EUROPEAN COMMISSION Brussels, 6.6.2018 COM(2018) 447 final 2018/0236(COD) 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 (Text with EEA relevance) {SWD(2018) 327 final}

{SWD(2018) 328 final}



EXPLANATORY MEMORANDUM 1.CONTEXT OF THE PROPOSAL •Reasons for and objectives of the proposal Since the 1990s, the Union has been increasing its investment in the space sector. Even before the Lisbon Treaty came into force with a new Article 189 of the Treaty on the Functioning of the European Union (TFEU) laying the foundations for its action in this area, the Union had successfully developed EGNOS and Galileo, the European satellite navigation programmes. Both these programmes are in operation, and Galileo is currently regarded as a flagship system of the Union. In 2014, the Earth Observation Programme, Copernicus, based on the GMES programme was added to the first two programmes. More recently, the Union launched activities within the Framework for Space Surveillance and Tracking Support, ‘SST’. The total budgetary allocation for all the Union’s space activities, including research, for the 2014-2020 period, was EUR 12.6 billion. In its Communication of 26 October 2016 entitled ‘Space Strategy for Europe’, the Commission set out a new space strategy for Europe focusing on four strategic goals: maximising the benefits of space for society and the EU economy, fostering a competitive and innovative European space sector, reinforcing Europe’s strategic autonomy in accessing and using space in a secure and safe environment, and strengthening Europe’s role as a global actor and promoting international cooperation. The rationale for adopting the Space Strategy for Europe is based on the strategic importance of the space sector for the Union and on the need for the European space sector to adapt to the changing global environment. Space supports many policies and strategic priorities of the Union. Space can play a crucial role in effectively tackling new challenges such as climate change, sustainable development, border control, maritime surveillance and security of Union citizens. The emergence of those new Union priorities leads to new ways of developing the Programme. Security requirements need to be strengthened when developing Union space systems, to fully benefit from synergies between civil and security activities. But space is also part of a global value chain, which is facing major changes pushing away the traditional boundaries of the space sector. The so-called "New Space" is revolutionising the space sector, not only from the technological point of view but also from the business model point of view. Space is attracting more and more businesses and entrepreneurs, sometimes with no experience in the area. It is therefore crucial that the Union actively supports the entire space sector, in particular research and development, start-ups and incubators of companies active in the space sector. As regards its programmes more specifically, the Commission stressed in the Space Strategy for Europe, the importance of ensuring the continued operation of the services offered by Galileo, EGNOS and Copernicus, and of preparing new generations of these services, enhancing the SST services and announced the governmental satellite communications initiative ‘GOVSATCOM’, initially included in the 2017 Commission Work Programme. Moreover, it emphasised the key role of partnerships between the Commission, the Member States, the European GNSS (Global Navigation Satellite Systems) Agency, the European Space Agency and all the other agencies and stakeholders that are involved in the implementation of the European space policy, thus highlighting the crucial importance of putting in place efficient and appropriate governance for delivery of the Union space programme. As regards the new initiative, GOVSATCOM, Europe's capability deficits regarding secure satellite communications have been recognized in the European Council Conclusions of December 2013 and various subsequent Council conclusions, in the Commission White Paper on the future of Europe, in the Rome Declaration of the Leaders of 27 Member States, and in several European Parliament resolutions. The approach advocated by the Commission in its Communication on a Space Strategy for Europe was affirmed by both the Council in its Conclusions adopted on 30 May 2017 and the European Parliament in its resolution of 12 September 2017. In its conclusions of 30 May 2017, the Council in particular encouraged the Commission and the Member States to continue, as appropriate, to rely on the technical know-how of the European Space Agency and of European national space agencies, invited the Commission to analyse and assess the potential evolution of the European GNSS Agency’s responsibilities and acknowledged the need to pursue stronger synergies, where appropriate, between the civilian and military uses of space assets. The proposal for a Regulation is part of the follow-up to the Space Strategy for Europe. A fully integrated space programme will bring together all of the Union’s activities in this highly strategic field. This will provide a coherent framework for future investment, offering increased visibility and more flexibility. By improving efficiency, it will ultimately help roll out new space-driven services that will benefit all EU citizens. The Programme thus aims to: –provide, or contribute 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, meeting existing and future needs and able to meet the Union's political priorities, including as regards climate change and security and defence; –maximise the socio-economic benefits, including by promoting the widest possible use of the data, information and services provided by the Programme's components; –enhance the security of the Union and its Member States, as well as its freedom of action and its strategic autonomy, in particular in technological and evidence-based decision-making terms; –promote the role of the Union in the international arena as a leading actor in the space sector and strengthening its role in tackling global challenges and supporting global initiatives, including as regards climate change and sustainable development. The proposal for a Regulation contains suitable measures for achieving these aims. The proposal for a Regulation significantly simplifies and streamlines the existing Union acquis by combining in a single text and harmonising almost all rules that were hitherto contained in separate Regulations or Decisions. This raises the profile of the Union space policy, which is in line with the major role that the Union intends to play in future as a global player in space.

The proposal provides the Union with a space budget of a sufficient size to carry out the various activities envisaged, in particular in respect of continuing and improving Galileo, EGNOS, Copernicus and SST, as well as launching the Govsatcom initiative. It lays down the rules for the governance of the Programme by clarifying the relations between the various players involved and the role of these players, mainly the Member States, the Commission and the European Union Agency for Space, and by establishing a unified system of governance for all the components of this programme. It enhances the role of the former European GNSS Agency by expanding the scope of its tasks as regards security accreditation to include all the components of the Programme, thus justifying a change of name for this agency, which is to become the European Union Agency for the Space Programme. Finally, it specifies and standardises the security framework for the Programme, particularly as regards the principles to be respected, procedures to be followed and measures to be taken, which is of crucial importance, given the dual use nature of the actions. This proposal provides for a date of application as of 1 January 2021 and is presented for a Union of 27 Member States, in line with the notification by the United Kingdom of its intention to withdraw from the European Union and Euratom based on Article 50 of the Treaty on European Union received by the European Council on 29 March 2017. •Consistency with existing policy provisions in the policy area The Union acquis in the space sector currently includes the following Regulations and Decisions: –Regulation (EU) No 1285/2013 of the European Parliament and of the Council on the implementation and exploitation of the European satellite navigation systems, Galileo and EGNOS; –Regulation (EU) No 377/2014 of the European Parliament and of the Council establishing the Copernicus Programme; –Decision No 541/2014/EU of the European Parliament and of the Council establishing a Framework for Space Surveillance and Tracking Support (SST); –Regulation (EU) No 912/2010 of the European Parliament and of the Council setting up the European GNSS Agency; –Decision No 1104/2011/EU of the European Parliament and of the Council on the rules for access to the public regulated service provided by the Galileo system; –Council Decision 2014/496/CFSP on aspects of the deployment, operation and use of the Galileo system affecting the security of the European Union. The present Regulation replaces the first four of these texts, which it also repeals. It lays down rules common to all the components of the Programme, including Galileo, EGNOS, Copernicus and SST, and sets out certain rules that are specific to each of these components. As regards Regulation (EU) No 912/2010, the required changes are such that, in the interest of clarity and simplification, it is preferable to repeal this text too and to incorporate the rules on the new Agency, which succeeds the European GNSS Agency, into the proposed Regulation establishing the Union Space Programme. The proposed Regulation in no way amends or affects Decision No 1104/2011/EU, which will continue to regulate one particular service provided by Galileo, namely the Public Regulated Service (PRS). That Decision will thus continue to apply alongside the proposed Regulation, complementing it by means of a lex specialis regarding this particular service. In addition, Decision 2014/496/CFSP, which is based on Article 28 of the Treaty on European Union (TEU), will also continue to apply as before. In the context of Galileo and EGNOS, in all cases where the deployment, operation or use of the components may hinder the security of the Union or of one of its Member States, in particular as a result of an international situation requiring action by the Union or in the event of a threat to the operation of the components themselves or their services, the procedures provided for in Decision 2014/496/CFSP apply. •Consistency with other Union policies The space sector gives rise to many positive spillover effects on other sectors of the economy. Maximising the benefits of space for citizens’ well-being and the prosperity of the Union economy, promoting scientific and technical progress as well as the competitiveness and innovative capacity of European industry, and contributing to the objectives of smart, sustainable and inclusive growth are also among the main goals of the Union’s space strategy that are duly included in the proposal for a Regulation. The operation of space systems such as EGNOS, Galileo or Copernicus directly complements actions engaged in under many other Union policies, in particular research and innovation policy, security policy and migration, industrial policy, the common agricultural policy, fisheries policy, trans-European networks, environment policy, energy policy and development aid. SST and the new GOVSATCOM initiative will also contribute to the objectives of the European Defence Action Plan and the European Union Global Strategy. They will enhance the operational effectiveness of security actors and will safeguard citizens' rights to security, to diplomatic or consular protection, and to protection of personal data. Finally, they will improve the effectiveness major EU policies, such as the maritime security strategy, the cyber defence policy framework, the Arctic policy, border management and migration, humanitarian aid, fisheries, transport and management of critical infrastructure. The Programme's actions should be used to address market failures or sub-optimal investment situations, in a proportionate manner, without duplicating or crowding out private financing and have a clear European added value. This will ensure consistency between the actions of the programme and EU State aid rules, avoiding undue distortions of competition in the internal market.

