considered as priorities. In our context (within the framework of the Lisbon strategy, recommendations
by ECOFIN in setting-up the WGQPF and the BEPGs) the priority is to enhance long term growth.
According to the main findings in the economic literature and to the summary of the analysis presented
in previous documents discussed in the WGQPF and in the European Commission Report “Public
Finance in EMU 2004” (Part IV), some categories of expenditure have to be seen as growth enhancing.
The focus on the expenditure side and the decision to postpone the assessment of public revenues is
coherent with the logic to proceed following a “step by step” approach, which the WGQPF agreed on.
This logic aims at fostering a progressive construction of an information system on the quality
components of public expenditure and therefore is very operational.
In this building process, it is also very important to proceed bearing in mind a pre-determined conceptual
framework, where each piece of information is coherently linked with other ones and is able to support
the progressive – logically and chronologically – approaching of the final goal. The latter should be
completely achieved in the long run, but the most important thing is to allow the availability of useful
information in the transition period (in the short - medium run) and to put each element together like the
bricks of a building, which will be finished only after a long working period but provided that the initial
bricks are put in the right manner.
Therefore, starting from data already available, one should assess how to organize them, how to expand
their scope and towards what directions. The priorities have been discussed by the WG. This paragraph
suggests to progress through a modular approach in a “satellite accounts” logic.
From a general point of view, whatever the information to be implemented may be, two kinds of
fundamental requisites must be fulfilled: the data ought to be comparable through time and across
countries.
This characteristic of comparability implies using data and reference concepts which must be:
a) internationally compatible
b) consistent
c) independent from administrative / institutional country specific arrangements
d) well established and fixed for a long period
e) focused on describing the economic reality instead of the legal one.These characteristics are essential since, in their absence,
- either one could have to deal with changes in figures across time and across countries only due to
formal – but not substantial – changes in the same transactions (which might remain unchanged
from an economic point of view); - or data could be affected by duplications/overlaps which prevent to use them in an aggregate
manner; - or there could be differences in figures only due to differences in treatment, in recording and
accounting principles followed by compilers, in classifications of transactions and statistical units.
The presence of these characteristics is guaranteed only by the National Account system (NA). They are
explicitly mentioned in the SNA and ESA manuals (see in particular ESA95, paragraphs 1.05 – 1.12).
Therefore it is quite natural to propose that the core of the information system on the quality of public
finance (QPF) is represented by national accounts figures. In particular, as it has been already stressed in
several EC and WG previous documents, NA- COFOG estimates are the most relevant in our context.
However, the Working Group believes that National Accounts data currently available should be
widened, in scope and content, in order to better respond to the demand for information which stems
from the need to deepen the analysis of QPF. While the starting step is to increase data availability for