methods, notes and classification Social benefits (other than social transfers in kind) paid by general government methods, notes and classification

Government finance statistics

Government finance statistics (GFS) show the economic activities of government, including:

* government revenue    
* government expenditure    
* government deficit    
* transactions in assets   
* transactions in liabilities    
* other economic flows    
* balance sheets    
Presentation

The GFS presentation is similar to that of business accounting where the profit and loss accounts and the balance sheet are presented together, in a linked manner.

The emphasis is on the economic substance over the legal form of the event. Hence GFS differ noticeably from the budget or public accounting presentations that are nationally specific as far as scope of units and recording of transactions are concerned.

European GFS are produced in accordance with the European System of Accounts 1995 (ESA 95), the EU manual for national accounts, supplemented by further interpretation and guidance from Eurostat.

Use

GFS form the basis for fiscal monitoring in Europe, most notably for the statistics related to the Excessive Deficit Procedure (EDP).

Data

The GFS template tables show, in an integrated way,

* government revenue and expenditure    
* government deficit,    
* transactions in assets,    
* transactions in liabilities,    
* other economic flows, and    
* balance sheets.    

This presentation is similar to that of business accounting where the profit and loss and the balance sheet are presented together and in a linked manner. Only data for the general government (i.e. excluding public corporations) are shown.

GFS template tables are presented on both an annual and quarterly basis. Annual data are presented in a summary form as well as in a detailed form.

Aggregates for the euro area and for EU27 are calculated using Eurostat aggregation method. This involves the conversion of national currency data into one currency: the euro (or the ECU before 1999), using for flows the average exchange rate of the period, and for stocks the end of period exchange rate. Incomplete coverage may lead to the need for Eurostat estimates.

The GFS template tables present data for all the Member State, for the EU27 and the euro area and for Iceland, Norway and Switzerland (annual data). They draw on data from various Eurostat databases in an integrated manner. The tables contain useful metadata for interpretation of the data.

Data availability

Annual Summary Government Finance Statistics template tables are compiled twice per year, usually end of April and end of October. They are also available as Excel files:

Revision policy

Eurostat asks Member States to transmit data according to a pre-defined timetable. In general Member States will introduce revisions to their data before each transmission. Eurostat accepts all revisions, provided that adequate explanation is provided. Aggregates for the euro area and EU27 are automatically updated when national series change.

Methodology

European GFS are based on the concepts and definitions set out in ESA95, the European manual for national accounts. ESA95 is derived from, and almost entirely consistent with the worldwide manual for national accounts (SNA93). Since ESA95 is a general text, it has been necessary for Eurostat to supplement it with additional guidance in the form of the ESA95 Manual on Government Debt and Deficit, Eurostat Decisions, and bilateral advice to Member States.

Main Committees and Working Groups

Eurostat, the Member States and other interested parties meet several times per year. The National Accounts Working Group and Financial Accounts Working Group discuss methodological and practical issues relating to national accounts, including GFS issues. The Committee on Monetary, Financial and Balance of Payments Statistics (CMFB) is a high-level advisory group composed of senior officials from National Statistical Offices and Central Banks.

Manuals

National accounts are an integrated accounting framework. This framework describes in the structured way economic events of all units of the economy, grouped within sectors according to their characteristics. As such it is the reference point for all macroeconomic statistics.

ESA2010 is a legislative text.

Manual on Government Deficit and Debt - Implementation of ESA10 - Edition 2013 Manual on Government Deficit and Debt - Implementation of ESA10 - Edition 2013

Sixth edition

This new edition of the Manual aims to adapt it to the new Manual of national accounts (ESA 2010) which will enter into force on 1st September 2014. Although the latter has taken over many methodological provisions which were already in the MGDD, there are other changes which had to be introduced, such as the sector classification of some entities under government control, the recording of standardised guarantees and the treatment of transfer of pension obligations to government by corporations. This new edition, as usual, is the result of a collective work of reflection, conceptual and textual collaboration, under the responsibility of Eurostat, in cooperation with experts representing EU Member States, the Commission and the European Central Bank. This manual aims to assist the interpretation of the ESA 2010 rules and help their application for appropriately calculating the government deficit and debt.

Manual on Government Deficit and Debt - Implementation of ESA95 - 2013 edition Manual on Government Deficit and Debt - Implementation of ESA95 - 2013 edition

Fifth edition

This is a partial update of the Manual which aims to assist the interpretation of the ESA95 rules and help their application for appropriately calculating the government deficit and debt. The Manual is the result of a collective work of reflection, conceptual and textual collaboration, under the responsibility of Eurostat, in cooperation with experts representing EU Member States, the Commission and the European Central Bank. It was approved by the Financial Accounts Working Group (FAWG) and the Committee on Monetary, Financial and Balance of payment statistics (CMFB). This update includes notably three completely new chapters on the classification of EFSF/ESM, the treatment of low interest loans granted by government and the recording of carbon emission trading permits.

Other methodological manuals and papers

The following manuals provide additional conceptual guidelines as well as descriptions on actual sources and methods used in practice by Member States for the compilation of the data.

Manual on sources and methods for the compilation of COFOG statistics - Classification of the Functions of Government (COFOG) - 2011 edition

This manual has been developed by the Task Force on COFOG in response to an increasing interest in high quality, comparable statistics on government expenditure broken down by purpose, according to the Classification of the Functions of Government (COFOG). It is its second edition, the first having been produced in 2007. The structure is essentially the same as before, covering user requirements, the analytical framework, methodological guidance, links with other international statistics, and countries' compilation practices. However, many detailed parts have changed, reflecting the need to update and clarify the original text, when necessary. Moreover, further methodological guidance is given by the addition of new case studies discussed and agreed by the Task Force on COFOG.