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY •Legal basis The legal basis for the proposed Regulation is Article 189(2) TFEU, which provides for the Union to draw up a European space policy and gives the European Parliament and the Council, acting in accordance with the ordinary legislative procedure, the power to adopt a Programme to contribute to attaining that policy’s objectives. Whereas GNSS Regulation (EU) No 1285/2013 and the European GNSS Agency Regulation (EU) No 912/2010, which deal with Galileo and EGNOS specifically, are based on Article 172 TFEU (Trans-European Networks), it is – in light of the case law of the Court of Justice on the choice of legal basis – appropriate to base the proposed Regulation on Article 189(2) TFEU, having regard to the content and objectives of the measures provided therein. •Subsidiarity Space is a cutting-edge sector which mobilises considerable financial resources and applies advanced technologies in various fields. The objectives of the proposed Regulation, as described above, cannot be adequately achieved by the Member States, even by those leading the field in the space sector. The fact is that scientific and technical experience and know-how in this sector are spread over several of the Union’s economic regions as well as the European Space Agency, which is an international organisation of which most of the EU’s Member States are a member country. On the financial side, the task of constructing and operating systems such as Galileo and Copernicus, which provide services of interest to all the Union’s Member States, not to say all the regions of the world, is too large in size to be performed by a single Member State acting on its own. Such are the scale and ramifications of the proposed Regulation’s aims that they can only be properly achieved by action at Union level. •Proportionality The proposed Regulation provides for measures that do not go beyond what is necessary for achieving its objectives. The Galileo, EGNOS, Copernicus, SST and GOVSATCOM components are in keeping with the needs of the Union’s businesses and citizens. They have significant positive spillover effects on the Union’s economy. The way in which these systems are being developed is intended to support the implementation of EU legislation and best meet the Union’s political priorities including in the areas of climate change and security and defence. Supporting the space sector within the Union, particularly by giving backing to start-ups or launchers, helps to safeguard the Union’s freedom of action and technological strategic autonomy and to expand its international outreach. Furthermore, the budget allocated to the Programme is not disproportionate to the objectives being sought. The amounts needed to deliver the Programme have been determined in the light of a number of analyses and estimates carried out as part of the impact assessment and described below. •Choice of the instrument A Regulation of the European Parliament and of the Council establishing the Programme is not only explicitly provided for by Article 189(2) TFEU but is also the preferred instrument for placing the Programme on a sustainable footing. For that choice of legal instrument ensures the uniformity and direct application which are required for the effective implementation of the Programme, while giving it all due visibility and providing it with the financial resources it needs for its implementation. 3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS •Ex-post evaluations/fitness checks of existing legislation As regards Galileo and EGNOS, pursuant to Article 34 of the GNSS Regulation (EU) No 1285/2013 and Article 26 of the European GNSS Agency (GSA) Regulation (EU) No 912/2010, the Commission provided the European Parliament and Council with a mid-term report on the progress of Galileo and EGNOS and the running of the European GNSS Agency. In that context, a mid-term evaluation study was carried out on behalf of the Commission. The mid-term evaluation report focused on the implementation of the Programme over the period 2014-2016. It concluded that Galileo and EGNOS have shown a satisfactory level of effectiveness and are on track to achieve the long-term objectives for 2020 set by the GNSS Regulation. Nevertheless, some inefficiencies and areas for possible improvements been identified in the security governance of Galileo and in the overall governance of Galileo and EGNOS. As regards governance, the 2014-2016 timeframe constituted an important transition period, as key elements of the governance and management framework were progressively implemented and consolidated. Their future development will be an important aspect for Galileo’s forthcoming exploitation phase and it will need to be addressed with care. As regards security governance, particular attention should be paid in the next phase to secure the independence of the Security Accreditation Board and of the staff working for it from the operational activities relating to Galileo and EGNOS. Regarding financial matters, as of the end of 2016, both Galileo and EGNOS were implemented within the budget set by the GNSS Regulation (EUR 7.071 million) and no general cost overrun has been recorded. In terms of coherence with other EU policies, within the programmes themselves and with other GNSS programmes, both Galileo and EGNOS have shown a high level of coherence. Finally, the GSA has successfully achieved its objectives, related to the progress of Galileo and EGNOS and the development of the downstream market, through an effective implementation of both core and delegated tasks. However, there have been some difficulties related to its capacity to hire appropriate staff.

As for Copernicus, pursuant to Article 32 of the Copernicus Regulation (EU) No 377/2014, the Commission provided the European Parliament and Council with a mid-term evaluation on the achievement of the objectives of all the tasks financed by Copernicus at the level of their results and impacts, their European added value and on the efficiency of the use of resources. A mid-term evaluation study was carried out on behalf of the Commission. The mid-term evaluation covered the period 2014-2016. It concluded that Copernicus was “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 within the budget set by the Regulation and a good cooperation internally within the Commission and with Member States. In terms of specific lessons learned, the unprecedented success of the programme and its volume of data led to two main findings: i)the 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. ii)the 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 additional effort is needed to reach other potential users outside space. For SST, the Commission adopted a report on the implementation of the SST support framework (2014-2017) on 3 May 2018 (COM(2018)256). The report concluded that EU SST delivered results for all actions and three services, and created EU added value, but the EU SST needs to evolve to improve its effectiveness. To respond to the report’s recommendations, the accompanying impact assessment mentioned four issues to be addressed in order to step up the implementation in the next years: i)Improve EU SST services autonomy by upgrading SST sensors, developing new sensors and establishing a European SST catalogue of space objects. ii)Foster the European dimension of EU SST by removing unnecessary duplications between SST national operational centres and by requiring specialisation, based on best performance. iii)Modify the decision-making structure by using the qualified majority and by creating a joint coordination team to ensure the supervision of the technical work. iv)Revise the funding mechanism by establishing a programme with one budget line and long-term perspective. •Consultation of stakeholders This initiative is also supported by extensive public consultations and workshops, seeking the views of all relevant stakeholders (industry, Member States, researchers etc.), more precisely: ·In 2016: a major public consultation across all space aspects including the programmes proposed at present for the next MFF was undertaken by the Commission prior to the adoption of the Space Strategy for Europe.; ·In 2015-2016: two targeted consultations were undertaken for space research aspects including positions papers by Member States, major industry trade associations and research organisations. ·In 2015-2017: numerous dedicated workshops, meetings and reports at expert level have been held to consult stakeholders on: (i) the evolution of Copernicus and Galileo; (ii) specific needs of industry; (iii) specific needs on governmental satellite communications; (iv) specific needs on space situational awareness including SST, space weather and near-Earth objects. ·In 2016-2017, as part of the impact assessment for the future GOVSATCOM programme, targeted consultations were carried out with all relevant stakeholders – Member States in their quality of GOVSATCOM providers and users, EU Institutions and Agencies, and Industry including satellite manufacturers, operators and SMEs – trough bilateral contacts and plenary meetings. Most MS and industry clearly support the program and its objectives. Stakeholders' recommendations, in particular for strong security, aggregation of demand, reliance on national and commercial suppliers, civil-military synergies and a modular service-centred approach were integrated in the proposal. As for the major public consultation, undertaken by the Commission prior to the adoption of the Space Strategy for Europe in 2016, the key messages are the following: For Galileo and EGNOS, there is globally a sufficient level of satisfaction from stakeholders with respect to the implementation of the EU intervention logic and the achievements of the programmes during the evaluation period. Their effectiveness has been particularly evident in the achievements of Galileo’s space segment and the consolidation of the stability and high performance of EGNOS service provision with the declaration of the LPV-200 service and the provision of APV-I services over the 98,98% of the land mass of the EU Member States plus Norway and Switzerland. Nevertheless, stakeholders consider that the effectiveness of the governance could benefit from a reduction in its complexity, often leading to duplication of effort and delays. In addition to that, stakeholders consider governance should be adapted in the future as Galileo moves into its exploitation phase.

