFATS statisticians.
Also an initial version of the National Inward FATS Frame population of enterprises will be provided.
7 / April T+1 / The ‘EGR data quality manager (NSI)’ disseminates the National Outward FATS frame populationfor reference year Tto the Outward FATS manager.
8 / April T+1 – October T+1 / ‘EGR NSA team’:
  1. Updating in the national statistical business register the legal unit structure of national enterprise groups per 31 December year T
  2. Updating interactively in the EGR cross border relationships and characteristics of global enterprise groups (not under ‘global profiling’).
  3. Creating and sending updates to the EGR (content, timing and frequency to be defined by ‘EGR data quality manager (NSI)’). At least one full update should be sent.
‘Global profiler’ assisted by ‘Profiling partner’:
  1. Updating interactively the legal unit structure of and the characteristics of global enterprise groups per 31 December year T (for groups being under ‘global profiling’.
  2. Optionally: in cooperation with OFATS: the structure of ‘global enterprises’ for reference year T.
‘ESTAT EGR team’ is processing NSI data sets and is supporting NSI’s. In October also an update of CDP’s is processed.
9 / September T+1 – November T+1 / The Eurostat EGR Macro Validator’ compiles and validates an intermediate version of the EGR Inward FATS frame population of enterprises for reference year T.
The Eurostat‘EGR Data Quality Manager’ sends to ‘EGR data quality manager (NSI)’ the intermediate version of the National Inward FATS frame population of enterprises for reference year T via eDamis (SDMX format) to the EGR data quality manager (NSI)’ with a request for validation
10 / End of November year T+1 / ‘EGR Macro Validator’ compiles and validates the final version of the EGR Inward FATS frame population of enterprises for reference year T.
‘EGR Data Quality Manager’ sends to ‘EGR data quality manager (NSI)’ the final version of the National Inward FATS frame population of enterprises for reference year T via eDamis (SDMX format) to the EGR data quality manager (NSI)’ with a request for dissemination to Inward FATS statisticians.
11 / December T+1 / The ‘EGR data quality manager (NSI)’ disseminates the National Inward FATS frame population of enterprises for reference year Tto the Inward FATS manager.
© ESSnet EuroGroups Register2013 / Page 1

[1]Branches under foreign control are considered as quasi enterprises