Green Paper - European Space Policy
Date: 2003-01-21
Institutions: European Commission
Subjects: European Space Agency, aerospace industry, space policy, space station, use of outer space

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 21.1.2003
COM(2003) 17 final

GREEN PAPER

European Space Policy

(Presented by the Commission)

GREEN PAPER

European Space Policy

This document has been prepared in co-operation with the European Space Agency

2

TABLE OF CONTENTS

GREEN PAPER European Space Policy ................................................................................... 2

FOREWORD .............................................................................................................................. 4

INTRODUCTION...................................................................................................................... 6

A Necessary Debate ................................................................................................................... 6

The Green Paper process........................................................................................................... 7

1.

EUROPEAN SPACE IN A CHANGING GLOBAL CONTEXT............................... 8

1.1.

Fundamental elements.................................................................................................. 8

1.1.1.

Independent access to space......................................................................................... 9

1.1.2. Maintaining scientific excellence............................................................................... 10

1.1.3.

The industrial and technological base ........................................................................ 11

1.1.4.

The commercial market and the institutional demand ............................................... 14

1.1.5.

International co-operation .......................................................................................... 15

1.1.6. Manned space flight ................................................................................................... 16

1.2.

1.3

2.

2.1.

2.2.

2.3.

3.

3.1.

3.2.

3.3.

Budgetary and financial resources ............................................................................. 17

Vocation and competencies........................................................................................ 18

PLACING SPACE MORE AT THE SERVICE OF EUROPE AND ITS CITIZENS19

Contributing to the emerging knowledge society and the competitiveness of
European industry ...................................................................................................... 20

Supporting sustainable development ......................................................................... 22

Improving the security of citizens.............................................................................. 23

TOWARDS A MORE EFFICIENT AND AMBITIOUS ORGANISATION AND
FRAMEWORK.......................................................................................................... 25

Union, ESA and Member States: roles and relationships .......................................... 25

Space policy and programming frameworks.............................................................. 26

Developing space industry within a transparent and stable regulatory framework ... 27

CONCLUSIONS...................................................................................................................... 29

3

FOREWORD

in  space  matters.  So 

The  efforts  made  in  Europe  over  the  past  few  decades  have  been  motivated  by  a  desire  for
these  efforts  has  been
the 
autonomy 
intergovernmental,  led  by  the  European  Space  Agency  (ESA),  whose  base  of  knowledge,
experience  and  co-ordinating  role  make  it  an  essential  player,  and  national  (national
agencies and industries).

framework 

far 

for 

These  efforts  have  made  it  possible  to  create  a  solid  industrial  base  and  to  give  Europe
recognised  capability  in  the  field  of  launchers,  science  and  technology  and  applications,  in
particular  telecommunications  satellites.  As  a  result,  it  has  become  a  leading  player  in  the
commercial field.

However,  the  world  and  Europe  are  being  affected  by  profound  changes,  which  equally
impact the space scene. The successes notably obtained by the action of the Agency, should be
reinforced  and  will  be  justified  by  their  availability  to,  and  corresponding  support  of  the
Union.

Over  the  last  few  years,  the  Union  became  aware  of  the  importance  of  space.  It  has  been
enhancing its role as an actor, in particular on the basis of applications useful to the conduct
of  its  policies  (e.g.  the  Galileo  satellite  positioning  and  navigation  project)  and  the  GMES
initiative  (Global  Monitoring  for  Environment  and  Security)  for  observation  of  the
environment and for security purposes.

The  development  of  space  applications,  particularly  for  earth  observation,  has  made  it
possible to expand their field of interest. Consequently, space represents a tool with unique
characteristics  at  the  service  of  numerous  objectives  and  policies,  such  as  transport  and
mobility,  information  society,  environmental  protection,  land  use  planning,  agriculture  and
fisheries, sustainable development and, more generally, the Lisbon Strategy aimed at "making
the Union the most advanced knowledge-based society in the world".

Moreover, the growing challenges in terms of security, coupled with the many uses that can
be made of space, have now also led to a complete reappraisal of the role of Europe in space.
In  this  connection,  the  rapid  development  of  the  Common  Foreign  and  Security  Policy
(CFSP) and European Security and Defence Policy (ESDP) merit special attention.

Integrating  space  in  current  European  policies  would  have  two  main  advantages  for  this
sector: it would open up a vast range of  applications and users and provide  possibilities of
better integration of resources and a greater political resonance.

On this level, the fundamental question is that of European ambition. No European nation is
capable of independently maintaining a space policy at the necessary level. That the United
States  devote  six  times  as  much  in  terms  of  public  resources  to  space  as  all  European
countries put together means that Europe cannot remain indifferent if it wishes to play a role
in this field.

4

Some of the issues to be considered are sensitive, for example the degree of independence that
Europe is seeking in this strategic field, its ability to adopt a global approach to the security
dimension and the level and type of funding that it is prepared to grant.

At  the  organisational  level,  there  could  be  a  call  for  a  redefinition  of  the  roles  and
responsibilities  of  the  parties  involved,  in  a  spirit  of  subsidiarity,  in  order  to  reflect  the
political changes in the current situation and respond in a more effective manner to a revived
European will.

5

INTRODUCTION

The aim of this Green Paper is to initiate a debate on the medium- and long-term future use of
space for the benefit of Europe and on policy options available.

This  debate  is  naturally  incorporated  in  the  discussions  on  the  future  of  Europe  at  the  next
Intergovernmental Conference.

The  contents  of  the  Green  Paper  reflect  the  concerns  of  the  European  Commission,  often
shared by the European Space Agency (ESA). Notably, it presents a first reply to the request
of the European Parliament in its Resolution on space1.

A NECESSARY DEBATE

«Last  Frontier..»,  «discovery  of  the  Universe  and  its  origins…»,  «..life  on  other  planets..»,
«..first  footsteps  on  the  Moon..»,  «…space  heroes…».  Space  represents  to  humanity  an
infinite, timeless source of dreams and striking reality.

In  practice,  space  has  for  a  long  time  been  a  source  of  progress  and  technological  and
commercial success of Europe. Space systems already play a notable role in numerous facets
of the daily life of Europeans: satellite communications permit the exchange of messages with
the furthermost regions of the Earth; each person can watch television programmes reflecting
their  own  culture,  thousands  of  kilometres  from  their  country  of  origin;  data  from  earth
observation satellites are at the basis of weather forecasts.

Space  technology  can  already  make  a  marked  contribution  in  saving  human  life  thanks  to
search  and  rescue  networks  with  global  coverage,  as  well  as  providing  monitoring
infrastructure allowing efficient action during natural catastrophes.

In general, data and information from space systems are essential to the organisation and good
functioning of a modern society.

The  current  situation  and  the  prospects  for  the  future  of  the  European  space  sector  are,
however, worrying.

Space  is,  and  will  remain  for  a  long  time,  a  high-risk  sector,  of  fragile  economic  viability,
even if the potential of its application is ever increasing.

