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Multinational enterprise groups in EuroGroups Register (EGR) - experimental statistics (egr)

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National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Statistics Poland

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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.

 

8 May 2025

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

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

Number of persons employed is defined as the total number of persons who work in the unit, including wage-earners and self-employed persons (i.e., working proprietors, partners working regularly in the unit and unpaid family workers) as well as persons who work outside the unit but who belong to it and are paid by it (e.g., sales representatives, delivery personnel, repair and maintenance teams). It excludes manpower supplied to the unit by other enterprises, persons carrying out repair and maintenance work in the unit on behalf of other enterprises, as well as those on compulsory military service.

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 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

Turnover comprises the totals invoiced by the observation unit during the reference period, and this corresponds to market sales of goods or services supplied to third parties. Turnover also includes all other charges (transport, packaging, etc.) passed on to the customer, even if these charges are listed separately in the invoice. Turnover excludes VAT and other similar deductible taxes directly linked to turnover as well as all duties and taxes on the goods or services invoiced by the unit. Reduction in prices, rebates and discounts as well as the value of returned packing are not taken into account. Income classified as other operating income, financial income and extraordinary income in company accounts is excluded from turnover

Total assets

The total assets refers to the sum of the balance sheet items at the end of the accounting period. It covers economic assets, which are divided into financial and non-financial assets

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 topdown 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 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.

 

The data set with information on all incorporated resident legal units for the EGR Identification Service.

ISRLE file includes full. population of resident legal units is sent to EGR for identification.

 

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

ISNORLE file including full population of foreign legal unit recorded in national statistical business register is sent to EGR for identification.

 

The data set with information on legal units.

LEU file including full resident legal unit belonging to a global enterprise group is sent to EGR for processing.

 

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

REL file including complete 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 are:

  • control relationships (>50%) complete
  • minority relationships (<50%) is not applicable

 

The data set with information on enterprises.

ENT file including full enterprises made of legal unit sent in LEU files is sent to EGR for processing.

 

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

LEL file including full links between enterprise (ENT) and legal units (LEU) 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 data sources available for Statistics Poland: survey on enterprise groups, National Court Register on groups data is sent to the EGR for processing.

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

  • names, total assets, turnover, employment, activity code NACE

 

The reference area for EGR is the territory of all countries in which legal units belonging to enterprise groups operate.

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 2023 cycle includes data for the 2023 reference year. The identification, economic variables (number of employees, turnover and economic activity) refer to the 2023 reference year.

The accuracy of the EGR frame is evaluated in collaboration between NSIs and Eurostat. Eurostat performs crosscutting checks on the initial and the preliminary frame and produces reports to assess the data quality and ensure the accuracy. In the event that potential misclassification or duplicates has been spotted, as an example, Eurostat contacts the involved NSI(s) for checking and potential correction during the repair phases to insure EGR final frame accuracy.

On Eurostat`s request Statistics Poland sends files that contain information on REL (relationships between subsidiary and paretnatl LEUs), LEL (relations between LEUs and ENTs), ENT (name, number and basic data for ENT), LEU (data on LEUs).

Repair phase was done in EGR IM. 

 

The accuracy of the data transmitted to the EGR is:

Units

Assessment

Legal units

Very Good

Relationships between legal units

Good

Enterprises characteristics

Good

Enterprises perimeters

Good

Multinational enterprise group (with Global decision centre in my country)

Good

Provide the reasons of your assessment

The size of differences  between NSBR and repair files sent by Eurostat is not substantial, so generally we assess data transmitted to the EGR as good.

This accuracy assessment is based on:

  • files control in terms of data and structure correctness according to the Eurostat`s validation rules
  • assessment of the staff that deals with repairs of the MNEs structures

 

Describe the main sources of errors, by type of units, and provide a summary assessment of all errors with special focus on the impact.

The main issues regarding accuracy of the data and issue importance are as follows:

Units

Issue

Assessment

Legal units

No importantissues

Small impact

Relationships between legal units

Different parents according to Polish and Eurostat`s sources

Medium impact

Enterprises characteristics

No important issues

Small impact

Enterprise perimeter

Eurostat sends data on ENTs, which according to the Polish sources doesn`t exist anymore

Small impact

Multinational enterprise group (with Global decision centre in my country)

Statistics Poland does not includes small MNEs (of 2 or 3 LEUs) in Enterprise Groups Survey. Eurostat includes these LEUs and treated it as a Gap in the frame.  

Medium impact

 

Describe the actions taken to improve the accuracy.

The actions taken to reduce bias (if any) and to improve accuracy of the data are as follows:

  • Regarding MNEs – Statistics Poland adds these small groups to the automatic profiling file which Enterprise Groups Survey does not includes.
  • Regarding relationships between legal units – the main differences in parent units according to Polish and Eurostat`s sources are corrected by Statistics Poland basing on Polish administrative sources.

 

The economic variables on employment are recorded in absolute figures.

The net turnover for enterprises is recorded in EUR currency.

The net turnover and net total asset for enterprise groups is recorded in millions in EUR currency.

Imputation is not conducted.

The data sources are following:

  • survey on enterprise groups, outputs of profiling process, National Court Register including annual financial statements on groups and its legal units.

Not applicable.

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.

EGR frame data gives the same picture of multinational enterprise groups as that which prevents double data counting for statistical units on geographical territory.

There is no significant changes in comparability over time regarding EGR for Polish MNEs or for MNEs with Polish LEUs.