EUROPEAN COMMISSION Brussels, 6.6.2018 SWD(2018) 327 final COMMISSION STAFF WORKING DOCUMENT



IMPACT ASSESSMENT

Accompanying the document PROPOSAL FOR A REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

establishing the space programme of the Union and the European Union Agency for the Space Programme and repealing Regulations (EU) No 912/2010, (EU) No 1285/2013, (EU) No 377/2014 and Decision 541/2014/EU {COM(2018) 447 final}

{SWD(2018) 328 final}



Table of Contents 1.Introduction: Political and legal context 1.1.Scope and context 1.2.Lessons learned from previous programmes 2.THE OBJECTIVES 2.1.Challenges for the EU Space Programme 2.2.Objectives of the EU Space Programme 3.Programme structure and priorities 3.1.Structure of the EU Space Programme 3.2.Expected impact 3.3.Priorities of the EU Space Programme 3.4.Basis for EU intervention (legal basis, subsidiarity and proportionality check) 4.Delivery mechanisms of the intended funding 4.1.Similarities and differences of the EU space actions 4.2.Delivery mechanisms strands 5.How will performance be monitored and evaluated? 5.1.Monitoring based on indicators 5.2.Evaluation reports Annex 1: Procedural information

Annex 2: Stakeholder consultation Annex 3: Evaluation results Annex 4: Description of the European space actions Annex 5: Space in support of EU policies Annex 6: Examples of applications for Space actions Glossary Term or acronym Meaning or definition APV Approach with Vertical Guidance Beidou Chinese satellite navigation system. COPERNICUS European Earth Observation Programme DIAS Data and Information Access Services EEA European Environment Agency EGNOS European Global Navigation Overlay System EGNSS European Global Navigation Satellite System ELV European Launch Vehicle EMSA European Maritime Safety Agency ESA European Space Agency EUMETSAT European Organisation for the Exploitation of Meteorological Satellites FRONTEX European Border and Coast Guard Agency GALILEO European Global Navigation Satellite System GEO Geo-stationary earth orbit GNSS Global Navigation Satellite System GOVSATCOM Governmental Satellite Communication Glonass Russian satellite navigation system (Globalnaya navigatsionnaya sputnikovaya Sistema) GPS Global Positioning System GSA Global Navigation Satellite System Agency H2020 Horizon 2020 (Eighth Framework programme for Research and Innovation) Horizon Europe Ninth Framework Programme for Research and Innovation (FP9) LEO Low Earth Orbit LPV Localiser Performance with Vertical guidance MFF Multi-annual Financial Framework MS Member State NEO Near Earth Object OS Open Service PNT Positioning Navigation and Timing PRS Public Regulated Service R&D Research & Development SAB Security Accreditation Board SatCen European Union Satellite Centre SAR Search and Rescue SBAS Space-Based Augmentation System Sentinels Copernicus satellites SSA Space Situational Awareness SST Space Surveillance and Tracking SWE Space Weather



1.Introduction: Political and legal context 1.1.Scope and context Space technologies, data and services have become indispensable in the daily lives of European citizens: when using mobile phones and car navigation systems, watching satellite TV or withdrawing cash. Satellites provide backup communications and near-real time imagery when disasters, such as earthquakes, forest fires or floods strike, allowing emergency and rescue teams to better coordinate their efforts. Agriculture and the environment benefit from improved land monitoring and use. Transportation and energy infrastructure are safer and can be more efficiently managed thanks to satellite technologies. The EU's borders and immediate neighbourhood are better monitored. New space technologies and innovative services are emerging, further reinforcing the importance of state-of-the-art space infrastructures. Today about 10% of the EU's GDP – more than € 1 100 billion – are enabled by satellite navigation signals. Global challenges due to growing populations, increased demand for natural resources and climate change require accurate and timely information about our planet which only space-based solutions can provide. Space is a perfect example of public investment that underpin major priorities such as monitoring the sustainable management of natural resources, fighting climate change, supporting emergency response for Copernicus (Earth Observation) or enabling smart transport systems and precision agriculture for Global Navigation Satellite Systems (EGNOS and Galileo). Secure satellite communications are indispensable for public security actors. Last, but certainly not least, Europe needs to protect its vital space infrastructure against space debris and space weather events, for which a Space Situational Awareness programme is indispensable. Existing EU space programmes and initiatives Galileo and EGNOS (GNSS) Galileo is the European Union's Global Satellite Navigation System (GNSS) providing free of charge accurate positioning and timing information. Galileo aims to ensure Europe’s strategic autonomy in satellite navigation, which is key for the future of the European economy and security, reinforce the role of Europe as a global player and support emerging applications, especially automated cars and the internet of things. The Galileo infrastructure consists of a space segment of 30 satellites (currently 22 in orbit) which generate and transmit Galileo signals, and a ground segment (various stations and control centres), which monitor the satellites and generate the navigation data for users. Users have already been benefiting from Galileo initial free of charge services, in combination with other satellite navigation systems, since December 2016. EGNOS is a fully operational regional satellite navigation system which monitors and improves in Europe the accuracy of the USA’s GPS – and in future also Galileo – signals. The number of users of this operational system is growing, notably in aviation (more than 250 airports in Europe use EGNOS based landing approaches) and in precision farming. The EU is fully financing Galileo and EGNOS and is the owner of all tangible and intangible assets developed as part their implementation. The European Commission, on behalf of the EU, is responsible for the management and for the security of both Galileo and EGNOS, and for the supervision of the two entities responsible for the implementation of the activities: the European Space Agency (ESA) [an inter-governmental agency] and the European GNSS Agency (GSA) [a decentralised agency of the European Union].

The tasks delegated to the ESA relate mainly to system design and procurement, system maintenance and improvement, and research and development for system evolution. The tasks delegated to the GSA relate mainly to the system exploitation and security accreditation together with market development, and research and development for applications. Past investments for Galileo and EGNOS were financed under two Multiannual Financial Frameworks (MFF) and amount to about € 10.3 billion and € 2.5 billion for each programme respectively. Copernicus Copernicus is the European Union's Earth Observation Programme aimed at developing European information services using global data from satellites in combination with ground-based, airborne and seaborne measurement systems, and ancillary data. The data and information provided by Copernicus services is freely and openly accessible to users (with a few exceptions for security-related applications). Copernicus includes: • A space infrastructure with a space segment of families of satellites and instruments called "Sentinels", a corresponding ground infrastructure and related operations (7 EU owned satellites are in orbit and 6 more satellites and several instruments are under development); • Six services (Marine, Atmosphere, Land, Climate Change, Emergency and Security) providing information and services to a wide variety of users. The Copernicus services are operational since 2014 and support policies such as environment, transport, energy, agriculture and forestry, migration, border security, maritime safety, disaster management, urban planning, development, energy and fight against climate change among others. The European Commission, on behalf of the EU, is responsible for the implementation, the management and the security of Copernicus. The development of the space infrastructure is implemented through two delegation agreements, the major one being with ESA. Most services are implemented through delegation agreements with competent service operators including EU agencies (EMSA, FRONTEX, EEA). The European Environment Agency has been delegated the task of coordinating the in-situ component activities. The budget currently allocated to Copernicus for 2014-2020 amounts to € 4.3 billion. The Space Surveillance and Tracking (SST) support framework SST consists of monitoring, surveillance and tracking of active and inactive satellites, discarded launchers stages and debris fragments that orbit around the Earth. Knowing their exact orbits is crucial in order to avoid collisions with active satellites. The SST initiative started in 2004 with the Decision of the Council and European Parliament 541/2014 of 16/4/2014 establishing the SST support framework and is supported by a budget of € 70 million from Copernicus, GNSS and Horizon 2020 (in addition to research and development activities financed by Horizon 2020 with a budget of € 97.2 million). The first SST services are delivered to public and private users (Member States, the Council, the Commission, the EEAS, public and private spacecraft owners and operators, and public authorities concerned with civil protection) since July 2016. The support framework facilitated pooling participating Member States’ SST capabilities, to provide free of charge SST services to users as well as the networking and upgrading of national SST assets. The European Union Satellite Centre (SatCen) acts as a front desk and facilitates the delivery of the SST services through a single portal. Towards a future EU Space Programme The future EU Space Programme will consolidate all space-related activities to provide greater coherence, visibility and budgetary flexibility. It will include the on-going actions Galileo, EGNOS and Copernicus, and the following new ones: Space Situational Awareness (SSA)