In  these  circumstances,  the  equilibrium  of  the  economic  model  adopted  for  space
development in Europe until now, associating a  strong commercial element  to support from
public  authorities,  is  markedly  reduced,  notably  as  a  consequence  of  the  difficulties  of  the
communication market and the mounting capability of several regions of the world. It is today
compromised.

At the same time, choices and continued major investments must continually be made in order
to remain ‘in the "hunt" technologically, whilst the difference in investment , in particular by
comparison with the United States, worsens.

1

Parliament Resolution, 17 January 2002, PR TAPROV(2002)0015 «Europe and Space».

6

                                                
Finally, the situation for space in Europe reflects a situation not without certain ambiguities.
This results in the first place from the more strategic, rather than commercial, nature of space,
and  the  fundamental  role  played  by  the  States.  The  positions  taken,  be  it  at  national,
intergovernmental  or  community  level,  can  vary  markedly,  and  national  intervention  in  the
industrial  matrix,  at  a  time  when  industry  is  moving  towards  a  trans-national  dimension,  is
heavy with consequence.

Any decision to become a space power is the result of a political will. For its part, Europe has
much to gain – or to lose – according to its presence or absence from the field. To avoid that
opportunities are lost, to provide counsel on decisions to be taken and actions to be made, a
broad debate is necessary.

To support and organise this, the current document first of all reviews the fundamental issues
which  underpin  the  European  space  activity  (Chapter  I);  afterwards,  it  illustrates  the
considerable  potential  afforded  to  the  benefit  of  the  citizens  and  the  policies  of  the  Union
(Chapter II); it is completed by an examination of certain institutional and regulatory aspects,
and of the organisational consequences to be drawn (Chapter III)

THE GREEN PAPER PROCESS

The Green Paper is a new stage in the dynamic of the evolution of the European space sector.
By  this  action,  the  Commission  seeks  to  help  increase  awareness  among  the  authorities,
business and citizens on the strategic and political significance of these matters, which are too
often limited to specialists.

This  paper  takes  account  of  the  shared  thoughts  of  the  European  Commission  and  the
European  Space  Agency2  worked  out  within  the  Task  Force  on  space  set  up  in  2001  and
continues their joint work on European space strategy and European space policy3.

Without claiming to be exhaustive, the Green Paper is intended to raise those questions that
appear to be the most important in determining the options to be chosen in the medium and
long term. The response of interested parties to the questions raised will subsequently make it
possible to draw up an action plan ("White Paper").

2

The document was also drawn up on the basis of work carried out recently in both institutions, particularly the following:

- initial discussions held at the high-level workshop (October 2002) chaired by Commissioner Busquin which was attended by C.

Bildt (Rapporteur), J-L. Dehaene (Vice-President of the Convention), Commissioner Liikanen, A. Rodotà (Director-General of

the ESA), and representatives of the Danish and Greek Presidencies, the High Representative/Secretary General of the Council,

the European Parliament and business leaders;

- the report on "Strategic Aerospace Review for the 21st century" (STAR21, July 2002);

- the report "Towards a space agency for the EU" (December 2000 - C. Bildt, J. Peyrelevade, L. Späth).

3

COM(2001)718 final.

7

                                                
1. 

EUROPEAN SPACE IN A CHANGING GLOBAL CONTEXT

The Green Paper is based on an assumption and a premise:

– 

– 

space must, by nature, be considered at the global level;

the  effectiveness  of  Europe  in  space  can  drive  the  success  of  certain  of  its
policies.

1.1. 

Fundamental elements

The existence of European capabilities in a number of fields is essential  so that Europe  and
the  various  players  involved  can  continue  to  provide  the  basis  for  such  success,  either  in
competition and or in co-operation with the other world space powers.

The leading power, the United States, uses space systems  as  an instrument for  guaranteeing
strategic,  political,  scientific  and  economic  leadership  combining  the  concepts  of  "space
dominance" and "information dominance".

This political will is reflected in a level of  investment without  equal:  American  expenditure
for and in space accounts for some 80% of world spending in this area (civil + defence).

Russia,  which  is  likewise  a  pioneer  of  space  development,  has  succeeded  in  maintaining  a
very  important  scientific,  technological  and  operational  base.  As  things  stand,  it  has
developed more institutional links and industrial co-operation with the United States than with
European partners. Ukraine, moreover, has developed considerable technological know-how,
in particular in the launcher sector.

Finally,  the  activities  of  the  new  space  powers  which  have  emerged  more  recently  (Japan,
China, India, Brazil) are very much dictated by strategic considerations.

Europe for its part has followed an original path, which has so far shown a number of specific
characteristics (cf. Figure 1):

– 

– 

– 

– 

– 

political  ambition:  gaining  and  maintaining  independent  access  to  space  by
developing its own launch vehicles and satellites;

a sustained effort to develop, scientific knowledge, applications and associated
infrastructures.;

an industrial policy aimed at the development of a competitive and innovative
industrial base and a geographic spread of activities;

priority  given  to  civil  and  commercial  aspects,  particularly  in  the  field  of
launch services and satellites;

opting for international co-operation with the  leading  space  powers  for  major
instruments and encompassing missions, including manned flight.

8

Science
7.6%

Human Flight
7.6%

Launchers
29.3%

Support Activities
3.3%

Microgravity
1%

Other disciplines
1.2%

Communications
30.7%

Navigation, etc
1.5%

Earth Observation
18%

Fig. 1: Split of public and private European investment on space activities (year 2000)

1.1.1. 

Independent access to space

[source: Euroconsult, ESA]

Launch vehicles and launch infrastructures  are  the key  elements  in  any  space project.  Since
1980  Europe  has,  through  Ariane  and  the  space  centre  in  Guyana  (an  infrastructure  of
European interest), independent and reliable access to space,  giving it considerable  freedom
of initiative in achieving its space ambitions.

This autonomy has been  combined with  commercial success  which began in the  1980s  in  a
favourable international context, notably including:

– 

– 

the  fact  that  the  US  more  or  less  stopped  using  conventional  launchers,
replacing them by the space shuttle until its accident in 1986;

the ban on Russian launch vehicles from the commercial market until the end
of the Soviet regime (1990).

This stage has now been overtaken by events. The European operator Arianespace  currently
faces fierce competition combined with a downturn on the launch services market.

Ariane-5, the new generation launcher, is operational but under the current circumstances its
medium-term competitiveness must be based on new technical developments and the renewal
under preparation, of the method for public support of its .use.

At the same time, the range is widening with the advent of the Vega launch vehicle planned
for 2006 and the introduction, likewise envisaged for 2006, of the Russian Soyuz launcher at
the Guyanese space centre.

9

European autonomy and competitiveness: a delicate balance

(cid:1)  The  permanent  availability  of  a  reliable  launch  vehicle  to  meet  European  institutional
demand - 0 to 3 missions a year - has to date been based on a launcher capable of schedule
maintaining  workload  through  service  contracts  on  the  world  market,  i.e.  a  launcher  in
practice optimised for telecommunication satellites.

