ANNEX

The Supplementary Opinion of the Consultative Commission on Industrial Change — CCMI/196 — New Space can be found on the following pages.

‘Opinion of the Consultative Commission on Industrial Change on Space-based secure connectivity and new space: a European industrial path towards sovereignty and innovation (supplementary opinion to TEN/775) Rapporteur: Maurizio MENSI Co-rapporteur: Franck UHLIG Plenary Assembly decision 22.2.2022 Legal basis Rule 56(1) of the Rules of Procedure Supplementary opinion Section responsible Consultative Commission on Industrial Change Adopted in section 24.6.2022 Outcome of vote (for/against/abstentions) 21/0/1 1. Conclusions and recommendations 1.1. The EESC supports the European Commission initiatives on space-based secure connectivity and “new space” to strengthen the industrial and operational sovereignty of the Member States. Ensuring autonomy is crucial not only for future industrial competitiveness, but also for ensuring strategic non-dependence and resilience ( 1 ) , as recently shown by the shortage of electronic components, in particular following the COVID-19 crisis and the war in Ukraine, which have severely affected the European space industry. 1.2. The EESC believes that secure, accessible and affordable connectivity is not only an essential tool for the functioning of participatory democracy but also a prerequisite for the proper implementation of fundamental rights and an opportunity for increased empowerment of citizens and civil society. 1.3. The EESC recognises the importance of space for our economy and society, as well as its strategic relevance from a security and defence perspective, as shown by the Russian–Ukrainian war. Moreover, the physical security and cybersecurity of both ground and space infrastructures, together with the related data, are key to ensuring service continuity and the proper functioning of the systems. 1.4. The EESC believes that stimulating the European space ecosystem is key to advancing the twin transitions and tackling major global challenges such as climate change. It also recognises the potential advantages of involving space start-ups and SMEs in EU space programmes, including their contribution to the EU’s resilience and strategic autonomy. 1.5. The EESC firmly believes that as the governance of a secure and autonomous space-based connectivity system (“the Programme”) requires various bodies to work together, an efficient and appropriate degree of coordination has to be guaranteed. 1.6. The EESC considers that the Horizon Europe framework programme, already in place, should be used to stimulate the space market, support the creation of innovative commercial solutions for the EU’s downstream and upstream space sectors and accelerate the availability of the key technologies needed for the Programme in conjunction with the Euro ( 2 ) QCI and ENTRUSTED ( 3 ) initiatives. In particular, a European-based system of components, systems and subsystems would require massive, long-term efforts to restore a strong European industry. 1.7. The EESC recommends that synergies be developed with the European Defence Fund and through the Commission’s action plan on interactions between the civil, space and defence industries. 1.8. The EESC believes that in order to ensure the competitiveness of the European space industry, the Commission’s initiatives should contribute to the development of advanced skills in space-related fields and should support education and training activities, in order to realise the full potential of Union citizens in that area. This would improve the important social dimension of the Programme. 1.9. The EESC stresses the need to take into account all space capabilities for the modernisation of existing space assets (Galileo ( 4 ) , Copernicus ( 5 ) ) as well as for the development of future constellations and services. This will enhance the resilience of the EU’s space assets and foster the competitiveness of its industry. Assigning responsibilities on the basis of demonstrated competence should ensure effective programme delivery. 1.10. The EESC believes that the EU needs to encourage scientific and technical progress and support the space sector’s competitiveness and innovation capacity, in particular with regard to SMEs, start-ups and innovative businesses, thereby stimulating upstream and downstream economic activities. In fact, research and innovation programmes play a fundamental role in increasing the technological capabilities of the Union and its members. 2. Background to the opinion, including the legislative proposal concerned 2.1. The European Commission’s proposal aims to develop a programme for the provision of guaranteed and resilient satellite communications. The Commission is committed to fostering innovation in the space sector and further contributing to the development of a thriving EU “New Space” ecosystem, having included this among the key priorities of its Space Programme. To this end, the Commission has launched the CASSINI initiative ( 6 ) . In particular, it would ensure the long-term availability to governmental users of worldwide reliable, secure and cost-effective satellite communications services that support protection of critical infrastructures, surveillance, external actions and crisis management, thereby increasing the resilience of Member States. 2.2. The initiative is supposed to benefit from the expertise of the European industrial space industry, both from the well-established industrial players and from the New Space ecosystem. Thus, global satellite connectivity has now become a strategic asset for the security, safety and resilience of the EU and its Member States. The proposal also aims to allow commercial high-speed broadband availability throughout Europe, removing dead zones and ensuring cohesion across Member State territories, and provide connectivity over geographical areas of strategic interest, such as Africa and the Arctic region. After Galileo and Copernicus, the proposed third constellation will rely on three new differentiators: security by design (through the use of new technologies, such as quantum) for sensitive communications (defence), a multi-orbital constellation and an architecture based on public-private partnerships (to further boost the commercial dimension). 