Manual on quarterly non-financial accounts for general government - 2011 edition

The Manual on quarterly non-financial accounts for general government (QNFAGG Manual) complements the already existing Manual on compilation of taxes and social payments on a quarterly basis (published in 2002). These manuals establish an inventory of sources and methods used for compiling short-term public finance statistics but do not recommend "best practice". The compilation of the short-term public finance statistics is required by Commission Regulation (EC) 264/2000 of 3 February 2000 and by Regulation (EC) No 1221/2002 of the European Parliament and of the Council of 10 June 2002.

The first edition of the QNFAGG Manual was published in 2006. The present second edition (2011 edition) takes into account, recent changes in the national compilation systems for QNFAGG statistics, with a view to reflecting current practices. The update of the Manual was jointly carried out by Eurostat and by the statisticians, responsible in the National Statistical Institutes, for the compilation of QNFAGG statistics.

Manual on sources and methods for ESA 95 financial accounts - 2nd edition - 2011 update

Manual on sources and methods for quarterly financial accounts for general government

Manual on sources and methods for the compilation of COFOG Statistics - Classification of the Functions of Government (COFOG)

Manual on quarterly non-financial accounts for general government

Manual on compilation of taxes and social payments on a quarterly basis - First edition
Manual on sources and methods for the compilation of ESA95 financial accounts

Decisions for GFS

Eurostat occasionally makes Decisions which provide general guidance to countries on the recording of certain types of transactions, or which deal with specific cases which are particularly complex. These Decisions are made after consultation of the CMFB.

Eurostat has taken the following decisions that interpret national accounts rules The decision has been taken after consultation of the CMFB and on the basis of examination of the matter by ad-hoc task forces. They often lead to new guidance in the Manual on Government Deficit and Debt.

2013 Decisions

The statistical recording of an unbalanced transfer of pension obligations to government under ESA 2010 (Released 22-NOV-2013)

Supplement on contingent liabilities and potential obligations to the EDP related questionnaire (Released 22-JUL-2013)

Clarification of the criteria for the recording of government capital injections into banks (Released 19-MAR-2013)

Eurostat decision on ESM (Released 31-JAN-2013)

The statistical recording of low interest rate loans (Released 16-JAN-2013)

2012 Decisions

The statistical recording of some operations related to trade credits incurred by government units (Released 31-JUL-2012)

2011 Decisions

The statistical recording of operations undertaken by the European Financial Stability Facility (Released 27-JAN-2011)

Background note on treatment of EFSF in national accounts

2009 Decisions

The statistical recording of public interventions to support financial institutions and financial markets during the financial crisis (Released 15-JULY-2009)

The related News release.

2007 Decisions

Decision of Eurostat on deficit and debt: Securitisation operations undertaken by general government (Released 25-JUNE-2007)
The related News release.

2006 Decisions

Decision of Eurostat on deficit and debt: Recording of military equipment expenditure (Released 9-MAR-2006)
The related News release.

2005 Decisions

Accounting implications of the “International Finance Facility for Immunisation” initiative (Released 2-AUG-2005)
Three decisions on Italy: SCIP, ISPA and Concessionari d’imposta (Released 23-MAY-2005)
The treatment of transfers from the EU budget to the Member States (Released 15-FEB-2005)

2004 Decisions

Classification of funded pension schemes in case of government responsibility or guarantee (Released 2-MAR-2004)
Payments to government by corporations in the context of the transfer to government of their pension obligations (Released 2-FEB-2004)
New decision of Eurostat on deficit and debt - Treatment of public-private partnerships (Released 11-FEB-2004)

2003 Decisions

Payments to government by public corporations in the context of the transfer to government of their unfunded pensions obligations (Released 21-OCT-2003)
Liquidation of the EFTA Industrial Development Fund for Portugal (Released 21-AUG-2003)
Capital injections by government units into public corporations (Released 21-AUG-2003)

2002 Decisions

Exchange of Italian government bonds (Released 14-AUG-2009)
Treatment of non-returned banknotes and coins in the context of the cash changeover to the Euro (Released 22-JUL-2002)
Securitisation operations undertaken by general government (Released 3-JUL-2002)
Treatment of the transfer of Government real estate to a publicly-owned corporation in Austria (Released 31-JAN-2002)

1997-2000 Decisions

Eurostat decision on the allocation of Mobile Phone Licenses (UMTS) (Released 14-JUL-2000) [PDF 95 K]
Eurostat decision on deficit and debt : Treatment of taxes on capital gains realised by a public holding company in the context of privatisation (Released 19-OCT-1998) [PDF 22 K]
Eurostat decision on deficit and debt : Payment to the state following the sale of monetary gold by UIC to the Central Bank (Released 27-JAN-1998) [PDF 23 K]
Eurostat decision on deficit and debt : Payments from Central Bank to the State - Changes in the due for payment dates on taxes, social contributions and benefits (Released 17-DEC-1997) [PDF 73 K]
Eurostat decision on deficit and debt : Treatment of linear bonds. Financing and exploiting of "public infrastructure" by the enterprises sector. Treatment of export insurance guaranteed by the State (Released 30-APR-1997) [PDF 83 K]
Eurostat decision on deficit and debt : Treatment of deep-discounted bonds and index-linked bonds. Financing and exploiting of "public infrastructure" by the enterprises sector (Released 26-MAR-1997) [PDF 72 K]
Eurostat decision on deficit and debt : Treatment of certain taxes. State guarantees on public enterprise debt. Financing and exploiting of "public infrastructure" by the enterprises sector (Released 21-FEB-1997) [PDF 83 K]
Eurostat decision on deficit and debt : Capitalised interest on deposits and other financial instruments covered by ESA79. Treatment of fungible bonds issued in several tranches ("coupons courus"). Swaps on interest rates and currency swaps. Sales of gold by Central Banks. Financial leasing. Classification of national bodies acting on behalf of the EC (FEOGA etc). Pension funds. Treatment of interest in the case of zero coupon bonds (Released 3-FEB-1997) [PDF 73 K]

Guidance on accounting rules for EDP and GFS

Eurostat provides guidance on the accounting rules for EDP and GFS complementing the general rules of ESA95 as interpreted in the ESA95 Manual on Government deficit and debt and in the Eurostat decisions.
These Guidance notes are released under the responsibility of Eurostat, after consultation of Member States within the framework of the Financial Accounts Working Group.