For Copernicus, the open data policy is considered a strong asset. The Copernicus services are appreciated by the users regarding product relevance, timeliness of delivery and availability of products. The coordination of the in-situ component has demonstrated good results with an increase of users and the production of a wider catalogue of datasets. However, still more emphasis needs to be given to the development of the in-situ component of Copernicus and the use of relevant in-situ datasets, with added value to be gained from integrating different sources of earth observation data. The management of Copernicus is seen as working efficiently. However, the access to in-situ data needs to be improved. Gaps in the availability of in-situ data stand in the way of reaching the full potential of the Copernicus services. The Copernicus objectives are still appropriate but stakeholders mentioned that additional ones should be addressed (e.g. anthropogenic CO2 emissions, environmental and climate compliance assurance, polar zones, cultural heritage preservation etc.). They also mentioned that the access to sentinel data and integration of various data sources could be improved. Regarding the EU dimension of the programme, there was strong agreement among stakeholders concerning the necessity to ensure continuity of the EU action, while it was agreed among the stakeholders that, stopping or withdrawing the existing EU intervention would have such severe consequences for Galileo, EGNOS and Copernicus which could jeopardise the entire programme. •Collection and use of expertise Specific reports have been carried out: ·As noted above, a mid-term evaluation study was carried out and delivered by external contractors on 23 June 2017. It served as a basis for the Commission report to the European Parliament and Council on the status of Galileo and EGNOS and the establishment of the GSA, to fulfil the requirement set by Article 34 of the GNSS Regulation (EU) No 1285/2013and Article 26 of the European GNNS Agency Regulation (EU) No 912/2010. ·A study on the impacts of funding to Galileo and EGNOS has been carried out in the first quarter of 2018. ·As also noted above, a mid-term evaluation study on Copernicus was carried out and delivered by external contractors on 23 June 2017. It served as a basis for the Commission report to the European Parliament and Council on the status of Copernicus, to fulfil the requirement set by Article 32 of the Copernicus Regulation (EU) No 377/2014. ·A study on Socio-economic benefits of Copernicus was carried out and finalised by external contractors in January 2018. ·A study on the impacts, costs and benefits of the evolution of SST was carried out and delivered by external contractors in May 2018. ·For GOVSATCOM, the Commission relied on a Group of Experts from Member States, the European Space Agency and the European Defence Agency. The Group elaborated the GOVSATCOM High Level Civil-Military User Needs Document, accompanied the impact assessment process including the GOVSATCOM impact Assessment Study by PwC, published in February 2018, and provided expertise to the Commission on satellite communication matters. Further expertise was provided by national administrations and industry during the stakeholder consultation. ·Additional studies have also been performed on specific issues (e.g. access to space). All studies are publicly available in the EU Bookshop. •Impact assessment In line with its “Better Regulation” policy, the Commission conducted an impact assessment in view of the establishment of a Union Space Programme. The impact assessment was based on three specific goals: ·Ensuring the continuity of the existing space infrastructures and services and the development of new or enhanced ones; ·Fostering an innovative European space sector; and ·Maintaining the EU's capacity to have autonomous access to space relying on an EU independent industry, guaranteed access to EU space data and services and use them safely and securely. Regarding the funding of the Programme, two options were assessed.

The “Baseline scenario” consisted of a reduction (-15%) of the current budget, taking into account the withdrawal of the UK from the EU. The proposed scenario consisted of a sustained level of funding, increased by 50%, compared to the current budget. The baseline scenario was considered insufficient in order to achieve the ambitious objectives of the Union space policy as highlighted in the Space Strategy for Europe. For Galileo, a decrease in the current budget would lead to a gradual degradation of its infrastructures and services and to a final shut down of its activities in the following decades. As for EGNOS, it would remain operational but could not augment Galileo as provided for in the GNSS Regulation. Similar consequences could 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. The proposed scenario would ensure continuity in the operations and service provision, the constellation of Galileo’s 30 satellites, and technological evolution, which would contribute to the second-generation deployment, as well as support the flourishing of the applications markets. A sustained level of funding of Copernicus would allow the Union to maintain its autonomy and leadership in environmental monitoring, emergency management and support to border and maritime security and to 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. It is expected that the continuity of Galileo, EGNOS, Copernicus and SST, through the provision of adequate budgetary resources, will bring significant socio-economic and environmental benefits, including new job creation. End-users will benefit directly from a variety of new applications, which will improve the way people travel, work, communicate. It is expected that the citizens will benefit from modernised and environmentally friendly transport services, which will lead to a more efficient and less polluting traffic management. More efficient emergency services will secure a better and quicker reaction in emergencies, while the use of advanced GNSS applications in agriculture together with Earth Observation data will ensure more sustainable food availability. For GOVSATCOM, a full self-standing impact assessment was conducted. The Regulatory Scrutiny Board delivered a positive opinion on 29 September 2017. This assessment analysed the baseline and four policy options which share a common set of underlying core-elements, including common security requirements, synergies by aggregating national and EU demand, coordinating supply, civil-military coherence, economies of scale and efficiency gains, strengthening of Union autonomy and industrial competitiveness. The four options differ on the supply-side by using either using national or commercial SatCom capacities and services, or a mixture thereof. They also vary with regard to the possible future acquisition of space infrastructure, either through a public-private partnership or by fully EU-owned assets. The option retained optimises the advantages of the different options, respects subsidiarity, and reflects stakeholders' recommendations. Aggregating civil and military users at national and EU level, financing of services through the Program budget, and using both national and security accredited commercial assets will allow for a quick start of operations and enhance the flexibility and scope of GOVSATCOM. Cost-effective public-private partnerships are deemed best for future space infrastructure development if required. An EU-owned Hub and coherent security requirements are indispensable. For the Programme, a draft version of the impact assessment (excluding GOVSATCOM which was covered by another impact assessment) was presented to the Regulatory Scrutiny Board on 11 April 2018. The Regulatory Scrutiny Board issued a negative opinion on 13 April 2018. Subsequently, the draft report was amended considerably in order to take into account the recommendations for improvement, in particular: ·Clearer description of the challenges faced by the Programme, including a better description of the origin of the challenges (political challenges, global challenges, challenges based on lessons learned from existing programmes) ·Clearer links between these challenges and the specific objectives of the Programme ·Clearer description of the priorities of the Programme and how they are linked to the challenges and objectives ·Clarifications regarding the changes on governance of the Programme ·Additional information on the budgetary allocation to the main activities A second draft version was sent to the Regulatory Scrutiny Board on 25 April 2018. The Board issued a positive opinion on 3 May 2018 with a recommendation to further improve the report with two key aspects. Subsequently and in line with the instruction to take those comments into account prior to launching the interservice consultation, the draft report was amended in particular on the following points: ·Improved description of the division of responsibilities between the European Union Agency for the Space Programme and the Commission ·Additional explanation on budget allocated to continuity and new activities ·Better distinction between the general objectives and the specific objectives The Regulatory Scrutiny Board delivered a positive opinion on the draft impact assessment on 3 May 2018. •Regulatory fitness and simplification As explained above, the proposed Regulation aims to considerably simplify the legislation in force in that it consolidates the key components of the Union Space Programme in a single text and replaces three Regulations of the European Parliament and of the Council and one decision of the European Parliament and of the Council, which currently regulate those components. •Fundamental rights

The proposed Regulation contains the usual stipulations on the protection of personal data and privacy. In particular, it lays down that all personal data handled in the context of the tasks and activities provided for in this Regulation, including by the European Union Agency for the Space Programme, are to be processed in accordance with the applicable law on personal data protection. 4.BUDGETARY IMPLICATIONS The Union's contribution to the Programme from 2021 is EUR 16 billion at current prices. Most of the budget will be implemented through indirect management thanks to contribution agreements with entrusted entities. The estimated costs of the Programme are the result of extensive analyses, supported by the experience acquired by the Commission in the management of existing actions (Galileo, EGNOS, Copernicus and SST) and through preparatory studies and stakeholder consultations for GOVSATCOM. This expertise acquired by the Commission is essential factor in ensuring the continuity of the actions. The estimated requirements in Human Resources as indicated in the Financial Statement accompanying this regulation reflect this need of continuity in the expertise. 5.OTHER ELEMENTS •Implementation plans and monitoring, evaluation and reporting arrangements The proposed Regulation provides that the Programme is to be implemented by the Commission through the work programmes referred to in [Article 108] of the Financial Regulation, taking into account evolving user needs and technological developments. Implementation of the proposed Regulation is to be monitored in a number of ways. Firstly, the Commission is to report annually to the European Parliament and the Council on the implementation of the Programme. The report is to include information pertaining to risk management, overall cost, annual operating cost, results of the calls for tender, revenues, schedule and performance. Secondly, performance indicators are to be defined for monitoring the implementation of the Programme and the achievement of the Regulation’s objectives, with the beneficiaries of Union funds being obliged to provide the relevant information. Data must also be collected on the exploitation and deployment of research and innovation results, including through monitoring the funding allocated for the uptake of research and innovation results, notably from the Horizon Europe. Thirdly, the Programme is to be evaluated at least once every four years. These evaluations are to be carried out in good time to allow the appropriate decisions to be taken. Evaluations will be carried out in line with paragraphs 22 and 23 of the Interinstitutional Agreement of 13 April 2016, where the three institutions confirmed that evaluations of existing legislation and policy should provide the basis for impact assessments of options for further action. The evaluations will assess the Programme's effects on the ground based on the Programme indicators/targets and a detailed analysis of the degree to which the Programme can be deemed relevant, effective, efficient, provides enough EU added value and is coherent with other EU policies. They will include lessons learnt to identify any lacks/problems or any potential to further improve the actions or their results and to help maximise their exploitation/impact The conclusions of the evaluations, together with the Commission’s observations, are to be communicated to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions. •Detailed explanation of the specific provisions of the proposal The proposed Regulation consists of 12 titles. Title I contains general provisions setting out, amongst other things, the subject of the Regulation, the components of the Programme, the objectives of that Programme and the principle of Union ownership of the assets created or developed under the Programme. Title II provides for the budgetary contributions and mechanisms of the Programme. Title III sets out the financial provisions applicable to the Programme. As regards public procurement, it is necessary, given the complexity and specificities of the contracts to be concluded in the space sector, to provide for measures related to the implementation of the Financial Regulation. The financial provisions must also allow the differing needs of the programme’s various components to be met and a range of forms of cooperation and partnership between stakeholders to be used. Title IV relates to the governance of the Programme. It details the role to be played by this programme’s four main actors, namely the Commission, the European Union Agency for the Space Programme, the European Space Agency and the Member States, and the relations between these various actors.