SSA aims at covering the main space hazards: collision between satellites, space debris, space weather phenomena and near earth objects. It therefore encompasses Space Surveillance and Tracking (SST), Space Weather (SWE) and Near Earth Objects (NEO). Space Weather and Near Earth Objects are new activities proposed for the next MFF in addition to an enhanced SST activity. Governmental Satellite Communication (GOVSATCOM) GOVSATCOM is an initiative that aims to ensure the availability of reliable, secured and cost-effective satellite communications, indispensable namely when ground infrastructure is inexistent (maritime, air, remote areas), unreliable, disrupted or destroyed (natural disasters, crisis situations, conflicts). In addition, the transmission of security critical information requires guaranteed access and a level of protection against interference, interception, intrusion, and cyber-security risks. It is a new action proposed for the future MFF. The impact assessment report for GOVSATCOM was already presented to the Regulatory Scrutiny Board on September 27th 2017 and received a positive opinion with reservations. More information on the existing and proposed EU space actions are provided in Annex 4 and examples of existing applications in Annex 6. Policy context – a Space Strategy for Europe The Space Strategy for Europe which was endorsed by the Parliament and the Council recognises the need for public investment in space as an enabler for numerous key Union priorities. Space supports European industrial competitiveness by boosting innovation. Recent developments show, for instance, that the EU is becoming a global leader in big data provision as a result of Copernicus. The combination of space data with digital technologies and other sources of data opens up many new business opportunities in all Member States. Based on Article 189 TFEU, which calls upon the Union to draw up a European space policy "to promote scientific and technical progress, industrial competitiveness and the implementation of its policies", the Union has established: the European Global Navigation Satellite Systems (Galileo and EGNOS) and Copernicus. The Union has made significant investments in these actions (€ 5 billion for 2007-2013 and € 11 billion for 2014-2020) in addition to investments made by Member States at national level and through the European Space Agency. The Union is the owner of the assets developed under Galileo, EGNOS and Copernicus and guarantees the long-term planning, required to ensure continuity of services. In view of the complex and long investment cycles, the Union's commitment provides a stable and predictable environment that the private sector needs in order to use and invest in space solutions: it needs certainty that the data and services provided will continue in the future. The Union also invests in space research to support the development needs of its space activities and to stimulate their use. The Union invested approximately € 1.9 billion during 2007-2013 and €1.5 billion during 2014-2020 through dedicated priorities in specific research programmes. The 2016 Space Strategy for Europe confirmed the Union's political commitment for an ambitious space policy in Europe to (1) maximise the benefits of space for Europe’ society and economy; (2) foster a globally competitive and innovative European space sector; (3) reinforce Europe’s autonomy in accessing and using space in a secure and safe environment; (4) strengthen Europe’s role as a global actor and promoting international cooperation. Economic context Space is a strategic tool supporting a number of economic activities. The European space industry, including manufacturing and services, employs over 230 000 professionals and its turnover was estimated between 46 and 54 billion EUR in 2014. In particular, the overall benefits of EU GNSS to EU industry, citizens and Member States were estimated to reach between € 55 billion and € 63 billion over the next 20 years, with the most important benefits arising from indirect revenues in the downstream industry (between €37 billion and € 45 billion). Similarly Copernicus is expected to generate € 67 billion to 131 billion of benefits to the European society between 2017 and 2035, the vast majority of which will be generated in the downstream sector and end user segments. Ensuring the continuation of the programme after 2021 is expected to generate benefits 10 to 20 times bigger than the costs, and would support about 4000 jobs every year. The entire European economy relies heavily on space infrastructures for public sector services (meteorology agencies, emergency services, forestry offices and civil protection departments), businesses (fishing industry, transport/logistics companies, insurers and oil & gas companies, agriculture), and citizens (pollution alerts, geo-localisation, or satellite TV). Space is an enabler for a wide range of industrial and technological activities; spill-over from space activities supports developments in other sectors (e.g. financial transactions use satellite navigation time-stamps, digital image sensors used today in our mobiles phones have initially been developed for space application). These direct and indirect benefits are in line with the objectives set in the “reflection paper on the future of EU Finances” which emphasises the added value of the EU budget when it comes to “public goods of a European Dimension”. The document specifically mentions Galileo and Copernicus as notable examples of projects whose funding by the EU is an essential condition since they: “are too big to complete without public investment.”

Strategic Context All major countries have made space a priority in order to acquire and maintain their autonomy of action, to increase their influence on the international scene and strengthen their competitiveness. This autonomy covers the whole space industrial and operational chain from space research to satellite production, protection and exploitation, including also the key aspect of access to space, in a context of increased competition with new institutional (e.g. China) and private players (e.g. Space X). Existing synergies between space and security/defence partly substantiate the importance given to the space sector, notably in the current global security context, which was reaffirmed by the Commission European Defence Action Plan and supported by the European Council. Practically, EGNOS has been operational since 2013, Copernicus since 2014 and Galileo since 2016. In view of these achievements, it is key that the EU remains a major player in the space sector and takes a global leadership including its participation in international organisations and bodies. With 29 satellites currently in orbit and over 30 institutional launches planned in the next 10-15 years, the EU is the largest institutional customer for launch services in Europe. In this context, it is important for the Union to support innovative efforts to remain competitive in the sector of launchers. Furthermore, the number and criticality of European space assets has been increasing steadily, as have space hazards. Space assets and services have become indispensable to our economy and society, and therefore their long-term availability and protection is essential for Europe’s safety and security. The emergence of new national and commercial players and the rapid evolution of disruptive technologies are revolutionising traditional industrial models, which put at risk the competitiveness of the EU industry. Europe shall promote its position as a leader in space, increase its share on the world space markets, and seize the benefits and opportunities offered by space including for its security and the safety of its citizens. President Juncker highlighted the crucial role of space, stressing the "need to maintain and reinforce a strong and high-performing industrial base for our internal market which would ensure that Europe maintains its global leadership in strategic sectors such as space". Support of Space to EU policies The EU space activities directly support many EU policies as further described in Annex 5. The volume, quality and diversity of data that are provided by the Copernicus Services benefit EU policies in domains such as Climate Change Monitoring, Environment Policy or Agriculture for instance. Indeed, many EU policies need precise and reliable data to set-up long term datasets, precise mappings etc. which eventually allow the long term monitoring of key indicators in their domains and ensure an effective implementation of their policy. Combined with navigation services, new EU policies can also be developed in domains such as Smart farming or Intelligent Transport where the highest accuracy of positioning is required. Scope of the impact assessment On 2 May 2018, the European Commission adopted its proposals for a new Multiannual Financial Framework (MFF) for 2021-2027. Under these proposals, the Space Programme will have a budget of EUR 16 Billion over this period. This impact assessment report reflects the decisions of the MFF proposals and focuses on the changes and policy choices which are specific to this instrument. This impact assessment supports the legislative proposal for the EU budgetary funding of the Space Programme 2021-2027 which includes Galileo, EGNOS, Copernicus, SSA and GOVSATCOM. Regarding GOVSATCOM, details are covered by a dedicated impact assessment and thus will not be repeated here. The present impact assessment does not cover research and development for Space as it will be part of the EU ninth Framework Programme for Research and Innovation (Horizon Europe). The EU Space Programme regulation will define and establish the general common objectives of the European space actions, budgetary matters, governance principles, common rules and procedures, as well as horizontal actions in support of access to space, international cooperation and space economy. The specificities of Galileo, EGNOS, Copernicus, SSA and GOVSATCOM will also be addressed in the regulation. In terms of governance, the role of the GSA will evolve in the next MFF which will be clarified as well in the regulation; this agency will become the European Union Agency for the Space Programme. Hence this impact assessment covers both existing and new actions: Copernicus, Galileo and EGNOS are proposed to be continued and enhanced; Space Situational Awareness (SSA) is an extension of an existing activity (SST); and Governmental Satellites Communication (GOVSATCOM) is a new initiative. The Impact Assessment satisfies the requirements of the Financial Regulation in respect of preparing an ex-ante evaluation.

1.2.Lessons learned from previous programmes 1.2.1. Achievements and lessons learned from GNSS and Copernicus Achievements and importance of GNSS and Copernicus Overall, the European Commission has demonstrated its ability to implement the existing GNSS and Copernicus actions with the support of key stakeholders, such as ESA, and a strong European industrial base. The mid-term evaluations of EGNOS, Galileo and Copernicus as well as an evaluation of the European GNSS Agency (GSA) have emphasised the importance of these investments for the EU and have confirmed their major achievements so far. The report on GNSS highlighted its importance for the EU, stating that "the European dimension of the programme has brought additional value by enabling shared funding and risks, access to European expertise, technology cooperation, the creation of a single European market and guaranteed and equal access for all EU Member States to the signal and services provided by Galileo and EGNOS". Comments on Galileo emphasised the "achievements of Galileo’s space segment", "the declaration of the initial global provision of the Open service, Search and Rescue (SAR) services and pilot Public Regulated Service (PRS)" and, more globally, "the effectiveness of the programme" which is described as "particularly evident". Similarly, EGNOS is confirmed to have "consolidated the stability and high performance of service provision". The report on Copernicus similarly asserted that "the development of space infrastructure along lines agreed with delegated bodies and the promotion of interoperability of data and systems both clearly need to be managed at EU level, to pool financial risks and ensure coordination". The Copernicus programme was described as "on track, having already met some major expectations to support the autonomy of Europe in the provision of quality and useful data and its exploitation by a large number of users, for both institutional and commercial purposes". Other strong assets of Copernicus were highlighted such as the open data policy, the actions stimulating uptake by the private sector, the tangible economic benefits, the good level of coherence internally and with other EU actions, the excellent budget implementation with no significant costs overruns, and a good cooperation internally within the Commission and with Member States. The users' satisfaction was also pointed out regarding product relevance, timeliness and availability. The management at EU level enables higher visibility within international initiatives compared to what could have been achieved by single Member States especially for global issues (such as climate change environment, land use or maritime security). Common lessons learned from GNSS and Copernicus One of the common features between the two actions is linked to access to space since the development of both space infrastructures requires ordering launchers (rockets). Autonomous access to space is crucial for the deployment of the Union space infrastructure. So far launch services have been implemented following different delivery mechanisms. Lessons learnt from the mid-term evaluations show the need to harmonise the delivery mechanism through an aggregation of demand for GNSS and Copernicus. Such an approach is expected to reduce administrative burden and reduce industrial costs. Studies performed by ESA demonstrate that aggregation of launch service demand will achieve economies of scale. More specifically, in its midterm evaluation of the Copernicus programme, the Commission reported that the shift from a Russian launcher (Rockot) to the European launcher Vega allowed for the successful launch of Sentinel 2B which would have been otherwise delayed to an indefinite date due to the deterioration of the Russian political context and the subsequent impact on the supply chain which affected the launch schedule. Likewise, in its midterm evaluation of the Galileo programme, the Commission reported on the use of launchers for the deployment of the programme which was overall successful despite a delay in the launch schedule resulting from an incorrect orbit injection in 2014: the Galileo Initial Services were declared operational in December 2016. The Galileo interim evaluation highlights that the “usage of Ariane 5 launcher is seen as a major achievement reached during the evaluation period, especially among the European GNSS committee representatives and upstream industry representatives, who see a great value in utilisation of the European launcher. Indeed, the qualification and utilisation of Ariane 5 is perceived as a positive factor despite the fact that it was delayed by two years”. These past experiences with Copernicus and Galileo show that it is crucial to ensure an autonomous access to space for EU space activities. As the EU will act as the prime institutional customer of launch services, the Commission should ensure that its needs are fulfilled both in terms of schedule and in terms of technical requirements by establishing an aggregation of demand for European space actions. Lessons learned from GNSS The European GNSS mid-term review has identified a number of challenges related to i) governance and ii) security governance. i) Governance