(cid:1)  In  accordance  with  this  principle,  the  commercial  success  of  Ariane  has  ensured  the
economic equilibrium of its use and has enabled the states to focus their efforts by priority
on new developments intended to maintain competitiveness

(cid:1)  This  balance  is  currently  threatened  by  three  factors:  the  economic  constraints  of  the
transition  between  the  two  generations  Ariane-4  and  Ariane-5,  the  contraction  of  the
commercial  market  and  the  fall  in  prices  due  to  worldwide  overcapacity  of  .means  of
launch.

A fundamental question which emerges over and above the process of restoring the economic
stability  of  the  European  launcher  in  the  medium  term  is  the  need  to  guarantee  European
access to space in the long term.

Q1.:  Should  Europe  maintain,  until  2020  and  beyond,  its  independent  access  to  space,
based on the development of a family of European launchers and their preferential use by
institutional users?

What  should  be  the  formula  for  a  wished-for  evolution  in  the  sharing  of  responsibilities
between the public authorities and the private sector in the economic balance of the use of
these launchers and in the finance of new developments?

1.1.2.  Maintaining scientific excellence

The European scientific community enjoys a leading position in the two main disciplines of
space  science,  i.e.  astrophysics  and  exploration  of  the  solar  system,  as  well  as  in  earth
observation. In addition to the competence of European laboratories, a number of factors have
been decisive in this respect:

– 

The highly integrated programming  framework represented  by  ESA  to  define
most missions and develop space systems (see box);

10

Characteristics of the integrated scientific programme of the ESA

(1) 

(2) 

(3) 

Stability of the budget adopted for five-year periods (annual level: €360 million) to
which the ESA Member States are obliged to contribute.

Long-term planning organising the alternation between missions of differing scope,
ensuring  a  balance  between  the  disciplines  and  determining  the  choice  between
European autonomy or a co-operative framework.

Complementarity of responsibility between the ESA, developing the platforms, and
national laboratories, developing on-board instruments.

A  comparable  programme  has  been  instigated  by  ESA  for  scientific  users  in  the  earth
observation field.

– 

– 

The availability of independent means of launch which has made it possible to
carry out several wholly European large-scale space missions, giving Europe a
pioneering  position  in  particular  fields  (e.g.  astrometry,  infrared  or  X-ray
astronomy);

The  technical  competence  of  industry  including  the  existing  synergy  in  the
field between civil and defence applications programmes.

European space science makes a significant contribution to knowledge of the physical world
and  research  into  living  in  space.  It  is  supplemented  by  knowledge  from  earth  science  and
disciplines using microgravity. It is also a powerful driving force of technology as it involves
taking  higher  risks  than  in  operational  systems.  The  long-term  level  of  finance,  the  split  of
responsibilities  between  national  and  European  actors,  and  the  balance  between  European
autonomy and and international co-operation are the decisive elements for the vitality of the
European  Space  Science  programme,  itself  an  essential  component  of  the  European  space
programme.

1.1.3.  The industrial and technological base

Europe's space sector should, in order to be competitive and credible, must have available an
industrial structure of high quality, and access to key technologies.

Industry

The strong industrial base existing in Europe that is competitive at world level, and capable of
mastering the entire  chain, must be maintained and/or  reinforced if Europe is to exercise its
freedom of initiative in the space sector.

Today,  the  European  space  sector  directly  employs  30000  highly  qualified  people,  spread
over  about  2000  companies  which  cover  the  full  range  of  skills  relating  to  systems,
subsystems and components.

As for its characteristic features, space industry is at the same time:

– 

Strategic:  it  ensures  Europe's  independence  in  essential  sectors  of  the  space
field;

11

– 

– 

Dual: it covers both civil and defence markets;

A "catalyst": its effects go beyond the space sector as such, in particular with
regard  to  the  electronic  consumer  equipment  and  television  broadcasting
industries.

Increasing  competition  has  over  the  years  led  European  space  industry  to  carry  out  major
restructuring.  It is now organised at European level and is in competition with or a credible
partner of its American counterpart.

However, it is affected crisis in  growth in telecommunications and the sharp  fall in demand
for this type of satellite.

A competitive industry

(cid:1)  The overall turnover of the European space industry is €5.5 billion a year.

(cid:1)  In  recent  years,  half  of  the  total  turnover  of  the  European  space  industry  has  come  from
institutional  orders  and  the  other  half  from  the  commercial  market  (cf.  Figure  2).  This
contrasts with the situation in the United States where three quarters of turnover come from
NASA and Defence Department orders.

(cid:1)  In  public  expenditure,  the  ratio  between  civil  and  defence  expenditure  is  1:5  in  Europe
whereas in the US they are of equal magnitude. Accordingly, European industry does not
benefit from the same synergies as its American counterpart.

(cid:1)  Investment in the space applications sector in general generates a services market (e.g. TV

broadcasting) larger by a factor 10 (cf. figure 3).

6000

5000

4000

3000

2000

1000

0

Commercial customers

Public customers

Total

91 92 93 94 95 96 97 98 99 00 01

Fig. 2: Consolidated turnover of European space industry( in million €)

[Source : Commission]

12

400

350

300

250

200

150

100

50

0

Launch
Services

Spacecraft Operations Ground
Segment

Services

Fig. 3 : Estimation of the cumulative value chain for the global commercial market
(satellite navigation and communication by satellite – 1998-2007)(in billion €)

[Source: Arianespace, ESA]

Europe must determine if it wants to maintain an industrial base covering the whole chain of
space activities and applications. In the industrial sector, it should also identify the sectors of
maximum added value, where the best comparative advantage may be developed.

Technology

In order to remain competitive, European industry needs a broad and efficient technological
base maintained through research and demonstration programmes.

This requires, in particular, that close co-operation be maintained between the space industry,
service  providers  and  public  research  bodies  and  also  calls  for  early  identification  of
technological requirements in the coming decades.

In  the  space  sector,  the  technological  chains  are  costly  and  market  volumes  limited;  this
makes it imperative for the public authorities to intervene.

In  this  context,  the  European  Union,  the  ESA,  the  national  players  and  industry  have
established various instruments to intervene in the whole value chain.

Support to Technology: a range of actions

(cid:1)  The  space  technology  plan  drawn  up  by  the  ESA  provides  the  framework  in  which  all
public  and  private  players  in  the  European  space  sector  are  invited  to  identify  European
requirements and participate in joint actions. The ESA itself conducts a number of research
and technological demonstration programmes.

(cid:1)  The  6th  Framework  Programme  for  Research  of  the  Union  focuses  its  efforts  in  the
space sector on applications connected with teledetection, navigation and communication.

(cid:1)  National  R&D  programmes  and  self-financed  initiatives  of  industry  complete  the

European space technology landscape.

13

This  does  not  exclude  a  possible  need  for  programmes,  or  additional  co-ordination
mechanisms.