The impact of bank recapitalisations on government finance (18 July 2012) [PDF, 38 KB]

The impact on EU Governments' deficit and debt of the decisions taken in the 2011-2012 European summits (12 April 2012) [PDF, 63 KB]

Eurostat's preliminary view on the recording of the future European Stability Mechanism (7 April 2011) [PDF, 358 KB]

The statistical recording of public interventions to support financial institutions and financial markets during the financial crisis (29 September 2009) [PDF, 75 KB]

Classification of public holding corporations and their subsidiaries in national accounts (11 March 2009) [PDF, 45 KB]

Recording of changes in inventories of Agricultural Market Regulatory Agencies (20 November 2008) [PDF, 69 KB]
Classification of payments for the use of roads (7 March 2008) [PDF, 36 KB]
Financial derivatives (7 March 2008) [PDF, 148 KB]

Advice to Member States

Eurostat provides bilateral advice to Member States when requested on specific cases. This may be before or after the transactions themselves are undertaken. The advice takes the form of letters addressed to the National Statistical Authorities.

In certain cases of future transactions, where the preparation for the transaction is of a confidential nature, Eurostat does not publish its advice until the transaction is announced by the national authority concerned.

Guidelines for Eurostat's ex-ante advice on methodological issues

Advice provided in 2013

Hungary - Statistical treatment of the change in method of calculating the EU contribution to operational programmes under the EU Structural Funds (from public cost to total cost method)

United Kingdom - Statistical classification of MyCSP Ltd.

Romania - Recording of cancellation of payables related to penalties and fines to be paid by CFR Cai Ferate to private energy suppliers

United Kingdom - Treatment of tax refunds, penalty payments and interim payments in the Her Majesty's Revenue and Customs (HMRC) tax case

The Netherlands - Recording of IABF Guarantee Fee

Belgium -LAK Invest Real estate transaction in the Flemish Region

Hungary - Statistical treatment of the mobile phone spectrum 15 years concession

Romania - Recording of financial corrections related to EU funds in accordance with Regulation 1083/2006 art 100(1)

Spain - Classification of the Sociedad de activos de Restructuracion (SAREB)

Belgium - Recapitalisation of the Dexia Group

Portugal - Statistical treatment of a concession sale before privatisation

Annex 1: Letter from INE on the statistical treatment of a concession before privatisation

United Kingdom - Treatment of the Bank of England Asset Purchase Facility Fund (BEAPFF) and flows between the Bank of England and HM Treasury

Advice provided in 2012

Romania - Recording of payments related to the reimbursement of social contribution incorrectly calculated in 2011-2012 + Addendum

Hungary - Methodological treatment of government injections in the revaluation reserves of the Magyar Nemzeti Bank

Romania - Recording of payment obligations established by Court decision with retroactive effect

Hungary - Statistical recording of the early repayments of mortgage loans at preferential exchange rates and the related tax rebate

Austria - Treatment of capital injection ('Gesellschafterzuschuss') and state guarantee granted to KA Finanz AG

Ireland – ESA95 accounting treatment of July 2011 capital injections into Irish banks (Note: commercially sensitive data have been redacted from the published version)

Annex 1: CSO cover letter to Eurostat

Annex 2: CSO methodological note to Eurostat (Note: commercially sensitive data have been redacted from the published version)

Advice provided in 2011

Austria - Treatment of the debt of the Austrian railway company Österreichische Bundesbahnen (ÖBB)

Poland - Changes in the Polish pension system

Spain - Classification of a road network project run by the Autonomous Community of Aragon II

Spain - Classification of assets in the Public-private partnership of the Regional Government of the Autonomous Community of Navarra (Irrigable area of the Navarra Canal, Phase 1)

Spain - Classification of assets in the Public-private partnership of the Regional Government of the Autonomous Community of Navarra (Autovía A-21 del Pirineo motorway)

Romania - Treatment of infrastructure investment projects

Romania - Recording of restructuring schemes for public corporations with accumulated arrears

Latvia - Methodological treatment of foreign exchange derivatives linked to the EDP debt

Poland - Ex-ante consultation on the statistical recording of the project of construction and operation of A1 motorway Tuszyn - Pyrzowice stretch

Bulgaria - Recording of EU transfers and national co-financing -JEREMIE

Bulgaria - Recording of the BDB repayment scheme (1)

Bulgaria - Recording of the BDB repayment scheme (2)

Portugal - Preliminary opinion of INE on the possible transfer of some assets and responsibilities of the banking sector's Pension Funds to General Government

Advice provided in 2010

Belgium - Recoring in National Accounts/EDP of early redemption by KBC of government aid

Belgium - Recording in National Accounts EDP of government bonds´collaterals in derivative contracts

Ireland - Preliminary view on the ESA95 accounting treatment of time of recording of interest payments on promissory notes payable to Anglo Irish Bank

Belgium - Sector Classification of Antwerp Masterplan Projects

The Netherlands - Recording of the illiquid assets back-up facility for ING Bank

Hungary - Time of recording of transactions for return of certain groups of people to the social security system

Germany - Sector classification of the EAA (Erste Abwicklungsanstalt)

Spain - Classification of a road network project run by the Autonomous Community of Aragon I