Title V deals with security, which is particularly important in view of the strategic nature of several of the Programme’s components and the links between space and security. A high level of security has to be achieved and maintained by imposing effective governance arrangements that are largely based on the Member States’ experience and on the experience gained by the Commission in recent years. Furthermore, like any programme with a strategic dimension, the Programme has to undergo independent security accreditation following the appropriate standards in this respect. Title VI relates to Galileo and EGNOS. These provisions are largely based on the relevant provisions of GNSS Regulation (EU) No 1285/2013, but they have been updated and adjusted where necessary, taking into account inter alia that these two systems are now in operation and have become components of the Union's overarching space programme. Title VII relates to Copernicus. This title contains some provisions very similar to those in the current Copernicus Regulation (EU) No 377/2014, whilst nevertheless reflecting certain major developments of the system focused on the processing and management of data and the establishment of an overarching legal framework,. Title VIII sets out the details of the other components of the Union Space Programme, mainly SST and GOVSATCOM. Whereas the provisions on SST build up on those already laid down in SST Decision No 541/2014/EU, the section on GOVSATCOM is completely new. Title IX changes the name of the European GNSS Agency to the European Union Agency for the Space Programme and amends some of the Agency’s operating rules currently laid down in Regulation (EU) No 912/2010. These changes reflect in particular the new role assigned to the Agency, whose tasks are extended to potentially include all the components of the Union Space Programme. Titles X, XI and XII set out respectively miscellaneous provisions, provisions on delegation and implementing measures and final provisions. •Climate mainstreaming The Commission proposal for the 2021-2027 Multiannual Financial Framework set a more ambitious goal for climate mainstreaming across all EU programmes, with an overall target of 25% of EU expenditure contributing to climate objectives. The contribution of this programme to the achievement of this overall target will be tracked through an EU climate marker system at an appropriate level of disaggregation, including the use of more precise methodologies where these are available. The Commission will continue to present the information annually in terms of commitment appropriations in the context of the annual draft budget. To support the full utilisation of the potential of the programme to contribute to climate objectives, the Commission will seek to identify relevant actions throughout the programme preparation, implementation, review and evaluation processes. 2018/0236 (COD) 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 (Text with EEA relevance) THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular Article 189(2) thereof, Having regard to the proposal from the European Commission, After transmission of the draft legislative act to the national parliaments, Acting in accordance with the ordinary legislative procedure, Whereas:

(1)Space technology, data and services have become indispensable in the daily lives of Europeans and play an essential role in preserving many strategic interests. The Union’s space industry is already one of the most competitive in the world. However, the emergence of new players and the development of new technologies are revolutionising traditional industrial models. It is therefore crucial that the Union remains a leading international player with extensive freedom of action in the space domain, that it encourages scientific and technical progress and support the competitiveness and innovation capacity of space sector industries within the Union, in particular small and medium-sized enterprises, start-ups and innovative businesses. (2)The space sector’s development has historically been linked to security. In many cases, the equipment, components and instruments used in the space sector are dual-use goods. The possibilities that space offers for the security of the Union and its Member States should therefore be exploited. (3)The Union has been developing its own space initiatives and programmes since the end of the 1990s, namely the European Geostationary Navigation Overlay Service (EGNOS) and then Galileo and Copernicus, which respond to the needs of Union citizens and the requirements of public policies. Not only should the continuity of those initiatives be ensured but they must also be improved, so that they remain at the forefront in view of new technology development and the transformations in the digital and information and communications technology domains, meet the new needs of users and are able to meet political priorities such as climate change, including monitoring changes in the Artic, security and defence. (4)The Union needs to ensure its freedom of action and autonomy to have access to space and be able to use it safely. It is therefore essential that it maintains autonomous, reliable and cost-effective access to space, especially as regards critical infrastructure and technology, public security and the security of the Union and its Member States. The Commission should therefore have the possibility to aggregate launch services at European level, both for its own needs and, at their request, for those of other entities, including Member States, in conformity with the provisions of Article 189(2) of the Treaty. It is also crucial that the Union continues to have modern, efficient and flexible launch infrastructure facilities. In addition to measures taken by Member States and the European Space Agency, the Commission should consider ways to support such facilities. In particular, where space ground infrastructure necessary to perform launches in line with the needs of the Programme is to be maintained or upgraded, it should be possible to partially fund such adaptations under the Programme, in line with the Financial Regulation and where a clear EU value added can be established, with the view of achieving a better cost efficiency for the Programme. (5)To strengthen the competitiveness of the Union space industry and gain capacities in designing, building and operating its own systems, the Union should support the creation, growth, and development of the entire space industry. The emergence of a business- and innovation-friendly model should be supported at European, regional and national levels by establishing space hubs that bring together the space, digital and user sectors. The Union should foster the expansion of Union-based space companies to help them succeed, including by supporting them in accessing risk finance in view of the lack, within the Union, of appropriate access to private equity for space start-ups and by creating innovation partnerships (first contract approach). (6)Owing to its coverage and its potential to help resolve global challenges, the space programme of the Union ('Programme') has a strong international dimension. The Commission should therefore be enabled to manage, on behalf of the Union, and coordinate activities on the international scene on behalf of the Union, in particular to defend the interests of the Union and its Member States in international fora, including in the area of frequencies, to promote the Union's technology and industry, and to encourage cooperation in the field of training, bearing in mind the need to ensure the reciprocity of the rights and obligations of the parties. It is particularly important that the Union be represented by the Commission in the bodies of the International Cospas-Sarsat Programme or in relevant sectoral UN bodies including the Food and Agriculture Organisation, as well as the World Meteorological Organisation. (7)The Commission should promote, alongside the Member States and the High Representative, responsible behaviour in space and outer space and explore the possibility for accession to the relevant UN Conventions. (8)The Programme shares similar objectives with other Union programmes, notably Horizon Europe, InvestEU Fund, European Defence Fund and Funds under Regulation (EU) [Common Provisions Regulation]. Therefore, cumulative funding from those programmes should be foreseen, provided they do cover the same cost items, in particular through arrangements for complementary funding from Union programmes where management modalities permit - either in sequence, in an alternating way, or through the combination of funds including for the joint funding of actions, allowing, where possible, innovation partnerships and blending operations. During the implementation of the Programme, the Commission should therefore promote synergies with other related Union programmes which would allow, where possible, use of access to risk finance, innovation partnerships, cumulative or blended funding. (9)The policy objectives of this Programme will also be addressed as eligible areas for financing and investment operations through financial instruments and budgetary guarantee of the InvestEU Fund, in particular under its sustainable infrastructure and research, innovation and digitisation policy windows. Financial support should be used to address market failures or sub-optimal investment situations, in a proportionate manner and actions should not duplicate or crowd out private financing or distort competition in the internal market. Actions should have a clear European added value. (10)Coherence and synergies between Horizon Europe and the Programme will foster a competitive and innovative European space sector; reinforce Europe’s autonomy in accessing and using space in a secure and safe environment; and strengthen Europe’s role as a global actor. Breakthrough solutions in Horizon Europe will be supported by data and services made available by the Programme to the research and innovation community. (11)It is important that the Union own all tangible and intangible assets created or developed through public procurement that it finances as part of its space programme. In order to ensure full compliance with any fundamental rights relating to ownership, the necessary arrangements should be made with any existing owners. Such ownership by the Union should be without prejudice to the possibility for the Union, in accordance with this Regulation and where it is deemed appropriate on the basis of a case-by-case assessment, to make those assets available to third parties or to dispose of them. (12)This Regulation lays down a financial envelope for the Programme which is to constitute the prime reference amount, within the meaning of point 17 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, for the European Parliament and the Council during the annual budgetary procedure. (13)Reflecting the importance of tackling climate change in line with the Union's commitments to implement the Paris Agreement and the United Nations Sustainable Development Goals, this Programme will contribute to mainstream climate actions and to the achievement of an overall target of 25 % of the EU budget expenditures supporting climate objectives. Relevant actions will be identified during the Programme's preparation and implementation, and reassessed in the context of the relevant evaluations and review processes. (14)Any revenue generated by the Programme should accrue to the Union in order to partially offset the investments that it has already made, and that revenue should be used to support the objectives of the Programme. For the same reason, it should be possible to provide for a revenue-sharing