Q2.: In which fields – including those concerned with space systems used for security and
defence – does Europe have critical technology  and industrial short-comings,  and how to
redress the balance?

1.1.4.  The commercial market and the institutional demand

The open commercial market represents around 30% of the total world space activities. The
remainder is made up of an institutional demand, the main part of which (American) is until
now not accessible to European players. The latter have concentrated their investment mainly
on the commercial segment.

30
25
20
15
10
5
0

Europe

US

 1995    1996    1997     1998   1999    2000    2001

Fig.4 Commercial satellites:
European versus American orders since 1995

(Numbers of satellites)

[Source: Euroconsult, AIA]

N.B.: in 2000, the increased requirements of communication satellite operators, coupled with
more severe export controls by the American administration, were particularly beneficial to
European industry.

The  breakdown  of  the  commercial  space  market  (particularly  certain  price  practices,
overcapacity and government restrictions) make this market difficult.

European  industries  are  more  vulnerable  since  the  relevant  part  of  their  activities  taken  up
with  this  type  of  market  is  greater  than  for  their  American  counterparts.  Analyses  agree
however  that  certain  niche  markets,  mainly  applications,  have  a  favourable  commercial
potential.

To  create  a  better  long-term  equilibrium,  industry  is  calling  for  the  creation  of  a  true
institutional market in Europe, based in particular on the environmental, security and defence
elements, and at the same time posing the question of European preference.

The  United  States  in  particular  protect  their  industry  from  external  commercial  pressures
thanks to support from a large national security and defence market which is closed to foreign

14

suppliers.  Application  to  commercial  civil  satellites  of  export  control  laws  –  notably  the
application of clauses related to dual use technologies – reinforces this support.

The world space market: comparison between public and commercial expenditure

[Source : ESA]

(cid:1)  The world space market, including commercial revenue generated by space applications
(telecommunication,  navigation,  earth  observation),  is  estimated  to  total  €167  billion  in
2001.

(cid:1)  Budgets for institutional space programmes world-wide in 2001 totalled €42 billion (civil
activities:  26  billion;  defence  activities:  16  billion).  The  world  commercial  market  –
satellites, launch services and operations – in 2001 is estimated at €49 billion.

(cid:1)  For 2002, US public expenditure in the space sector is €31.8 billion (5% up from 2001)

and is essentially equally shared between civil and military expenditure.

(cid:1)  In  2002,  European  public  expenditure  in  the  space  sector  is  €6  billion  (slightly  down

from 2001), 90% of which is attributed to civil programmes.

Q 3.: What is the outlook for growth in the European institutional market? In parallel, is it
necessary  to  seek  agreement  with  key  international  partners  (United  States,  Russia)  to
establish more balanced market conditions?

1.1.5. 

International co-operation

International  co-operation  can  be  considered  for  space  activities  in  relation  to  the  wish  or
need:

–  to attain particular objectives through co-operation rather than independently;

–  to clarify particular issues in a global context, e.g. matters of international trade, regulation,

standardisation, etc.

ESA and certain Member States have established a long tradition of co-operation with other
space  powers.  More  recently,  new  international  co-operations  have  seen  the  light  of  day,
notably  with  the  launch  of  the  Galileo  and  GMES  initiatives  by  the  Union,  making  it  even
more necessary that Europe ought to "speak with one voice".

From  the  outset,  Europe's  relations  with  the  United  States  in  respect  of  space  co-operation
have  been  privileged,  given  the  scope  of  the  American  programme  and  the  family  links  of
scientific, technological and industrial cultures.

These  relations  have  nevertheless  been  marked  by  a  constant  desire  on  the  part  of  the
Americans  to  be  pre-eminent  in  space.  Europe  participates  in  American  initiatives  in  space
science  and  in  manned  flight.  However,  as  a  general  rule,  and  thanks  to  the  size  of  its
investment,  NASA expects to remain  in  control design,  development  and,  means  of  launch,
such that Europe contributes to the less strategic aspects of space missions.

15

This relationship is often reflected in the relative share of on-board instrumentation, and the
way  observation  and  experimentation  time  is  allocated  between  the  two  scientific
communities within a co-operation project.

In space co-operation with Russia, which is more limited in scope, Europe's contribution has
been  even  less  decisive,  has  been  for  the  supply  of  scientific  instruments  onboard
interplanetary  probes  or  space  stations.  Seventeen  European  astronauts  have  participated  in
Russian  programmes.  Politically,  a  deeper  co-operation  of  Europe  with  Russia,  in  the
framework of a closer partnership and either current or future instruments, may be of mutual
interest. The Ukraine may equally be the object of special political attention.

Europe  has  today  is  gradually  acquired  a  strong  capacity  in  launchers,  science  and
applications.  It  is  henceforth  capable  of  taking  the  initiative,  intervening  on  a  par  with  its
partners and playing a strategic role in major space projects in a co-operative framework. A
review appears necessary over the range of future major space programmes as to the balance
to be found between European autonomy and international co-operation.

1.1.6.  Manned space flight

Manned flights are among the most emblematic aspects of the space sector and  consume an
important part  of the budget of  ESA, which has  created a European  Astronaut  Corps.  Forty
years after the first mission in orbit, manned space flights now always take  place in the co-
operative framework of the international space station (ISS).

The ISS combines, under US responsibility, contributions from the five main participants: the
United States, Russia, Japan, Canada and Europe. It is the most ambitious and the most costly
civil research infrastructure ever built (about €30 billion in development costs).

Europe's  contribution  via  ESA  to  the  ISS  remains  modest  (cf.  box).  Compared  with  earlier
forms of co-operation with Americans and Russians in the area of  manned  flight (Spacelab,
access to the  Mir space station), it has  nevertheless increased  considerably  in  terms  of  both
the technological and industrial dimension of the developments and enhanced possibilities for
experiments offered to the European scientific community.

European participation in the ISS

The European contribution amounts to about 8% of the total effort (€3 billion in investment
and €300 million/year in operating costs). It comprises:

–  a component of the station, the pressurised Columbus laboratory;

–  the associated scientific instrumentation;

–  an automatic freight transport facility, the Automated Transfer Vehicle (ATV), which will
be regularly launched by Ariane-5 towards the space station in order to meet its logistical
requirements.

The  European  astronauts  have  access  to  the  station  to  carry  out  experiments  via  the
American space shuttle or the Russian Soyuz vehicle.

16

The level of European  effort in the field  of  manned  space  flight  –  principally  Spacelab  and
ISS  –  has  sometimes  been  questioned,  notably  concerning  the  scientific  interest,  the  actual
possibilities for onboard experimentation and access for European astronauts.

Moreover, American decisions concerning the financing of the ISS, the onboard experimental
programme,  astronaut  visits  and  access  to  the  station  must  be  considered  in  the  light  of
Europe’s objectives.

Q4.:  From  a  European  point  of  view,  do  the  results  eventually  expected  from  the
experimental  programme  on  board  the  ISS  correspond  to  the  level  of  investment  and  the
running costs? How should Europe develop its participation and its objectives?