2.3. The proposal is consistent with a number of other EU policies and ongoing legislative initiatives concerning data (such as the Inspire Directive ( 7 ) and the Open Data Directive ( 8 ) ), cloud computing and cybersecurity. In particular, the provision of governmental services would ensure further cohesion in line with the EU’s digital and cybersecurity strategies by ensuring the integrity and resilience of the European infrastructures, networks, communications and data. The proposal will also support the competitiveness and innovation capacity of space sector industries within the Union and greatly contribute to ensuring Europe’s autonomous and affordable access to space in the coming years, while having a critical and profound positive impact on the competitiveness of European launchers’ exploitation models ( 9 ) 2.4. action plan on synergies between civil, defence and space industries of 22 February 2021 states that it aims to “enable access to high-speed connectivity for everyone in Europe, and provide a resilient connectivity system allowing Europe to remain connected, whatever happens The conclusions of the European Council of 21-22 March 2019 stressed that the Union needs to go further in developing a competitive, secure, inclusive and ethical digital economy with world-class connectivity ( 10 ) . In particular, the Commission’sof 22 February 2021 states that it aims to “enable access to high-speed connectivity for everyone in Europe, and provide a resilient connectivity system allowing Europe to remain connected, whatever happens ( 11 ) 2.5. The Programme would complement the existing EU GOVSATCOM ( 12 ) arrangements on pooling and sharing the existing governmental satellite communication capacity. Due to the limited lifespan of a satellite, several of the governmentally-owned infrastructures that will constitute part of the GOVSATCOM pooling and sharing will need to be replenished in the coming decade ( 13 ) 2.6. The increasing hybrid and cyber threat levels and the propensity of natural disasters drive the changing needs of governmental actors towards higher security, reliability and availability of commensurate satellite communication solutions. Furthermore, the rise of quantum computers adds an additional threat, since these computers will be able to decrypt content that is currently encrypted. 2.7. There has been an emergence of various public-supported or subsidised non-EU mega-constellations in the US, China and Russia. Coupled with the shortage of available frequency filings and orbital slots and the limited lifetime of GOVSATCOM capacity, this creates an urgency for an EU space-based secure connectivity system. The Programme would cover the capacity and capability gaps for governmental satellite communication services. 2.8. The Programme should also allow for the provision of commercial satellite communication services by the private sector. A public-private partnership was assessed in the impact assessment to be the most appropriate implementation model to ensure that the objectives of the Programme could be pursued. It would notably stimulate innovation in all components of the European space industry (large system integrators, independent midcaps, SMEs and start-ups). 2.9. As governments, citizens and EU institutions are becoming increasingly dependent on connectivity, their needs require higher security solutions, low latency ( 14 ) and higher bandwidth, hence the need to have guaranteed access to resilient solutions through innovative technology, and new industrial trends and approaches. The envisaged system will thus be a technology-setter, as highlighted in the proposal. 2.10. In order to be cost-effective and to capitalise on economies of scale, the Programme should optimise the match between the supply and demand of governmental services. 2.11. In fact, satellite communications provide ubiquitous coverage, complementary to terrestrial networks. They are increasingly handled as a strategic asset, which highlights the growing global need for governmental services ensuring resilient connectivity not only to support their security operations, but also to connect critical infrastructures, facilitate efficient and effective electronic cross-border or cross-sector interaction between European public administrations, businesses and citizens, contribute to the development of a more effective, simplified and user-friendly e-administration at the national, regional and local administration levels ( 15 ) , and manage crises, as well as support border and maritime surveillance. 2.12. The establishment of the Programme will follow a gradual approach striving for quality. Initial development and deployment could start as of 2023; provision of initial services and in-orbit test of quantum cryptography by 2025; and full deployment with the integrated quantum cryptography allowing full services by 2028. Its total cost is estimated at EUR 6 billion and the funding will come from different sources of the public sector (EU budget, Member States and ESA contributions) and private sector investments. Regarding the EU funding, it does not undermine the implementation of existing space components of the EU Space Regulation, notably Galileo and Copernicus. 3. General comments 3.1. The EESC believes that in today’s digital world, space-based connectivity is a critical and strategic asset for modern societies. It enables economic power, digital leadership and technological sovereignty, economic competitiveness and societal progress. By giving space actors a more prominent role, the Programme aims to ensure high-quality, secure space-related data and services, which can bring about socio-economic benefits for Europe’s citizens and businesses, enhance EU security and autonomy, and strengthen the EU’s role as a leader in the space sector, allowing it to compete with other leading space economies, and emerging space-faring nations. Moreover, it is also an important technical tool that allows freedom of speech and free circulation of ideas. 3.2. The EESC considers that secure, accessible and affordable connectivity is not only a prerequisite for the functioning of participatory democracy but also a precondition for the resilient implementation of fundamental rights and an opportunity for increased empowerment of citizens and civil society. European citizens are increasingly reliant on space technology, data and services. This involves, in particular, compliance with the rules on the protection of personal data. Moreover, space plays a growing role in the EU’s economic growth, security, and geopolitical weight. In this sense, reliable and secure connectivity can be considered a public good for governments and citizens. 