Merits and Costs Deputy Director General Directorate General - - PowerPoint PPT Presentation

Merits and Costs Procedure on European statistics provided by the ESCB

Costs and Benefits of International Statistics CCSA Special Session

29 September 2016, Paris Werner Bier Deputy Director General Directorate General Statistics European Central Bank

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Overview

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1 2 3 Timeline of the ECB Impact Assessment The steps of the qualitative Merits and Costs Procedure (MCP) Introduction: ECB, ESCB and decision making 4 5 Timeline of the ECB Impact Assessment and ECBA The quantitative Eurosystem Cost Benefit Analysis (ECBA)

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FI BE LU NL DE FR ES IT AT SI BG RO HU PL CZ SK EE LV LT SE UK GR

EU Member States with a derogation

HR

Euro area: 19 EU Member States which have adopted the euro

Eurosystem: ECB and national central banks

• f the 19 EU Member States of the euro area

European System of Central Banks (ESCB): ECB and national central banks of the 28 Member States of the European Union

• 1. ECB, ESCB and decision making

Single Supervisory Mechanism: ECB and the national supervisory authorities of the euro area and other EU countries which choose to participate

3

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www.ecb.europa.eu

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• 1. ECB, ESCB and decision making

ECB Executive Board

ECB Legislative powers

Statistical requirements directly to reporting agents resident in the euro area

ECB Governing Council

ESCB Statistics Committee

Executive powers Support of ECB

in the collection and management of statistical information

• Press conferences
• Publications
• Testimonies

before the European Parliament

• Financial controls

Rubric

www.ecb.europa.eu

• 2. Timeline of the ECB impact assessment

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Commission Consultation Costs & merits assessment based on options Public consultation Initial assess- ment Fact finding exercise

~ 5 months

Publication of the regulation Governing Council final decision First draft regulation via STC/LEGCO End of consultation period Governing Council decision on public consultation proposal

6-8 weeks

Merits and Costs Procedure (MCP)

A new statistical requirement emerges

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• 3. The Steps of the qualitative Merits and Costs

Procedure

A new statistical requirement emerges

a

ESCB users request new statistics in relation to ESCB tasks and justify the needs

b  Users describe the necessity of new requirements and indicate priorities  User requirements are assessed and their usefulness evaluated  The ECB and the ESCB decision making bodies (i.e. users of ESCB statistics) may

need new statistics to adequately support monetary policy and financial stability analysis for sound policy decision-making

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Rubric

www.ecb.europa.eu

• 3. The Steps of the qualitative Merits and Costs

Procedure

c d

ECB DG- Statistics formulates

• ptions

Consultation with experts from NCBs via the ESCB Statistics Committee Possible coordination with the European Commission via Eurostat Assessing existing statistics versus user needs & international reference points Statistical assessment ECB/DG Statistics together with the ESCB/Statistics Committee

 investigates whether existing statistics could cover the new requirements  identifies the extent to which a new collection would be needed  assesses international reference points  Options for meeting the requirements are considered, their significance, feasibility &

methodological aspects assessed

 If new statistical Regulations link to statistical requirements of the Commission, the

Commission is consulted via Eurostat

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Rubric

www.ecb.europa.eu

• 3. The Steps of the qualitative Merits and Costs

Procedure

e

NCBs estimate the costs of new data collection Qualitative Cost assessment

f g

Decision by the Governing Council Users assess the merits

• f new data collection in

qualitative terms STC compares merits and costs & prepares a proposal for a new reporting scheme

 National Central Banks (NCBs) contact reporting agents according to national practice  ECB/DG Statistics aggregates national estimates into euro area/EU-wide estimates and

presents them to users

 The STC prepares the new draft Regulation

Users weigh costs against merits, reconsider, reformulate, reprioritise their needs Public consultation Public consultation assessment and final decision by the Governing Council

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• Introduced by the Governing Council in 2015, for ESCB IT projects

to enhance transparency and support decision-making

• Evaluates at least two project alternatives and the (extrapolated)

status quo, i.e. current system/service, incl. necessary maintenance

• On a Eurosystem perspective: costs & benefits for ECB and NCBs
• Quantitative assessment includes

 a cost leg

Eurosystem Total Cost of Ownership (ETCO); and

 a benefit leg

avoided costs and efficiency gains

• Qualitative assessment intends to assess the qualitative advantages

and disadvantages of a project/service for the whole ESCB and External users/stakeholders

• 4. Eurosystem Cost Benefit Analysis (ECBA)

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Rubric

www.ecb.europa.eu

• 5. Timeline for an ECB impact assessment & ECBA

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Commission Consultation Costs & merits assessment based on options Public consultation Initial assess- ment Fact finding exercise

5 months

Governing Council final decision First draft regulation via ESCB Committees End of consultation period Governing Council decision on public consultation proposal

6-8 weeks

Quality Review Gate 1 Project fact finding approval

ECBA

Pre-project phase Investigation phase

MCP

Realisation phase Maintenance phase

Quality Review Gate 2 Project approval Quality Review Gate 3 Project final assessment

ETCO compilation

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Many thanks for your attention!

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