1.2. 

Budgetary and financial resources

The average level of public funding of space activities in Europe is less than € 15 per head per
year.The  corresponding  amount  in  the  United  States  is  around  €110.  As  an  illustration,  the
split of resources allocated to the space sector in 2000 is given in the diagram below.

Arianespace
19.1

O ther Contracts
0.9

ESA
27.5

Com m ercial Sales
32.4

National Civil
Program m es
11.8

European
Com m ercial
1

National M ilitary
Program m es
7.3

Fig.5: Distribution of sources of revenue for the European space sector (year 2000)

(in %) [Source:Euroconsult, ESA]

Optimisation of certain instruments and the institutional architecture should make it possible
to achieve greater efficiency in the use of existing resources (cf. chapter 3). Compared to the
main competitor, the United States, the return on investment remains very unfavourable, and
Europe must determine to what extent it wishes to increase its investment in the space field.

In Europe, space has been financed largely from funds under research budgets. However, the
development and operation of launch vehicles, applications and infrastructure go well beyond
this budgetary framework.

At Community level, moreover, use can be made of a  range  of  instruments  (trans-European
networks, R&D, structural funds, development aid, etc.) governed by different rules.

Q5.: How may the financing of space activities at European level be organised in a more
coherent manner, avoiding that an increase of resources at European level is accompanied
by an equivalent reduction of investment at national level?

17

1.3. 

Vocation and competencies

Reviews carried out in connection with the establishment of the European Research Area and
the publication of STAR21 have shown that there are a number of generic problems in Europe
affecting scientific disciplines, including the fact that fewer students are coming through.

Given  the  very  long  lifecycle  of  space  projects  and  their  specific  features,  the  sector  is
particularly  sensitive  to  the  continued  transfer  of  know-how  and  information  between
generations  of  scientists  and  engineers.  However,  the  population  of  space  specialists  is
ageing.

Human resources: a cause for concern

In Europe it is estimated that nearly 30% of people employed in the space sector are due to
retire in the  next 10  years.  In the United States  26%  of  persons  employed  in  the  aerospace
sector will retire in the next 5 years; 54% are over the age of 45.

Notwithstanding  productivity  gains  in  space  industry  (cf.  figure  6),  Europe  must  invest  in
human resources and know-how. For the space sector, the need to attract young scientists and
the mobility of scientists and engineers are particularly acute problems.

Europe must increase the number of researchers in this field, e.g. by making better use of the
female  scientific  potential,  by  recruiting  researchers  and  engineers  from  third  countries,  by
making  it  easier  for  expatriate  European  scientists  to  return  (in  particular  by  preventing  a
"brain drain") and by setting up attractive programmes offering incentives to young scientists.

180

160

140

120

100
80

60

40
20

0

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Fig. 6 Productivity in the European industrial space sector
(x € 1 000 per employee)

Q6.: What action should be taken in space professions and associated field to make them
more attractive, in particular to young people?

18

2. 

PLACING  SPACE  MORE  AT  THE  SERVICE  OF  EUROPE  AND  ITS
CITIZENS

Space technologies increasingly can offer opportunities of multiple use, making it possible to
develop  solutions  responding  to  the  various  needs  of  European  citizens.  Nevertheless,  it
should  be  more  in  line  with  user  expectations  in  terms  of  cost,  adaptation  to  actual
requirements and continuity of services on offer.

In  addition  to  the  very  widespread  use  of  telecommunication  satellites  for  the  exchange  of
information (telephony, television and digital  data transmission), Europe has in  recent  years
developed a number of applications showing the contribution of space infrastructures  which
have in most cases provided the basis for services of general interest, to citizens.

Current examples of space applications for citizens and policies

(cid:1)  Weather forecasts on the short (5 days) or medium term (3 months) have become possible
thanks to the systematic use of earth observation satellites. They are also of  considerable
importance in detecting major meteorological phenomena such as cyclones and El Niño.

(cid:1)  The setting-up of  a world-wide satellite navigation and positioning system has made it
possible  to  reduce  travelling  time  for  people  who  can  now  obtain  accurate  and  reliable
location data at any time enabling them to optimise their itinerary.

(cid:1)  Citizens' security also benefits from the use of space technology (monitoring of hazardous
transport  operations,  border  surveillance,  exchange  of  sensitive  information  between
administrations).

(cid:1)  The  stringent  implementation  of  the  common  agricultural  policy  requires  control
facilities,  in  particular  to  verify  production  and  land  lying  fallow.  Earth  observation
satellites provide national administrations and the parties concerned with standard facilities
throughout  the  Union  that  can  be  pressed  into  service  with  few  bureaucratic  and
administrative constraints, providing highly accurate and reliable results.

(cid:1)  Given the possibilities of surveillance at sea, the policy for maritime safety and the new
fisheries  policy  make  generalised  use  of  satellite  positioning  technology.  These
applications combine satellite positioning and telecommunication.

Added Value for the Union

More  generally,  a  strong  European  presence  in  particular  key  areas  of  space  applications  is
indispensable both as a political asset and in order to enable the Union to maintain its strategic
independence and contribute to its economic competitiveness.

The decision to launch the Galileo programme shows the European will  to  acquire a proper
share  in  the  emerging  market  in  navigation  and  positioning  services.  In  this  respect,  new
space  technologies  offer  equally  a  considerable  potential  to  increase  international  co-
operation and access new markets (in particular Asia and South America).

19

This broader orientation towards the Union's citizens and general interests makes it possible
to  open  up  the  field  to  players  other  than  those  of  the  traditional  space  industry:  service
providers, content providers, private and public users. De facto, it considerably enhances the
potential of the space sector.

In  view  of  the  above,  greater  priority  ought  to  be  given  to  the  process  of  transferring
technologies  from  the  research  sector  to  the  commercial  sector  e.g.  by  encouraging  private
investment  through  long-term  commitments  by  the  public  authorities  with  regard  to  their
requirements.

It  is  equally  essential  to  give  preference  to  research  actions  aimed  at  industrial  applications
and value added services which go beyond the strict context of space. In this way, the impact
of  user  demand  on  the  provision  and  the  structure  of  the  proposed  space  segment  will  be
increased.  The  Union  could  play  a  determinant  role  in  the  structure  and  progressive
consolidation of this demand, notably the public demand.

In  the  decades  ahead,  Europe  will  have  to  face  major  new  challenges  and  large-scale
requirements.  Three  main  themes,  which  have  received  the  attention  of  European  Summits,
may serve to illustrate the potential contribution of the space sector:

– 

– 

– 

the  objective  of  turning  Europe  into  the  world's  most  advanced  knowledge
society  by  2010  (including  its  larger  dimension  and  permitting  cultural
diversity);

the strong stance of the Union on sustainable development issues;

the  Common  Foreign  and  Security  Policy  and  the  Common  Security  and
Defence Policy which are in active development.

2.1. 