3.3. The EESC encourages the use of a public-private partnership (PPP) as an appropriate implementation model to ensure that the objectives of the Programme can be pursued. The direct involvement of the private sector creates an environment favourable to the further development of high-speed broadband and seamless connectivity throughout Europe. This is done by removing communication dead zones and ensuring cohesion across Member State territories, as well as providing connectivity over geographical areas of strategic interest. 3.4. Through a competitive procurement process, the Commission may conclude a concession contract to deliver the solution required and protect the Union and Member States interests. The involvement of industry through such a concession should allow the private partner to complement the Programme infrastructure with additional capabilities through additional own investments. 3.5. In this regard, the EESC underlines that the role of the public sector should be adequately reflected in the future governance of the Programme, with special attention to the security of the infrastructure and careful control of cost, schedule and performance. The Commission will be the programme manager for the establishment and the supervision of the concession. The EU agency of the Space Programme will be entrusted with the provision of the governmental services, and the European Space Agency will be entrusted with the supervision of the development and validation activities. The EESC believes that SMEs are also crucial to innovation and the ecosystem in the emerging new space economy. As such, the development of SME space services should be actively encouraged, as well as their procurement by public authorities and the private sector alike. This would help to create jobs, improve technological skills and boost Europe’s competitiveness, which are increasingly important for the EU’s twin transitions to a sustainable and digital economy. This would ensure effective and transparent competition, reinforcing the technological autonomy of the EU, through specific requirements related to security, service continuity and reliability. 3.6. The EESC believes that in the procurement procedure, specific criteria for the award of the concession should be elaborated, ensuring the participation of start-ups and SMEs along the whole value chain of the concession, thereby incentivising the development of innovative and disruptive technologies. Where the employment of non-EU suppliers could raise issues from a security and strategic point of view, suitable participation rules should be put in place. 3.7. The EESC believes that SMEs should be encouraged to take advantage of the multiple financing tools at the EU’s disposal to invigorate the space ecosystem, as this would help to create jobs, improve technological skills, and boost Europe’s industrial competitiveness. 4. Specific comments 4.1. The EESC believes that the strategic sovereignty of the EU and the Member States is mainly based on the technological autonomy and capability of the European industry and the security of satellite communications, especially in a context of growing geopolitical tensions. The EESC therefore strongly supports initiatives to strengthen the industrial and technological sovereignty of the EU Member States. 4.2. The EESC supports the proposal and considers the potential synergies between governmental activities and commercial civil activities as an important opportunity from an economical point, also for the additional services offered to European citizens, in the context of a worldwide increase of public and private investments in space activities. 4.3. The EESC underlines the importance of supporting the competitiveness and innovation capacity of space sector industries within the Union. This will greatly contribute to ensuring Europe’s autonomous and affordable access to space in the coming years, while having a critical and profound positive impact on the competitiveness of European launchers’ exploitation models. 4.4. The EESC underlines that the Programme should allow telecommunication operators to benefit from the increased capacity and reliable and secure services. In addition, the commercial dimension would allow retail services to reach more private users across the entire EU. 4.5. As for the governance of the Programme (Chapter V of the proposed regulation), it is clear that the main roles in the Programme will be played by four main actors, namely the Commission, the European Union Agency for the Space Programme (“the Agency”), the Member States, and the European Space Agency (ESA). 4.6. In this regard, the EESC firmly believes that it is imperative to have a clear division of tasks, roles and responsibilities, together with proper coordination of the various actors, for the proper functioning of the Programme. Therefore, a precise allocation of responsibilities, on the basis of their demonstrated competence, should also ensure the efficient execution of the Programme in terms of costs and deadlines. Efficient space traffic management is also essential to improve safety, given the increasing amount of debris in space. 4.7. The EESC underlines that cybersecurity of both ground and space infrastructures is key to ensuring the systems operation and resilience. 4.8. The EESC highlights that in order to ensure the competitiveness of the European space industry, the Programme should contribute to the development of advanced skills in space-related fields and support education and training activities, promoting equal opportunities, gender equality and women’s empowerment, in order to realise the full potential of Union citizens in that area. 4.9. The EESC underlines that establishing and upgrading the infrastructures may involve many industrial players in several countries, whose work has to be coordinated effectively in order to develop systems which are reliable and fully integrated, with particular reference to security and cybersecurity. Brussels, 24 June 2022. The Presidentof the Consultative Commission on Industrial Change Pietro Francesco DE LOTTO’

