Directive 1989/130 - Harmonization of the compilation of gross national product at market prices - Main contents

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Council Directive 89/130/EEC, Euratom of 13 February 1989 on the harmonization of the compilation of gross national product at market prices

Official Journal L 049 , 21/02/1989 P. 0026 - 0028

Finnish special edition: Chapter 1 Volume 2 P. 0103

Swedish special edition: Chapter 1 Volume 2 P. 0103

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COUNCIL DIRECTIVE

of 13 February 1989

on the harmonization of the compilation of gross national product at market prices

(89/130/EEC, Euratom)

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Economic Community,

Having regard to the Treaty establishing the European Atomic Energy Community,

Having regard to Council Decision No 88/376/EEC/Euratom of 24 June 1988 on the system of the Communities' own resources (1), and in particular Article 8 (2) thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament (2),

Whereas the creation of an additional own resource for the Communities, based on the gross national product at market prices (hereinafter referred to as GNPmp) of the Member States, makes it necessary to reinforce the comparability and reliability of this aggregate;

Whereas the completion of the internal market will increase the need for internationally comparable data on aggregate GNPmp and its components; whereas these data are also an important analytical tool for the coordination of economic policies;

Whereas GNPmp data must be comparable in concept and in practice and representation of the Member States' economies;

Whereas GNPmp can be comparable in concept only if the relevant definitions and accounting rules of the European System of Integrated Economic Accounts (ESA) are complied with;

Whereas comparability of GNPmp in practice depends on the assessment procedures used and the basic data available; whereas improved GNPmp coverage presupposes the development of statistical bases and assessment procedures;

Whereas a procedure should be set up to verify and assess the comparability and representativity of GNPmp; whereas, to this end, a Committee should be set up within which Member States and the Commission shall cooperate closely,

HAS ADOPTED THIS DIRECTIVE:

TITLE 1

Definition of gross national product at market prices

Article 1

GNPmp shall be defined in a manner consistent with the European System of Integrated Economic Accounts (ESA) in force.

GNPmp shall be calculated by adding to gross domestic product at market prices (GDPmp, ESA code: N 1) the compensation of employees (R 10) and the property and entrepreneurial income (R 40) received from the rest of the world less the corresponding flows paid to the rest of the world.

Article 2

GDPmp represents the final result of productive activity by resident production units. GDPmp may be presented by reference to the ESA from three points of view.

• 1. 

  The output side

GDPmp (N 1) is the difference between output of goods and services (P 10) and intermediate consumption (P 20) plus VAT on products (R 21) and net taxes linked to imports (excluding value added tax (VAT)) (R 29).

• 2. 

  The expenditure side

GDPmp (N 1) is the sum of final consumption (P 30) on the economic territory by households and private non-profit institutions and general government, gross fixed capital formation (P 41), change in stocks (P 42), and the difference between exports (P 50) and imports (P 60).

• 3. 

  The income side

GDPmp (N 1) is the sum of compensation of employees (R 10), gross operating surplus of the economy (N 2), and taxes linked to production and imports (R 20) less subsidies (R 30).

TITLE II

Provisions on the method of calculating GNPmp and the forwarding of GNPmp data

Article 3

• 1. 

  Member States shall establish GNPmp in accordance with Article 1 in the context of national accounting procedures.

• 2. 

  Before 1 October each year, Member...

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