Contributing  to  the  emerging  knowledge  society  and  the  competitiveness  of
European industry

Space  systems  are  closely  linked  to  the  setting-up  of  a  competitive  knowledge  society,
intended  both  to  ensure  that  all  European  citizens,  notably  those  with  special  requirements,
may have access to advanced technologies and services, and to make European industry more
competitive.  Digital  television,  third  generation  mobile  communications  and  internet,
individually  or  together,  are  examples  of  useful  platforms  for  the  deployment  of  such
services, to which space systems can contribute4.

The  key  problem  in  this  area  is  the  need  to  develop  new  economically  viable  applications,
which  make  optimum  use  of  the  benefits  of  earth  and  space  technologies,  with  generally
different  industrial  cycles  and  capital  yield  profiles.  However,  in  an  extremely  competitive
environment, the level of public support for the developments merits debate.

4

The  Commission  launched  in 2002  the  «eEurope  2005»  action  plan,  using  these  technologies  to  modernise  public  services,  to

create a favourable environment for e-business, and to secure the broadband networks necessary for a modern economy.

20

                                                
Example of services linked to information society

(cid:1)  In the middle of 2002, 40% of homes in the Union had access to the Internet, i.e. about

150 million web users in Europe, the same number as in the United States.

(cid:1)  Despite  the  current  economic  difficulties,  telecommunication  satellites  constitute  the
most  important  market  for  the  space  sector  world-wide.  European  companies  have  been
genuinely  successful;  for  example,  there  are  now  two  European  service  operators  among
the four world leaders.

(cid:1)  In  Europe,  more  than  1250  television  programmes  are  broadcast  by  satellite  to  100

million homes.

Equally, it would be useful to define the new space systems necessary to optimise the global
information exchange network; for what applications, and on what economic basis.

Q7.:  What  are  the  conditions  for  the  emergence  of  economically  viable  and  competitive
applications  and  space  services  for  citizens  and  industries?  Will  political  actions  be
justified,  and  if  this  is  the  case,  to  what  extent  could  public  support  be  considered
necessary?

Ten new Member States will join the Union in 2004, adding 75 million citizens to the existing
Community of 375 million people, increasing markedly the benefits accorded by investment
on space systems.

“Social  inclusion”  in  terms  of  communication,  circulation  of  cultural  content  and  access  to
high  quality  services  is  crucial  in  ensuring  the  success  of  rapid  integration.  “Digital
inclusion”, which makes use of space-based resources, is an element of major importance in
this respect.

A  Union  enlarged  to  continental  size,  with  an  even  more  diversified  geography  and
considerable  inequalities  in  the  level  of  equipment  and  infrastructure,  means  an  increased
demand  for  which  use  can  be  made  of  particular  capacities  provided  by  space-based
infrastructure.

These  capacities  should  speed  up  the  integration  of  the  new  Member  States  and  make  it
possible  to  more  rapidly  improve  the  quality  of  services  to  which  citizens,  companies  and
public authorities have access:

–  development  of  their  links  with  the  other  countries  of  the  Union  (for  example,  in

reinforcing the communications infrastructures);

–  maintain the interests of an enlarged Union (notably for the monitoring and security of the

frontiers).

The diversity and cultural exchanges of Europe's populations can also be better served thanks
to the flexibility rendered possible, in particular, by television broadcasting via satellites.

21

Using space to support the integration process

(cid:1)  Examples  of  dedicated  space  applications  have  been  identified  in  areas  such  as  border
control  and  data  dissemination  to  enable  full  participation  in  the  Schengen  information
system.

(cid:1)  Data collected through space-based facilities are useful in maintaining land registries and
enhancing  urban  and  regional  planning  as  well  as  the  monitoring  and  control  of
reductions in industrial pollution.

(cid:1)  Satellites  can  contribute  to  broadband  access  to  internet,  particularly  to  the  benefit  of

rural regions.

(cid:1)  Various  future  Member  States  have  already  decided  to  take  part  in  regional  European

satellite systems for television broadcasting.

2.2. 

Supporting sustainable development

The Union has given a commitment to support a sustainable development policy, in particular
for  the  benefit  of  developing  countries.  This  has  been  translated,  in  particular,  into
commitments  made  at  the  World  Summit  on  sustainable  development  convened  in
Johannesburg in August 2002.

Earth  observation,  particularly  for  meteorological  and  environmental  purposes,  is  a  field  of
excellence  in  Europe,  thanks  in  particular  to  achievements  under  ESA  programmes  in  this
area  (e.g.  Meteosat,  managed  by  the  EUMETSAT  Agency,  Envisat).  Space  applications  of
this  type  contribute  to  global  monitoring  of  changes  on  the  planet,  for  example  as  regards
meteorology, climate, oceans and vegetation.

It  also  enables  more  effective  management  of  natural  resources  and  stricter  control  of
environmental parameters and regulations. Capacities for managing environmental crises are
also beginning to be developed.

However, space solutions of this type are still generally under-utilised, due in particular to the
experimental  and  fragmentary  nature  of  the  system  components  available.  The  Global
Monitoring  for  Environment  and  Security  (GMES)  initiative  specifically  strives  to  find  a
range of coherent solutions operational by 2008.

At global level, it has been shown that space systems can play a decisive role in implementing
and monitoring the application of international treaties through surveillance and control.

In the case of the Kyoto protocol, the commitments given by the Union represent a substantial
effort in economic terms. The Union should have the capacity to  ensure that the partners to
the  agreement  meet  their  commitments,  it  should  also  determine  the  effect  of  emission
reductions.

Europe may better exploit its participation in this type of agreement by the development and
offer of space techniques for monitoring and control, as it has recently shown with the Envisat
satellite.

22

Contributing to sustainable development via space

Environmental aspects: protection and surveillance of the global environment

(cid:1)  Observation  satellites  can  provide  rapid  and  coherent  information  on  forest  changes  and
land  cover  and  use,  which  are  factors  affecting  global  climate  change.  During  the  past
decade, the planet lost 94 million hectares of forest.

(cid:1)  Radar satellite monitoring of atmospheric temperature and water surface provide valuable
indications  to  assess  the  rise  in  ocean  levels  and  global  warming.  They  also  enable
monitoring of glacier contraction and ice floe movements.

(cid:1)  Satellite systems can also be effective in detecting and monitoring oil slicks at sea.

Economic and social aspects: impact of space on transport

(cid:1)  The use of satellite navigation systems such as Galileo makes it possible for air navigation
services to rationalise earth-based  infrastructure, which tends  to be redundant and costly,
by replacing conventional navigation aids by satellites. Numerous possibilities are offered
to maritime and terrestrial navigation, particularly  to simplify and make more reliable
management tasks and the control of operators and administrations.

(cid:1)  Studies  carried  out  when  the  Galileo  programme  was  being  devised  indicate  that
macroeconomic  benefits,  which  can  be  achieved  over  a  20-year  period  amount  to  about
€18 billion, combined with the creation of 145000 jobs. [source: Price Waterhouse].

