Opinion of the European Central Bank of 12 March 2021 on the auditing of data from multinational enterprise groups to ensure the quality of national accounts and economic statistics (CON/2021/10)

OPINION OF THE EUROPEAN CENTRAL BANK of 12 March 2021 on the auditing of data from multinational enterprise groups to ensure the quality of national accounts and economic statistics (CON/2021/10) Introduction and legal basis

On 10 February 2021 the European Central Bank (ECB) received a request from the German Federal Ministry for Economy and Energy for an opinion on a draft law on the auditing of data from multinational enterprise groups to ensure the quality of national accounts and economic statistics (the ‘draft law’). The draft law is part of an omnibus law which also includes a draft law on external trade statistics. The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the Functioning of the European Union and the third and fourth indents of Article 2(1) of Council Decision 98/415/EC , as the draft law relates to Deutsche Bundesbank and balance of payment statistics. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion.

1. The purpose of the provisions of the draft law

1.1 The draft law forms part of the omnibus law which aims at harmonising national law with Regulation (EU) 2019/2152 of the European Parliament and of the Council . The purpose of the draft law is to ensure the quality of national accounts and economic statistics and that the activities of multinational enterprise groups are accurately recorded in German and European statistics. The draft law also aims to improve the regulation of the mutual exchange of micro data relevant for the German balance of payments statistics compiled by Deutsche Bundesbank and for the national accounts and economic statistics compiled by the Statistisches Bundesamt (the Federal Statistical Office). 1.2 Under the draft law, Deutsche Bundesbank transmits to the Statistisches Bundesamt individual data for the compilation of its statistics upon request . The draft law also provides that the Statistisches Bundesamt and the statistical offices of the federal states may exchange data with Deutsche Bundesbank in order to clarify any inconsistencies in the relevant data records. It stipulates that such data must be processed by organisational units of Deutsche Bundesbank which are separate from

other areas of responsibility of Deutsche Bundesbank in terms of physical location, organisation and staff. 1.3 The draft law also requires cooperation between the Statistisches Bundesamt, the statistical offices of the federal states and Deutsche Bundesbank to ensure the quality of national accounts and economic statistics . In particular, in view of the need to survey the decision-making unit of a multinational enterprise group, the Statistisches Bundesamt must cooperate with Deutsche Bundesbank in order to clarify any inconsistencies related to the balance of payments statistics . Under the draft law, the Statistisches Bundesamt must transmit data received in the context of such surveys to Deutsche Bundesbank that relate to Deutsche Bundesbank’s data records. 1.4 The draft law stipulates that the Statistisches Bundesamt may also transmit data to national statistical authorities of the Member States and to members of the European System of Central Banks (ESCB), to the extent necessary to check and ensure the quality of the treatment of multinational enterprise groups in the national accounts and external economic statistics of Member States in accordance with Union law . The draft law also clarifies that any transmission of data deriving from Deutsche Bundesbank requires that Deutsche Bundesbank grants prior consent to such transmission in accordance with Article 8a of Council Regulation (EC) No 2533/98 .

2. The purpose of the provisions of the omnibus law on external trade statistics

The omnibus law contains in the draft law on external trade statistics a provision dealing with the exchange of data between Deutsche Bundesbank and the Statistisches Bundesamt on external trade statistics and balance of payments . It obliges Deutsche Bundesbank and the Statistisches Bundesamt to exchange individual data and stipulates that such statistical information must be used solely for statistical purposes and must be accessible only to individuals who deal with statistical matters within their specific field of work, which is separate from other areas of responsibility of the Deutsche Bundesbank in terms of physical location, organisation and staff.

3. General observations

3.1 The ECB welcomes the draft law and the draft law on external trade statistics which regulate data exchange with Deutsche Bundesbank. Moreover, the ECB welcomes the provisions of the draft law which deal with the transmission of statistical information to members of the ESCB to the extent necessary to check and ensure the quality of the treatment of multinational enterprise groups in the national accounts and external economic statistics of the Member States of the EU in accordance with Union law. The regulation of this transmission of statistical information enhances legal certainty. The ECB also notes the clarification in the draft law that any transmission of data deriving from

Deutsche Bundesbank requires its prior consent in accordance with the directly applicable Article 8a of Regulation (EC) No 2533/98. 3.2 Furthermore, the ECB welcomes the draft law in that it aims at improving the quality, consistency, harmonisation and compatibility of national and European statistics . It is in the interest of the overall usability of statistics that their consistency is preserved by the cooperation of the relevant national statistical authorities involved, including national central banks, and by the exchange of statistical information between the relevant stakeholders. The contribution of the draft law in this regard is particularly relevant in view of the increasingly globalised economy and the relevant role of multinational enterprise groups in economic developments. The improved data quality achieved through international exchange of statistical information will assist European and international efforts to meet the statistical challenges posed by globalisation. 3.3 Multinational enterprise groups’ activities may have a considerable impact on the ESCB’s tasks under the Treaty, namely defining and implementing monetary policy and contributing to the financial stability of the Union. The availability of high quality economic and financial statistics is crucial for the fulfilment of these tasks. 3.4 Finally, the ECB notes that the processing or use of statistical information received under the draft law and the draft law on external trade statistics must be carried out by organisational units which are separate from other areas of responsibility of Deutsche Bundesbank in terms of physical location, organisation and staff . The ECB understands that this requirement refers to the processing of the data received in a dedicated statistical unit to enable its use by the statistical systems to the extent legally feasible.

This opinion will be published on EUR-Lex.

Done at Frankfurt am Main, 12 March 2021.

[signed]

The President of the ECB

Christine LAGARDE