Explanatory Memorandum to COM(2011)814 - Implementation and exploitation of European satellite navigation systems - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2011)814 - Implementation and exploitation of European satellite navigation systems. |
|---|---|
| source | COM(2011)814  |
| date | 30-11-2011 |
1. CONTEXT OFTHEPROPOSAL
Regulation (EC) No 683/2008, which entered into force on 25 July 2008, defines the framework for the public governance and financing of the Galileo and EGNOS programmes1. In particular, it allocates EUR 3405 million for the period from 1 January 2007 to 31 December 2013.
As provided for in Article 22 of Regulation (EC) No 683/2008, the Commission adopted a report to the European Parliament and to the Council on the mid-term review of the European satellite navigation programmes on 18 January 20112. This report provides a detailed review of their progress since the reform of their governance in 2007, sets out cost estimates and future challenges, in particular with regard to risks and outlines specific proposals to deal with them, in particular for taking into account the operational requirements of the two systems established under the programmes.
In the conclusions it adopted on 31 March 2011 after the Commission's report of 18 January 2011 was submitted, the Council, among other things, expressed its support once again for the European satellite navigation programmes as defined in Regulation (EC) No 683/2008. It also noted the overall cost estimates and the fact that the Commission would submit a proposal including changes to the governance model with a view to the next multiannual financial framework. On this point, it asked the Commission to rationalise and optimise the use of existing structures.
For its part, in the resolution adopted on 8 June 2011, the Parliament also restated its support for the European satellite navigation programmes and considered that it should be principally funded by the Union budget. It underlined the importance of implementing rigorous cost containment and risk mitigation policies. It asked the Commission to submit legislative proposals quickly with particular emphasis on the need to provide a long-term, stable framework, in particular for operation of the systems.
In its Communication dated 29 June 20113, accompanied by a proposal for a Council Regulation of the same date4, the Commission proposed to assign EUR [7000] million to the financing of the European satellite navigation programmes during the next multiannual financial framework for the 2014-2020 period. Nevertheless it indicated here that it is necessary to maintain efforts to control costs and that new management procedures should be planned for the long-term. It should be noted that this sum of EUR [7000] million, at 2011 constant prices, is an absolute ceiling under the Article [14 of the proposal] of the abovementioned Council Regulation and corresponds to a sum of EUR [7897] million at current prices.
OJ L 196, 24.7.2008, p.1
COM(2011) 500 final. A Communication from the Commission to the European Parliament, the
Council, the European Economic and Social Committee and the Committee of the Regions: a Budget
for Europe 2020;
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It needs to be emphasised that uncertainties, which may lead to cost over-runs and delays, are inherent in this type of complex programme. It requires an effective risk management system to be set up, and may result in difficult decisions being taken. In this way, the additional cost of the development phase, managed by the European Space Agency, amounts to some EUR 500 million in total. At the request of the Member States the Commission has agreed to bear this cost so as to ensure the continuity of the programme. Validation of the system in orbit is the keystone of the Galileo programme and a lack of financing would have jeopardised its continuation, with a loss of industrial know-how and of equipment already partly built.
The Regulation to which the proposal relates meets the requests of the Parliament and the Council while taking into account the contents of the Commission Communication of 29 June 2011. It is the basic act for European satellite navigation programmes for the period covered by the next multiannual financial framework, providing in particular for funding and the governance model for the programmes. Given the magnitude of the changes to be made to Regulation (EC) No 683/2008, it was deemed necessary to propose that it be replaced with a new Regulation rather than amended.
It should be borne in mind that the Galileo and EGNOS programmes are flagship projects of the Union. Promotion of this technology, which is a powerful driver for emerging from the crisis, fits in perfectly with the Europe 2020 strategy and policies for sustainable development. The new generations of high-performance satellite navigation services provide considerable opportunities for all fields of activity with many new jobs bound up with the expansion of markets, which have grown at an annual rate of 30% over the past few years. In this context, the Commission is working to develop an ecosystem of applications to optimise the use of services provided by the systems and maximise the socio-economic benefits. Accordingly, it is implementing the 24 measures referred to in its Action Plan on GNSS applications of 14 June 20105. This plan provides in particular for financing of research and development projects, improvement in access to financing for small and medium-sized enterprises and various measures to promote the Galileo and EGNOS programmes in priority sectors for growth, innovation and employment.