2.3. 

Improving the security of citizens

The ESDP, which will gradually complete the process of European integration, aims to give
the  Union  the  ability  to  decide  and  act  autonomously  with  a  view  to  a  global  approach  to
crisis  management,  including  conflict  prevention,  by  means  of  various  instruments,  civil
and/or military (cf. "Petersberg tasks").

It takes account of the far-reaching changes in the concept of security in recent years and the
great  potential  for  progress  that  could  stem  from  its  scientific,  technological  and  industrial
dimension.  In  addition,  it  is  important  that  the  services  offered  by  space  systems  in  normal
times and crises are adequately protected.

Space systems are the main tool for collecting, transmitting and disseminating information at
a  global  level  and  the  only  one  which  is  physically  non-intrusive,  thanks  to  the  capabilities
provided  by  broadband  communication  systems  and  optical  imaging,  infrared  or  radar
systems,  the  performance  of  which  has  made  spectacular  progress.  A  space  component
supporting a  rapid capability  for decision making  will contribute to  a  credible  and  effective
CSFP.

23

To a certain extent, the critical shortcomings of current crisis management are directly linked
to  a  space  technology  capability,  and  this  applies  to  all  players  -  civilian  and  military  -
involved in crisis management, whether they act together or separately5.

In Europe, space can play a unique role to the benefit of the convergence of various processes
towards common goals. Strictly military capability effectively remains to a large extent within
the remit of Member States, such that several different satellite programmes exist.

An example of duplication of space systems in Europe.

(cid:1)  In  the  field  of  military  space,  there  are  5  programmes  in  Europe  for  communications
satellites  and  3  for  observation  satellites,  each  based  on  its  own  technology,  making
delicate a possible interoperability.

(cid:1)  In  practice,  these  systems  have  been  developed  without  co-ordination:  in  none  of  the

military fields does an operational European system exist.

Moreover, there are many common features of civil and military space technologies, so that it
is  appropriate  to  combine  resources  in  the  most  effective  manner,  having  regard  to
improvements  in  the  performance  of  commercial  systems,  budgetary  constraints  in  Europe
and the technological gap which has developed between the two sides of the Atlantic.

The STAR21 report recommends that the Union should develop a satellite-based defence and
security capability on an entirely European basis. So far, a number of national general staffs
have  co-operated  to  produce  a  joint  definition  of  "common  operational  needs  for  a  global
European satellite observation system for security and defence purposes (CON)", which could
be extended to other partners.

This first step could be complemented by the GMES initiative in order to produce a European
observation  system  in  space,  subsequently  extended  to  information  and  reconnaissance.
According to some estimates, acquiring a minimum common space capability would require
annual investments of €800 million for 10 years or so.

Q8.:How better to define and clarify, as part of a coherent whole (including framework and
time-scale):  the  nature  and  scale  of  the  space  capacities  required  to  achieve  the  political
objectives  of  the  PESC?  Within  what  context  the  possible  new  space  capability  may  be
placed at the service of the security of citizens?

The goal is to ensure Member States discover added value.

5

ECAP report, November 2002, ref. 13809/1/02

24

                                                
3. 

TOWARDS  A  MORE  EFFICIENT  AND  AMBITIOUS  ORGANISATION
AND FRAMEWORK

In Europe, a number of public agencies are pursuing space activities, to varying degrees and
on the basis of various policies and instruments.

This  diversity  is  characteristic  of  Europe.  However,  it  calls  in  question  the  optimum  use  of
resources and the various types of instruments available in order to achieve greater efficiency.

3.1. 

Union, ESA and Member States: roles and relationships

The fact that  no  space  policy  can be  formulated  in  Europe  in  a  purely  national  context  was
first addressed some 30 years ago.

The ESA, set up in 1975, met  the initial objective to bring  together the necessary resources
and  skills  required  for  developing  an  integrated  space  science  programme  and  producing  a
European launcher.  The  national agencies  of  certain  Member  States,  operational  bodies  and
Community space initiatives complete the European space (see box).

Public space activities in Europe: institutional and programming diversity

The ESA, an agency for developing technologies and space systems, is an instrument for co-
operation  between  certain  European  states.  It  has  provided  Europe  with  know-how  and
autonomy in this sector.

Other activities exist, notably based on:

–  competence and capabilities for initiative which particular Member States have wished to

preserve through national space agencies and national research centres;

–  the  role  entrusted  to  the  structures  responsible  for  running  operational  systems
developed by ESA and ensuring continuity of long-term services (e.g.  EUMETSAT)  and
various specialised instruments (e.g. the European Southern Observatory);

–  initiatives taken by the Community to include a space dimension in Community policies,

some pursued jointly with the ESA (e.g. Galileo, GMES).

This diversity in the space sector has evolved pragmatically over the years. Today it poses the
question  of  an  optimised  organisation  complying  with  the  subsidiarity  principle  permitting
Europe to fix new objectives and new ambitions.

ESA  and  national  space  agencies:  ESA  programmes  function  in  liaison  with  national
agencies.  In  order  to  avoid  gaps  or  redundancies  between  ESA’s  and  national  technical
centres, the Agency has undertaken to organise the whole in a coherent network of European
and  national  centres.  An  optimisation  of  the  competencies  and  means  must  permanently  be
sought in permanence, in the spirit of the European Research Area.

European  Union  and  ESA:  Space  is  the  reason  for  the  existence  of  ESA,  a  strong  priority
being  given  to  the  scientific  and  industrial  mastery  of  the  technology  and  systems

25

("technology  push").  The  Union,  however,  has  recourse  to  space  as  a  generic  tool  when  it
provides useful support for various Community policies ("demand pull").

The  combining  of  the  two  approaches  in  a  common  vision  of  European  space  can  be
particularly  fruitful.  The  efforts  of  co-operation  and  closer  working  relations  already
undertaken underline however, the absence particularly between the two organisations on the
institutional  and  procedural  plan  complicates  relations  and  decisions.  As  for  the  question
raised  -  of  which  certain  can  not  be  resolved  under  existing  conditions  -  one  can  note  the
following examples concerning:

– 

– 

– 

the  membership  (for  example,  the  case  of  the  two  States  of  the  Union  which
are not members of ESA, for which it is necessary to consider if they intend to
join  it,  ESA  countries  which  are  not  members  of  the  Union  and  the  possible
welcome in the ESA framework for enlargement countries);

working principles (for example, the principle of "juste retour");

the decision (notably, in the absence of a common decision-making body).

Q9.:  What  is  the  most  efficient  manner  to  exploit  the  space  "acquis"  in  Europe  for  the
benefit of Union policies?

3.2. 

Space policy and programming frameworks

The current diversity of the institutional and programming framework in the space sector and
current  discussions  on evolutions to the way  the  Union is governed  call  for  a  review  of  the
decisional architecture in European. The first movements in this direction have recently been
undertaken  in  the  framework  of  ad-hoc  structures  such  as  the  ESA/Commission  Joint  Task
Force on space. Permanent institutional solutions should now be introduced.