The governance set-up has revealed some inefficiency in terms of low reactivity of the decision-making process due to the number of actors involved but also due to a different governance set-up between deployment (delegation agreement between EC and ESA) and exploitation (delegation agreement between EC and GSA and working arrangement between GSA and ESA). ii) Security Governance As regards security governance, the launch of initial services and the transition from the deployment to the exploitation phase have raised challenges that need to be properly addressed in order to maintain and improve the appropriate level of security for the operation of the EGNSS systems. Lessons learned from Copernicus Regarding Copernicus, the unprecedented success of the programme and its volume of data led to the following findings: i) Need to improve the distribution and access to data Due to the very high number of user registrations, the communication aspects, the data distribution and access, and data download need to be improved. The new Data and Information Access Services (DIAS) currently being set up are meant to address this issue specifically but need to be further developed in the next MFF. There is a need to effectively make available and allow for combination with other data of massive volumes of satellite data and information (10 pB per year generated with a distribution and access system needing to deliver 10 times this volume as the generation of data implies 10 times more in download); ii) Need to strengthen the integration of space data into other policy areas and economic sectors through increased focus on user uptake Copernicus is reaching user constituencies from the traditional space area but so far did not sufficiently manage to reach other potential users outside space. Recommendations Both mid-term reviews recommended to pursue the efforts on i) maximising benefits resulting from the EU investments in space infrastructures and services (maximise the return on investment), ii) optimising the implementation of the on-going actions (governance and data access) where necessary and iii) continuing the support and development of activities in line with the EU Space Strategy. The Commission reports, adopted on October 2017, were endorsed by Council conclusions last December, emphasising the importance to continue the programmes and reinforce their uptake to maximise benefits. GNSS As far as Galileo and EGNOS are concerned, the Commission report on the mid-term review recommended efficiency improvements for the decision-making process for these operational activities driven by services and users' needs. In that context, the interaction between the European Space Agency (ESA), responsible for the deployment of the satellites and the entity in charge of operations (GSA) should be re-examined. Reducing the administrative burden for the main actors, as well as the complexity and length of the decision making process are also key elements. Concerning Galileo's security governance, the mid-term review recommended re-assessing the allocation of responsibilities between the Commission and the GSA, the role of Member States, the role of the Council, the HR and the EEAS, as well as the Security Accreditation Board (SAB) independence and autonomy with respect to the GSA and the choice of legal instruments for technical security matters (delegated acts vs. implementing acts). Copernicus

The full potential of Copernicus for the EU society and economy is yet to be fully unleashed among user constituencies beyond space by means of an intensification of user uptake measures. There is a need to develop the downstream ecosystem, to combine the three elements of space, ICT and thematic competencies and then to render the data usable by non-specialists. For Copernicus, the mid-term evaluation report recommends pursuing efforts on i) the Copernicus data access and distribution: a unified access needs to be implemented ii) the combination of data with other sources to be improved in the frame of the DIAS evolution, iii) awareness to be raised and networks developed, iv) more attention to be paid to in-situ data access (also through an improved cooperation of Member States) and v) a consolidation of data access that should also consider the security aspects with proper mechanisms to control access to data in exceptional circumstances and for limited periods of time. Reporting methods should be harmonised and communications and user uptake activities should be expanded beyond specialist communities. A stronger awareness of the development of the market at local level is also required. Finally, new services should be developed and existing services reinforced (e.g. in relation to global issues like CO2 emissions, Polar Regions observation, cultural heritage protection etc.). 1.2.2 Achievements and lessons learned from the SST support framework The implementation report on the EU SST framework showed that it delivered results for all required actions and the three services foreseen in the SST decision, and created clear EU added value. However, implementation needs to be stepped up in the next phase and the EU SST support framework needs to evolve further to improve its effectiveness. Achievements The implementation report on the SST support framework highlighted the results in establishing and operating all three functions (sensor, processing and service), taking into account the relatively short timeframe since EU SST service are available for European users. The delivery of three initial services is provided since 1 July 2016 to all European institutional users and spacecraft owners and operators, free of charge and operational 24/7 through the EU SST Portal. In April 2018, there were 35 user organisations and 111 registered spacecrafts and those numbers are continuously increasing. Important work regarding the mapping and pooling of European assets, networking and exchange of information has been developed and upgrades of assets have started. The establishment of services has triggered the mapping and pooling of European assets (telescopes and radars). Lessons learned from existing SST support framework The feedbacks coming from the ongoing implementation report and the reports sent by external experts involved in the grants' management underlined 4 issues, presented by order of importance: i- Lack of European dimension Despite the significant achievements during the period 2014-1016, the services lack for the moment a certain level of European dimension due to a low collaboration between Member States involved in the development of the current SST services. Even if several mechanisms and fora to exchange information have been introduced, National Operation Centres are still acting more often in silo instead of developing a coordinated approach. ii- Lack of European independence A true independence of the EU Services does not exist. Indeed, the alert messages are sent to the EU SST Consortium which relies on these data to provide the collision avoidance services. The added value of the Consortium regarding the data remains limited since it currently relies, not only but mainly, on their capabilities in terms of processing and refinement of data provided by the US. iii– Issue on Governance Governance issue hinder the improvement regarding performance and handling of users' allocation. The current governance of the SST Framework has been chosen in order to accommodate the security element attached to SST and the fact that all the assets and processing capabilities are nationally owned. However, the current rule of consensus creates complications in the day to day management for the decision making process. iv- Complexity of funding mechanism,

