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Ares(2016)4749169 - 23/08/2016

VALDIS DOMBROVSKIS

MARIANNE THYSSEN

VICE-PRESIDENT OF THE EUROPEAN

COMMISSION

MEMBER OF THE EUROPEAN

COMMISSION

PIERRE MOSCOVICI
MEMBER OF THE EUROPEAN
COMMISSION

Brussels,

Dear Minister,
The Commission is following, with concern, recent developments related to the criminal
investigation concerning Mr. Andreas Georgiou, the former President of Hellenic Statistical
Authority ELSTAT, as well as senior staff of ELSTAT regarding the alleged falsification of
fiscal data. We are also deeply concerned about statements in the media regarding the case,
which appears to call into question the validity of the fiscal data underpinning successive
Economic Adjustments Programmes for Greece. This is not the first occasion when the
Commission has expressed such concerns, and we have asked for the matter to be on the
agenda of the Eurogroup of 9 September 2016.
As a matter of principle, the Commission does not comment on ongoing national legal
proceedings.
In light of recent press comments regarding the quality of official statistics, however, the
Commission wishes to point out the following: since 2010, under Mr. Georgiou's presidency,
the compilation of Greek public finance data has been validated by Eurostat as being in
compliance with the rules that are applied in all Member States.
As regards Greek public finance data notified to Eurostat up to October 2009, the
Commission had identified very serious problems with the compilation of Greek public
finance statistics in its "Report on Greek Government Deficit and Debt Statistics" (COM
(2010) 1 final). From November 2010 onwards, after a major overhaul of the Greek statistical
system, Eurostat was able to validate Greece's deficit and debt data without reservation.

Minister Euclid TSAKALOTOS

Ministry of Finance
Greece
n1inister@minfm.2r
cc.
Minister Jeroen Dijsselbloem, Chair of the Eurogroup
g.f. diik@minfin. nl

Eurostat reports regularly on the quality of the statistical data used for the Excessive Deficit
Procedure and Stability and Growth Pact to the Economic and Financial Committee, and since
2010 the data have never been put into question.
The Commission and Eurostat continue to have full confidence in the quality and reliability of
the data delivered by ELSTAT during the term of office of Mr. Georgiou. The actions
undertaken under his leadership were imperative in order to put the Greek statistical system
back on track. During his tenure institutional arrangements for statistics in Greece were
strongly reinforced. The overall status of the Greek statistical system has been recently
assessed by independent international experts in the context of a Peer Review exercise1, and
its conclusions bear testimony to the above-mentioned progress. Eurostat continues to work
with the Greek statistical authorities to maintain and further improve its statistical processes.
The Commission values the progress made in Greek statistics during the last six years as
essential and critical for the credibility of the country. Policy decisions by the Greek
authorities, including under economic and financial support programmes, as well as
international investments, depend on reliable, credible and independently compiled data,
which comply with internationally agreed standards.
In the current circumstances, we see a significant risk of major damage to the credibility of
Greek statistics. Against the background of recent comments in the media, the Commission
therefore expects the Greek Government to actively and publicly challenge the false
impression that data were manipulated during 2010-2015 and to protect ELSTAT and its staff
from such unfounded contentions.
The Commission also calls upon the Greek government to take immediate supportive steps for
the quality of Greek statistics and the independence of the Hellenic Statistical System along
the lines defined in Greek statistical legislation and in the Commitment on Confidence in
Statistics of 2012. The following solemn commitments by the Greek government were laid
down in the Commitment on Confidence and renewed in the Supplemental Memorandum of
Understanding underpinning the ongoing Stability Support Programme for Greece2:

to fully respect international and European standards for statistical data quality, in
particular the principles of the European Statistics Code of Practice;
to guarantee and defend the professional independence of the Hellenic Statistical
System, in particular of the Hellenic Statistical Authority (ELSTAT), and to promote it
to the public through appropriate communication actions;
to support the Hellenic Statistical Authority in upholding public confidence in Greek
statistics and to defend them against any efforts to undermine their credibility;
1 http://ec.europa.eu/eurostat/documents/64157/4372828/2015-EL-Report/488eadf4-da69-40db-b48b884c6ac4937c
2 Supplemental Memorandum of Understanding (16.06.2016), 5.4 Independent agencies and regulatory bodies,
Hellenic Statistical Authority (ELSTAT):
hitp;//ec.europa.eu/economy finance/assistance eu ms/greek loan facility/pdf/smou en.pdf

to secure adequate and stable resources necessary to maintain and further improve
the quality and coverage of Greek statistics;
to report annually to the Hellenic Parliament and to the European Commission on the
implementation of the above commitments.

Moreover, the new President of ELSTAT, Mr. Thanopoulos, was selected in February 2016
through a transparent process in line with best international practice. He has to be supported
in maintaining a professional independent system. Greek statisticians must be allowed to work
under political conditions that support compliance with European standards and that do not
threaten their professional integrity and independence.
Finally, we see the need to implement, and accelerate if possible, the pillar of the Stability
Support Programme related to the modernisation of the Greek State and public administration,
which includes commitments to strengthen the institutional and operational autonomy of
independent entities and agencies, such as ELSTAT. The Government has also undertaken the
commitment to "...de-politicizing the Greek administration" in the Euro Summit of 12 July
2015. We look forward to the report of the Greek authorities on that issue, which was due for
July 2016. Moreover, the Stability Support Programme for Greece also contains commitments
regarding the strengthening of the justice system. All of those aspects will be part of the
second review of the Programme later this year and are, moreover, cornerstones for successful
reforms and, in particular, a comprehensive growth strategy. The Commission stands ready to
support the Greek authorities in those efforts, including if necessary via further enhancement
of technical assistance through its Structural Reform Support Services (SRSS).
The European Union countries share a common statistical basis for assessing the underlying
fiscal situation and risks. Reliable, credible and independently compiled statistical data is a
pre-condition for having fruitful economic policy discussions and for a successful
continuation of the Stability Support Programme.
Yours sincerely,

Valdis DOMBROVSKIS

Marianne THYSSEN

Pierre MOSCOVICI