Advice provided in 2009

Latvia - Accounting treatment of the Joint Stock Company Parex Banka takeover

Ireland - Preliminary view on the ESA95 accounting treatment of the National Asset Management Agency (NAMA) and related majority privately owned SPV

[Annex 1: Letter from the CSO on classification of NAMA and SPV][103]

[Annex 2: Methodological paper for Eurostat on classification of NAMA and SPV][104]
Advice provided in 2008

Belgium - Sector classification of CITEO in the context of a PPP operation

Belgium - Renovation of the Residence Palace II

The Czech Republic - Restitution of confiscated property to churches and religious organisations

The Czech Republic - Treatment of a claim repurchase following a court decison

The Czech Republic - Classification of joint stock companies administrating compulsory public health insurance

Spain - Treatment of capital injections into RENFE-Operadora

Spain - Classification of the assets in the Public-private partnership ( Autovia del flames, Tramo enlace con la P0-531-SANXENXO)

Annex

Italy - Classification of VAT reimbursements

Italy - Classification of the social security bodies privatised according to legislative decree 509/1994

Italy - Classification of the holding company ‘Equitalia S.p.A.’

Lithuania - Treatment of EEA and Norwegian financial support

Netherlands - Dividends paid by the Dutch Central Bank

Austria - Treatment of the €1.4 bn capital injection into OBB (Austrian Railways) in 2004

Finland - Revision of property income from mutual funds

Annex

Portugal - Treatment of lump sums paid on early termination of interest rate swaps

Advice provided in 2007

Belgium - Financial, flows connected to short-term interest rate options

Bulgaria - Military expenditure: Delivery of multipurpose corvettes

Bulgaria - Transactions related to the concession for building the “Tracia” motorway from Kalotina to Bourgas II

Ireland - Classification of the Housing Finance Agency (HFA)

Ireland - Sectorization of Irish Rail

Annex 1

Annex 2

Annex 3

Annex 4

Spain - Capital injections into the Administrator de Infraestructuras Ferroviarias (ADIF)

Annex 1

France - Liquidation of the Société de Gestion du Fonds de Garantie de l’Accession Sociale à la propriété (SGFGAS)

France - Securitisation of EU receivables II

France - Treatment of the SNCF debt allocated in a special debt account (Service annexe d'amortissement de la dette SAAD)

Italy - Securitisation operation undertaken by the Ferrovie dello Stato I

Italy - Severance pay (Trattamento di fine rapporto - TFR)

Italy - Securitisation operation undertaken by the Ferrovie dello Stato II

Latvia - Recording of the financing of the Riga South Bridge

Lithuania - Repayments of unpaid employees’ compensations and pensions

Hungary - Sale/transfer criterion in national accounts for cost based fees

Slovakia - Payment of social contributions from the State budget to the social security funds for groups of individuals determined by law

Slovakia - Change in method of recording taxes and social contributions

Advice provided in 2006

Belgium - Renovation of the Residence Palace

Belgium - Restructuring of the SNCB

Belgium - Investments in the social sector

Belgium - Classification of a road SPV owned by government

Belgium - Establishment of a dedicated real estate fund SICAFI

Bulgaria - Transactions related to the concession for building the "Tracia" motorway from Kalotina to Bourgas I

Bulgaria - Classification of the National Investment Company

Greece - Military expenditure: Accounting of contracts labelled in foreign currency

France - Securitisation of EU receivables I

Italy - Restructuring operations related to trade credits of the local health units

Italy - Operations undertaken by ANAS (Italian National Road Company)

Hungary - Treatment of claims towards third countries

Annex 1

Annex 2

Annex 3

Hungary - Privatization proceeds of Budapest Airport

Annex 1

Annex 2

Annex 3

The Netherlands - Division of the Nederlandse Gasunie

Austria - Provision of loans by regional government to hospitals

Annex 1

Annex 2

Annex 3

Annex 4

Legislation

European GFS are based on a series of legal instruments – these can be sub-divided into those relating to methodology, to data transmission and to statistical aspects of the Excessive Deficit Procedure.

Methodology

ESA 2010

(will be implemented from September 2014)
Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union Text with EEA relevance

ESA 1995
Council Regulation (EC) No 2223/96 of 25 June 1996 on the European system of national and regional accounts in the Community

ESA95 has been subsequently amended by the following instruments:

Regulation (EC) No 2516/2000 of the European Parliament and of the Council of 7 November 2000 modifying the common principles of the European system of national and regional accounts in the Community (ESA) 95 as concerns taxes and social contributions and amending Council Regulation (EC) No 2223/96

Regulation (EC) No 400/2009 of the European Parliament and of the Council of 23 April 2009 amending Council Regulation (EC) No 2223/96 on the European system of national and regional accounts in the Community as regards the implementing powers conferred on the Commission

The following instrument draws on ESA95 definitions to establish a harmonised definition of government expenditure and revenue:

Data transmission

Regulation (EC) No 1392/2007 of the European Parliament and of the Council of 13 November 2007 amending Council Regulation (EC) No 2223/96 with respect to the transmission of national accounts data

Regulation (EC) No 1267/2003 of the European Parliament and of the Council of 16 June 2003 amending Council Regulation (EC) No 2223/96 with respect to the time limit for transmission of the main aggregates of national accounts, to the derogations concerning the transmission of the main aggregates of national accounts and to the transmission of employment data in hours worked

Quarterly government finance statistics:

Regulation (EC) No 1221/2002 of the European Parliament and of the Council of 10 June 2002 on quarterly non-financial accounts for general government

Commission Regulation (EC) No 264/2000 of 3 February 2000 on the implementation of Council Regulation (EC) No 2223/96 with respect to short-term public finance statistics

Excessive Deficit Procedure - Statistics

Regulation (EU) No 473/2013 of the European Parliament and of the Council of 21 May 2013 on common provisions for monitoring and assessing draft budgetary plans and ensuring the correction of excessive deficit of the Member States in the euro area

