Legal provisions of COM(2007)535 - Further implementation of the European satellite radionavigation programmes (EGNOS and Galileo)

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dossier COM(2007)535 - Further implementation of the European satellite radionavigation programmes (EGNOS and Galileo).
document COM(2007)535 EN
date September 19, 2007

Contents

CHAPTER I - SUBJECT MATTER AND GENERAL PRINCIPLES

Article 1 - European GNSS systems and programmes

The EGNOS and Galileo programmes (hereinafter 'the programmes') shall cover all the activities needed to define, develop, validate, construct, operate, renew and improve the two European satellite navigation systems (GNSS), namely the EGNOS system and the system established under the Galileo programme (hereinafter 'the systems').

The EGNOS system is an infrastructure using signals emitted, initially, by the American GPS and the Russian GLONASS systems. It increases their reliability over a geographical area mainly covering Europe. It comprises several transponders installed on satellites and earth stations.

The system established under the Galileo programme is an autonomous GNSS infrastructure consisting of a constellation of satellites and earth stations.

Article 2 - Subject

This Regulation lays down the detailed rules for the implementation of the programmes, including those on the financial contribution of the European Community.

Article 3 - The phases of the Galileo programme

The Galileo programme consists of the following phases:

- a definition phase during which the structure of the system was designed and its components determined. This phase was financed entirely by Community funds under the Fifth Research and Development Framework Programme;

- a development and validation phase comprising the construction and launch of the first satellites, the establishment of the first ground-based infrastructures and all the work and operations making it possible to validate the system in orbit, funded by the Community and the European Space Agency;

- a deployment phase consisting of the establishment of all the space and ground-based infrastructures as well as related operations;

- a commercial operating phase comprising infrastructure management, the maintenance, constant improvement and renewal of the system, certification and standardisation operations relating to the programme, the marketing of the system and all other activities needed to develop the system and ensure the programme runs smoothly.

Article 4 - Financing the Galileo programme

1. The development and validation phase shall be funded by the European Community and the European Space Agency and should end in 2010.

2. The deployment phase shall be financed entirely by the European Community and should run from 2008 to 2013.

3. The commercial operating phase is set to begin in 2013. During this phase the operation of the system shall, where appropriate, be ensured through service concession contracts or public service contracts with the private sector. These contracts may be concluded before 2013. The financial contribution of the European Community to the commercial operating phase will depend on the level of contributions from the private sector resulting from any contracts concluded, following prior approval by the budgetary authority.

4. Agreements or conventions concluded by the European Community shall lay down the conditions and detailed rules for any third-country involvement in providing additional funding to the programme.

Article 5 - Operation of the EGNOS system

The operation of the EGNOS system consists mainly of infrastructure management, maintenance, constant improvement and renewal of the system, certification and standardisation operations relating to the programme and marketing the system.

Article 6 - Financing the operation of the EGNOS system

1. The European Community shall finance the operation of EGNOS, without prejudice to any contribution from the private sector.

2. The operation of EGNOS shall initially, as a priority, be the subject of to a public service contract with the private sector. It shall then gradually become an integral part of the commercial operating phase of Galileo.

CHAPTER II - BUDGETARY CONTRIBUTION AND MECHANISMS

Article 7 - Activities concerned

The Community contribution allocated to the programmes under this Regulation shall be granted to finance:

1. activities relating to the completion of the development and validation phase of the Galileo programme,

2. activities relating to the deployment phase of the Galileo programme, including actions to manage and monitor this phase and to facilitate the introduction of the system onto the market,

3. activities relating to the operation of the systems as well as actions preceding or in preparation for commercial operation.

Article 8 - Budgetary resources

1. The amount needed to implement the activities specified in Article 7 of this Regulation, with the exception of those relating to the commercial operation of the system established under the Galileo programme, is EUR 3 105 million at current prices for the period from 1 January 2007 to 31 December 2013.

2. Appropriations shall be authorised annually by the budgetary authority within the limits laid down in the multiannual financial framework. They shall be implemented in accordance with the provisions of the Financial Regulation applicable to the general budget of the European Communities.

3. Budgetary commitments for the programmes shall be appropriated in annual instalments.

4. The sum specified in the first paragraph of this Article does not take account of unforeseen financial obligations which the European Community may be obliged to bear, in particular those relating to the public ownership of the systems. In this event the Commission shall present appropriate proposals to the European Parliament and to the Council.

Article 9 - Operating income

Income from the operation of the systems shall be collected by the European Community and shall be paid into the Community budget and be allocated to the European GNSS programmes. If the income allocated proves to be significantly more than expected, the principle of allocation shall be reviewed.

A revenue-sharing mechanism may be provided for in any contract(s) concluded with the private sector.

CHAPTER III - PUBLIC GOVERNANCE OF THE PROGRAMMES

Article 10 - General framework for governance of the programmes

Public governance of the programmes is based on the principle of a strict division of responsibilities between the European Community, represented by the Commission, the European GNSS Supervisory Authority (hereinafter 'the Supervisory Authority') and the European Space Agency.

