Croatian Bureau of Statistics

Business Statistics Directorate

Statistical Business Register Departement

Ilica 3, 10000 Zagreb, Croatia

The EuroGroups register (EGR) is the statistical business register of Eurostat and the EU Member States and European Free Trade Association (EFTA) countries for multinational enterprise groups. The purpose of the EGR is to offer to statistical users a tool for coordinating frame population, to derive consistent statistical output with an improved quality in measuring global activities of European enterprises part of multinational enterprise groups.

The EGR produces data in yearly cycles and covers microdata on the groups and their enterprises and legal units. The EGR aims to register all multinational enterprise groups that have enterprises in EU Member States or EFTA countries, including European and non-European groups.

The Member States, EFTA countries and Eurostat exchange data on multinational enterprise groups and on the units belonging to those groups for the purposes of the European framework for statistical business registers to ensure the quality of the multinational enterprise group’s information in the Union.

The EGR brings together microdata on multinational enterprise groups from the EU and the EFTA countries' national statistical institutes, in line with the requirements of the Regulation (EU) No 2152/2019, and from a commercial data source for data outside the EU and EFTA.

Classification systems and main code lists used in the EGR are as follows:

• Statistical classification of economic activities in the European Community https://ec.europa.eu/eurostat/documents/3859598/5902521/KS-RA-07-015-EN.PDF
• European System of Accounts (ESA 2010);
• List of 2-digit country codes (ISO 3166-1);
• List of legal forms of the legal units;
• Currency codes (ISO 4217)
• NKD 2007. - national version of the European classification NACE Rev. 2 is completely in line with it at all classification levels

The coverage of the data transmitted to the EGR is defined in the Regulation (EU) 2019/2152 on European business statistics.

For the purposes of the European framework for statistical business registers, the following economic activities are considered:

• any activity comprising the offer of goods and services on a given market;
• non-market services contributing to the GDP;
• direct and indirect holdings of active legal units.

Holding assets and/or liabilities are also considered an economic activity.

Global group head

The global group head (GGH) of an enterprise group is the parent legal unit that is not controlled either directly or indirectly by any other legal unit. The subsidiary legal units of a subsidiary legal unit are considered to be subsidiaries of the parent legal unit.

Global decision centre

The global decision centre (GDC) of an enterprise group is the unit where the enterprise group level’s strategic decisions are taken. A group may have several decision-making centres or several units dedicated to a particular internal function, for example accounting or human resources. However, the decisions about the group are made only in the GDC. The GDC may be the GGH or another legal unit under the GGH.

Ultimate Controlling Institutional unit

The ultimate controlling institutional unit (UCI) of a foreign affiliate means the institutional unit higher up a foreign affiliate’s chain of control that is not controlled by another institutional unit.

Activity of unit

Unit is active if it generates turnover, employs staff or makes investments during the referent year

A legal unit can be legally or administratively active without any economic activity, when the inactive legal unit is part of an enterprise in combination with economically active legal units. Holding assets and/or liabilities shall also be regarded as an economic activity.

Number of employees

The number of employees represents the average number of persons who were, at some time during the reference year, employees of the statistical unit.

Number of employees and self -employed persons

The number of employees and self-employed persons is the sum of the Number of employees and Number of self- employed persons. The number of self- employed persons is the average number of persons who were at some time during the reference period the sole owners or joint owners of the statistical unit in which they work.

Net turnover

Net turnover is compiled in accordance with methodological instructions for Statistical Business Registers.

Principal activity

The principal (or main) activity is the activity that contributes most to the total value added of a unit under consideration. In case value added is not available number of employees or turnover are used as proxy criterion.

The statistical units maintained in the EGR are defined in accordance with the Regulation (EEC) No 696/93 on the statistical units for the observation and analysis of the production system in the Community.

The EGR frame contains the following units: Legal units, Enterprises and Multinational enterprise groups.

Legal units include:

- legal persons whose existence is recognized by law independently of the individuals or institutions which may own them or are members of them,

- natural persons who are engaged in an economic activity in their own right.

The legal unit always forms, either by itself or sometimes in combination with other legal units, the legal basis for the statistical unit known as the 'enterprise'.

Enterprise

The enterprise is the smallest combination of legal units that is an organizational unit producing goods or services, which benefits from a certain degree of autonomy in decision-making, especially for the allocation of its current resources. An enterprise carries out one or more activities at one or more locations. An enterprise may be a sole legal unit.

Multinational enterprise group

A multinational enterprise group is an enterprise group that has at least two enterprises or legal units located in different countries.  In business statistics also term ‘global enterprise group’ is used.

The data transmitted to the EGR during the cycle is made of the following datasets.

ISRLE file includes full population of incorporated resident legal units who could be part of a group. Branches as well as non profit instituions are included as well. Selection criteria is legal form of all legal units in NSBR. Additional criteria is that they are at least part of the refferent year legaly active (registered, not ceased on 31/12/T or legally ceased during the reference year T).

Non resident units are sent in two data-flows:

a) ISLEID file

For the re-identification of already identified foreign legal units the flow ISLEID is used in EGR IS. In this flow we are sending LEID numbers of non resident units registered in NSBR to EGR IS in EDAMIS for re-identification. The EGR IS system makes a matching on the LEID number and send back the latest data of the requested LEID numbers. The answer file's records includes the LEID of the request and the actual data of the legal units -non resident, including the status of these LEID numbers (the status indicates if the LEID is valid). Where the requested LEID number is not found in EGR IS, the answer part of the record will be empty, only the requested LEID number will be filled. 

The data set with information on foreign legal units for the EGR Identification Service

b) ISNORLE file includes population of foreign legal unit recorded in national statistical business register (foreign legal units which are parents or subsidiaries of the resident legal units being part of multinational enterprise groups), but without LEID ID. For those units, only basic information is known; such as name, address, country, sometimes national ID of foreign unit. Those can be new legal units (non resident) for which the LEIDs still have to be found, or cases from previous cycles where the LEID ID was not found or was not valid in the EGR IS, or for ones that were not identified in the ISLEID flow.

The data set with information on legal units.

LEU file including all resident legal unit belonging to a global enterprise groups is sent to EGR for processing. LEU file is created by resident legal units that belong to the foreign MNE's, neverthells if they are parents or subsidiaries. 

The data set with information on relationships of ownership and control.

REL file including the relationships between legal units is sent to EGR for processing:

• two resident legal units
• one resident and one foreign legal unit
• two foreign legal units from non EU+EFTA countries.

Relationships in the REL could be:

• control relationships (>50%)
• minority relationships (<50)

where the resident legal units are part of multinational enterprise groups. We sent only control relationships (>50%) to the EGR. In the REL file all legal units participating in relationships, including the non-resident legal units, should be identified with LEID numbers. If LEID ID  can not be found in the EGR IS for some non-resident units  (for example for  non-EU or non-EFTA legal units, as well as for some EU legal units, which for example have changed name, or national ID, or our administrative sources have old data, so matching in the EGR IS was not succeful), those relationships cannot be sent in the REL file. 

The data set with information on enterprises.

ENT file including all enterprises made of legal units that are part of global enterprise groups contained in LEU file is sent to EGR for processing.

The Data set with information on links between enterprises and legal units.

LEL file including all links between enterprises (ENT) and legal units (LEU) that are part of MNE's is sent to EGR for processing.

The Data set with information on enterprise groups of which country is the GDC country for the EuroGroups Register.

GEG file including groups data that have Global decision centre (GDC) in Croatian NSBR are sent to the EGR for processing. 

The groups’ variables are updated after receiving the preliminary frame:

• by comparing data in NSBR and in the preliminary frame
• by updating or correcting REL in the EGR IM on line or in REL file
• by sending e-mail to the  NSI who are in REL with HR LEU, but according to the priority rules we could not update that REL in the EGR IM

Reference area to which the data refer when sending to the EGR is the whole World (all EG registered on national territory in NSBR who have parts in other countries)

The EGR frames are available from reference year 2008 onwards.

Croatia's first data transmission to the EGR was in 2013, for the reference year 2012, after Croatia entered the EU. 

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The economic variables on employment are recorded in absolute figures.

The net turnover for enterprises is recorded in  - Croatian kuna (HRK)  currency.

The net turnover and net total asset is recorded in millions in Croatian kuna (HRK) currency.

The reference period for data sent to the EGR reflects the picture of 31 December of the given reference year.

Data transmitted to EGR during the EGR 2022 cycle includes data for the 2022 reference year. The identification, economic variables (number of employees, turnover and economic activity) refer to the 2022 reference year.

1. Legal acts and other agreements - EU level

The content of the national data sent to EGR is defined according the Regulation (EU) 2019/2152 on European business statistics.

Commission Implementing Regulation (EU) 2020/1197 of 30 July 2020 is laying down the technical specifications and arrangements pursuant to Regulation (EU) 2019/2152 of the European Parliament and of the Council on European business statistics.

2. Legal acts and other agreements - national level

Official Statistics Act   - https://web.dzs.hr/Eng/about_us/Legals/Official_Statistics_Act_2020.pdf

The legal framework setting up the procedures for EGR data exchanges and access to confidential data for the purpose of the European framework for statistical business registers are defined in the Regulation (EU) 2019/2152 on European business statistics (Art.10). 

The Commission implementing regulation (EU) 2020/1197 lays down technical specifications and arrangements pursuant to Regulation (EU) 2019/2152, including technical specifications for the exchange of confidential data for the purposes of the European framework for statistical business registers.

At national level, the following agreements or procedures for data sharing and data exchange between national authorities have been established:

Official Statistics Act defines data exchange between producers of official statistics in the Republic of Croatia - https://dzs.gov.hr/UserDocsImages/dokumenti/Official_Statistics_Act_2020.pdf

Ordinance on access to confidential data of the Central bureau of statistics within the official statistics system - only in Croatian (Pravilnik o pristupu povjerljivim podacima Državnog zavoda za statistiku unutar sustava službene statistike (nn.hr))

European legislation:

• Regulation (EC) No 223/2009 on European statistics;
• Regulation (EU) 2019/2152 on European business statistics (Art.10).

The national legislative measures or other formal procedures which prevent unauthorised disclosure of data that identify a person or economic entity either directly or indirectly include:

•  Official Statistics Act - regulates the protection of confidential data collected for the production of official statistics  

  https://dzs.gov.hr/UserDocsImages/dokumenti/Official_Statistics_Act_2020.pdf

EGR data are stored by the Commission (Eurostat) and by the national statistical authorities (NSAs) in the EU Member States and EFTA countries in a secure area with restricted and controlled access.

The transmission of the EGR data is done in an encrypted form and by electronic means via the Commission (Eurostat) single entry point for exchange of confidential data EDAMIS.

Rules applied for treating the data set to ensure statistical confidentiality and prevent unauthorised disclosure are defined according to the policy rules (see section 7.1).

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The micro-data exchange of confidential data on multinational enterprise groups and on the statistical units belonging to those groups takes place, exclusively for statistical purposes, between EU Member States and EFTA countries and the European Commission (Eurostat).

Where such exchange of confidential data is carried out, to ensure the quality of the multinational enterprise groups information in the Union and the exchange is explicitly authorised by the competent NSA which provides the data. National central banks may be party to the exchange of confidential data, exclusively for statistical purposes.

NSI exchanges information on multinational enterprise groups with:

• Other Member States for improving data on relationships of the MNE's, as well as determining GGH or GDC of the MNE. Micro-data exchange of confidential data on MNE's is done via secure channel eDamis.

• CBS exchange microdata with NCB for the purposes of the European framework for statistical business registers in order to ensure the quality of multinational enterprise group information in the European Union.

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• EuroGroups Register communication space ( EGR wiki with restricted access) 
• European business statistics methodological manual for statistical business registers – edition 2021

Due to the fact that subject data is delivered to EGR and it is not publicly available, documentation on quality management is available in SBR Department as a part of SBR data quality guidelines.

Eurostat Data Quality Programme monitors the quality and compliance of the data transmitted by the countries to EGR using the instruments of the EBS quality framework.

At national level, the quality of the data sent to EGR is assured as follows: 

• Quality of SBR is assured by taking measures that will ensure that data input, processing and output is on the high quality level.

• Quality of data inputs is assured by using quality data sources and by validating new data by comparing it to previous year data. All quality shortcomings coming from administrative sources are communicated to them in order to improve data processing, controls and output that is used for updating of SBR.

• Processing of the data and automated procedures are monitored by checking results and analysing data in SBR. Quality of output is result of two previous measures and additionally, data is reviewed again and necessary corrections are made in data base.

• Data files are also validated before sending them to Eurostat, using pre-validation form in eDamis.
• Further more, when initial and preliminary EGR frame comes, those frames are compared to NSBR data on REL, GEG's and they are corrected if needed.
• After the initial and preliminary frame, Eurostat makes quality checks, and send to the NSI's NSBR possible errors for controlling and updating if necessary. 

The quality of MNE's registered in NSBR  is monitored according the quality assurance procedure.

SBR data is several times a year analysed and different kind of controls are used in order to detect all inconsistencies and mistakes: 

• validation procedures to check coherence between statistical units and their variables
• data format and logical content of data
• crosschecks with other administrative sources and data from previous EGR cycle
• before sending data files to the EGR, names of legal units, enterprises, groups as well as addresses with the special characters are transformed to English characters. If some variables has delimiters or quotation marks, they are removed too.

Before the official transmission data is pre-validated using eDdamis Input Hall where the structure and content of data files is examined. In case of errors, they are corrected before final delivery to EGR. CBS calculate micro level quality indicators on the EGR final frame output for comparing national EGR and FATS populations. 

The objective of these indicators is to test the quality of the EGR final frame as a statistical frame population with respect to FATS. The indicators measure the completeness in terms of data integration between the two frames, EGR and FATS populations.

Main user of delivered data is EGR.

SBR is an authoritative source for deriving high-quality and harmonised statistical business register populations for statistics related to businesses and multinational enterprise groups.

It contains and provides data for delivery to EGR according to European business statistics regulation (Regulation (EU) 2019/2152). When new need occurs, SBR makes necessary analysis and find solution for providing requested data.

Statistical users can use EGR coordinated frame populations to derive consistent statistical output with an improved quality in measuring global activities of European enterprises that are part of multinational enterprise groups. Multinational enterprise groups' information is used for statistics related to globalisation, such as Statistics on foreign affiliates (FATS), Foreign Direct Investment (FDI), Gross National Income (GNI), etc.

The EGR country specific frames are used as a basis for European profiling of the largest and most complex multinational enterprise groups in the EU.

Since 2017, Eurostat together with the EU Member States conducts SBR user survey addressing users and potential users of the national statistical business registers (NSBR) and the EuroGroups Register (EGR). The last User Survey was conducted in 2023.

2023 SBR survey results show that the EGR is widely used and users consider that its quality had been significantly improved in the recent years.

The results of the SBR User Survey 2023 are available on CIRCABC.

Most respondents (66%) claim that they used the EGR as an authoritative source for the ESS. Regarding the type of information used from the EGR, the most frequently used is Legal Unit (86%), followed by Multinational Enterprise Groups (66%) and Enterprise (62%). The EGR information is mostly used for identification of global groups’ structure, identification of foreign control of businesses and as an additional source for data validation. 

EGR respondents come mostly from Industry trade and services (60%), Economy and finance (28%), International trade (6%)

The most common statistics which the EGR users come from: Foreign affiliate statistics (38%), Structural business statistics (16%), Balance of payments (14%), Economic globalisation, National accounts, Global value chains (12%) EGR information is mainly used for Identification of global groups’ structure (76% of EGR users) and for Identification of foreign control of businesses (72%). Moreover, more than 68% of the users stated using EGR as additional source for data validation:

For national 2022 IFATs survey, only data from EGR and NSBR were used. 

Completeness of the mandatory variables as listed in the Annex VIII to Regulation (EU) 2020/1197 are reported in the NSBR quality report. 

All mandatory variables relevant for exchanging data with EGR are implemented in NSBR. 

The completeness of data-sets (ISRLE, ISNORLE, LEU, REL, ENT and LEL) are prevalidated in eDamis. 

The actions taken to monitor and to improve accuracy of the data sent to EGR are the following: 

• comparing final EGR frame and NSBR data on MNE's, when missing data are found, they are manually checked and updated or corrected in NSBR
• several times a year national administrative sources and NSBR are cross checked for finding changes and inconsistencies, and they are updated or corrected in NSBR
• during the repair phase of EGR cycle, other EU-EFTA NSI's are contacted for finding the common solution of found errors 

The accuracy of the EGR final frame is evaluated in collaboration between CBS and Eurostat. CBS compare, at micro-level, the Ultimate Controlling Institutional units (UCIs) of the Multinational enterprise groups from the EGR final frame with national data from FATS surveys.

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The EGR process refers to a reference year T and is run yearly over a period of 11 months, between May T+1 and March T+2.

Final EGR frame for a reference year T is produced on March T+2. After that, IFATs and OFATs EGR final frames are given to the respective statistical domains for further work. 

By the end of May T+2 for the reference year T, NSBR is also finished with the final national MNE frame. 

Data transmitted to the EGR during the cycle are on time. Sometimes, due to some technical issued, data are delivered with one or two days delay.

The geographical comparability of national statistical business registers is ensured by the application of common definitions of the statistical units laid down in the Council Regulation (EEC) No 696/93.

The SBR variables are harmonised and set up in accordance with the Annex VIII and Annex IX to the Commission Implementing Regulation (EU) 2020/1197 laying down technical specifications and arrangements pursuant to Regulation (EU) 2019/2152 on European business statistics. Further guidelines on the variables implementation in the NSBRs are given in the EBS methodological manual for Statistical Business Registers (2021 edition).

The comparability over time of the frames results from the information provided in concept 3.8.

NSBR frame for MNE's is comparable from 2012 cycle. 

Data delivered to EGR is checked with SBS, and subset of SBS - IFATs statistics. Both domains (SBR and SBS) check big MNE's for having consistent results.

The inconsistencies that existed in previous years between domains are diminished by using EGR for FATS and other surveys as the main source for providing consistent global business statistics. Still, there are small differences between IFATs and SBR , due to the methodological reasons or the fact that data provided by EGR are different from the data provided by national administrative sources. In the case of some bigger inconsistencies, nSBR contact other country for clarification.

Data is also checked with administrative sources such as Trade register or Central depository & clearing company. If missing data are found, NSBR is updated. 

Good collaboration is established between various statistical domains, so they inform us (NSBR) if they find some inconsistency in MNE data.

Data sent to EGR is internally consistent. There is a set of standard quality checks that are routinely perform at national level before transmitting the data to Eurostat as well as prevalidation in eDamis.

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The NSBR is set up in accordance with EBS Regulation (EU) 2019/2152 using any relevant data sources while avoiding excessive burden on respondents and taking due account of the cost effectiveness of the NSAs.

Administrative and statistical sources, relevant for NSBR having MNE's are:  

Administrative Business Register, Commercial Court Register, Central depository and Clearing Company, Tax Administration, Register of Annual Financial Reports, feedback from statistical surveys, public available foreign administrative registers, web pages of Groups, EGR final frame for the referent year, EGR IS. 

National data are sent to EGR annually, in yearly cycles. 

Data collected for updating NSBR is continuous.

Data sent to EGR are collected from:

• National Statistical business register
• Administrative data sources (Administrative business register, Commercial Court register, Central depository and clearing company, Register of Annual financial reports)

Statistical sources: 

- Feedback from statistical surveys

- EGR data (from previous cycle, or data on identification of units from EGR IS in the relevant cycle)

The actions taken for data validation of the data sent to EGR are the following: 

• by comparing final EGR frame and NSBR data on MNE's, when missing data are found, they are manually checked and updated or corrected in NSBR
• several times a year national administrative sources and NSBR are cross checked for finding inconsistencies, and they are corrected or updated in NSBR. 
• during the repair phase of EGR cycle, other EU-EFTA NSI's are contacted for finding the common solution of found errors 

Data is also prevalidated before the official transmission in Input Hall in eDAMIS.

When the datafile is uploaded via eDAMIS for prevalidation, the data file is validated by STRUVAL and CONVAL. The validation process generates a single validation report.

The feedback reports on prevalidated data files is of a great importance, as we can correct eventually errors in the data-sets (such as specific inconsistencies, duplicated in data etc.)

If no errors are present, than the data-file is sent to the production enviornment of eDamis, and than those data are sent to the EGR. 

We do not impute missing data. If there are no data for ceratin variable (e.g. turnover, or number of employees), those variables are not sent in the datafiles for EGR, and they are flagged as O (missing value). 

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