Regulation (EU) No 472/2013 of the European Parliament and of the Council of 21 May 2013 on the strengthening of economic and budgetary surveillance of Member States in the euro area experiencing or threatened with serious difficulties with respect to their financial stability

Council Regulation (EU) No 1177/2011 of 8 November 2011 amending Regulation (EC) No 1467/97 on speeding up and clarifying the implementation of the excessive deficit procedure

Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances

Regulation (EU) No 1175/2011 of the European Parliament and of the Council of 16 November 2011 amending Council Regulation (EC) No 1466/97 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies

Regulation (EU) No 1174/2011 of the European Parliament and of the Council of 16 November 2011 on enforcement measures to correct excessive macroeconomic imbalances in the euro area

Regulation (EU) No 1173/2011 of the European Parliament and of the Council of 16 November 2011 on the effective enforcement of budgetary surveillance in the euro area

Council Directive 2011/85/EU of 8 November 2011 on requirements for budgetary frameworks of the Member States

Council Regulation (EU) No 679/2010 of 26 July 2010 amending Regulation (EC) No 479/2009 as regards the quality of statistical data in the context of the excessive deficit procedure

Council Regulation (EC) No 479/2009 of 25 May 2009 on the application of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the European Community

Council Regulation (EC) No 2103/2005 of 12 December 2005 amending Regulation (EC) No 3605/93 as regards the quality of statistical data in the context of the excessive deficit procedure

Commission Regulation (EC) No 351/2002 of 25 February 2002 amending Council Regulation (EC) No 3605/93 as regards references to ESA 95

Council Regulation (EC) No 475/2000 of 28 February 2000 amending Regulation (EC) No 3605/93 on the application of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the European Community

Council Regulation (EC) No 3605/93 of 22 November 1993 on the application of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the European Community

Excessive Deficit Procedure

The Maastricht Treaty, which foresaw the creation of the Euro, organized the way multilateral fiscal surveillance is conducted within the European Union. This surveillance is based on the Excessive Deficit Procedure (EDP): it sets out schedules and deadlines for the Council, following reports from and on the basis of opinions by the Commission and the Economic and Financial Committee, to reach a decision that an excessive deficit exists in a Member State.

The Treaty obliges Member States to comply with budgetary discipline by respecting two criteria: a deficit to GDP ratio and a debt to GDP ratio not exceeding reference values of 3% and 60% respectively, as defined in the Protocol on the EDP annexed to the Treaty.

These reference values are based on GFS concepts. The government deficit is the net lending / net borrowing of general government as defined in the European system of accounts (ESA95), adjusted for the treatment of interest relating to swaps. The government debt is defined as the total consolidated gross debt at nominal value in the following categories of government liabilities (defined in ESA95): currency and deposits, securities other than shares excluding financial derivatives, and loans.

The Commission's reports and opinions are based on a technical assessment by the Directorate General Economic and Financial Affairs (DG ECFIN), using data reported by Eurostat. The web site of the DG ECFIN provides further information on the EDP’S legal basis and procedures.

Role of Eurostat in EDP

The Commission is responsible for providing the data used for the EDP, and within the Commission this task is undertaken by Eurostat. This is done on the basis of GFS statistics provided by the Member States. In addition, Eurostat has sole competence within the European Commission for the statistical methodological basis on which the data for EDP are compiled.

EDP Notification Tables

Council Regulation 479/2009, as amended, requires that Member States report EDP-related data to Eurostat twice per year – at end-March and end-September. 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. Warning: Eurostat publishes the notification tables as transmitted by Member States. In application of Council Regulation 479/2009, these tables include data for the current year which are forecasts and not statistics. It is important to note that Eurostat's assessment does not cover these forecasts.

A note analysing the "Stock-flow adjustments" and describing the underlying factors behind changes in government debt can be found here.

This note, prepared by Eurostat on the basis of the latest EDP Notification Tables, provides a country analysis of these changes and is fully consistent with the latest Eurostat EDP News Release.

October 2013

BE
BG
CZ
DK
DE
EE
IE
EL
ES
FR
HR
IT
CY
LV
LT
LU
HU
MT
NL
AT
PL
PT
RO
SI
SK
FI
SE
UK (cy)
UK (fy)

April 2013

BE
BG
CZ
DK
DE
EE
IE
EL
ES
FR
IT
CY
LV
LT
LU
HU
MT
NL
AT
PL
PT
RO
SI
SK
Fi
SE
UK (cy)
UK (fy)

The United Kingdom provides EDP notification tables for the calendar year (cy) and financial year (fy) (1 April to 31 March). The relevant data for implementation of the excessive deficit procedure are financial year data.

All files are in PDF format

EDP Notification Tables - Archive

The EDP Notification Tables have the following format:

  • EDP Table 1
    Table 1 provides a summary view showing the net lending / net borrowing for general government and sub-sectors, the general government debt by instrument, interest payable by general government (reported both with and without interest payments on swaps and FRA), gross fixed capital formation of general government, as well as the GDP of the reference year.

  • EDP Tables 2
    Tables 2 (2A, 2B, 2C and 2D) provide the link between the so-called working balances (i.e., the public deficit as reported nationally to parliament) and the net lending / net borrowing in ESA 1995 for each sub-sector. The working balances often correspond to the traditional budget deficit or a public accounting balance. Working balances need to be completed by operations that are off-budget, but that are considered in national accounts as part of government operations. Working balances need to be corrected for operations that impact them whilst are considered as financial transactions in national accounts without impact on the ESA deficit (e.g. loans granted by government), or alternatively the reverse: for operations that did not impact the working balances whilst are considered as expenditure in national accounts with impact on the ESA deficit (e.g. many cases of capital injections).