The funding mechanism through different grants has proved to be difficult to handle. The multiplication of the calls, nearly one per year, has proved to be technically and administratively burdensome. Recommendations There is a need to optimise the use of EU Member States national capabilities and service delivery arrangements and to invest in SST assets. This will enhance the protection of European space assets and ground infrastructure. In addition, this will allow a higher degree of EU autonomy in this domain and will offer the opportunity to develop a true collaboration with the United States contrary to the current situation where EU SST services are still largely dependent on US data. 1.2.3. Key messages from stakeholders Consultations The preparation of the Space Strategy for Europe led to extensive consultations from various stakeholders that concluded on the importance of space for the European economy and the need to pursue the efforts at EU level due to the importance of the space actions. Additional specific consultation were launched and analysed to complement these findings. The major ones are listed in Annex 2. Key messages from the consultation for the Space Strategy for Europe Copernicus The open data policy is considered one of the strongest assets of the programme and the programme management is assessed as working efficiently. The majority of stakeholders consulted (incl. national representatives at the Copernicus Committee and User Forum; all entrusted entities; space infrastructure manufacturers; space data providers; service providers, and users) is globally satisfied with the governance of the programme and its implementation. The Copernicus space component has been deployed according to plan, and the data dissemination system needs to be scaled up. The Copernicus services are appreciated regarding product relevance, timeliness of delivery and availability of products. Cohesion can be improved through awareness-raising and the development of networks. The user requirements gathering process could be made more robust with a stronger involvement of targeted communities. Communication and user uptake activities need to be expanded beyond specialist communities. A greater coordination among entrusted entities is needed to better communicate about Copernicus services and foster user uptake. Stronger awareness of the development of the downstream market and applications at national and regional level could also be beneficial. EU action is providing considerable added value above what could be achieved at national level. Galileo and EGNOS The importance of European satellite navigation services for the European economy and security was recognised by all stakeholders. Considering the difficulties faced by the European GNSS as a “first of a kind” project for the EU, and thus as the first complex industrial programme implemented by the EU, the programme has shown a satisfactory level of effectiveness. Sufficient level of satisfaction from stakeholders regarding the implementation of the EU intervention logic (i.e. identification of problems and needs, definition and establishment of objectives, identification and implementation of actions, achievement of expected impacts) and the achievements so far; stakeholders are also confident about the planned developments in the coming phases. Concerning Galileo, the majority of the consulted stakeholders recognised the declaration of initial services as the major programme’s achievements. However, representatives from the downstream industry expressed concerns about the current limitation in the service and applications’ development and the delays in Galileo’s schedule. The effectiveness of the programme has been particularly evident in the achievements of Galileo’s space segment. As for EGNOS, the programme has consolidated the stability and high performance of service provision with the declaration of the LPV-200 service and the provision of APV-I services over 98,98% of the land mass of the EU Member States plus Norway and Switzerland. Stakeholders utilising EGNOS, expressed an extremely high level of satisfaction concerning the maturity of EGNOS system and performance. However, representatives from the European Parliament, the Member States and Eurocontrol, expressed their concern for non-coverage of the whole EU territory. Stakeholders also consider that the effectiveness of the governance of the programmes could benefit from a reduction in their complexity often duplication of effort and delays. Stakeholders with a direct involvement and a visibility on the internal mechanisms (governance actors, GNSS Committee, upstream industry) underlined that there is a conflict between the three governing actors, which affects the overall effectiveness of the decision-making procedure and of the programme itself. Representatives from the downstream industry and users have expressed their concerns about the complexity of the system, from a technical point of view, although recognising that this has not affected the achievement of final milestones. Representatives from the European Parliament, the GNSS Committee and Programme Management recognise that Galileo and EGNOS show a high degree of coherence with other EU policies, within the programmes themselves, and with other GNSS programmes. Regarding security, interviewed stakeholders (members of SAB and GNSS Committee) indicated that the current security framework based on best practices does not ensure an unbiased evaluation of the security issues. In addition, the sensitivity of the sector when we come to national sovereignty limits the margin of manoeuvre and contributes to the complexity of the system.

The EU added-value of the Galileo and EGNOS was assessed as high. According to stakeholders, stopping or withdrawing the existing EU intervention would have such severe consequences for Galileo and EGNOS that the entire programme would be jeopardised. Ending EU intervention would entail a considerable waste of public funding and would impact the outcome of efforts supported by private investments. Stopping or withdrawing EU intervention would severely damage the image of the EU, as such a decision would reflect badly on the Union’s reputation for leading programmes as complex and challenging as Galileo and EGNOS. The GSA's overall evaluation was positive. It achieved important objectives for the progress of Galileo and EGNOS and for the development of GNSS downstream markets in the period 2014-2016 through an effective implementation of both its core and delegated tasks. Hence, the Agency’s results have been in line with expectations. In particular, representatives of the downstream industry emphasised the positive impact of the GSA on market development during the reporting period. Through the achievement of all the milestones set for the period, as well as the feedback from stakeholders, it can be concluded that Galileo & EGNOS are on track to reach the long-term objectives set by the GNSS Regulation for 2020. GOVSATCOM Civilian and military users stressed the multiple operational benefits in terms of security and guarantee of access of the GOVSATCOM initiative, in particular for the many civilian user communities which today have no access to secure satellite communication. Such an access, as primary or back-up system, is indispensable to carry out security critical missions and operations, to tackle new risks and threats, and to seize the opportunities provided by new applications (drones, internet of things) and geographic areas (Arctic). Industry, too, is largely supportive of the planned programme, and underlines in particular the multiple benefits of a) overcoming the current market fragmentation on the user side; b) having the EU as a stable and predictable anchor client, comparable with the processes and mechanisms in place in third countries like the US, and c) having a single set of EU-wide security and accreditation standards. This will also generate a positive impact on R&D, and enhance the competitiveness of European businesses in the global market. Space Situational Awareness Following the organisation of the user workshop on 23 February 2018 and a user campaign (June 2017), users have clearly indicated the necessity to establish an SSA programme. In the field of SST, users have encouraged the Commission to push towards more ambitious EU services in order to cope with the existing and upcoming needs. Moreover, the users have clearly highlighted the necessity to develop EU SST capabilities in order to work in complementarity with the US. This involves the development of new assets and a significant investment in new capabilities. For Space Weather the intended approach of the Commission, i.e. selecting the future services according to users' needs, has been well-received. There was a clear demand regarding European continuous operational space weather services.. Public consultation 2018 An open public consultation was launched in the beginning of January 2018 within the framework of the preparation of the next MFF, which ran for 8 weeks. The consultation covered the broader policy area of strategic infrastructures, which among other policies also covered space. Of the 441 responses received, 33 were related to space. It should be noted that this public consultation triggered a much smaller number of replies relevant to the space programme than the consultation for the preparation of the Space Strategy. Respondents confirmed the long-term sustainability of Europe’s space capability to be a very important challenge, as well as the importance of promoting economic growth and jobs, which was a key consideration for the business representatives. The respondents confirmed the EU added value of the current space programmes and highlighted their strategic dimension and the need for adequate funding. Stakeholders supported simplification efforts and while many see the current programme design and governance as adequate, others see scope for better coordination between the various actors and potential for further synergies. Business stakeholders and public authorities share similar views regarding the challenges and EU added value. Both groups point out the importance of flexibility to react to unforeseen circumstances and to new user needs. Both also support most suggestions to simplify and reduce administrative burden. NGOs on the other hand have less clear positions except for the unanimous support to address environmental and climate issues. The findings of the consultation also included a certain number of elements considered as obstacles to achieve the programme’s objectives. They were mainly linked to administrative capacity to manage programmes, lack of flexibility to react to unforeseen circumstances and to new user needs, as well as difficulty to ensure the sustainability of projects when the financing period ends. 2.THE OBJECTIVES 2.1.Challenges for the EU Space Programme In the next MFF period, the EU Space Programme will have to deal on one hand with global evolutions at environmental, economic, security and geopolitical levels, and on the other hand with challenges directly linked to programme implementation. The key challenges are provided here below.

Challenges coming from political and global developments Climate change has become obvious and major initiatives have been taken at national, EU and global level to ensure a more effective fight against global warming and future ecologic disasters. In particular, the commitments signed by a vast majority of countries during the COP21 will make the data provided by the independent Earth Observation of Copernicus more and more crucial and will enable Europe to take global leadership in this effort. The digitalisation and the new economy have now taken over more and more sectors, leading to a need for immediately available data and communications. Security and safety of people and goods remain a major concern of European citizens, which can be addressed with the evolution of security services supported by the EU Space Programme. The importance of security and safety was highlighted in the Rome Declaration of 25 March 2017, signed by the leaders of the 27 Member States, European Council, the European Parliament and the European Commission. The security of infrastructures is crucial for both the private and public sectors which both need assurance against critical events that could jeopardise their assets (for instance satellites) and, as a consequence, their activity. With an evolving geopolitical context and new competition (and possible threats) from third countries, the Union's autonomy of action becomes even more critical, in all areas that are key for security and defence, and in particular in space. In terms of competitiveness, the European space industry is facing tough competition from traditional, emerging and new space powers and industrial actors. Moreover the business environment is shifting focus from infrastructure to applications and services. This puts the European industry under pressure (from launchers to satellites to downstream service providers). These economic and business shifts constitute a major driver of change for the sector which calls for the need for EU-level intervention in order to accompany this transition and allows a smooth and balanced transformation of the sector. Challenges based on lessons learned from existing activities i) Governance (including security governance) The cross-cutting elements such as simplification, flexibility, coherence, and performance focus are existing challenges as indicated in the mid-term review recommendations and will be a keystone of the proposal for the next MFF. Indeed the current EU space programmes are already operational and their general organisation needs to be streamlined to be even more efficient than they are already today. As mentioned in the “lessons learned” section, a simplification and a more coherent approach needs to be implemented, notably for security management, the GNSS governance and the SST governance. ii) Data distribution and access The success and quality of data, in particular from Copernicus, happened to be higher than expected. The quality and volume of available data make it necessary to specifically work on the means to enhance the distribution of and access to these data to the different economic operators using them. iii) Linking space data with other policy areas and economic sectors by increasing user uptake As both the space strategy and the mid-term review underlined the need to strengthen the integration of space data across society and the economy, measures are needed to facilitate the uptake of Copernicus data in: i) different public policy areas; ii) a large variety of economic sectors; iii) in the emerging downstream ecosystem; iv) in the research community; v) by third party actors (NGOs, international etc.). 2.2.Objectives of the EU Space Programme General Objectives The Space Strategy for Europe proposes the following four strategic goals: (1) Maximising the benefits of space for society and the EU economy; (2) Fostering a globally competitive and innovative European space sector;

