Page 424 - Invited Paper Session (IPS) - Volume 2

IPS307 Tjeerd Jellema et al.

A European perspective to observing and
reporting on SPEs
Tjeerd Jellema, Fausto Pastoris, Carmen Picon-Aguilar
European Central Bank

Abstract
The introduction of the new statistical standards incorporated additional
guidance on the relevance of a comprehensive reporting on institutional units,
and the identification of special purpose entities (SPEs), but stopped short of
providing a unified definition based on clear criteria. The manuals did provide
several characteristics, and these were most concretely formulated in the field
of foreign direct investment, together with a request of the separate reporting
of SPEs. Moreover, many countries noted the emergence of so-called near
SPEs, e.g. corporations that would fulfil SPE like objectives whilst carrying out
a measure of regular business functions. Existing statistical guidance allowed
for certain flexibility in countries’ responses, and thus led to a lack of
comparability in individual countries’ reporting. Efforts to introduce reporting
requirements with respect to SPEs were hindered by the absence of a
harmonized working definition of SPEs. The availability of a harmonized
definition, decision tree and typology will assist compilers in Europe and
world-wide to ensure completeness in reporting and provide separate
reporting on SPEs in the context of external sector statistics. This paper reports
on ongoing European efforts in the reporting of SPEs and the way forward,
and will address the challenges faced by balance of payments compilers to
achieve a consistent recording of SPE activity as well as the impact on key
economic aggregates.

Keywords
SPE; Globalization; Balance of Payments; National Accounts

1. Introduction
SPEs are recognised, but not strictly defined, in the main methodological
tomes dealing with macroeconomic statistics. They are described as being
institutional units with no substance behind them, no physical presence, zero
employment or physical output in terms of physical goods and services. Their
presence in economic territory is largely a legal one, and their owners seek to
realize certain advantages offered by the economic territory where they have
legal presence. They may be also difficult to observe, and many countries
struggle in correctly capturing transactions and positions of these entities. For

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