  • EDP Tables 3
    Tables 3 [3A, 3B, 3C, 3D, 3E] make the link between the net lending / net borrowing (ESA deficit) and the change in debt. Whereas the change in debt over one period reflects largely the deficit of the period, it is by no way equal. As an example, for a given deficit (i.e. an excess of expenditure over revenue), higher net acquisitions of financial assets lead to higher borrowing needs and therefore, likely, a higher change in debt.

  • EDP Table 4
    Table 4 shows supplementary information: the stock in trade credit payable by government; the amount outstanding in the government debt from the financing of public undertakings; the extent and the reasons in case of substantial differences between the face value and the present value of government debt; and the Gross National Income (GNI).

EDP Inventories

Availability of detailed and comprehensive Inventories is of vital importance for the quality assessment of Government Finance Statistics (GFS) data and for identifying possible risks in the reliability of GFS and thus of the Maastricht deficit and debt data. Following the provisions of Article 9 of the Council Regulation (EC) No 479/2009, as amended, in 2012 the new Inventory of the methods, procedures and sources used to compile actual deficit and debt data and the underlying government accounts has been adopted after consultation of the CMFB. All Member States are required to complete the new Inventory.

EDP'S legal basis and procedures

Czech Republic
Denmark
Estonia
Finland
Germany
Greece
Hungary
Italy
Latvia
Lithuania
Malta
Poland
Romania
Slovenia
Sweden

Austria
Belgium
Annex I
Annex II
Bulgaria
Cyprus
France
Ireland
Luxembourg
Netherlands
Annex I
Portugal
Annex I
Slovakia
Annex I
Annex II to X
Annex XI
Spain
Annex I
United Kingdom

Eurostat EDP visits to Member States

Eurostat undertakes regular visits to Member States, during which it reviews GFS data and methodological issues.

EDP'S legal basis and procedures.

The following reports summarise the final findings of Eurostat dialogue, upstream (UDV) and methodological visits.

Visits in 2014

Bulgaria (22-23 January) [Mission findings not yet available]

Visits in 2013

Slovakia (28-29 November) [Mission findings not yet available]
Slovenia (UDV 27-29 November) [Mission findings not yet available] The Netherlands (26 November) [Mission findings not yet available]
Finland (18-19 November) [Mission findings not yet available]
Germany (UDVs 18-21 June, 22-25 October) [Mission findings not yet available]
Greece (24-25 September) [Mission findings not yet available]
Slovenia (12-13 September) [Mission findings not yet available]
Romania (UDV 28-30 August) [PDF, 872 KB]
Poland (UDV 6-8 March, 8-9 July) [Mission findings not yet available]
Croatia (Pre-accession visit 26-27 June) [PDF, 235 KB]
Romania (19-20 June) [PDF, 127 KB]
Sweden (4-5 June) [PDF, 377 KB]
Luxembourg (15 May) [PDF, 585 KB]
Latvia (Pre-Euro accession visit 8-9 April) [PDF, 1,026 KB]
Greece (20-21 March) [PDF, 327KB]
Estonia (27-28 February) [PDF, 88 KB]
Italy (UDV 19-21 November 2012, 4-5 February) [PDF, 472 KB]
Spain (24-25 January) [PDF, 135 KB]
United Kingdom (24-25 January) [PDF, 218 KB]

Visits in 2012

Denmark (29-30 November) [PDF, 359 KB]
Portugal (22-23 November) [PDF, 233 KB]
Czech Republic (UDV 22-24 May, 13-14 November) [PDF, 329 KB]
Cyprus (26 September) [PDF, 62 KB]
Greece (24-25 September) [PDF, 62 KB]
Spain (Technical visit 24 May - UDV 18-22 June - follow-up UDV 11-14 September) [PDF, 94 KB]
France (10-11 September) [600 KB]
Ireland (30-31 August) [PDF, 170 KB]
Hungary (10-11 July) [PDF, 131 KB]
Belgium (UDV 5-7 March, 27 June, UDV 4 September) [PDF, 322 KB]
Austria (UDV 17-19 January, 25-26 June) [PDF, 287 KB]
Spain (Technical visit 24 May - UDV 18-22 June) [PDF, 86 KB]
Malta (22-23 May) [PDF, 82 KB]
Croatia (Pre-accession visit 10-11 May) [PDF, 215 KB]
Slovakia (3-4 May) [PDF, 108 KB]
Greece (22-23 March) [PDF, 46 KB]
Bulgaria (UDV 29 November-2 December 2011, 27-29 February) [PDF, 177 KB]
Latvia (15-16 February) [PDF, 144 KB]
Lithuania (8-9 February) [PDF, 155 KB]

Visits in 2011

Sweden (12-13 December) [PDF, 330 KB]
The Netherlands (12 December) [PDF, 152 KB]
Finland (21-22 November) [PDF, 108 KB]
Greece (26-27 September) [PDF, 64 KB]
Portugal (19-20 September) [PDF, 61 KB]
Poland (5-6 September) [PDF, 169 KB]
Romania (UDV 20-22 June, 11-13 July, 26-27 September) [PDF, 3 602 KB]
Estonia (4-5 July) [PDF, 79 KB]
Italy (27-28 June) [PDF, 159 KB]
Slovenia (23-24 May) [PDF, 164 KB]
Luxembourg (19 May) [PDF, 2 300 KB]
Czech Republic (16-17 May) [PDF, 110 KB]
Germany (5-6 May) [PDF, 203 KB]
Greece (21-23 March) [PDF, 54 KB]
Slovakia (28 February - 1 March) [PDF, 132 KB]
Spain (17-18 February) [PDF, 148 KB]
Latvia (15-17 February) [PDF, 127 KB]
Denmark (31 January - 1 February) [PDF, 993 KB]
United Kingdom (26-28 January) [PDF, 4 025 KB]
Portugal (17-18 January and 14-15 April) [PDF, 602 KB]