(3) Reinforcing Europe’s autonomy in accessing and using space in a secure and safe environment; (4) Strengthening Europe’s role as a global actor and promoting international cooperation. These goals were endorsed in 2016 and are still in line with the subsequent lessons learned from the programmes during the mid-term reviews and the general context: importance of the security of the infrastructure (and, as consequence, of the security governance), importance of the space sector as an economic enabler and of a strong independent EU space industry, importance of continuity in providing information, data and services leading to benefits for society. In line with these strategic goals, the general objectives of the Programme shall be to support the competitiveness of the Union industry and ensure the freedom of action of the Union and its strategic autonomy, including by enabling technological and evidence-based decision-making, notably by: (a) providing, or contributing to the provision of, high-quality and up-to-date and, where appropriate, secure, space-related data, information and services without interruption and wherever possible at global level, (b) ensuring the Programme's components remain at the most modern stage of technological development, provide services that meet existing and future needs and are able to meet the Union's political priorities, including as regards climate change and security and defence; (c) maximising the socio-economic benefits from the Programme, including by promoting the widest possible use of the data, information and services offered by the Programme; (d) promoting the role of the Union in the international arena as a leading stakeholder in the space sector and strengthening its role in tackling global challenges and supporting global initiatives, including as regards climate change and sustainable development. Specific objectives: The Space Programme needs to ensure, through simplification and streamlining, that the EU fully exploits the economic and societal potential that space can bring by achieving the following specific objectives: •Ensure the continuity of the existing space infrastructures and services, and the development of new or enhanced ones. In order to continue providing high quality data and deploy innovative services for Galileo, EGNOS and Copernicus as compared to global competitors, new satellites have to be launched (as satellites have a limited lifetime and need to be replaced after several years) and the infrastructures on the ground need maintenance, upgrade and security improvements. In order to avoid obsolescence and remain at cutting edge of technology, it is important to upgrade the existing space infrastructure, as done by other space nations. In particular, there is a need (1) to provide state-of-the-art and, where appropriate, secure positioning, navigation and timing services and (2) to deliver accurate and reliable Earth Observation data and information to support the implementation and monitoring of policies of the Union and its Member States in the fields of the environment, climate change, agriculture and rural development, civil protection, safety and security, as well as the digital economy. •Foster an innovative European space sector that can compete globally. The programme should continue to support and reinforce the competitiveness, entrepreneurship, skills and capacity to innovate, with particular regard to the position and needs of small and medium-sized enterprises and start-ups. At the same time, it encourages the transfer and cross-fertilisation of technology with non-space sectors. The Programme should promote the role of the Union in the international arena, as a leader in the space sector and strengthen its role in tackling global challenges and supporting global initiatives. Through the strengthening of international cooperation, European position will be reinforced at global level which will support, through economic diplomacy, EU industry and technology. •Maintain the EU's capacity to have autonomous access to space relying on a EU independent industry, guaranteed access to EU space data and services and use them safely and securely. Space capacities shall contribute to an autonomous, secure and cost-efficient capability to access space; therefore it must mitigate dependence on external actors to build, launch and operate satellites. The Space Programme shall (1) enhance SST capabilities to monitor, track and identify space objects; monitor space weather; and map and network Union Near Earth Object capacities; and (2) ensure the long-term availability of reliable, secure and cost-effective satellite communications services, with an appropriate guarantee of access and robustness to withstand ill-intentioned acts. The above objective of continuity of services will support the user uptake of Galileo, EGNOS and Copernicus space-based applications. Developing enhanced services is needed in order to respond to major political and global challenges linked to climate change and security of people and goods for Copernicus and to develop new markets for GNSS. The cross-cutting objective of fostering an innovative space sector and its competitiveness will to be supported by activities of the new programme to accompany the development of the new economy, digitalisation and internationalisation of the European space industry.

The objective of maintaining autonomy and security responds to the challenges regarding the Union's autonomy and ensuring the security of space infrastructure ("security for space"). The security of the EU and its citizens will benefit from the development of space services ("space for security"): Galileo-PRS, Copernicus security services, GOVSATCOM. In order to increase the safety and security of EU citizens a secured access to telecommunications in case of major crisis is needed. To face the cross-cutting challenges of flexibility, simplification, synergies and performance, the Space Programme need to address the weaknesses related, to some extent, to the governance, by streamlining the programme organisation and by looking for synergies in particular in the security management and user uptake/market development aspects. The role of the GSA will be reassessed in this context as further explained in Chapter 4. Baseline scenario (EU 27 reflecting UK's withdrawal from the EU) The current budget for Galileo and EGNOS amounts to € 6.8 billion and for Copernicus to € 4.3 billion, leading to a total amount € 11.1 billion for 2014-2020. This current budget, taking into account the inflation, would amount to € 12.5 billion at 2021-27 prices. The baseline scenario would amount to € 10.6 billion, a reduction of 4% compared to the current budget of € 11.1 billion but a reduction of 15% compared to the inflated current budget of € 12.5 billion. Since GNSS and Copernicus activities are financed by the EU budget and they do not deliver revenues, as decided by Member States, the EU budget should cover all the necessary expenditures to develop and maintain the infrastructures and associated services. The baseline scenario, corresponding to a decrease by 15% of the current budget, would be as follows: Activities Current MFF

(in € billion) 2014-20 price Current MFF

(in € billion) Equivalent in 2021-27 price Baseline scenario (in € billion) 2021-27 price Galileo + EGNOS 6.8 7.7 6.5 Copernicus 4.3 4.8 4.1 Total 11.1 12.5 10.6 The baseline scenario would severely jeopardise the objectives of an EU Space policy as highlighted in the Space Strategy for Europe. A cut in the current budget to reflect EU-27 Member States' contribution would not allow addressing the specific threats, challenges and opportunities previously described. GNSS In particular, the baseline scenario might allow EGNOS to remain operational but could not sustain the provision of Galileo services: a cut by 15% of the inflated current budget would mean that the Galileo programme would be stopped in the coming decade. The final constellation of 30 satellites with infrastructure operations, to be achieved by 2020, could not last due to a lack of budget to invest in satellites and launchers. This would put at risk the delivery of Galileo services, as investments in infrastructure are needed to be planned several years in advance. It would mean that the accuracy and availability of the services will degrade drastically after 2025/2026 and will cease in 2030 as further replenishment of satellites and associated launchers cannot be afforded between 2021 and 2027. The gradual derived obsolescence and the lack of technological evolution, due to this absence of investment would also put at risk the services adoption by the users and lead to a steady decline of the programme since existing satellites could not be renewed. Without the evolution of the technology and services, and just with a mere extension of constellation life time using current technologies, the service performances would decrease with respect to the other competing GNSS constellations (GPS, Glonass, Beidou). In parallel, industries and developers would lose confidence in developing and investing in user segments elements and applications compatible with Galileo. Consequently, stopping the implementation of Galileo and EGNOS would have severe political, economic and social consequences. The EU would lose its credibility as a strategic partner providing global satellite navigation services for its own citizens, industries and international partners. The overall investment into Galileo and EGNOS (of more than 12 billion EUR since 2007) and expected indirect economic impacts would be lost, together with the potential for innovation and building up a high-tech knowledge base in Europe. From the global perspective, the position of Galileo as a global satellite navigation system would be lost. Copernicus Similar consequences can be expected for Copernicus since the whole Copernicus architecture could barely continue, let alone making any improvement possible, by preventing the full replacement of the existing satellites when they would reach their end of life in orbit. Any competitive advantage acquired in the last three years of data supply for business applications development would be also quickly lost. Moreover, no response to acknowledged political challenges regarding greenhouse gases monitoring and security would be possible. New services In addition to the decline of the existing EU space activities, security-related services already politically affirmed such as GOVSATCOM and SSA could not be initiated. The SST for instance would remain a mere intra-state coordination with very limited results at EU level whereas the other SSA components – Space Weather and Near Earth Object - would never start.

Globally this situation would severely reduce the broader investments in the space sector and significantly impact the industry and all the European SMEs in the space domain and beyond.



3.Programme structure and priorities 3.1.Structure of the EU Space Programme The EU Space Programme regulation will cover the general common objectives and horizontal activities (actions in support of access to space, international cooperation and space economy). The specificities of the different EU space actions will also be described in this regulation. The EU space actions are: -Global Navigation Satellite Systems (Galileo and EGNOS) -Earth Observation (Copernicus) -Space Situational Awareness (SSA) -Governmental Satellites Communication (GOVSATCOM) The proposed scenario corresponds to a budget of € 16 billion as detailed below: Activities Current MFF

(in € billion) 2014-20 price Current MFF

(in € billion) Equivalent in 2021-27 price MFF Proposal (in € billion) Current price Galileo + EGNOS 6.8 7.7 9.7 Copernicus 4.3 4.8 5.8 SSA/GOVSATCOM 0.5 Total 11.1 12.5 16 GNSS (60% of the total allocated budget: continuity 59%, evolution 1%) A sustained level of funding for GNSS would ensure continuity in the operations and service provision. To continue to deliver the existing services includes the investment in launchers and satellites to sustain a Galileo constellation of 30 satellites. It is worth noting that past investments on Galileo were done over two MFFs for a total of more than € 10 billion. A proper funding would also ensure technological evolution of the GNSS systems (representing approximately 1% of the allocated budget). Technology evolution will be the cornerstone of Galileo second generation deployment. The system needs to keep up with competing GNSS systems, attracting the interest of the user segment and application developers on one side, and of receiver integrators and final users on the other. A second generation of satellites based on the very same technology of the first generation, or less performing than competing GNSS constellations, would be less attractive to industries, developers and users; it would most probably lead users to reorient towards the competing constellations.

