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Delegations will find attached a Presidency note in preparation for the meeting of the Working
Party on Statistics on 6 September 2006.
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ANNEX
Presidency Note
on the Proposal for a Regulation of the European Parliament and of the Council establishing
common rules for the provision of basic information on Purchasing Power Parities and for their
calculation and dissemination
Twenty-one Member States expressed their views on the Commission Proposal establishing
common rules for the provision of basic information on Purchasing Power Parities and for their
calculation and dissemination (PPP). Delegations broadly support the proposal. However, there are
concerns as regards funding after 2011 and other topics of the proposal, which need further
discussion:
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1.Legislative Financial Statement (funding): In light of Member States' comments, the most
crucial point to be discussed is the funding of the PPP programme. Twelve delegations have
expressed their concerns about funding after 2011 and a large number of these delegations think
that Commission funding is necessary to guarantee the continued annual production of PPPs.
There are several Member States who want an article on financing to be included in the legal
text.
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2.Subsidiarity (recital): One Member State has raised the issue of subsidiarity to which the
proposal does not contain any reference. The Presidency proposes to add the following recital
on subsidiarity, in accordance with the solution reached at the WP meeting on 12 July 2006:
· "Since the objectives of this Regulation, namely establishing common rules for the provision of basic information on Purchasing Power Parities and for their calculation and
dissemination, cannot be sufficiently achieved by the Member States and can therefore be
better achieved at Community level, the Community may adopt measures, in accordance
with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with
the principle of proportionality, as set out in that Article, this Regulation does not go
beyond what is necessary to achieve those objectives."
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3.Topics for further discussion (the Presidency will invite the Commission to comment on these
additional topics identified by the Member States):
· Dissemination deadlines (Article 9 paragraph 1): Three Member States have raised the question of deadlines for publication of annual results. These delegations think that annual
results should be available to users according to present practice and sooner than 36 months
after the end of the reference year.
· Dissemination level of detail (Article 9 paragraph 2): One Member State pointed out that the level of results published is much more detailed today than the level required by the
proposal.
Weights of each basic heading defined in Annex II (Annex I point 5.1.13.): Two Member
·
States saw difficulties in providing the weights of each basic heading defined in Annex II
and argue that it is inconsistent that the provision of a table is compulsory within the PPP
proposal while the same table has been rejected in the ESA 95 Transmission proposal.
· Definition of Gross Fixed Capital Formation (Annex II): One Member State pointed out that the definition of Gross Fixed Capital Formation is not detailed enough to ensure
comparability.
· Other suggestions: Four Member States pointed out that the proposed minimum frequency of prices of equipment goods' basic information (3 years) is inconsistent with the PPP
manual's recommendation (2 years - Annex I point 2.1); one Member State pointed out a
need for derogations and transition periods; one Member State wants to restrict the
calculation of PPPs to data which has been previously accepted by the Member States
(Annex I point 2.2); and, one Member State suggested excluding Narcotics and Prostitution
from Annex II.
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