It should also be emphasised that the European satellite navigation programmes does not only concern the Member States with the greatest involvement in the space field: they concern all the Member States of the Union directly. In fact, all citizens of the Union will benefit from a range of services provided by the infrastructures in place. Moreover, small and medium enterprises everywhere in Europe play an important role in the programmes since one of the objectives of the Union is to promote the widest and most open participation possible for all businesses in public procurement procedures.
For instance, as part of Europe 2020's flagship initiative An Industrial Policy for the Globalisation Era the Commission is responsible for developing an effective space policy to provide the tools to address some of the key global challenges and in particular to deliver Galileo.
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2.
Contents
- RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES
- COM(2011) 5 final
- COM(2011) 398 final. Proposal for a Council Regulation laying down the multiannual financial
- Retaining the expertise acquired within the Commission is an essential factor in ensuring the continuity of the programmes. Consequently, the Commission will retain temporary agents
AND
IMPACTASSESSMENTS
The proposal follows numerous extensive consultations with stakeholders and the public. It is accompanied by an impact assessment.
Stakeholders were consulted on various technical, legal or operational aspects concerning the programmes such as provision of services, the cost of the infrastructure and its operation, risk analyses and potential governance models. Thematic workshops and conferences with users were therefore organised as well as targeted working groups with experts from the European Space Agency, the European GNSS Agency and the Member States. Interviews were also conducted with experts from the space sector and industry representatives.
The public was also involved in the Eurobarometers between 2007 and 2009 and in the impact assessment concerning the European space policy.
The range of this research has shown that:
• the public supports the development of an independent satellite navigation system and recognise the growing dependence of modern societies on navigation services;
• stable governance must be put in place in the long term to ensure that the programmes are managed effectively;
• the 'Safety of Life Service' (SoL) provided by the system established under the Galileo programme should be redefined in view of changing user expectations;
• finally, civil aviation stakeholders insist on the need to make long-term commitments concerning the provision of EGNOS services. This is a prerequisite for any real market penetration of EGNOS.
Moreover, in view of the latest advances and challenges to be overcome, the impact assessment concentrates on the continued implementation of the programmes with a focus on two main problems: firstly, the configuration of future services, given that the budget allocated for the period 2008-2013 is insufficient to complete the infrastructure of the system established under the Galileo programme and to ensure the operation of EGNOS; and secondly, the definition of the operational governance model and the financing required.
On the first point, concerning the system established under the Galileo programme, evaluation of the various options has shown that the best option is to retain the services initially specified, with the exception of the SoL service. This solution, which requires less infrastructure on the ground, reduces the costs.
With regard to EGNOS, the system is already operational and many users are enjoying its benefits. In addition, when the SoL service was declared operational, the Commission gave assurances regarding the continuity of this service to users who went on to make significant investments. Ending the EGNOS programme is not an option in this context.
On the second point, the impact assessment concluded that the Commission, representing the Union, should remain responsible for the programmes while the Union continues to ensure their funding alone, as proposed by the Commission in the abovementioned Communication of 29 June 2011. Operational management should be entrusted to a regulatory agency. This
would both maximise the expected socio-economic benefits of operating the systems and ensure greater consistency with the other policies of the Union while clearly defining the financial and political responsibilities of the various stakeholders. In this regard and given the abovementioned conclusions of the Council on 31 March 2011, assigning this task to the European GNSS Agency which was established by Regulation (EU) No 912/2010 of the European Parliament and of the Council of 22 September 2010 for the performance of tasks associated with the progress of the programmes, and which is both already in place and active in the field of satellite navigation, appears to be the most natural solution. It would nevertheless be necessary to reconfigure the tasks and resources of this agency.
3. LEGALELEMENTSOFTHEPROPOSAL
Like Regulation (EC) No 683/2008 and other texts of the Union acquis concerning European satellite navigation programmes, the legal basis of the Commission's proposal is Article 172 of the Treaty on the Functioning of the European Union, ex Article 156 of the Treaty establishing the European Community. In addition, it retains the form of a Regulation of the European Parliament and of the Council since, like Regulation (EC) No 683/2008 which it is to replace, the text has a general scope and its content is to be directly applicable in all Member States.
The proposal mainly defines the programmes and systems, the budgetary resources allocated to them and their governance model and, in the interests of rationalising the acquis of the union, also provides for amendment or repeal of other legislative texts concerning European satellite navigation programmes.
The proposal complies with the principles of subsidiarity and proportionality. The objective of the proposal, namely the implementation and operation of satellite navigation systems, exceeds the financial and technical capacities of a Member State acting alone and can only be achieved in a satisfactory manner at Union level. It does not go beyond what is necessary to achieve this objective insofar as the planned budget corresponds to costs estimated following extensive analyses and where the governance model used appears to be the most suitable.
4. BUDGETARY IMPLICATIONS
As indicated in point 2 above, the Union will continue to finance the Galileo and EGNOS programmes alone. Its contribution to the programmes for the period 2014-2020 shall not exceed EUR [7897] million at current prices in accordance with the Article [14 of the proposal] of the Council Regulation referred to in point 1 above. It covers three main activities, namely, completion of the deployment phase of the Galileo programme, the exploitation phase of the same programme and operation of the EGNOS system. The latter includes ongoing improvement of the services provided by the system in order to meet the changing needs of users.
The estimated costs of the programmes are the result of extensive analyses. They are also based on the results of discussions with experts, in particular from the Member States, the European Space Agency and the European GNSS Agency. Various stakeholders, such as industrial representatives of the space sector, were also consulted.
Retaining the expertise acquired within the Commission is an essential factor in ensuring the continuity of the programmes. Consequently, the Commission will retain temporary agents
currently in employment for periods to be determined in accordance with the various phases of the programmes and will transfer personnel to the European GNSS Agency.
5. OPTIONAL ELEMENTS
It is important to emphasise that this Regulation lays down, in particular, the governance model for the programmes and their financing for the period 2014-2020. In accordance with this model, it will be possible to entrust substantial tasks associated with the operation of the systems to the European GNSS Agency, which is a body within the meaning of Article 185 of Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities. Accordingly, the Commission intends to conclude one or more delegation agreements with the Agency.
In the opinion of the Commission, recourse to delegation agreements, which include the general conditions for managing funds entrusted to the Agency, including measures for monitoring and controlling costs, is the most appropriate method for the Commission, the European Parliament and the Council to exercise their power of control fully.
In order to enable the European Parliament and the Council to gain a full picture of the conditions under which the European GNSS Agency would be obliged to carry out the tasks entrusted to it under the new governance model, particularly concerning resources, the Commission will submit a proposal in 2012 for the amendment of Regulation (EU) No 912/2010 and of the associated financial statement. It should be noted that the budget allocated to the programmes, i.e. EUR [7897] million at current prices, already takes into account the operating costs of the systems, including the operating costs of entities required to manage the operation of the systems. Thus, performance by the agency of new tasks which will be entrusted to it, will not lead to any additional budget expenditure.
In addition, the Commission will assess the compatibility of Regulation (EU) No 912/2010 with the new governance model concerning the security accreditation of the systems.
Council Joint Action 2004/552/CFSP of 12 July 2004 on aspects of the operation of the European satellite radio-navigation system affecting the security of the European Union6, should also be updated.
Simplification of the rules is one of the key goals of the new approach proposed by the Commission in respect of the budgetary expenditure of the Union. In its current form, the text introduces simplifying measures, concerning the following points in particular:
– alignment of indicators concerning the 2020 strategy objectives;
– delegation of activities associated with system operation, in particular, the
management of contracts with the European GNSS Agency.
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