mechanism in contracts concluded with private sector entities. (15)As the Programme is, in principle, financed by the Union, procurement contracts concluded under this programme should comply with Union rules. In that context, the Union should also be responsible for defining the objectives to be pursued as regards public procurement. (16)The Programme relies on complex and constantly changing technologies. The reliance on such technologies results in uncertainty and risk for public contracts concluded under this programme, insofar as those contracts involve long-term commitments to equipment or services. Specific measures concerning public contracts are therefore required in addition to the rules laid down in the Financial Regulation. It should thus be possible to award a contract in the form of a conditional stage-payment contract, introduce an amendment, under certain conditions, in the context of its performance, or impose a minimum level of subcontracting. Lastly, given the technological uncertainties that characterise the components of the Programme, contract prices cannot always be forecast accurately and it should therefore be possible to conclude contracts without stipulating a firm fixed price and to include clauses to safeguard the financial interests of the Union. (17)In order to meet the objectives of the Programme, it is important to be able to call, where appropriate, on capacities offered by Union public and private entities active in the space domain and also to be able to work at international level with third countries or international organisations. For that reason, provision must be made for the possibility of using all the relevant tools provided for by the Financial Regulation (in particular grants, prizes and financial instruments), various management methods (such as direct and indirect management, public-private partnerships and joint undertakings) and joint procurement procedures. (18)On grants more specifically, experience has shown that user and market uptake and general outreach work better in a decentralized manner than top-down by the Commission. Vouchers, which are a form of financial support from a grant beneficiary to third parties, have been among the actions with the highest success rate to new entrants and small and medium-sized enterprises. However, they have been hindered by the ceiling on financial support imposed by the Financial Regulation. This ceiling should therefore be raised for the EU Space Programme in order to keep pace with the growing potential of market applications in the space sector. (19)The types of financing and the methods of implementation under this Regulation should be chosen on the basis of their ability to achieve the specific objectives of the actions and to deliver results, taking into account, in particular, the costs of controls, the administrative burden, and the expected risk of non-compliance. This should include consideration of the use of lump sums, flat rates and unit costs, as well as financing not linked to costs as referred to in [Article 125(1)] of the Financial Regulation. (20)Regulation (EU, Euratom) No [the new FR] (the ‘Financial Regulation’) applies to this Programme. It lays down rules on the implementation of the Union budget, including the rules on grants, prizes, procurement, indirect implementation, financial assistance, financial instruments and budgetary guarantees.

(21)Pursuant to [reference to be updated as appropriate according to a new decision on OCTs: Article 88 of Council Decision …/…/EU], persons and entities established in overseas countries and territories (OCTs) should be eligible for funding subject to the rules and objectives of the Programme and possible arrangements applicable to the Member State to which the relevant overseas country or territory is linked. (22)Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 of the Treaty on the Functioning of the European Union apply to this Regulation. These rules are laid down in the Financial Regulation and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes, indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also concern the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States, as the respect for the rule of law is an essential precondition for sound financial management and effective EU funding. (23)In accordance with the Financial Regulation, Council Regulation (EC, Euratom) No 2988/95, Council Regulation (Euratom, EC) No 2185/96 and Council Regulation (EU) 2017/1939 , the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities and fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In particular, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation (Euratom, EC) No 2185/96, the European Anti-Fraud Office (OLAF) may carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) may investigate and prosecute fraud and other criminal offences affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council . In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the EPPO and the European Court of Auditors (ECA) and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights. (24)Third countries which are members of the European Economic Area (EEA) may participate in Union programmes in the framework of the cooperation established under the EEA agreement, which provides for the implementation of the programmes by a decision under that agreement. Third countries may also participate on the basis of other legal instruments. A specific provision should be introduced in this Regulation to grant the necessary rights for and access to the authorizing officer responsible, the European Anti-Fraud Office (OLAF) as well as the European Court of Auditors to comprehensively exert their respective competences. (25)Sound public governance of the Programme requires the strict distribution of responsibilities and tasks among the different entities involved to avoid duplication and reduce cost overruns and delays. (26)Member States have long been active in the field of space. They have systems, infrastructure, national agencies and bodies linked to space. They can therefore make a big contribution the Programme, especially its implementation, and should be required to cooperate fully with the Union to promote the Programme’s services and applications. The Commission should be able to mobilise the means at Member States' disposal, might entrust the Member States with non-regulatory tasks in the execution of the Programme and benefit from their assistance. Moreover, the Member States concerned should take all necessary measures to ensure the protection of the ground stations established on their territories. In addition, Member States and the Commission should work together and with appropriate international bodies and regulatory authorities to ensure that the frequencies necessary for the Programme are available and protected to allow for the full development and implementation of applications based on the services offered, in compliance with Decision No 243/2012/EU of the European Parliament and of the Council of 14 March 2012 establishing a multiannual radio spectrum policy programme. (27)As promoter of the Union’s general interest, it falls to the Commission to implement the Programme, assume overall responsibility and promote their use. In order to optimise the resources and competences of the various stakeholders, the Commission should be able to delegate certain tasks. Moreover the Commission is the best placed to determine the main technical and operational specifications necessary to implement systems and services evolution. (28)The mission of the European Union Agency for the Space Programme ("the Agency"), which replaces and succeeds the European GNSS Agency established by Regulation (EU) No 912/2010, is to contribute to the Programme, particularly as regards security. Certain tasks linked to the security and promotion of the Programme should therefore be assigned to the Agency. In relation to security in particular, and given its experience in this area, the Agency should be responsible for the security accreditation tasks for all the Union actions in the space sector. Furthermore, it should perform the tasks which the Commission confers on it by means of one or more contribution agreements covering various other specific tasks associated with the programme. (29)The European Space Agency is an international organisation with extensive expertise in the space domain and which entered into a Framework Agreement with the European Community in 2004. It is therefore an important partner in the implementation of the Programme, with which any appropriate relations should be established. In this regard, and in compliance with the Financial Regulation, it is important to conclude a financial framework partnership agreement with the European Space Agency that governs all financial relations between the Commission, the Agency and the European Space Agency and ensures their consistency and conform to the Framework Agreement with the European Space Agency, in particular with Article 5 thereof. However, as the European Space Agency is not a Union body and is not subject to Union law, it is essential, in order to protect the interests of the Union and its Member States, that such an agreement be conditional on the introduction of appropriate operating rules in the European Space Agency. The agreement should also contain all the clauses necessary to safeguard the Union’s financial interests. (30)The functioning of SATCEN as a European autonomous capability providing products and services resulting from exploitation of relevant space assets and collateral data, including satellite and aerial imagery, is essential for strengthening the Common Foreign Security Policy. In that sense SATCEN will be maximising synergies and complementarities with other Union activities especially the Programme and its components. (31)To structurally embed the user representation in the governance of GOVSATCOM and to aggregate user needs and requirements across national and civil-military boundaries, the relevant Union entities with close user-ties, such as the European Defence Agency, the European Border and Coast Guard Agency, the European Maritime Safety Agency, the European Fisheries Control Agency, the European Union Agency for Law Enforcement Cooperation, the Military Planning and Conduct Capability/Civilian Planning and Conduct Capability and the Emergency Response Coordination Centre should have coordinating roles for specific user groups. At an aggregated level the Agency and the European Defence Agency should respectively represent the civilian and military user communities and may monitor operational use, demand, conformance to requirements and evolving needs and requirements. (32)Owing to the importance of space-related activities for the Union economy and the lives of Union citizens, the dual-use nature of the systems and of the applications based on those systems, achieving and maintaining a high degree of security should be a key priority for the Programme, particularly in order to safeguard the interests of the Union and of its Member States, including in relation to classified and other sensitive non-classified information. (33)The Commission and the High Representative, each within their respective area of competence, should ensure the security of the Programme in accordance with this Regulation and, where relevant, Council Decision 2014/496/CFSP. (34)The governance of the security of the Programme should be based on three key principles. Firstly, it is imperative that Member States’ extensive, unique experience in security matters be taken into consideration to the greatest possible extend. Secondly, in order to prevent conflicts of interest and any shortcomings in