The flourish of the applications markets, based on European independent GNSS capability, shall be ensured through the continuous operations of Galileo and EGNOS. This would be in line with the intentions laid out in the Space Strategy and would satisfy the needs of the most demanding applications in the civil and security domains, as well as in the new and emerging applications markets (such as connected and automated driving). This scenario requires the procurement of a sufficient number of new generation satellites and launchers to guarantee the provision of high quality services. Copernicus (36% of the total allocated budget: continuity 33.5% and new missions 2.5%) A sustained level of funding of Copernicus would allow the EU to maintain its autonomy and leadership in environmental monitoring, emergency management and support to border and maritime security and establish a level of confidence for the downstream sector to use and integrate Copernicus data and information based on the existing Copernicus infrastructure and services. This would represent an increase compared to the current Copernicus budget (+11%) to take into account notably the inflation of prices. An increased effort (of about 2.5% of the allocated funds) would partially allow to enhance services and to respond to emerging needs to include new observation capacities in support of: • Environmental needs, focusing on climate change (such as CO2 emission monitoring supporting the objectives of the COP21 Paris agreement), land use including support to agriculture, and observations of the Polar areas; • Security needs by strengthening current missions and developing new capacities, for example to improve detection of small objects (e.g. vessels) and revisit time in support of the fight against illegal trafficking or needs for external actions. Other actions (3% of the total allocated budget) ·A dedicated SSA (representing 1.5% of the proposed budget) with a strong SST component would allow the protection of the current EU assets. In addition, it will reinforce the EU institutional leadership in this area, progressing towards less dependence vis-à-vis the US, whilst protection against two other space hazards (SWE and NEO) would not be affordable with the allocated budget. ·A dedicated GOVSATCOM, (representing 1.5% of the proposed budget) would allow providing essential capabilities – guaranteed access to secure satellite communications – to security actors. In Member States, it will support national police, defence and border protection forces, as well as maritime communities. At EU level, it will facilitate the work of EU Agencies and Services, such as FRONTEX, EMSA and ECHO, and enhance the effectiveness of civil protection and humanitarian interventions in the EU and globally. This represents the first activities of the scenario 3 presented in the GOVSATCOM impact assessment. The horizontal activities will be financed through the budget allocated to Galileo, EGNOS and Copernicus. They do not represent any major change with respect to activities already pursued in this MFF which are: -Support to access to space to cover the launch services needs of the EU programmes and the incremental technical developments and modifications of ground infrastructure in relation to launch needed for the EU activities (with a focus on the first action proposed in the Space Strategy: “aggregating the demand for launch services”). -Support to space economy (start-ups) in the form of soft measures; for example, facilitate the establishment of space hubs across Europe building on existing capacities and the deployment of a common toolbox of measures such as incubators, accelerators, summer schools in full coherence and synergies with other Union programmes such as InvestEU and Horizon Europe. -Support to the international dimension of space such as continuing activities to favour the exchange of data, ensuring the presence of the Commission in major international organisations linked to the use of space signal or data. 3.2.Expected impact Copernicus The economic, environmental and societal impact of Copernicus has been analysed in a detailed cost-benefit study. The main outcome is that Copernicus is expected to generate € 67 billion to € 131 billion of benefits to the European society between 2017 and 2035. About 84% of the benefits will be generated in the downstream sector and end user segments (the rest in the upstream and midstream). Ensuring the continuation of the programme after 2021 would generate benefits 10 to 20 times the costs.

60% of the European Earth observation downstream companies use Copernicus Sentinel data and 32% use products from the Copernicus services. Copernicus already enables more than 10% of the income of European Earth observation downstream companies. Already now downstream and end user benefits from: Economic benefits, e.g. -Increased revenue in the Earth observation downstream sector -Improved agricultural productivity thanks to smart and precision farming Environmental benefits, e.g. -CO2 emissions saved thanks to increased renewable energy production -Hectares of forest saved thanks to improved fire prevention -Biodiversity preserved thanks to land cover-use monitoring Societal benefits, e.g. -Life saved thanks to faster response to natural disasters -Reduced trafficking thanks to improved border surveillance In the upstream sector the creation of about 12,000 job-years are expected, which represents an average of 1,700 permanent jobs between 2021 and 2027. This comes on top of the 18,000 job-years supported between 2008 and 2020. In the downstream sector the creation of 27,000 to 37,000 job-years are expected. Additional benefits are non-quantifiable (due to lack of data or high uncertainty) but are extremely important for political decisions: -The value of European autonomy (non-dependence on third country data sources). -Very long-term benefits (30-50 years) of observing planet Earth on a sustained and regular basis (with growing important of sustainable development and fight against climate change) -Cost-savings of having a single EU programme and co-ordinating national initiatives -Benefits associated with external actions.

Galileo and EGNOS According to a the detailed survey by the GSA’s GNSS Market Monitor , the global market for satellite-based navigation products and services will continue its strong growth, reaching about €250 billion by 2030. The added value of the European GNSS lies not only in ensuring Europe’s independence with regard to a critical technology but also in securing important macro-economic benefits for the European Union, catalysing the development of new services and products based on GNSS and generating technological spin-offs beneficial for research, development and innovation. Just a few months after declaring Galileo services operational a number of Galileo-ready devices such as smartphones and car navigations hit the mass market. All main chipsets (sold by 17 major suppliers worldwide, representing 95% of the market) that are used in smartphones, tablets, cars, professional survey equipment, etc. use Galileo. Today more than 100 million user devices enabled for EGNOS and/or Galileo services are in the hands of European citizens, while the shipments of GNSS devices in the European Union is expected to reach the 290 million in 2027, representing a much larger base of users for EGNOS and Galileo. In addition to that, as of April 2018, all new car models submitted to type-approval will have to include an e-call system that is compatible with Galileo. With transports, telecoms, agriculture and safety being the most affected sectors, it is expected that end users will benefit from: -a number of new GNSS applications; -3,000 jobs in the upstream industry and 50,000 jobs in the downstream industry; -improved transport services and better traffic management, which will benefit a broader range of areas; -more efficient and easily accessible emergency services; -environmental benefits, such as reduction of the CO2 emissions; and -improved crop management and sustainable food availability. Secured satellite telecommunication (GOVSATCOM) The EU GOVSATCOM will provide crucial capabilities to security actors at EU and national level through guaranteed access to secure satellite communications. It contributes directly to the EU's priorities on security and defence. In Member States, it will support for example national police, defence, border guard and civil protection forces, as well as maritime communities. At EU level, it will facilitate the work of EU agencies, such as FRONTEX and EMSA, and enhance the effectiveness of civil protection and humanitarian interventions in the EU and globally. The impact assessment report for GOVSATCOM was already presented to the Regulatory Scrutiny Board on September 27th 2017 and received a positive opinion. Space Situational Awareness (SSA) SSA is a major action to ensure the security of the Space Assets. Indeed, following the steep increase of launches, there has been an exponential proliferation of space debris. According to the data provided by the United States more than 500,000 pieces of debris, or “space junk,” are orbiting the Earth and represent a very important threat to the satellites in orbit: despite their limited size (lost screws, nuts, any kind of small parts lost by a satellite), they travel at very high speed (up to 10 km per second) which gives them a very significant kinetic energy. They are thus likely to create severe damages to any satellites in case of a collision, potentially leading to a full destruction. The proposed SST actions would encompass funding of SST services provision, and networking and upgrades of existing national SST capabilities, with possible support for development of new SST assets. The objective would be to increase the performance and effectiveness of the EU SST and its complementarity with the US. This will allow the EU to better prevent collisions of satellites with debris and thus offer a better protection of EU assets. The following impacts for Space Weather and Near Earth Objects are presented for information since the current budget does not allow for a financing of these actions. Space Weather encompasses different types of events (storms of radiation, fluctuating magnetic fields, and swarms of energetic particles), each of them having a different effect on space based assets or ground assets. All EU assets constituting the basis for EU space actions can be potentially impacted by Space Weather and therefore the development of a framework for Space Weather is necessary to protect them and ensure efficient and reliable services provided by other space activities. The EU space actions are directly impacted by Space Weather events which may distort the navigation signals (GNSS) or the quality of data (Copernicus); ionosphere prediction services allowed by the Space Weather component are key to implement mitigation measures compensating the effects of these magnetic and ionospheric radiations Space Weather services are being developed and coordinated by ESA and some Member States. However, those are mostly focused on science and need to be tailored to meet the operational users' needs. Building on and in complementarity to the ESA and national activities, the EU proposes to support the continuous provision of operational space weather services according to the EU users' needs. This will help prevent damage to space and ground infrastructures.

