February 13, 2012, 09:51 CET
Other economic data
Public finances, Maastricht debt level
Under the European budgetary surveillance procedure, the member states of the European Union are obliged to submit data on general government deficit and debt levels to the European Commission (Maastricht notification) twice a year (end of March and end of September). These data are checked and published by Eurostat. If there are any doubts about the quality of the notified data, official reservations may be lodged. Eurostat also has the right to amend notified data if there is evidence of an irregular entry. Further details regarding this are laid down in Council Regulation (EC) No 3605/93, last amended by Regulation (EC) No 2103/2005.
The statistical definition of the data to be notified is based on the definitions in the national accounts (ESA 95), which are given concrete expression by Eurostat's ESA 95 manual on government deficit and debt and by other Eurostat decisions on specific accounting issues. Relevant publications are posted on the website of Eurostat.
The relevant historical data to be reported for the government sector are compiled in Germany by the Federal Statistical Office and the Bundesbank. The Federal Ministry of Finance supplements these with estimates for the current year and is responsible for transmitting the data to the European Commission.
The Federal Statistical Office calculates the Maastricht deficit, which essentially corresponds to net borrowing as defined in ESA 95. This is supplemented by a reconciliation schedule which matches the deficit as defined in the national financial statistics with the Maastricht deficit. Details are published on the Federal Statistical Office’s website under National Accounts. The Maastricht debt level is calculated by the Bundesbank. Furthermore, reconciliation accounts match the Maastricht deficit with the change in the Maastricht debt level.
Maastricht debt level and reconciliation accounts
able 1 of the Maastricht notification contains the data for calculating Germany's deficit and debt ratios in the definition for the European budgetary surveillance procedure. In addition, the table provides an overview of the deficits at the different levels of government (central government, state government, local government, social security funds), a breakdown of the debt structure by debt instruments, and details on investment and interest expenditure and nominal GDP.
The report on the Maastricht debt level must list the individual components at their nominal value and include the following items: currency and deposits (coins in circulation), money market and capital market instruments and short and long-term loans. Table 1 does not include, for example, financial derivatives, trade credits and other liabilities which may result from allocating transactions to accounting periods other than that of the payment date in the national accounts. In table 1, general government debt (central, state and local government and social security funds) is recorded as a consolidated position – ie after adjustment for debts between the different levels of government.
he Maastricht debt level is different from the government's net financial position in that liabilities are not netted against the government's financial claims or financial assets (except for consolidation within general government). This is the main reason for possible differences between the Maastricht deficit and the change in the Maastricht debt level. Notification tables 3A to 3E contain reconciliation accounts, which match the deficit with the change in the debt level, both for consolidated general government (3A) and for the individual levels of government (3B to 3E). As well as transactions in government financial assets, changes in other liabilities which are not included in the components of the Maastricht debt level may also explain deviations. Further adjustments are necessary as the Maastricht debt level is shown in nominal terms and before capitalised interest (which is included in the deficit). Moreover, changes in the government-sector allocation of entities, for example, may lead to changes in the debt level which are not reflected in the deficit. While table 1 shows consolidated general government debt, the debt levels shown in notification tables 3B to 3E include liabilities to other levels of government. If the claims on other government sub-sectors, which are also recorded here, are subtracted, this gives the contribution of the individual level of government to the consolidated Maastricht debt level.
After it has verified the data, Eurostat publishes the full notification tables. Pursuant to Council Regulation 2103/2005 (EC), the inventories to describe the underlying data sources and methods are to be published as well. The inventories of all member states are posted on the website of Eurostat.