applying security rules, operational functions must be segregated from security accreditation functions. Thirdly, the entity in charge of managing all or part of the components of the Programme is also the best placed to manage the security of the tasks entrusted to it. Sound security governance also requires that roles be appropriately distributed among the various players. As it is responsible for the Programme, the Commission should determine the general security requirements applicable to each of the programme’s components. (35)In view of the uniqueness and complexity of the Programme and its link to security, recognised and well established principles should be followed for security accreditation. It is thus indispensable that security accreditation activities be carried out on the basis of collective responsibility for the security of the Union and its Member States, by endeavouring to build consensus and involving all those concerned with the issue of security, and that a procedure for permanent risk monitoring be put in place. It is also imperative that technical security accreditation activities be entrusted to professionals who are duly qualified in the field of accrediting complex systems and who have an adequate level of security clearance. (36)To ensure the secure circulation of information, appropriate rules should be established to ensure equivalence of security rules for the different public and private entities, as well as natural persons, involved in the implementation of the Programme. (37)One of the main objectives of the Programme consists in ensuring its security and strategic autonomy, strengthening its capacity to act in numerous sectors, in particular security, and taking advantage of the possibilities that space offers for the security of the Union and its Member States. This objective requires strict rules on the eligibility of the entities that may take part in activities financed under the Programme which require access to EU classified information (EUCI) or to sensitive non-classified information. (38)A growing number of key economic sectors, in particular transport, telecommunications, agriculture and energy, increasingly use satellite navigation systems, not to mention the synergies with activities linked to the security and defence of the Union and its Member States. Having full control of satellite navigation should therefore guarantee the Union's technological independence, including in the longer term for the components of infrastructure equipment, and ensure its strategic autonomy. (39)The aim of Galileo is to establish and operate the first global satellite navigation and positioning infrastructure specifically designed for civilian purposes, which can be used by a variety of public and private actors in Europe and worldwide. Galileo functions independently of other existing or potential systems, thus contributing amongst other things to the strategic autonomy of the Union. The second generation of the system should be progressively rolled out before 2030, initially with reduced operational capacity. (40)The aim of EGNOS is to improve the quality of open signals from existing global navigation satellite systems, in particular those emitted by the Galileo system. The services provided by EGNOS should cover, as a priority, the Member States’ territories geographically located in Europe, including for this purpose the Azores, the Canary Islands and Madeira, with the aim to cover those territories by the end of 2025. Subject to technical feasibility and, for the safety of life, on the basis of international agreements, the geographical coverage of the services provided by EGNOS could be extended to other regions of the world. Without prejudice to Regulation [2018/XXXX] [EASA Regulation] and the necessary monitoring of Galileo service quality for aviation purposes, it should be noted that while the signals emitted by Galileo may effectively be used to facilitate the positioning of aircraft, only local or regional augmentation systems such as EGNOS in Europe may constitute air-traffic management (ATM) services and air navigation services (ANS).

(41)It is imperative that the continuity, sustainability and future availability of the services provided by the Galileo and EGNOS systems be ensured. In a changing environment and rapidly developing market, their development should also continue and new generations of these systems should be prepared. (42)In order to maximise their take-up, the Galileo’s open service and high-accuracy service and the EGNOS open service and safety-of-life service should be provided free of charge to users. (43)The term ‘commercial service’ used in Regulation (EU) No 1285/2013 of the European Parliament and of the Council of 11 December 2013 on the implementation and exploitation of European satellite navigation systems and repealing Council Regulation (EC) No 876/2002 and Regulation (EC) No 683/2008 of the European Parliament and of the Council is no longer suited in the light of the evolution of that service. Instead two separate services should be identified, namely the high-accuracy service and the authentication service. (44)In order to optimise the use of the services provided, the services provided by Galileo and EGNOS should be compatible and interoperable with one another and, insofar as possible, with other satellite navigation systems and with conventional means of radio navigation where such compatibility and interoperability is laid down in an international agreement, without prejudice to the objective of strategic autonomy of the Union. (45)Considering the importance for Galileo and EGNOS of their ground-based infrastructure and the impact thereof on their security, the determination of the location of the infrastructure should made by the Commission. The deployment of the ground-based infrastructure of the systems should continue to follow an open and transparent process. (46)To maximise the socio-economic benefits of Galileo and EGNOS, notably in the area of security, the use of the services provided by EGNOS and Galileo in other Union policies should be promoted where this is justified and beneficial. (47)Copernicus should ensure an autonomous access to environmental knowledge and key technologies for Earth observation and geo-information services, thereby enabling the Union to achieve independent decision-making and actions in the fields of the environment, climate change, civil protection, security, as well as the digital economy, among others. (48)Copernicus should build on and ensure continuity with the activities and achievements under Regulation (EU) No 377/2014 of the European Parliament and of the Council establishing the Union Earth observation and monitoring programme (Copernicus) as well as Regulation (EU) No 911/2010 of the European Parliament and of the Council on the European Earth monitoring programme (GMES) and its initial operations establishing the predecessor Global Monitoring for Environment and Security (GMES) programme and the rules for implementation of its initial operations, taking into account recent trends in research, technological advances and innovations impacting the Earth observation domain, as well as developments in big data analytics and Artificial Intelligence and related strategies and initiatives at Union level . To the greatest extent possible, it should make use of capacities for space-borne observations of the Member States, the European Space Agency, EUMETSAT , as well as other entities, including commercial initiatives in Europe, thereby also contributing to the development of a viable commercial space sector in Europe. Where feasible and appropriate, it should also make use of the available in situ and ancillary data provided mainly by the Member States in accordance with Directive 2007/2/EC . The Commission should work together with the Member States and the European Environment Agency to ensure an efficient access and use of the in-situ data sets for Copernicus. (49)Copernicus should be implemented in accordance with the objectives of Directive 2003/98/EC of the European Parliament and of the Council on the re-use of public sector information amended by Directive 2013/37/EU of the European Parliament and of the Council of 26 June 2013 amending Directive 2003/98/EC on the re-use of public sector information, in particular transparency, the creation of conditions conducive to the development of services, and contributing to economic growth and job creation in the Union. Copernicus data and Copernicus information should be available freely and openly. (50)Copernicus is a user-driven programme. Its evolution should therefore be based on the evolving requirements of the Copernicus core users, while also recognising the emergence of new user communities either public or private. Copernicus should base itself on an analysis of options to meet evolving user needs, including those related to implementation, and monitoring of Union policies which require the continuous, effective involvement of users, particularly regarding the definition and validation of requirements. (51)Copernicus is already operational. It is therefore important to ensure the continuity of the infrastructure and services already in place, whilst adapting to the changing market environment, notably the emergence of private actors in space (“New Space”) and socio-political developments for which a rapid response is needed. This requires a redefinition of the functional structure of Copernicus to better reflect the shift from the first stage of operational services to the provision of advanced and more targeted services to new user communities and the fostering of added-value downstream markets. To this end, its further implementation should adopt an approach following the data value chain, i.e. data acquisition, data and information processing, distribution and exploitation, user and market uptake activities, while the strategic planning process under Horizon Europe will identify research and innovation activities that should make use of Copernicus. (52)With regard to data acquisition, the activities under Copernicus should aim at completing and maintaining the existing space infrastructure, preparing the long-term replacement of the satellites at the end of their lifetime, as well as initiating new missions addressing new observation systems to support meeting the challenge of global climate change (e.g. anthropogenic CO2 and other greenhouse gas emissions monitoring). Activities under Copernicus should expand their global monitoring coverage over the polar regions and support environmental compliance assurance, statutory environmental monitoring and reporting and innovative environmental applications (e.g. for crops monitoring, water management and enhanced fire monitoring). In doing so, Copernicus should leverage and take maximum advantage of the investments made under the previous funding period (2014-2020), while exploring new operational and business models to further complement the Copernicus capacities. Copernicus should also build on successful partnerships with Member States to further develop its security dimension under appropriate governance mechanisms, in order to respond to evolving user needs in the security domain. (53)As part of the data and information processing function, Copernicus should ensure the long-term sustainability and further development of the core Copernicus services, providing information in order to satisfy public sector needs and those arising from the Union’s international commitments, and to maximise opportunities for commercial exploitation. In particular, Copernicus should deliver, at the local, national, European and global scale, information on the state of the atmosphere; information