The scope which space technologies cover in Europe, the diversity of the relevant structures
and the increasing need for more coherent action between them are arguments in favour of a
globalisation of the European space policy.

This  global  space  strategy  must  also  establish  guidelines  ensuring  convergence  of  the
contributions made by various institutional players, in first place the Member States towards
common objectives. In doing so, it should cover all civilian, security and defence aspects.

The expected benefit will be genuine homogeneity of decisions taken by the Member States in
the  various  corresponding  programming  frameworks.globally,  and  on  a  common  strategic
agenda  this forms  a European  Space programme,  an essential  tool of the  implementation  of
the chosen policy.

One objective to be attained is that of a more precise definition of the responsibilities of those
involved and the mutual relationships of institutional actors in respect of space - in particular
development  agencies  and  operational  structures  -  and  their  relationship  with  the  private
sector.

26

Future Union Treaty

Several reasons argue in favour of the inclusion of arrangements on space in the future Treaty
of  the  Union.  Firstly,  space  is  by  nature  extra-territorial,  which  often  requires  human  and
financial resources going beyond purely national constraints.

As seen in the previous chapter, it is a field which can offer unique capability in the service of
the Union for the development and implementation of current and future policies either civil
or for security.

This presents the advantage of providing a more global political framework to treat the whole
range of questions relating to the space field.

With  a  new  Treaty  currently  in  the  course  of  definition,  it  is  appropriate  to  consider  the
possibility  of  providing  the  Union  with  a  space  policy  as  well  as  the  division  of
responsibilities and future roles between the Union, the Member States and ESA in this field.

Q10.:  How  may  the  political  and  juridical  bases  necessary  for  an  efficient  action  by  the
Union  and  Europe  in  the  space  field,  in  particular  with  regard  to  the  definition  of  the
future Treaty of the Union, be reinforced?

3.3. 

Developing  space 
framework

industry  within  a  transparent  and  stable  regulatory

Investment  in  the  space  sector  is  often  considerable  and  fraught  with  risk,  requiring  a  long
planning and implementation period. Taking account of these characteristics, it is important to
establish  a  stable  and  transparent  regulatory  framework  to  motivate  decision-makers  and
investors.  A  number  of  administrative  obstacles  remain  to  be  overcome  at  national  and
European level.

Evolution in the industrial landscape

Space is a strategic “pioneer” market involving extreme technical and financial risks and very
high entry costs for new players, justifying the major role played by the public authorities in
this area.

The  competition  objective  in  this  context  is  particularly  important  to  ensure  optimum
allocation  of  resources,  maintenance  of  transparency,  a  high  level  of  competitiveness  and  a
reduction of costs.

New regrouping trends in the space sector are not be excluded, in particular in Europe. The
course taken by this industry has been largely determined by the will of the public authorities
expressed through an industrial policy of the ESA.

Q11.:  Economic  pressures  are  driving  aerospace  industries  in  Europe  and  elsewhere  to
restructure.  What  are  the  consequences  of  such  restructuring?  How  may  the  actions  of
public bodies be best organised to support the competitiveness of the space industry?

27

Regulation and standardisation

Operating  global  space  systems  and  networks  poses  complex  problems.  Efforts  towards
simplification and expediting procedures appear necessary in particular in three areas:

– 

– 

– 

Frequency spectrum, orbital positions: The allocation of frequencies and orbital
positions  of satellites  are  increasingly scarce resources  shared  at  international
level. They are assigned to states by a specialised United Nations Agency, the
International  Telecommunication  Union  (ITU).  The  relevant  decisions  are
Conferences.
taken 

Radiocommunication 

World 

at 

It is in the interest of Member States to act jointly within these bodies, which is
in fact already partly the case, in particular through the European Conference
of  Postal  and  Telecommunications  Administrations  (CEPT),  but  these  efforts
should be further intensified in order to better present European positions in the
framework of international bodies.

Standardisation:  Apart  from  a  number  of  rare  cases,  space  systems  are
developed  in  accordance  with  specific  industrial  standards  which  are
authorised,  virtually  automatically,  by  the  European  Telecommunications
Standards Institute (ETSI). Open and shared standards would be conducive to a
wider  response  of  systems  to  the  demands  of  the  general  public,  thereby
enhancing  commercial  efficiency6.  It  is  necessary  to  stimulate  the  worldwide
industry to make use of these standards.

Licensing:  The  aim  should  be  to  eliminate  regulatory  barriers  hampering  the
swift settlement of problems of licences for operating and installing terminals,
which  is  an  indispensable  condition  for  attracting  investment  in  European
space telecommunication services, and to develop the market for new services
such  as  broadband  internet  via  satellite.  Organisations  wishing  to  establish  a
commercial satellite system in Europe can do so through a "one-stop shop" by
submitting  a  single  request  to  the  regulatory  authorities  of  a  country,  which
should  facilitate  the  licensing  process.  Under  the  provisions  in  force,  this
remains within  the  competence  of  the  Member  States.  It  will  be  necessary  to
examine  how  the  current  system  of  allocation  of  licences  can  be  adapted  to
develop  the  space  sector,  notably  to  ease  the  installation  of  satellite  systems
with a pan-European coverage. In particular those who propose new services.

Q.12:  Are  there  regulatory  barriers,  which  slow  the  development  of  new  space
communication services? What are the measures likely to improve regulatory environment
notably with a view to the development of the information society?

6

For example the European Co-operation for Space Standards initiative intended to promote industrial standards.

28

                                                
CONCLUSIONS

The Green Paper puts forward a number of questions, which Europe will have to face in the
medium and long term. The answers given and the choices made will determine the future of
Europe as a space power. This will in turn impact on the aspirations and development of the
Union itself.

The  publication  of  the  Green  Paper  marks  the  beginning  of  an  official  consultation  period.
This  will  extend  until  30  May  2003.  The  framework  will  be  provided  by  the  joint
Commission/ESA  Task  Force  which  will  organise  a  series  of  seminars,  workshops  and
hearings to facilitate the process. An internet site will also be available for the submission of
the answers that interested parties are requested to give to the questions raised.

Subsequently, an action plan ("White Paper") will be drawn up by the Commission, detailing
the action to be undertaken and the role of each partner in ensuring that they are successfully
implemented. This plan will be presented before the end of 2003.

Green Paper on the future of Europe in the space sector:
Consultation process

Start of consultation: 22 January 2003; end of consultation: 30 May 2003

Contributions should be sent to:

c/o Commission/ESA Joint Task Force

"Green Paper on space"

rue Joseph II n° 79 - Office 02/06 - 1049 Brussels

(an e-mail address will be available on the website)

A dedicated website and a web forum enabling all those interested to express their views will
also be available, at the following address:

http://europa.eu.int/comm/space

Information: A number of workshops is being planned to take the debate to various places in
Europe. The cities currently foreseen are: Berlin, