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

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(1) The aim of the European satellite radionavigation policy is to provide the European Community with two satellite navigation systems (GNSS). These systems are established under the EGNOS and Galileo programmes respectively. Each infrastructure is made up of satellites and earth stations.

(2) The EGNOS and Galileo programmes comply fully with the requirements of the principle of subsidiarity. The establishment of satellite radionavigation infrastructures exceeds the financial and technical capacities of any single Member State, and action at Community level is the best way to carry out these programmes, which are a good example of the added value of the European Community when it clearly defines its objectives and resources.

(3) The aim of the Galileo programme is to establish the first global satellite radionavigation and positioning infrastructure specifically designed for civilian purposes. The system established under the Galileo programme is completely independent of other existing or potential systems.

(4) The aim of the EGNOS programme is to improve the quality of signals from the American GPS and the Russian GLONASS systems to ensure reliability over a vast geographical area.

(5) The European Parliament, the Council and the European Economic and Social Committee have consistently given their full support to European GNSS programmes.

(6) Satellite radionavigation is a technology which can improve the daily lives of European citizens in a large number of areas. The development of this technology is fully in line with the Lisbon Strategy and other Community policies, such as transport policy as set out in the Commission's White Paper[14], particularly as regards freight management, charging for use of infrastructures and road safety.

(7) European GNSS programmes are among the priority projects included in the Growth initiative proposed by the Commission and endorsed by the European Council. They are also considered as one of the major achievements of the future European space programme, as described in the Communication on the European Space Policy[15].

(8) The Galileo programme consists of a definition phase, a development phase, a deployment phase and a commercial operating phase. The deployment phase is set to begin in 2008 and end in 2013. The system should be operational in mid-2013.

(9) The definition and development phases of the Galileo programme, which are the parts of the programme dedicated to research, were chiefly financed by the Community budget for trans-European networks. The deployment phase must be financed entirely by the European Community due to the lack of a real commitment from the private sector. Service concession contracts or public service contracts with the private sector may be awarded to operate the system.

(10) It is important that the financing of the EGNOS system, including all the elements ensuring it operates, is sustainable and can be marketed, be assured by the European Community. The operation of EGNOS could be the subject of a public service contract with the private sector until it is integrated into the operation of Galileo.

(11) Council Regulation (EC) No 2236/95 of 18 September 1995 laying down general rules for the granting of Community financial aid in the field of trans-European networks[16] sets out rules for Community financial aid in the case of Community projects concerning satellite navigation and positioning systems.

(12) Council Regulation (EC) No 1321/2004 of 12 July 2004 on the establishment of structures for the management of the European satellite radio-navigation programmes[17] establishes the European GNSS Supervisory Authority (hereinafter 'the Supervisory Authority').

(13) In order to guarantee the continuation of the Galileo and EGNOS programmes an appropriate financial and legal framework must be established to allow the European Community to continue to fund these programmes. It is also necessary to indicate the amount of money required between 1 January 2007 and 31 December 2013 to fund the end of the development phase and the deployment phase of Galileo and the start of operation of the Galileo and EGNOS systems.

(14) Investment costs and the costs for operating the Galileo and EGNOS systems for the period 2007-13 are currently estimated at EUR 3.4 billion at current prices. EUR 1 005 million is already foreseen in the existing financial programming (2007-13) under the Commission's proposed legislation for the implementation of the deployment and commercial operating phases of the Galileo programme[18]. It is proposed to increase the above figure by an additional EUR 2 100 million the allocation of which will be subject to a review of the current financial framework (2007-13). The funds are provided from unused margins in headings 2 and 5 for 2007 and 2008. As a result, the text of the amended proposal shall stipulate that the Community budget for 2007-13 foresee EUR 3 105 million for the European GNSS programmes. A sum of EUR 300 million, which is available for the European GNSS programmes under the Seventh Research and Development Framework Programme[19], will help cover these costs.

(15) It should be pointed out that the investment costs and the costs of operating the Galileo and EGNOS systems currently estimated for 2007-13 do not take account of unforeseen financial obligations which the European Community may be obliged to bear, in particular those relating to non-contractual liability arising from the public ownership of the systems.

(16) Furthermore, revenue from the operation of the Galileo and EGNOS systems must be collected by the European Community in order to ensure that its earlier investments are recovered. However, a revenue-sharing mechanism could be stipulated in any contracts concluded with the private sector for the operation of these systems.

(17) Sound public governance of the Galileo and EGNOS systems assumes firstly that there is a strict division of responsibilities between the European Community, the Supervisory Authority and the European Space Agency and, secondly, that the European Community, represented by the Commission, ensures the implementation of the programmes. The Commission must establish the appropriate instruments and possess the necessary resources, in particular in terms of assistance.

(18) The main role of the Supervisory Authority will be to assist the Commission in all matters which arise during the programmes. It must also manage the funds specifically allocated to it under the programmes or entrusted to it by the Commission in accordance with Article 54(2) of Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities[20], as amended by Council Regulation (EC, Euratom) No 1995/2006 of 13 December 2006[21].

(19) The European Space Agency, which is the expert in technical matters, will conclude a multi-annual agreement with the European Community covering the technical aspects of the programmes. In order for the Commission, as representative of the European Community, to exercise its power of audit fully, the agreement must include the general conditions for managing the funds entrusted to the European Space Agency and provide that contracts concluded under the agreement must follow Community rules on public contracts. Accordingly, due account must be taken of progress made so far and investments which have already been agreed as well, where appropriate, as agreements in force.

(20) The Commission should be assisted in implementing this Regulation by a committee named the 'Committee on European GNSS Programmes'. As sound public governance requires uniform management of the programmes, faster decision-making and equal access to information, representatives of the Administrative Board of the Supervisory Authority must be involved in the work of the Committee on European GNSS Programmes.

(21) As European satellite radionavigation programmes have now reached an advanced stage of maturity and have gone well beyond the framework of simple research projects, it is necessary to put them on a specific legal basis which is better able to satisfy their needs and respond to the requirement for sound financial management.

(22) This Regulation lays down, for the continuation of the programmes, a financial allocation constituting the prime reference, within the meaning of point 37 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management, for the budgetary authority during the annual budgetary procedure.

(23) It is necessary to ensure that the European Parliament and the Council are kept regularly informed about the implementation of the Galileo and EGNOS programmes.