(1) Europe has the second-largest space industry in the world, which employs over 231 000 professionals and is estimated to be worth EUR 53–62 billion, Study on the “Space Market”, European Parliament, November 2021.

(2) The European Quantum Communication Infrastructure (EuroQCI) Initiative.

(3) A research project in the area of secure satellite communications (SatCom) for EU governmental actors. ENTRUSTED: “European Networking for satellite Telecommunication Roadmap for the governmental Users requiring Secure, inTeroperable, innovativE and standardiseD services”.

(4) The European global satellite-based navigation system, operational since December 2016, when it started offering services to public authorities, businesses and citizens.

(5) The European Union’s Earth Observation Programme, provider of Earth observation data, which is used for service providers, public authorities and international organisations.

(6) Competitive Space Start-ups for Innovation is the European Commission’s space entrepreneurship initiative whose main objective is to support start-ups and SMEs at different stages of their growth with a set of tools and fundings.

(7) Directive 2007/2/EC of the European Parliament and of the Council of 14 March 2007 establishing an Infrastructure for Spatial Information in the European Community (INSPIRE) (OJ L 108, 25.4.2007, p. 1).

(8) Directive (EU) 2019/1024 of the European Parliament and of the Council of 20 June 2019 on open data and the re-use of public sector information (OJ L 172, 26.6.2019, p. 56).

(9) With 18 satellites currently in orbit and over 30 planned in the next 10–15 years, the EU is also the largest institutional customer for launch services in Europe. Launchers are the second largest area of space-manufacturing activity in Europe after commercial satellites, boosting European industry. The Commission will aggregate the launch service needs of EU programmes and act as a smart customer of European reliable and cost-effective launch solutions. It is crucial that Europe continues to have modern, efficient and flexible launch infrastructure facilities.

(10) Since June 2019, Member States have signed the European Quantum Communication Infrastructure (EuroQCI) Declaration, agreeing to work together, with the Commission and with the support of the ESA, towards developing quantum communication infrastructure that would cover the whole EU.

(11) COM(2021) 70 final.

(12) The EU adopted the GOVSATCOM component of Regulation (EU) 2021/696 of the European Parliament and of the Council of 28 April 2021 to ensure the long-term availability of reliable, secure and cost-effective satellite communication services for GOVSATCOM users. Regulation (EU) 2021/696 envisages that in a first phase of the GOVSATCOM component until approximately 2025, existing capacity would be used. In that context, the Commission is to procure GOVSATCOM capacities from Member States with national systems and space capacities and from commercial satellite communication or service providers, taking into account the essential security interests of the Union.

(13) In fact GOVSATCOM is a strategic asset — closely linked to national security — used by most Member States. Public users tend to favour either government-owned (owners of Governmental SATCOM include France, Germany, Greece, Italy, Luxembourg, Spain) or public-private solutions (such as Germany’s Satcom BW or Luxembourg’s GovSat) or make use of specific accredited private providers. GOVSATCOM was been identified as early as 2013 (European Council Conclusions 19–20 December 2013) as a promising field, with the possibility of tangibly contributing to the objectives for a strong, secure and resilient European Union. It is now an integral part of the space strategy for Europe (Space Strategy for Europe COM(2016) 705 final), the European defence action plan (European Defence Action Plan COM(2016) 950 final) and the European Union global strategy.

(14) Low latency refers to a minimal delay in the processing of computer data over a network connection. The lower the processing latency, the closer it approaches real-time access. A lower latency network connection is one that experiences very short delay times.

(15) Report from the Commission to the European Parliament and the Council. Results of the interim evaluation of the ISA (interoperability solutions for European public administrations) programme, 23 September 2019, COM(2019) 615 final.