Regarding Near Earth Objects (NEO), the aim is not to develop new operational services but to map and network the existing NEO assets in Europe and support coordination between EU public authorities concerned with civil protection. This will support federating activities at EU level and thereby strengthening its position towards key international partners. Horizontal activities ·Support to the space economy in particular start-ups and market uptake The space sector employs over 230,000 professionals in Europe. Aside the major big players (Airbus, Thales, OHB, etc.) are numerous SMEs and a growing number of start-ups, working in very different areas and covering the whole chain of expertise the space industry needs: electronic applications, ad hoc pieces, high technology wires or sensors etc. Every major contract signed within the framework of the European Space Programme provides positive economic outcomes to a huge number of sub-contractors in all European Countries. The role of the European public procurement is crucial to help SMEs maintain their technological advantage, in addition to the business opportunities it creates. Reaching the objectives identified in the Space Strategy will require a stronger implication of the industrial sector. Because of their greater agility and their easier access to market information, companies can use EU space-based data and information to develop tailor-made applications, reach out to new users, communities and sectors and sell products in international markets. The downstream companies - and in particular entrepreneurs and start-ups - are thus a fundamental link between the EU space actions and their end users. Thus the Commission initiated a "start-up programme", to promote start-up creation and growth in the downstream sector of its space activities. The EU will continue to focus on actions aiming at maintaining the right ecosystem with soft measures like space hubs building on existing capacities (clusters, boosters, Galileo/Copernicus masters, technology brokers) and the deployment of a common toolbox across such hubs. Additionally, space programmes shall be deployed in such a way so as to broaden participation providing opportunities to new comers. Actions shall be developed in full coherence and synergies with other related Union programmes, notably the research and innovation programme, InvestEU, the internal market programme and European Structural and Investment Funds. ·Access to space The Space European industry is strongly boosted by the launcher manufacturing activity, which is the second largest in the sector just after the commercial satellites manufacturing. Currently, there are three operational launch vehicles guaranteeing access to space for Europe: Ariane 5, Vega and Soyuz. In the present industrial setup, ArianeGroup is the industrial prime contractor for the production of the Ariane 5 launch vehicle, ELV is the industrial prime contractor for the manufacturing of the Vega launch vehicle and the Soyuz launch vehicle is manufactured by the Progress Rocket Space Centre in Samara, Russia. In 2014 the launcher economy in Europe was estimated at around EUR 2.4 billion. More than 500 European industrial actors participate in the manufacturing chain of Ariane 5 and Vega. According to the OECD, they account for nearly 36,000 employees in the space manufacturing sector in Europe. The launcher manufacturing process includes the production of the core sub-systems (e.g. solid boosters, cryogenic engines, structures, electronics and avionics) and the integration of those sub-systems by the prime integrator. In line with the crucial strategic objectives of leadership in the space sector, the issue of access to space is key to enable Europe to achieve its objectives. Access to space consists of all components necessary to ensure transportation of assets from ground to space including space and ground segments in addition to manufacturing and exploitation aspects. As such it constitutes a critical and indispensable capacity for the space sector. Having a guaranteed access to space means being able to launch satellites and their payloads into space without the risk that a foreign launch service provider places any restrictions on their use. Access to space is therefore strategic for security, defence or institutional needs, as well as commercial purposes. Maintaining Europe’s capacity to accessing space should remain a strategic priority. This is important to maintain the competitiveness of the European space industry (in its entire value chain), but also to ensure the seamless implementation of the EU programmes for which flexible solutions are needed. The Union is a user of launch services for its space actions and underpins research and technology development for access to space. In the endeavour to ensure an autonomous access to space and Europe's ability to use it freely and safely, the Space Strategy for Europe outlines the following actions: (i) aggregating the demand for launch services; (ii); supporting European launch infrastructures; and (iii) developing commercial markets. Under the next MFF, the Commission will focus on the first action proposed in the Space Strategy (“aggregating the demand for launch services”). This will be attained through the establishment of a common set of requirements and procurement rules. According to studies performed by ESA in view of the preparation of the exploitation phase for the next generation of European launchers, the aggregation of Union demand will be a significant enabler of the economic model inducing economies of scale (e.g. 40% cost reduction of Ariane with respect to its predecessor (Ariane 5) or increased performance of VEGA from 1,400 kg to 2,300 kg at Sun Synchronous Orbit without additional charges). Both the Council and the Parliament have reacted positively to the strategic importance that independent access to space in Europe represents. ·International dimension of Space The success of the EU Space Programme is an essential condition to strengthen the role of the EU in international organisations and ad hoc or specialised forums. The legitimacy of EU to be represented in the relevant multilateral framework (Group on Earth observation, Committee on Earth Observation Satellites for instance) can only derive from clear and continuous success in the different areas of space. The ability of Europe to maintain its autonomy in the space sector, the continuous innovations of its Programme are key factors needed to put Europe in the front scene of the global space community thus enabling Europe to become a key leader in the major decisions taken there (norms, constraints, international agreements etc.).

3.3.Priorities of the EU Space Programme The priorities of the Space Programme for the coming years derive from the challenges and objectives described above. The priorities are listed below and detailed afterwards. 1/ Continuity of services for Galileo, EGNOS and Copernicus (93.4 % of the allocated budget) 2/ New missions for Copernicus (2.5% of the allocated budget) and evolutions for Galileo (1% of the allocated budget) 3/ New actions: SSA and GOVSATCOM (3.1% of the allocated budget) Based on the budget allocated in the MFF proposal, most of the funds will be used for the continuity, leaving a minor part for the new mission/evolution and new actions. The first priority is the continuity of the existing Galileo, EGNOS and Copernicus services. Copernicus, EGNOS and Galileo are all in operational phase. They provide critical data and services, which are used by a variety of public and private companies to provide end-users with new applications and services. To continue providing these data and services, it is essential that the existing infrastructure is operated, maintained (incl. obsolescence management) and secured. New satellites will need to be launched to replace satellites ending their lifespan and the ground infrastructure will need to be maintained and improved as well. The continuity of the services will be accompanied by a streamlining of the governance and the security management, as explained in section 4. This priority represents an increase compared to the current space budget, in 2021-2027 prices, as major investment notably in satellites and launches are mandatory to ensure the continuity of the services. There is no sub-priority within this first priority because GNSS and Copernicus are both key for the European economy and the Member States. By the same token, existing SST services need to continue to ensure a minimal level of protection of EU space assets. The second priority, supported by the Space Strategy for Europe process encompassing the latest political imperatives focusing on additional enhancements of existing programmes, is to provide to the end-users new services for Copernicus, addressing the new EU priorities notably in the areas of climate and security. For Copernicus, these are totally new missions implying new investments for approximately 2.5% of the proposed budget. This will ensure a partial implementation of these new missions. The third priority is linked to new activities: ·To develop Space Situational Awareness activities in order to give the European Union more autonomy and expertise in the field of space hazard prevention and mitigation. Into SSA, the first priority will be to continue and develop SST services at European level. In addition to SST, if additional funds are available, the programme could be completed by initial Space Weather services and, subsequently, by activities in support of Near Earth Object service. ·To provide guaranteed access to secure state-of-the-art satellite communication services for authorised governmental users at EU and national level; These new activities represent approximately 3.1% of the proposed budget. The risks linked to the continuity of Galileo, EGNOS and Copernicus services and their evolutions are limited on the basis of several years of experience in implementing these activities. This implementation has proven to be successful as per the conclusions of the related mid-term reviews, confirmed by the continuous delivery of services and data. Regarding horizontal activities, there is no major risk associated to their implementation as they are cross-cutting activities not linked to specific infrastructure development. The main risks are related to the development of SSA and GOVSATCOM as they are new activities. Yet, these risks are mitigated since: - An important part of the SSA activities has already started with the support framework SST (5 years). Lessons learned from the first years of implementation are currently leading to changes in the structure and implementation of the programme (governance, decision-making process etc.). The new regulation will take into account these necessary changes in order to reduce the risks of non-achievement of the objectives.

