# EUR-Lex - 52012DC0671 - EN

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# 52012DC0671

**COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT Establishing appropriate relations between the EU and the European Space Agency /* COM/2012/0671 final */**

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COMMUNICATION FROM THE COMMISSION TO
THE COUNCIL AND THE EUROPEAN PARLIAMENT

Establishing appropriate relations between
the EU and the European Space Agency

The entry into force of the Lisbon Treaty
established the European Union's competence over space matters, without
prejudice to the Member States' own competences. Space has become an instrument
for the achievement of the EU objectives and an EU policy in its own right.

Article 189 of the Treaty on the
Functioning of the European Union calls for the EU to establish any appropriate
relations with ESA.

The present Communication builds on the April
2011 Communication[1]
"Towards a space strategy for the EU that benefits its citizens"
where the Commission put forward initial ideas regarding the evolution of relations
between EU and ESA.

1.           Background

Over the last decade, the European Union
has become a major player in space. EGNOS and Galileo, GMES and Space research
under the 7th Framework Programme have become major landmarks in the
European space landscape.

The Commission's space-related proposals
for the next Multiannual Financial Framework imply a further increase in the
European Union's involvement in space.

The growing role of the EU in space goes
hand in hand with an increasingly close relationship with the Member States and
ESA, the other two main actors of the European Space Policy. In this context the
Commission has entrusted ESA with certain responsibilities in implementing specific
EU space programmes. In the case of the European Global Navigation Satellites
Systems (GNSS), ESA is currently responsible for the design, development and
procurement of the systems' ground and space segments while the responsibility
for operational management related to the exploitation of the systems is
intended to be entrusted to the European GNSS Agency (GSA)[2]. A closer relationship with the
ESA would enable a further development of divisions of tasks.

ESA is a world-class organisation which
deserves credit for the successes that Europe has achieved over the last four
decades. Thanks to the activities conducted by ESA and Member States through
their national space programmes, Europe now has a strong technological and
industrial base and is recognised as a reliable partner in international
programmes.

The EU relies heavily on ESA's technical
excellence and a large part of the EU space budget is delegated to ESA, to the
extent that the EU is today among the largest contributors to ESA.

However, the emergence of space as an EU
policy, the growing importance of EU space programmes and the European Union's
reliance on ESA's technical expertise have not yet translated into an evolution
of the governance of space matters at European level. In line with the
provision of Article 189, the present communication outlines possible short and
long term avenues for EU relations with ESA with a view to continuing an
efficient cooperation. This communication presents initial ideas. Further
proposals will have to be substantiated by a solid cost-benefit analysis and
impact assessment.

2.           Structural
obstacles in the current EU/ESA relations

2.1.        Mismatch of financial
rules

The management of EU funding by ESA is too
complex given the fact that the European Union and ESA have different rules
which must co-exist within ESA. ESA's largest programmes are funded primarily
through Member States' subscriptions. The industrial procurement for those
programmes follows the objective of geographical return and ESA financial
procedures are primarily designed to fit this rule. For the implementation of EU
programmes ESA is obliged to follow EU rules and the strict principle of best
value embodied in the EU Financial Regulation[3].
This has given rise to difficulties, particularly whenever programmes are
funded through mixed ESA and EU appropriations. .

2.2.        Membership asymmetry

At present, 17 EU Member States are Members
of ESA[4].
ESA's members include Norway and Switzerland, which are not EU members. Canada
has a bilateral cooperation agreement with ESA. As the collaboration between
the EU and ESA grows, this asymmetry combined with a voting system where each
Member State has one vote in the ESA Council and the key decisions within this
body are adopted by unanimity gives ESA members, which are not members of the
EU, disproportionate leverage over matters that may affect the EU. In addition
the asymmetry complicates discussions particularly as regards security and
defence matters as indicated below.

2.3.        Asymmetry in security and
defence matters

The EU's competence over security and
defence matters has grown stronger with the adoption of the Lisbon Treaty and
the setting up of the European External Action Service. Space capacities have
often the potential to be used for civil and defence purposes. In order to
contribute towards objectives of the Common Security and Defence Policy, the EU
has to establish ever closer and stronger links and synergies between the civil
and defence dimensions of space. The collaboration of the Member States and ESA
is essential in this endeavour. However, the relations between EU and ESA are
constrained by the fact that ESA's membership includes States not members of
the EU, which poses an obvious problem in general and an even more acute
problem when it comes to security and defence matters.