The European Community, represented by the Commission, shall ensure the implementation of the programmes, without prejudice to Regulation (EC) No 1321/2004. To this end the Commission shall establish the appropriate instruments and ensure it possesses the resources needed to accomplish this task. It may call on independent experts to assist it in monitoring the management of the programmes. It may also be assisted by experts from the Member States and carry out financial and technical audits.

Article 11 - Programming and allocation of funds

1. The European Commission shall manage the funds allocated to the programmes under this Regulation.

2. The Commission shall establish a multi-annual work programme which meets the objectives laid down in Annex to this Regulation.

3. The Commission shall adopt the multi-annual work programme and any amendments thereto in accordance with the procedure referred to in Article 14(2) of this Regulation.

4. Amendments to Annex shall be adopted by the Commission. Those measures designed to amend non-essential elements of this Regulation shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 14(3).

5. The measures financed under this Regulation shall be implemented in accordance with Regulation (EC, Euratom) No 1605/2002.

Article 12 - The role of the Supervisory Authority (GSA)

Without prejudice to the tasks conferred upon it under Regulation (EC) No 1321/2004, the Supervisory Authority shall support the Commission in all matters concerning the programmes, wherever its assistance is requested by the Commission. It shall manage and inspect the use of the funds specifically granted to it by the European Community under the programmes. These funds shall be made available to the Supervisory Authority through a delegation decision in accordance with Article 54(2) of Regulation (EC, Euratom) No 1605/2002 and the provisions of Regulation (EC) No 1321/2004.

The Commission shall conclude a delegation agreement with the Supervisory Authority on the basis of the delegation decision provided for in the previous paragraph. The delegation agreement shall stipulate the general conditions for the management of the funds entrusted to the Supervisory Authority, in particular the actions to be implemented, the relevant financing, management procedures and monitoring and inspection measures.

Article 13 - The role of the European Space Agency (ESA)

The European Community, represented by the Commission, shall conclude a multi-annual agreement with the European Space Agency on the basis of a delegation decision adopted by the Commission in accordance with Article 54(2) of Regulation (EC, Euratom) No 1605/2002 which shall cover the technical issues which arise during the programmes, in particular in the implementation of activities relating to the deployment phase of the Galileo programme.

The agreement shall lay down the general conditions for the management of the funds entrusted to the European Space Agency, and in particular the actions to be implemented, the relevant financing, management procedures and monitoring and inspection measures, measures applicable in the event of inadequate performance of the contract and rules regarding the ownership of tangible and intangible property.

Contracts concluded under this agreement shall comply with Community rules on public contracts, without prejudice to measures required to protect the essential interests of the security of the European Community or public security. They shall comply with the structure and Community nature of the programmes.

Article 14 - Comitology

1. The Commission shall be assisted by a committee known as the 'Committee on European GNSS Programmes'.

2. Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.

3. Where reference is made to this paragraph, Articles 5a(1) to (4) and Article 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.

4. Representatives of the Administrative Board of the Supervisory Authority shall be involved in the work of the Committee on European GNSS Programmes. Representatives of the Programme Board on Satellite Navigation of the European Space Agency may also be involved in the work of the Committee on European GNSS Programmes under the conditions laid down in its rules of procedure.

5. Agreements or conventions concluded by the European Community may provide for the participation of third countries or international organisations in the work of the Committee on European GNSS Programmes under the conditions laid down in its rules of procedure.

CHAPTER IV - FINAL PROVISIONS

Article 15 - Protection of the Community's financial interests

The Commission shall ensure that, when actions financed under this Regulation are implemented, the financial interests of the Community are protected by the application of preventive measures against fraud, corruption and any other illegal activities, by effective checks and by the recovery of amounts unduly paid and, if irregularities are detected, by effective, proportional and dissuasive penalties, in accordance with Council Regulations (EC, Euratom) No 2988/95 and (Euratom, EC) No 2185/96 and with Regulation (EC) No 1073/1999 of the European Parliament and of the Council.

For the Community actions financed under this Regulation, the notion of irregularity referred to in Article 1(2) of Regulation (EC, Euratom) No 2988/95 shall mean any infringement of a provision of Community law or any breach of a contractual obligation resulting from an act or omission by an economic operator, which has, or would have, the effect of prejudicing the general budget of the Communities or budgets managed by them, by an unjustified item of expenditure.

Contracts, agreements and conventions resulting from this Regulation, including agreements or conventions concluded with participating third countries, shall provide for supervision and financial control by the Commission, or any representative authorised by it, and audits by the Court of Auditors, if necessary on-the-spot.

Article 16 - Information to the European Parliament and to the Council

The Commission shall ensure the implementation of this Regulation. Each year, when it presents the preliminary draft budget, it shall present a report to the European Parliament and to the Council on the implementation of the programmes. A mid-term review shall be carried out in 2010 to inform the European Parliament and the Council of the progress made on the programmes.

Article 17 - Entry into force

This Regulation shall enter into force on the twentieth day following its publication in the Official Journal of the European Union .

This Regulation shall be binding in its entirety and directly applicable in all Member States.