on the state of the oceans; information in support of land monitoring supporting the implementation of local, national and Union policies; information in support of climate change adaptation and mitigation; geospatial information in support of emergency management, including through prevention activities, environmental compliance assurance, as well as civil security including support for the Union's external action. The Commission should identify appropriate contractual arrangements fostering the sustainability of service provision. (54)In the implementation of the Copernicus services, the Commission may rely on competent entities, relevant Union agencies, groupings or consortia of national bodies, or any relevant body potentially eligible for a contribution agreement. In the selection of these entities, the Commission should ensure that there is no disruption in the operations and provision of services and that, where security-sensitive data is concerned, the entities concerned have early warning and crisis monitoring capabilities within the context of the common foreign and security policy (CFSP) and, in particular, of the common security and defence policy (CSDP). (55)The implementation of the Copernicus services should facilitate the public uptake of services as users would be able to anticipate the availability and evolution of services as well as cooperation with Member States and other parties. To this end, the Commission and its entrusted entities providing services should engage closely with different user communities across Europe in further developing the Copernicus services and information portfolio to ensure that evolving public sector and policy needs are met and thus the uptake of Earth observation data can be maximised. The Commission and Member States should work together to develop the in-situ component of Copernicus and to facilitate the integration of in-situ datasets with space datasets for upgraded Copernicus services. (56)The data and information produced in the framework of Copernicus should be made available on a full, open and free-of-charge basis subject to appropriate conditions and limitations, in order to promote their use and sharing, and to strengthen the European Earth observation markets, in particular the downstream sector, thereby enabling growth and job creation in the Union. Such provision should continue to provide data and information with high levels of consistency, continuity, reliability, and quality. This calls for large-scale and user-friendly access to, processing and exploitation of Copernicus data and information, at various timeliness levels, for which the Commission should continue to follow an integrated approach, both at EU and Member States level, enabling also integration with other sources of data and information. Copernicus should further promote its Data and Information Access Services (DIAS) within Member States and establish synergies with their assets in order to maximise and strengthen market uptake of Copernicus data and information. (57)The Commission should work with data providers to agree licensing conditions for third-party data to facilitate their use within Copernicus, in compliance with this Regulation and applicable third-party rights. As some Copernicus data and Copernicus information, including high-resolution images, may have an impact on the security of the Union or its Member States, in duly justified cases, measures in order to deal with risks and threats to the security of the Union or its Member States may be adopted. (58)The provisions of legal acts adopted under previous regulations without ending date should remain valid unless in contradiction with the new regulation. This concerns in particular the Commission Delegated Regulation (EU) No 1159/2013 establishing the registration and licensing conditions for GMES users and defining criteria for restricting access to GMES dedicated data and GMES service information. (59)To promote and facilitate the use of Earth observation data and technologies both by local authorities, by small and medium-sized enterprises, scientists and researchers, dedicated networks for Copernicus data distribution, including national and regional bodies, should be promoted through user uptake activities. To this end, the Commission and the Member States should strive to establish closer links between Copernicus and Union and national policies in order to drive the demand for commercial applications and services and enable enterprises, particular small and medium-sized enterprises and start-ups, to develop applications based on Copernicus data and information aiming at developing a competitive Earth observation data eco-system in Europe. (60)In the international domain, Copernicus should provide accurate and reliable information for cooperation with third countries and international organisations, and in support of the Union’s external and development cooperation policies. Copernicus should be considered as a European contribution to the Global Earth Observation System of Systems (GEOSS), the Committee on Earth Observation Satellites (CEOS), the Conference of the Parties (COP) to the 1992 United Nations Framework Convention on Climate Change (UNFCCC) and the Sendai Framework for Disaster Risk Reduction. It should establish or maintain appropriate cooperation with relevant sectoral UN bodies and the World Meteorological Organisation.

(61)In the implementation of Copernicus, the Commission should rely, where appropriate, on European international organisations with which it has already established partnerships, in particular the European Space Agency for the development and procurement of space assets, data access and the operation of dedicated missions. In addition, the Commission should rely on EUMETSAT for the operation of dedicated missions in accordance with its expertise and mandate. In the domain of services, the Commission should take appropriate benefit from the specific capacities provided by Union Agencies such as the European Environment Agency, the European Maritime Safety Agency, the European Border and Coast Guard Agency, as well as the intergovernmental European Centre for Medium-range Weather Forecasts and the European investments made already in marine environment monitoring services through Mercator Ocean. On security, a comprehensive approach at Union level will be sought with the High Representative. The Joint Research Centre (JRC) of the Commission has been actively involved from the start of the GMES initiative and has supported developments for Galileo and space weather. Under Regulation (EU) No 377/2014; the JRC is managing the Copernicus emergency management service and the global component of the Copernicus land monitoring service; it is contributing to the review of the quality and fitness for purpose of products and information, and to the future evolution. The Commission should continue relying on JRC's scientific and technical advice for the implementation of the Programme. (62)Following the requests of the European Parliament and of the Council and, the Union established a support framework for space surveillance and tracking (SST) by means of Decision No 541/2014/EU of the European Parliament and of the Council of 16 April 2014 establishing a Framework for Space Surveillance and Tracking Support . Space debris has become a serious threat to the security, safety and sustainability of space activities. The SST is therefore primordial to preserve the continuity of the Programme's components and their contributions to Union policies. By seeking to prevent the proliferation of space debris, SST contributes to ensuring the sustainable and guaranteed access to and use of space, which is a global common. (63)The SST should further develop the performance and autonomy of SST capabilities. To this end, it should lead to the establishment of an autonomous European catalogue of space objects, building on data from the network of SST sensors. The SST should also continue to support operation and delivery of SST services. As SST is a user-driven system, appropriate mechanisms should be put in place to collect user requirements, including those relating to security. (64)The delivery of SST services should be based on a cooperation between the Union and the Member States and on the use of existing as well as future national expertise and assets, including those developed through the European Space Agency or by the Union. It should be possible to provide financial support for the development of new SST sensors. Recognising the sensitive nature of the SST, the control over national sensors and their operations, maintenance and renewal and the processing of data leading to the provision of SST services should remain with the participating Member States. (65)Member States with adequate ownership or access to SST capabilities should be able to participate in the delivery of the SST services. Participating Member States in the SST Consortium established under the Decision No 541/2014/EU should be deemed to comply with these criteria. Those Member States should submit a proposal and demonstrate compliance with further elements related to the operational set up. If no proposal is submitted these Member States should be able to submit offers covering a specific orbit regime for example Low Earth Orbit (LEO) regime and Medium Earth and Geostationary orbits (MEO and GEO) regime respectively. Appropriate rules should be established for the selection and organisation of Member States participants. (66)Once SST is set up, it should respect the principles of complementarity of activities and continuity of high quality user-driven SST services, and be based on the best expertise. SST should therefore avoid unnecessary duplication. Any redundant capabilities should be strictly limited to ensure SST services continuity and quality. The activities of the Expert Teams should help avoiding these unnecessary duplications. (67)In addition, the SST should be complementary to existing mitigation measures, such as the Space Debris Mitigation Guidelines of the Committee on the Peaceful Uses of Outer Space (COPUOS) and Guidelines for the Long-term Sustainability of Outer Space Activities, or other initiatives, to ensure the safety, security and sustainability of outer space activities. With a view to reducing risks of collision, the SST would also seek synergies with initiatives of active removal and passivation measures of space debris. The SST should contribute to ensuring the peaceful use and exploration of outer space. The increase in space activities may have implication on the international initiatives in the area of the space traffic management. The Union should monitor those developments and may take them into consideration in the context of the mid-term review of the current MFF. (68)SST, space weather and NEO should have regard to cooperation with international partners, in particular the United States of America, international organisations and other third parties, particularly to avoid collisions in space, to prevent the proliferation of space debris and to increase preparedness to effects of extreme space weather events and near-Earth objects (69)The Security Committee of the Council recommended the creation of a risk management structure to ensure that data security issues are duly taken into account in the implementation of Decision No 541/2014/EU. For that purpose and taking account of the work already performed, the appropriate risk management structures and procedures should be established by the participating Member States. (70)Extreme and major space weather events may threaten the safety of citizens and disrupt the operations of space-based and ground-based infrastructure. A space