2.4.        Absence of mechanisms for
policy coordination

ESA's space activities lack a structural
connection and coordination mechanism within the wider policy-making of the
European Union. The 2004 EU/ESA Framework Agreement[5], in spite of its wide scope,
does not provide for them. Specific mechanisms for coordination and cooperation
need to be agreed in time-consuming negotiations at programme level. There is
no formal mechanism at policy level to ensure that initiatives taken within ESA
are consistent with EU policies. This is of particular concern regarding
international relations.

2.5.        Missing political
accountability for ESA

Finally, the relations between the EU and
ESA are affected by the asymmetry regarding political accountability. The fact
that ESA as a European agency has no formal link with the European Parliament deprives
ESA of the direct link with citizens that any EU policy enjoys.

3.           The way ahead

The EU can provide political dimension
(including at the international level) and legitimacy, as well as links with
other policy areas. The need for greater operational efficiency, symmetry in
defence and security matters, political coordination and accountability can
only be resolved, in the long term, through the rapprochement of ESA towards the
European Union.

The Commission considers that a clear
target date should be set between 2020 and 2025 for this long term objective. The
Commission, working closely with ESA could present to Member States several
possible options for such rapprochement before the end of 2013. These options
would include: improved cooperation under the “status
quo”, bringing ESA as an
intergovernmental organisation under the authority of the European Union
(following, to a certain extent, the model of the European Defence Agency), or transforming
ESA into an EU agency (following the model of existing regulatory agencies). The Commission, working closely with ESA, will carry out a detailed
cost benefit and risk analysis of the different options, with a view to
maximising synergies between the different actors including the GSA.

These options would preserve the current
essential features of ESA (i.e. optional programmes subscribed by Member
States) while giving ESA key EU features – such as qualified majority
decision-making or accountability vis-à-vis the European Parliament.

In the meantime, it is possible to ensure a
well-functioning cohabitation between EU and ESA that can help achieving the
long-term objective of rapprochement. The delegation agreements concluded
between the EU and ESA have already contributed to a rapprochement of ESA
towards the EU, the leading example being ESA's Navigation Directorate in the
framework of Galileo.

In its April 2011 Communication[6] the Commission suggested that ESA should continue to develop into an organisation with an
intergovernmental and an EU dimension in which military and civil programmes
can coexist. It should continue to develop management structures geared solely
towards EU programmes. A flexible membership structure should also be
established in order to enable Switzerland and Norway to take part in some
programmes, subject to an agreement with the EU.

Building on those initial ideas, the
Commission suggests that the EU could:

–
Work through the Council of the EU, using as
appropriate the open method of coordination to ensure coherence within the EU
and consistency of EU Member States' positions in ESA with EU policies;

–
Have systematic recourse to ESA for the design
and development of EU space infrastructures, whereas exploitation activities
will be carried out by other entities, such as the GSA.;

–
Ensure a homogeneous approach in line with the
EU Financial Regulation for delegating responsibilities over EU space
programmes to ESA as a way to prepare ESA to working within the EU environment,
and for establishing partnerships with Member States when appropriate.

ESA could:

–
Make the necessary structural adaptations
(financial and internal decision-making) to ensure that activities delegated to
ESA by the Commission are managed within an EU-like environment (e.g. through a
dedicated directorate managing EU programmes within ESA);

–
Make the necessary changes allowing unrestricted
access to the European Commission to ESA's relevant statutory bodies (e.g. ESA
Council and its subordinate bodies) in order to give the Commission the
possibility to provide input and ensure coordination with EU policies using
existing mechanisms within ESA.

4.           Conclusion

The Commission invites the Council and the
European Parliament to provide feedback on these suggestions concerning the
relationship between the EU and ESA, the long term goal of rapprochement of ESA
towards the EU framework. On this basis the Commission could provide a detailed
cost benefits analysis of the possible options.

[1]               COM(2011)152

[2]               COM(2011)814

[3]               Regulation
(EC, Euratom) No 1605/2002, as amended by Regulation (EC, Euratom) No 1081/2010

[4]               Austria, Belgium, the Czech
Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Luxembourg, the Netherlands, Portugal, Romania, Spain, Sweden and the United
Kingdom. Poland is finalising the ratification process to become ESA's 20th
Member State.

[5]               OJ L no 261 of 6.08.2004, p. 64.

[6]               COM(2011)152