- The GOVSATCOM initiative is planned to be gradually implemented in order to allow enough flexibility and adjustment to evolving demand and needs. In addition with the expertise of the EU in the field of space actions management, this will allow, together with the modularity of the initiative, to adjust its scope in order to avoid, for instance any oversized procurements. 3.4.Basis for EU intervention (legal basis, subsidiarity and proportionality check) Article 189 TFEU is the main basis for the Union's competence in the area of space policy. It is a shared competence with the Member States. Developing and operating a Space Programme exceeds the financial and technical capacity of individual Member States and can only be achieved at EU level. There is no viable business case for the commercial sector and no possibility for any individual Member State to build and operate the necessary infrastructures. No Member States could have achieved on its own the development of the GNSS and Copernicus infrastructures and services. It is the role of the European Union to ensure the development of EU-wide space infrastructures and EU-wide space-based services to the benefit of all. The current model for space navigation being a free access to the satellite signals, no private investor would invest in a global navigation system, in particular in view of the existence of two major competitors (US GPS and Russian Glonass) which offer completely free access to data for all users. This is illustrated by the inability of the originally designed Private Public Partnership to successfully develop the original GNSS European Project in the 1990s, resulting in the EU investing in this public critical infrastructure. Furthermore, the global costs of such a constellation (satellites and ground infrastructure, including their renewal and improvement) are too high for a single Member State of the EU. The implementation at EU level of Galileo and EGNOS has brought a high added value compared to what could have been achieved by the Member States at national, regional or local level. The size and complexity of the programmes require implementation at EU level, as no viable alternative exists to ensure an appropriate return on investment. Stakeholders agree that the continuation of the programmes implementation at EU level is a condition for the achievement of the Galileo and EGNOS objectives, allowing a proper allocation of both budget and technological knowledge. Galileo and EGNOS are critical European infrastructures that contribute to a safe and secure Europe. They also promote a stronger Europe on the global scene. Given the increasing competition with other satellite navigation systems (all State-owned), it is crucial that Europe develops and sustains its own systems to remain a world-class actor in space and a partner of choice on the international scene. Copernicus is building a competitive European capacity to deliver actionable geo-intelligence for civil protection and civil security, as well as Earth observation-based services and applications, to support the protection of the environment. The customers for the delivered data were initially thought to be the public sector. Afterwards as the data exist, it was decided to provide them for free to the private sector to boost their use and the related added value for the EU economy. For this programme, as described above for satellite navigation systems, the private sector will not take the risk of investing in large infrastructure for a single customer (the EU) who will then provide data for free. Copernicus offers a public sector service which is not catered for by the market (e.g. systematic environmental monitoring) and for which industry will not deploy infrastructure because the initial investment is too high, too risky, or the user base is too fragmented (problem known in economics as a coordination problem): no company will, for instance, build a CO2 constellation for reasons other than public sector demand. The availability of such data, should it be left to the private sector alone, would thus remain uncertain, with the additional consequence of not owning the relevant assets. Another point is the time scale of such a programme: in addition to data from Copernicus programme being currently used, large amounts of data are being stored every day for a future use in the long-term (10, 20, 50 years; possibly longer) in the context of environmental and climate monitoring. These future uses will depend on the improvement of data analytics technologies and the knowledge in sustainable development that will have been built up by then. These types of investments are often of a public nature as they remain too risky for the private sector, and address areas where return on investment is too long-term (in particular, they are outside the satellite lifetime during which private operators need to redeem their investments). Additionally, Copernicus, with its free, full and open data policy enables the development of new and unforeseen applications in a large number of sectors and policy areas. This includes, in particular, Europe’s role as a global player in the international domain. In that regard, Copernicus is a public good, in the same way as transport or energy networks. The ownership of satellites is in the long-term the best way to implement and maintain the objective of a free, full and open data policy, since the EU will not depend on the will of a private operator to invest in a constellation of satellites to provide data (risk of monopolistic situation of a private data provider). Overall, the set-up of a Europe-wide space data ecosystem (i.e. further improvement of the efficiency of overall investment into space) requires to have "basic and steady" reference missions around which others (MSs, private companies, Private Public Partnerships) can build their missions as a complement without needing to invest in these mutualised resources. As previously stated, no Member States or private company has the financial capability to build projects of that size alone. Furthermore, the pooling of resources at EU-level is a clear source of cost efficiency compared to the cost of multiple national major space actions. In short, regarding Copernicus and EGNSS, the timeframe for investment and the uncertainty of sufficient revenues imposes a public financing. In a similar manner, SSA and GOVSATCOM are on their own unaffordable to be financed at national level. There is a further benefit of pooling resources and assets at EU level. Furthermore, actions and programmes relating to space require active cooperation and coordination of national and/or international capacities (e.g. national in-situ contribution to Copernicus or pooling and sharing of national infrastructures such as MS-owned satellite communication capacities). The envisaged EU Space Programme is considered to be proportionate as it is limited to those aspects that Member States cannot achieve satisfactorily on their own, and where the Union can do better. The strong support from Member States for the Space Strategy shows that Member States consider the elements of the Space Programme as essential. 4.Delivery mechanisms of the intended funding 4.1.Similarities and differences of the EU space actions The EU space actions have similarities, but are also sufficiently different in key aspects to demand tailored delivery mechanisms – one size does not fit all.

The similarities are in particular the funding by EU budget, resulting at least in part in EU owned assets. The Commission, as executive arm of the EU is ultimately responsible for the implementation of the budget and is the overall programme manager. All EU programmes are user-driven: the objective is to provide space enabled services to citizens, businesses and public entities, creating added value to society and economy. Although different models have been tested and discussed, so far, all services based on the EU space infrastructure are free of charge. Free-of-charge services considerably simplify delivery of the services, have the highest positive scale effect, enable take-up by SMEs with limited investment capacity, by the scientific community and by individual users, and contribute to solidarity between MS, especially for services related to security and disaster management. Currently, EU space programmes are delivered by a mix of actors: the Commission (including executive agencies and JRC), decentralised Commission agencies (e.g. GSA, FRONTEX, EMSA, EEA), Council agencies (e.g. SATCEN), Member States, non-EU states, and intergovernmental organisations such as ESA or EUMETSAT. Finally, the private sector plays an important role by building space and ground infrastructure and in some cases operating them and providing services. The differences between the EU space actions are visible when analysing different dimensions. In terms of infrastructure investment, ownership and operations in the case of Galileo all infrastructure (space and ground) is owned by the EU; the space infrastructure of EGNOS (payload on communication satellites) is managed by a long term service level agreement with a private operator; for Copernicus the supply is managed by a mix of EU owned satellites operated by ESA or EUMETSAT, commercially procured data, and data provided by Member States or other international partners; SST relies on information coming from MS owned and operated assets, in some cases by the military. GOVSATCOM will rely on existing, security-accredited national and commercial Satellite communication capacities, and provide the services to authorised users for free. In terms of services major difference exists between services which are unlimited (Galileo, Copernicus), and services based a resource that is by its nature limited, such as satellite communication bandwidth. Additionally, the types of services, targeted user communities and delivery mechanisms are different for Galileo (geo-location services requiring compatible devices) and Copernicus (user- and science-driven services generating large quantities of data). The service provider may be public (e.g. EU agencies in the case of Copernicus) or private, such as in the case of EGNOS. In terms of users, an important distinction needs to be made between open use (e.g. Copernicus, open Galileo Signals) and applications that are restricted to a specific group of governmental users (Galileo PRS, GOVSATCOM, Copernicus Security Service). Security aspects also vary widely: GOVSATCOM, SST and Galileo-PRS are security-driven, whereas parts of Copernicus have a limited link to security aspects. In the last decade different governance models have been used for the delivery of Copernicus, Galileo, EGNOS and SST. Galileo started as a public-private partnership, with its dedicated implementing body, and only became an EU programme in 2007, when the implementing role was conferred partly to the Commission, and partly to GSA and ESA. JRC and ESA were at the origin of Copernicus and still play an important role in the provision of some of the Copernicus data and services. At a macro level an important difference exists between the Galileo model, where more and more functions are concentrated in the GSA, which then contracts implementing tasks to the private sector or to ESA, and the Copernicus model, where the Commission directs a distributed implementation, delegating space segment matters mainly to ESA and partially to EUMETSAT, and diverse service implementation tasks to a multitude of relevant EU agencies and qualified operators. 4.2.Delivery mechanisms strands Taking into account the specifics of the different activities, the delivery mechanisms of the EU Space Programme will revolve around ensuring coherence and synergies, and allowing for simplification and flexibility. Simplification and flexibility As pointed out in some lessons learned and recommendations (see section 1.2, sub section GNSS p12), governance simplification, mostly on GNSS, will occur by streamlining the management of the implementation of the actions and the role of the main stakeholders (Commission, GSA, ESA and Member States), bringing coherence and synergies. It also responds to the stakeholders concerns (p15). More concretely, the different actors in the governance will have the following responsibilities: (i) The Commission will be responsible for: ·The implementation of the Union’s Space policy, the management of the EU Space Programme and of the related actions (Galileo, EGNOS, Copernicus, SSA and GOVSATCOM) - including the specific support activities linked to access to space, international cooperation and space economy; ·The definition of the broad lines of the Programme; ·The definition of the main requirements for the establishment and evolution of the services offered by the space actions; ·The supervision of its implementation in particular in terms of costs, schedule and performance, including for funds and tasks entrusted to other entities; ·the definition of high-level security and policy objectives of the actions and the supervision of their implementation. The Commission will thus establish the appropriate instruments and structural measures necessary to identify, control, mitigate and monitor the risks associated with the Programme. The Commission will be responsible for ensuring a clear distribution of tasks between the various entities involved in the EU Space Programme and the coordination between these different entities.

(ii) GSA will be responsible for: ·The exploitation of Galileo and EGNOS (as delegated tasks); ·The operation of the Galileo security monitoring centres; ·The tasks linked to the security accreditation for all the space actions (currently only for Galileo); ·The activities linked to the communication, promotion and marketing of data and information activities with regard to the services offered by all the components of the EU Space Programme (“market and user uptake”) currently performed only for Galileo and EGNOS; ·The management of the intellectual property rights. Furthermore the regulation will open for the GSA the possibility to implement other tasks in support of all space activities. For example, in case of crisis management missions and operations, the GSA could be responsible for the overarching coordination of user-related aspects of GOVSATCOM in close collaboration with relevant Union agencies and EEAS Simplification and streamlining come from the following: ·All the security accreditation for all the space actions will be dealt by GSA based on the experience acquired with Galileo. This is an important governance aspect of the EU Space Programme considering the need to secure the infrastructure and provision of services. ·The user uptake activities will be centralised in the GSA for all the space actions while in the past these responsibilities were split between the GSA (for GNSS) and the Commission (for Copernicus). In order to carry out all