weather function should therefore be established as part the Programme with an aim of assessing the space weather risks and corresponding user needs, raising the awareness of space weather risks, ensuring the delivery of user-driven space weather services, and improving Member Stares capabilities to produce space weather service. The Commission should prioritise the sectors to which the operational space weather services are to be provided taking into account the user needs, risks and technological readiness. In the long term, the needs of other sectors may be addressed. The delivery of services at Union level according to the users' needs will require targeted, coordinated and continued research and development activities to support space weather services evolution. The delivery of the space weather services should build on the existing national and Union capabilities and enable a broad participation of Member States and involvement of the private sector. (71)The Commission White Paper on the future of Europe, the Rome Declaration of the Heads of State and Government of 27 EU Member States, and several European Parliament resolutions, recall that the EU has a major role to play in ensuring a safe, secure and resilient Europe that is capable to address challenges such as regional conflicts, terrorism, cyber threats, and growing migration pressures. Secure and guaranteed access to satellite communications is an indispensable tool for security actors, and pooling and sharing of this key security resource at Union level strengthens a Union that protects its citizens. (72)The European Council of 19-20 December 2013 in its conclusions welcomed in the area of Satellite Communication the preparations for the next generation of Governmental Satellite Communication (GOVSATCOM) through close cooperation between the Member States, the Commission and the European Space Agency. GOVSATCOM has also been identified as one of the elements of the Global Strategy for the European Union's Foreign and Security Policy of June 2016. GOVSATCOM should contribute to the EU response to Hybrid Threats, provide support to the EU Maritime Strategy and to the EU Arctic Policy. (73)GOVSATCOM is a user-centric programme with a strong security dimension. The use-cases may be analysed for three main families: crisis management, which may include civilian and military Common Security and Defence missions and operations, natural and man-made disasters, humanitarian crises, and maritime emergencies; surveillance, which may include border surveillance, pre-frontier surveillance sea-border surveillance, maritime surveillance, surveillance of illegal trafficking; and key infrastructures, which may include diplomatic network, police communications, critical infrastructures (e.g. energy, transport, water barriers) and space infrastructures. (74)Satellite communications is a finite resource limited by the satellite capacity, frequency and geographic coverage. Therefore, in order to be cost-effective and to capitalise on economies of scale, GOVSATCOM needs to optimise the match between the GOVSATCOM demand by authorised users, and the supply provided under GOVSATCOM contracts for satellite capacities and services. Since the demand and the potential supply both change with time, this requires constant monitoring and flexibility to adjust GOVSATCOM services. Economies of scale can only be achieved for a sufficiently large pool of capacities and services and user base. (75)Operational requirements will be derived on the basis of the use-case analysis. From those operational requirements, in combination with security requirements, the service portfolio should be developed. The service portfolio should establish the applicable baseline for the services to be provided through GOVSATCOM. In order to maintain the best possible match between the demand and supplied services, the GOVSATCOM service portfolio may need to be regularly updated. (76)In the first phase of GOVSATCOM (roughly until 2025) existing capacity from private actors and Member States will be used. In this first phase services will be introduced in a stepped approach, first to Union-level users. If in the course of the first phase a detailed analysis of future supply and demand reveals that this approach is insufficient to cover the evolving demand, the decision may be taken to move to a second phase and develop additional bespoke space infrastructure or capabilities through one or several public-private partnerships, e.g. with Union satellite operators. (77)In order to optimise the available satellite communication resources, to guarantee access in unpredictable situations, such as natural disasters, and to ensure operational efficiency and short turn-around times, one or two GOVSATCOM Hubs are required. The ground segment should be designed on the basis of operational and security requirements. In order to mitigate risks it may consist of several physical sites. Additional ground segment elements, such as anchoring stations, may be needed. (78)For users of satellite communications the user equipment is the all-important operational interface. The EU GOVSATCOM approach makes it possible for most users to continue to use their existing user equipment for GOVSATCOM services in so far as they make use of Union technologies. (79)In the interest of operational efficiency users have indicated that it is important to aim for interoperability of user equipment, and user equipment that can make use of different satellite systems. Research and development in this domain may be required. (80)At implementation level the tasks and responsibilities should be distributed amongst specialised entities, such as the European Defence Agency, the EEAS, the European Space Agency, the Agency, and other Union agencies in such a manner to ensure that they align with their principal role, especially for user related aspects.

(81)The competent GOVSATCOM authority has an important role to monitor that users, and other national entities that play a role in GOVSATCOM, comply with the sharing and prioritisation rules and security procedures as laid down in the security requirements. A Member State which has not designated a competent GOVSATCOM authority should in any event designate a point of contact for the management of any detected jamming affecting GOVSATCOM. (82)In order to ensure uniform conditions for the implementation of this Regulation, implementing powers regarding operational requirements for services provided under GOVSATCOM should be conferred on the Commission. It will give the possibility to the Commission to define technical specifications for use-cases related to crisis management, surveillance and key infrastructure management, including diplomatic communication networks. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council. (83)In order to ensure uniform conditions for the implementation of this Regulation, implementing powers regarding the service portfolio for services provided under GOVSATCOM, should be conferred on the Commission. It will give the possibility to the Commission to define attributes, including geographic coverage, frequency, bandwidth, user equipment, and security features. Those powers should be exercised in accordance with Regulation (EU) No 182/2011. (84)In order to ensure uniform conditions for the implementation of this Regulation, implementing powers regarding the sharing and prioritisation rules for the use of pooled GOVSATCOM satellite communication capacities, should be conferred on the Commission. It will give the possibility to the Commission take into account the operational and security requirements and an analysis of risks and expected demand by GOVSATCOM participants. Those powers should be exercised in accordance with Regulation (EU) No 182/2011. (85)In order to ensure uniform conditions for the implementation of this Regulation, implementing powers regarding the location of the ground segment infrastructure for GOVSATCOM, should be conferred on the Commission. It will give the possibility to the Commission take into account the operational and security requirements for the selection of such locations. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council. (86)Infrastructure dedicated to the Programme may require additional research and innovation, which may be supported under Horizon Europe, aiming for coherence with activities in this domain by the European Space Agency. Synergies with Horizon Europe should ensure that research and innovation needs of the space sector are identified and established as part of the strategic research and innovation planning process. Space data and services made freely available by the Programme will be used to develop breakthrough solutions through research and innovation, including in Horizon Europe, in particular for sustainable food and natural resources, climate monitoring, smart cities, automated vehicles, security and disaster management. The strategic planning process under Horizon Europe will identify research and innovation activities that should make use of Union-owned infrastructures such as Galileo, EGNOS and Copernicus. Research infrastructures, in particular in situ observing networks will constitute essential elements of the in situ observation infrastructure enabling the Copernicus services (87)Regulation (EU) No 912/2010 established a Union agency, called the European GNSS Agency, to manage certain aspects of the Galileo and EGNOS satellite navigation programmes. The present Regulation provides in particular that the European GNSS Agency will be entrusted with new tasks, not only in respect of Galileo and EGNOS but also for other components of the Programme, especially security accreditation. The name, tasks and organisational aspects of the European GNSS Agency must therefore be adapted accordingly. (88)In view of its extended scope, which will no longer be limited to Galileo and EGNOS, the European GNSS Agency should henceforth be changed. However, the continuity of the activities of the European GNSS Agency, including continuity as regards rights and obligations, staff and the validity of any decisions taken, should be ensured under the Agency. (89)Given the Agency’s mandate and the role of the Commission in implementing the Programme, it is appropriate to provide that some of the decisions taken by the Administrative Board should not be adopted without the favourable vote of the representatives of the Commission. (90)Without prejudice to the powers of the Commission, the Administrative Board, the Security Accreditation Board and the Executive Director shall be independent in the performance of their duties and shall act in the public interest. (91)It is possible, and indeed probable, that some components of the Programme will be based on the use of sensitive or security-related national infrastructure. In this case, for reasons of national security, it is necessary to stipulate that meetings of the Administrative Board and Security Accreditation Board be attended only by the representatives of the Member States which possess such infrastructure. (92)To encourage the widest possible use of the services offered by the Programme, it would be useful to stress that data, information and services are provided without guarantee. (93)It should be confirmed that the Commission, in performing certain of its tasks of a non-regulatory nature, may have recourse, as required and insofar as necessary, to the technical assistance of certain external parties. Other entities involved in the public governance of the Programme may also make use of the same technical assistance in performing tasks entrusted to them under this Regulation. (94)Pursuant to paragraphs 22 and 23 of the Inter-Institutional agreement