Visits in 2010

Cyprus (13 December) [PDF, 1 867 KB]
France (29 November) [PDF, 120KB]
Belgium (26 November) [PDF, 79 KB]
Lithuania (22-23 November) [PDF, 127 KB]
Ireland (15-16 November) [PDF, 4 916 KB]
Bulgaria (16-17 September) [PDF, 2 775 KB]
Romania (6-7 September) [PDF, 162 KB]
Hungary (6-7 July) [PDF, 1 554 KB]
Malta (5-6 July) [PDF, 78 KB]
The Netherlands (15 June) [PDF, 4 254 KB]
Greece (EDP Methodological Visits) [PDF, 158 KB]
Finland (25-26 January) [PDF, 136 KB]

Visits in 2009

Austria (30 November - 1 December)[PDF, 166 KB]
Greece (EDP Methodological Visit) (16-18 November) [PDF, 148 KB]
Czech Republic (24-26 August)[PDF, 184 KB]
Poland (6-7 July) [PDF, 162 KB]
Spain (15-16 June) [PDF, 135 KB]
Estonia (4-5 June) [PDF, 1 099 KB]
Germany (4 May) [PDF, 671 KB]
Italy (23-24 March) [PDF, 82 KB]
Luxembourg (19 February) [PDF, 57 KB]
Latvia (16-17 February) [PDF, 1 093 KB]
Sweden (26-27 January) [PDF, 139 KB]
United Kingdom (12-13 January) [PDF, 131 KB]

Visits in 2008

Cyprus (4-5 December) [PDF, 510 KB]
Ireland (17-18 November) [PDF, 85 KB]
Greece (EDP Methodological Visits) (2-3 June and 15-19 September) [PDF, 220 KB]
Denmark (10-11 September) [PDF, 953 KB]
Hungary (10-11 July) [PDF, 121 KB]
Slovenia (26-27 June) [PDF, 129 KB]
Belgium (19 June) [PDF, 106 KB]
France (13 June) [PDF, 136 KB]
Lithuania (9-10 June) [PDF, 144 KB]
Slovakia (10-11 March) [PDF, 171 KB]
Bulgaria (4-5 March) [PDF, 100 KB]
Romania (18-19 February) [PDF, 203 KB]
Portugal (11-12 February) [PDF, 1 134 KB]
Malta (29 January) [PDF, 91 KB]

Visits in 2007

Netherlands (13-14 December) [PDF, 932 KB]
Finland (29-30 November) [PDF, 176 KB]
Estonia (17-18 September) [PDF, 69 KB]
Austria (10-11 September) [PDF, 1 013 KB]
Slovakia (5-7 September) [PDF, 1 399 KB]
Poland (2-3 July) [PDF, 1 082 KB]
Czech Republic (18-19 June) [PDF, 1 577 KB]
Sweden (7 May) [PDF, 79 KB]
Germany (12 Apri) [PDF, 655 KB]
Italy (15-16 March) [PDF, 1 112 KB]
Romania (5-6 March) [PDF, 1 386 KB]
Spain (5-6 February) [PDF, 93 KB]
Ireland/United Kingdom joint meeting (26 January) [PDF, 45 KB]
United Kingdom (25-26 January) [PDF, 84 KB]

Visits in 2006

Latvia (18-19 December) [PDF, 832 KB]
Luxembourg (20 November) [PDF, 47 KB]
Greece (29 September) [PDF, 528 KB]
Denmark (18 September) [PDF, 63 KB]
Hungary (20-21 July) [PDF, 73 KB]
Ireland (4-5 July) [PDF, 77 KB]
Cyprus (7 June) [PDF, 461 KB]
Greece (EDP Methodological Visit) (29 May-2 June and 27-29 September) [PDF, 457 KB]
Belgium (10 April) [PDF, 53 KB]
France (5 April) [PDF, 68 KB]
Malta (21 March) [PDF, 32 KB]
Lithuania (9-10 March) [PDF, 48 KB]
Slovenia (9-10 February) [PDF, 50 KB]
Portugal (23-24 January) [PDF, 31 KB]

Suplementary tables for the financial crisis

Eurostat has collected data on government interventions during the financial crisis for the years 2007 - 2012. The data are presented in two parts of the supplementary tables. Part 1 shows the actual impact of interventions on government deficit. Part 2 shows the actual and potential impact on government debt. Eurostat publishes individual tables for EU Member States (where there were reportable interventions) and a summary table with the aggregated data for the EU and the Euro area.

Eurostat also publishes a background note providing more information on the content of the supplementary tables and data findings:

Background note on the supplementary table for the financial crisis

Eurostat EDP processes

Eurostat EDP Processes
Other documents (archive)

Code of best practice
Administrative arrangements

Government accounting

The sovereign debt crisis has underlined the need for more rigorous, transparent and comparable reporting of fiscal data. Council Directive 2011/85/EU (the Budgetary Frameworks Directive) sets out the rules on Member State budgetary frameworks necessary to ensure compliance with the Treaty obligation to avoid excessive government deficits. In this context it requested the Commission to assess the suitability of the International Public Sector Accounting Standards (IPSAS) for the Member States.

Report

The European Commission has forwarded its assessment to the Council and European Parliament. The report, which is accompanied by a staff working document, is based on information received through consultations with Commission services, international organisations, Member States’ experts and other interested parties. It concludes that, even if IPSAS cannot be implemented in EU Member States as it stands currently, the IPSAS standards represent an indisputable reference for potential development of European Public Sector Accounting Standards (EPSAS), based on a strong EU governance system.

For the full text of the report, the staff working document and the supporting study see:

COM (2013) 114 - "Report from the Commission to the Council and the European Parliament – Towards implementing harmonised public sector accounting standards in the Member States"

SWD (2013) 57 - Commission staff working document

In order to support the assessment a survey was carried out of the public sector accounting and auditing practices in the Member States.

Overview and comparison of public accounting and auditing practices in the 27 EU Member States

Conference

A Conference was held on 29-30 May 2013 in Brussels at which Mr Algirdas Šemeta, Commissioner for Taxation, Customs, Statistics, Audit and Anti-fraud, brought together high-level stakeholders and decision makers from public sector accounting, auditing and statistics to discuss the future development of harmonised government accounting standards in Europe.

Following the keynote speech of Herman Van Rompuy, President of the European Council. the conference discussed the importance of developing economic governance in the context of the current economic situation and the need for transparent and comparable fiscal data and underlying public accounts. It also covered key issues for accounting harmonisation in the EU and examples of the experience of some countries in modernising their public sector accounting and financial reporting. The conference concluded with a roundtable on lessons learned, best practices and the next steps to be taken.

Public Consultations launched by Eurostat on IPSAS and EPSAS

To ensure that all stakeholders might express views, Eurostat has launched two public consultation exercises:

  • Assessment of the suitability of the International Public Sector Accounting Standards for the Member States - Public consultation

Period of consultation: From 17/02/2012 to 11/05/2012 (closed).

The European Commission carried out an assessment on the suitability of IPSAS for EU Member States during 2012 and Eurostat took the lead on the assessment and launched a public consultation exercise open to all those would like to contribute to the assessment. The assessment of the suitability of IPSAS for EU Member States has its origin in the context of the need to strengthen budgetary and fiscal framework for EU Member States. It is called for in the Council Directive 2011/85/EU on requirements for budgetary frameworks of the Member States, as adopted by the Council on 8 November 2011.

  • Towards implementing European Public Sector Accounting Standards (EPSAS) for EU Member States - Public consultation on future EPSAS governance principles and structures

Period of consultation: From 25/11/2013 to 17/02/2014 (open).

The issue of the governance for a future EPSAS was identified as a priority for follow-up after the conference held to discuss the development of EPSAS in Brussels in May 2013. The conference was itself organised to take forward the Commission’s report to the Council and the Parliament "Towards implementing harmonised public sector accounting standards in the Member States: The suitability of International Public Sector accounting Standards (IPSAS) for the Member States", issued in March 2013.

Task Force EPSAS Governance

Task Force EPSAS Governance was created to exchange views with the Member States’ authorities on possible future governance arrangements and underlying key principles of EPSAS. The Task Force should assist Eurostat to identify the key issues for EPSAS governance; discuss how to balance those issues, and thereby assist Eurostat to develop a model for the EPSAS governance structure. The first meeting of the Task Force was held on 2 October 2013.

Links

European GFS and IMF GFS

The second edition of the IMF manual on government finance statistics, the Government Finance Statistics Manual (GFSM 2001) follows the SNA 1993 closely. Although not as fully integrated to national accounts as the European GFS, the IMF GFS are now very close.

Both IMF GFS and European GFS share in common:

  • Their sectorisation of institutional units
  • Their valuation principles: market valuation of flows and stocks
  • Their time of recording: accrual basis
  • Their split between non-financial and financial accounts
  • Their stock-flow articulation: transactions, revaluations and other changes in volumes
  • Their emphasis on consolidated data

However differences are observable. A useful account of the main differences may be found in the document GFSM 2001 Framework and its Relationship with the European System of Accounts 1995. The GFS data themselves are available here.

Other institutions

  • OECD

OECD publishes GFS data reported by its members and this is particularly useful for comparing European countries with other major economic powers (e.g. Japan) within a common framework.

OECD website on Public finance
OECD Central government debt statistical yearbook

  • UN

The UN plays a strong role in harmonisation of methodology. The following two publications are of particular note for GFS.

SNA 1993

  • ECB

The ECB publishes Euro-area GFS data in its Monthly Bulletin.

ECB Monthly Bulletin

  • International Public Sector Accounting Standards Board

The Board is responsible for developing harmonised standards for the public sector.

IPSAS

Social benefits (other than social transfers in kind) paid by government (ESA95 code D.62) are transfers to households, in cash or in kind, intended to relieve them from the financial burden of a number of risks or needs (by convention: sickness, invalidity, disability, occupational accident or disease, old age, survivors, maternity, family, promotion of employment, unemployment, housing, education and general neediness), made through collectively schemes, or outside such schemes by government units.

    • Unit of measure
      • 0 Percentage of gross domestic product (GDP)
    • National accounts indicator (ESA 2010)
      • 0 Social benefits other than social transfers in kind, payable
    • Sector
      • 0 General government
      • 1 Central government
      • 2 State government
      • 3 Local government
      • 4 Social security funds
    • Geopolitical entity (reporting)
      • 00 European Union - 28 countries (2013-2020)
      • 01 European Union - 27 countries (from 2020)
      • 02 European Union - 27 countries (2007-2013)
      • 03 Euro area - 19 countries (from 2015)
      • 04 Euro area - 18 countries (2014)
      • 05 Belgium
      • 06 Bulgaria
      • 07 Czechia
      • 08 Denmark
      • 09 Germany (until 1990 former territory of the FRG)
      • 0a Estonia
      • 0b Ireland
      • 0c Greece
      • 0d Spain
      • 0e France
      • 0f Croatia
      • 0g Italy
      • 0h Cyprus
      • 0i Latvia
      • 0j Lithuania
      • 0k Luxembourg
      • 0l Hungary
      • 0m Malta
      • 0n Netherlands
      • 0o Austria
      • 0p Poland
      • 0q Portugal
      • 0r Romania
      • 0s Slovenia
      • 0t Slovakia
      • 0u Finland
      • 0v Sweden
      • 0w United Kingdom
      • 0x Iceland
      • 0y Norway
      • 0z Switzerland