Proposal Description

Addressing the impacts of intra EU and extra EU trade data asymmetries on macroeconomic indicators and efforts by Eurostat and ECB to improve data quality

Introduction
1) A joint presentation by Eurostat and the ECB that starts with a brief overview of the main structure and recording standards for balance of payments (BOP) and the interlinkages with core indicators of national accounts (NA) like GDP or GNI, with a focus on the euro area and European Union (EU). The second part focuses on some of the most well-known indicators and their correct compilation and interpretation to analyse issues related to globalization, for example exports and imports of goods and services, FDI transactions, or the current account balance.

Potential impact of inconsistent BOP data on macroeconomic indicators and trade policy decisions
2) A combined presentation by Eurostat and the ECB on the negative implications on EU aggregates of existing intra EU asymmetries in BOP, for the BOP itself, and for certain key indicators of non-financial sector accounts (NFSA) such as the saving rate, gross capital formation as well as the GDP of the EU as calculated for the European NFSA. The second part of this item addresses the problems and the potential unwanted impact of extra-EU asymmetries in BOP and the existence of contradictory balances (for example between the EU and UK/US) on trade policy decisions.

Current efforts and initiatives by Eurostat and ECB to increase the quality of EU/EA BOP data and to reduce existing asymmetries and inconsistencies
3) A presentation by Eurostat on some of the current initiatives that aim to improve the quality and consistency of BOP data at national and EU levels, with a focus on the current account. This includes providing additional information about bilateral inconsistencies in the BOP quality report, providing methodological advice and organising dedicated workshops and specific sessions with EU Member States to highlight, discuss and reduce asymmetries in BOP for the current account.

4) A presentation by the ECB about the initiatives to address and reduce bilateral asymmetries in BOP for the euro area, with a focus on the financial account, including the quarterly asymmetry resolution meetings for FDI.

5) A combined presentation by Eurostat and the JRC concerning “FIGARO” and in particular its balanced view of trade, that eliminates all observed bilateral trade discrepancies for goods and services, both intra-EU and extra-EU. Taking into account the quality of the data at country level, revised values are assigned via a weighting procedure to solve asymmetries, with a specific algorithm overcoming re-exports and quasi-transit trade, including further adjustments for merchanting and goods sent abroad for processing.