The ESA 2010 standards: an obstacle to recovery

3 March 2015
E-003464-15
Question for written answer
to the Commission
Rule 130
Hugues Bayet (S&D) , Maria Arena (S&D) , Pervenche Berès (S&D) , Nessa Childers (S&D) , Anneliese Dodds (S&D) , Jonás Fernández (S&D) , Eva Kaili (S&D) , Maria João Rodrigues (S&D) , Alfred Sant (S&D) , Marc Tarabella (S&D) , Kathleen Van Brempt (S&D) , Mady Delvaux (S&D)

Subject: The ESA 2010 standards: an obstacle to recovery

Question(s)

There is still a lot of uncertainty surrounding economic recovery in the Union.

Private investment remains very sluggish, as was demonstrated by the repercussions of the rate cuts carried out by the ECB and the results of the TLTRO operation.

The recent quantitative easing operation will also need to demonstrate its effectiveness in this extremely skittish environment.

As a consequence, the situation also requires a change in budgetary policy so that, in particular, greater use is made of strategic public investment as a lever for European recovery.

Unfortunately, the new ESA 2010 accounting standards are significantly hindering the investment of many municipal and regional authorities within the Member States. This is essentially attributable to the lack of a means to capitalise the creation of wealth and the lack of a means to depreciate these investments over a period of several years. This situation clearly has implications for the development of the authorities concerned and, of course, for the speed of European recovery.

1. Does the Commission intend to evaluate the means of applying these standards and the impacts on the investments of the authorities concerned?

2. Does the Commission intend to look into the possibility of offsetting part of these investments in the calculation of the deficits and the debt?

Answer given by Ms Thyssen(10.5.2015)

1. The statistical recording of investment (gross fixed capital formation) in the ESA 2010 has remained unchanged from previous ESAs and is fully consistent with worldwide national accounts standards (1). The Commission sees no need to evaluate the application of these rules, which must be respected by all Member States and are important for comparisons at G20 level.

2. The ratios defined under the Stability and Growth Pact (SGP) (2) for EDP (3) deficit and debt are set for the general government as a whole. EU budgetary surveillance also takes place only at this overall level, while Member States retain full sovereignty on how to allocate targets across government sub-sectors. This allows taking into account national specificities in allocating rights and responsibilities between the central and local authorities.

The Commission is fully aware of the importance of public investment and is resolute to use the flexibility available in the SGP to favour such investment, in full transparency, safeguarding the transparent recording in the general government accounts. The Commission’s Communication on making the best use of the flexibility within the existing rules of the SGP (4) clarifies the possibilities in this respect.

*1 System of National Accounts 2008. The same recording rules apply to all sectors of the economy. Gross fixed capital formation, as described in ESA 2010 pararaph 3.124, consists of “resident producers’ acqusitions, less disposals, of fixed assets during a given period…”
*2 As established under Articles 121 and 126 of the Treaty on the Functioning of the European Union (TFEU)
*3 EDP is the Excessive Deficit Procedure
*4 COM(2015)12 final of 13 January 2015

Maltese Version

E-003464/2015
Suġġett: L-istandards tas-Sistema Ewropea tal-Kontijiet tal-2010 jrażżnu l-irkupru
L-irkupru ekonomiku fl-UE għadu pjuttost inċert.
L-investiment privat għadu kawt ħafna, bħalma wrew ir-riperkussjonijiet tat-tnaqqis tar-rati min-naħa tal-BĊE u r-riżultati tal-operazzjoni TLTRO.
L-operazzjoni riċenti ta’ tnaqqis kwantitattiv għandha turi l-effikaċja tagħha f’dan il-kuntest dgħajjef.
Konsegwentement, is-sitwazzjoni tirrikjedi wkoll adattament tal-politika baġitarja biex, b’mod partikolari, l-investiment pubbliku strateġiku jintuża aktar bħala lieva tal-irkupru Ewropew.
Hija ħasra li l-istandards kontabilistiċi l-ġodda tas-Sistema Ewropea tal-Kontijiet tal-2010 jrażżnu konsiderevolment l-investiment ta’ għadd ta’ awtoritajiet lokali u reġjonali fi ħdan l-Istati Membri. Dan hu dovut essenzjalment għan-nuqqas ta’ valutazzjoni kontabilistika tal-ħolqien tal-patrimonju u l-fatt li hu impossibbli li dawn l-investimenti jiġu amortizzati fuq diversi snin. Din is-sitwazzjoni ovvjament iġġib magħha konsegwenzi fuq l-iżvilupp tal-awtoritajiet konċernati u sintendi, fuq ir-ritmu tal-irkupru Ewropew.
1. Il-Kummissjoni għandha l-ħsieb li tevalwa l-modi ta’ implimentazzjoni ta’ dawn l-istandards u l-impatti fuq l-investimenti tal-awtoritajiet ikkonċernati?

2. Il-Kummissjoni biħsiebha tistudja l-possibilità li tinnewtralizza parti minn dawn l-investimenti fil-kalkolu tad-defiċits u tad-dejn?

Tweġiba tas-Sinjura Thyssen (10.5.2015)

1. Ir-reġistrazzjoni statistika tal-investiment (formazzjoni grossa tal-kapital fiss) fis-Sistema Ewropea tal-Kontijiet tal-2010 baqgħet mhux mibdula minn Sistemi Ewropej tal-Kontijiet preċedenti u hija kompletament konsistenti ma’ standards dinjin tal-kontijiet nazzjonali. Il-Kummissjoni ma tara l-ebda ħtieġa li tevalwa l-applikazzjoni ta’ dawn ir-regoli, li għandhom jiġu rispettati mill-Istati Membri kollha u huma importanti biex isiru paraguni fil-livell tal-G20.

2. Il-proporzjonijiet definiti fil-Patt ta’ Stabbiltà u Tkabbir (PST) biex id-defiċit u d-dejn tal-proċedura ta’ defiċit eċċessiv (EDP) jiġu stabbiliti għall-gvern ġenerali fl-intier tiegħu. Is-sorveljanza baġitarja tal-UE sseħħ biss f’dan il-livell ġenerali, filwaqt li l-Istati Membri jżommu s-sovranità sħiħa dwar kif jallokaw il-miri fis-subsetturi tal-gvern. Dan jippermetti li jitqiesu l-ispeċifiċitajiet nazzjonali meta jiġu allokati d-drittijiet u r-responsabbiltajiet bejn l-awtoritajiet ċentrali u dawk lokali.

Il-Kummissjoni hija konxja sew mill-importanza tal-investiment pubbliku u tinsab determinata li tuża l-flessibilità disponibbli fil-PST biex tiffavorixxi tali investiment, bi trasparenza sħiħa, filwaqt li jkun hemm salvagwardja tar-reġistrazzjoni trasparenti fil-kontijiet ġenerali tal-gvern. Il-Komunikazzjoni tal-Kummissjoni dwar l-aħjar użu mill-flessibbiltà fi ħdan ir-regoli eżistenti tal-PST tikkjarifika l-possibiltajiet f’dan ir-rigward.