Istituto Nazionale di Statistica

Business Register Unit

Via Tuscolana 1788, 00173Rome, Italy

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 in 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 NACE Rev 2;
• 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).

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 and non active  legal units.

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

Also the presence of the Branches and the SPE units (Special Purpose Entities)  have been carried out. Regarding the Spes ISTAT, in cooperation with GNI and NCB, has created an algorithm for the individuation of the SPEs units in the Bussiness Register which has shown that no entity resident in Italy satisfies the criteria required by SPE definition. For this reason no SPE units were send to EGR.

The national statistical business register covers all the NACE sectors except: Activities of households as employers; undifferentiated goods-and services-producing activities of households for own use and (T); Activities of extraterritorial organisations and bodies (U).

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. 

Active unit

A statistical unit is considered to have been active during the reference period, if in said period it either realized positive net turnover or produced outputs or had employees or performed investments. 

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 period, 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. Family workers and outworkers whose income is a function of the value of the outputs of the statistical unit are also included.

Net turnover

For all activities except for NACE 64, 65 and some activities of NACE 66 net turnover consists of all income arising during the reference period in the course of ordinary activities of the statistical unit, and is presented net of all price reductions, discounts and rebates granted by it.

Income is defined as increases in economic benefits during the reference period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.

The inflows referred to are arising from contracts with customers and are realized through the satisfaction by the statistical unit of performance obligations as foreseen in said contracts. Usually, a performance obligation is represented by the sale (transfer) of goods or the rendering of services, however, the gross inflows can also contain revenues obtained as a yield on the use by others of the statistical unit’s assets.

Excluded from net turnover are:

—   all taxes, duties or levies linked directly to revenue;

—   any amounts collected on behalf of any principal, if the statistical unit is acting as an agent in its relationship with said principal; 

—   all income not arising in the course of ordinary activities of the statistical unit. Usually, these types of income are classified as ‘Other (operating) income’, ‘Financial income’, ‘Extra-ordinary income’ or under a similar heading, depending on the respective set of generally accepted accounting standards used to prepare the financial statements.

Infra-annual statistics may not be able to take into account aspects such as annual price reductions, subsidies, rebates and discounts.

For the activities of NACE K6411, K6419 and K649 net turnover is defined as the value of output minus subsidies or government grants.

For the activities of NACE K642 and K643 net turnover can be approximated by the total operating costs, if net turnover is not available in the financial statements.

For the activities of NACE K6511, K6512 and K652 net turnover is defined as Gross premiums earned.

For the activities of NACE K653 the net turnover is defined as total pension contributions

For activities of NACE K66 for which net turnover is not available in the financial statements, net turnover is defined as the value of output minus subsidies or government grants. For activities of NACE K66 for which net turnover is available in the financial statements, the standard definition of net turnover applies. 

Principal activity

The principal (or main) activity is the activity that contributes most to the total value added of a unit under consideration. Ideally, the principal activity of the unit should be determined with reference to the value added to the goods and services produced, by applying the top-down method. The top-down method follows a hierarchical principle: the classification of the unit at the lowest level of the classification must be consistent with the classification of the unit at higher levels. The principal activity so identified does not necessarily account for 50 % or more of the unit’s total value added.

In the European Union, the classification of principal activity is determined by reference to NACE Rev. 2, first at the highest level of classification and then at more detailed levels (top-down method).

The statistical units maintained in the EGR are defined in accordance with 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, Enterprise and Multinational enterprise group

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.

1.The ISRLE dataset includes 3,188,119 population of resident legal units sent to EGR for identification.

2.The ISNORLE dataset includes information on foreign legal units for the EGR Identification Service.

The sum of the distinct deliveries it is equal to 142,366 foreign legal units sent to the EGR for identification, of these, almost 70%  have been identified and registered in the national statistical business register.

The recognized foreign units have been identified as follows:

99,5% identified through the LEID already present in our business registers with the presence of the same LEU_NAME.

0,25 % recognized with a 92% similarity for the denomination

0,25 % recognized by similar name less than 92% of similarity for the denomination and other method (manual checks)

3.The LEU dataset includes resident legal units belonging to a global enterprise groups. These legal units have been sent in two separate submissions:

-the first one on November which contained 87.135 LEUs

-the second on January of 49.662 LEUs, this second sending contained some new legal units and many updates on the Leu characters already sent in November; for this reason the total number of distinct LEU for LEU LEID corresponds at 91.160 distinct resident legal units.

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

The REL fileincludes 103.392 not duplicated relationships between legal units  sent to EGR for processing of which:

-          55.837 between two resident legal units

-         41.662 one resident and one foreign legal unit

-          5.893 between two foreign legal units

All the Relationships in the REL are: control relationships (>50%)

5. the ENT dataset includes ENTs whose structure is made of legal unit sent in LEU files to EGR. The ENTs have been sent for processing in two separate submissions:

-the first one on November which contained 36.852 ENTs

-the second sending on January contained   42.716 ENTs;  this second sending contained some new ENT and many ENT already sent on November which have changed their structure with respect to the previous sending; for this reason the total number of distinct ENT for ENT_NSA_ID  corresponds at 42.840 distinct ENTs. 

6.The LEL data set with information on links between enterprises and legal units.

 LEL file including links between enterprise (ENT) and legal units (LEU)  sent to EGR for processing and it has been sent in two separate submissions:

-the first one on November which contained 52.189 LELs

-the second one on January, which contained   58.178 LELs; this second sending contained all the links between legal units and ENT of those ENT which have been changed something in their structures or variable with respect to the previous sending; for this reason the total number of distinct LEL for LNK_ENT_NSA_ID and LNK_LEU_LEID  corresponds at 58.493  distinct LELs.

7 The GEG file is the dataset sent to EGR with information on enterprise groups; the GEG file includes 6017 groups whose GDC country is in Italy.

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

-GEG_NAME 

-GEG_NACE_CODE_DIV

-GEG_PERS_EMPL

The reference area for national statistical business register is the territory inside and outside of the EU and EFTA countries.

The EGR frames are available from reference year 2008 onwards. ISTAT transmits data for the EGR production cycle since 2011 year with reference year data T-1.

Not applicable

The economic variables on employment are recorded in absolute figures.

The net turnover for enterprises is recorded in Euro.

The net turnover and net total asset in the GEG file are recorded in millions Euro.

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 EGR2022 cycle includes data for the 2022 reference  year. The identification,economicvariables(number of employees,turnover and economicactivity)refer to the 2022 reference year.

 Legal acts and other agreements - EU level

• Regulation (EU) 2019/2152 of the European Parliament and of the Council of 27 November 2019 on European business statistics;
• Commission Implementing Regulation (EU) 2020/1197 of 30 July 2020 laying down technical specifications and arrangements pursuant to Regulation (EU) 2019/2152 of the European Parliament and of the Council on European business statistics.

Legal acts and other agreements - national level

• D.lgs n. 322 del 6 settembre 1989.pdf (istat.it)
• Regolamento_europeo_n.223_del_2009 (http://www.sistan.it/fileadmin/Repository/Home/EUROPA/Regolamento_europeo_n.223_del_2009.pdf)

The EBS Regulation (EU) 2019/2152 lays down provisions on the exchange of and access to confidential data for the purpose of the European framework for statistical business registers.  

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:

Bank of Italy ( http://www.sistan.it/fileadmin/Repository/Home/EUROPA/Regolamento_europeo_n.223_del_2009.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). 

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:

Since in relationships there are also some natural persons, we are subject to the national legislative for the protection of personal data:

1) Codice in materia di protezione dei dati personali (D.lgs. n. 196 del 30 giugno 2003) - Annex A3 Codice Deontologico 1)

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 Profiling activity through the International Profiling Tool called IPT

-          National Central Bank (NCB) for quality assessment with regards to specific financial operators (SPE,  Branches, Holding and foreign legal units with LEI codes)

-          And for the GNI reserve analysis 

Not applicable.

• EuroGroups Register communication space ( EGR wiki with restricted access)
• European business statistics methodological manual for statistical business registers – edition 2021
• European Business Profiling Recommendations manual edition 2020

1.    Data Quality Program (DQP 2023) https://circabc.europa.eu/faces/jsp/extension/wai/navigation/container.jsp?FormPrincipal:_idcl=FormPrincipal:_id1&FormPrincipal_SUBMIT=1&id=bf8ac19f-3b8c-4b49-90ab-b72187ce9554&javax.faces.ViewState=6EneseJTLVtdWJJ8agBTIJJHC%2B3Fwhi4oGe5wyErrtY1rCTDrDpAEr%2FJVt8Br3W7hiabKtq8ynmVyTJ4zMmE9DCNV25r9iMGMNS%2BnQKw%2FJ2pS0HR7A9MyMIxFSrjxLZ0CNTJ%2BabTvqwEhnYn9Aqs9whEzvY%3D

2. Quality indicators on EGR for monitoring the quality (input, process, output):

INPUT: https://webgate.ec.europa.eu/fpfis/wikis/display/EGR/Input+quality+indicators

PROCESS: https://webgate.ec.europa.eu/fpfis/wikis/display/EGR/Throughput+quality+indicators

OUTPUT: https://webgate.ec.europa.eu/fpfis/wikis/display/EGR/EGR-FATS+quality+indicators

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:

-following the Eurostat Data Quality Program the quality and the compliance have been assured for the data transmitted to EGR using the instruments of the EBS quality framework.

-sending the data to EGR only after the integration of the information from administrative and statistical sources for the reference year of the EGR cycle.

-performing, for MNEs of national relevance, cooperatively profiling on an agreed number of top EU multinational groups according to the ESBRs profiling programme and integrating  the results of the profiling activities in the data delivered to EGR.

A quality assessment procedure includes:

• automatic validation procedures to check the consistency between the statistical units and their variables,

• data format and logical data content

• cross-checks with other sources and data from previous years,

• Controls on groups that are multinational in BR and domestic in EGR

• Coverage of branches, ad hoc methodology to send branches to EGR

• Crosscheck with profiling (desk activities and IntraFlow results….) and FATS Inward and Outward surveys;

• The use of an algorithm for the identification of foreign legal units (the implementation of the national algorithm for the identification of foreign legal units guarantees reaching almost 70% of the identification matches of a total of foreign unit belonging to multinational groups).

The analysis on globalization is relevant for the Balance of Payments and for national accounts

The data produced and the concepts used (definitions, classifications, and so on) try to reflect user needs.

The variables that are considered mandatory according to the EBS Regulation (EU) 2019/2152 regulation  are complete, instead the variables considered optional or conditional are not always complete

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

• In order to  collect  and improve the accuracy on  data at ENT level, a Survey on intra-flows has been carried on (RFI survey) through a questionnaire addressed to around 80 relevant MNEs groups ensuring coherence between NBR, EGR and profiling. The results of the Survey and the profiling activity were integrated into the national register and sent to EGR. The RFI survey has allowed profilers to have contacts with large groups via email and telephone. In some cases has been possible to update/validate the structure of the ENT before the closure of the Survey and some of these data were sent on January during the repair phase, thereby guaranteeing consistency between the Survey , the NBR and EGR.
• Italy, participated to the EGR ISNORLE AD HOC ACTION  on a voluntary basis. This action was intended to improve the cross-border relationships deliveries that have been sent on November

The algorithm for the matching foreign legal unit is based on quite different basic concepts from those underlying EGR-IS as it follows different rules. In addition the national system automatically recognize the units that, having completely changed company name, using the old name. The national algorithm allows us  to identify duplicates of foreign units and keep this information in an archive.

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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.

The data have been sent as required by the EGR calendar cycle 2022

Data not available

All data are comparable over time, with the exception of those of ENTs because between 2017 and 2019 the new definition of ENT was implemented in the registers and this caused a significant reduction in the number of ENTs between those years.

The population of the groups is disseminated annually to all Istat domains and is used as a reference population to establish the domestic groups from the multinational ones.

The governance of multinational groups is also explored, establishing whether it is actually in the hands of an Italian unit even if the ultimate parent company is foreign.

Data sent to EGR should be internally consistent. There is a set of standard quality checks that   are routinely performed at national level before transmitting the data to Eurostat

• Comparison with profiling data

• Checks with the previous year data

• Checks with FATS data surveys

• and others (See box 11.2)

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Not applicable

The data sent to EGR are collected at miclrolevel by the following adiministrative and statistical sources

• National statistical business registers
• Administrative data sources.
• Profiling activities
• Intra Flow surveys
• Manual checks

National data hve been sent to EGR annually following the EGR calendar

Data sent to EGR are collected from the sources described in box 18.1:

-The administrative sources feed the register on an annual basis.

-Manual checks and profiling activity allows to update the bussiness registers on a continuous basis

In the sending phase, the NSI files are automatically validated sequentially through two processes: before Struval and then Conval validation processes.

STRUVAL process checks the structural of the file then, after the data files successfully passed this process need to pass the validation of the content through the CONVAL validation process, based on validation rules and constraints defined by the EGR Team and based on the requirements of the EGR system.

The procedures used to combine data from different sources apply some priority rules:

data from profiling activities have priority over all other data from administrative and statistical sources.

Not applicable.

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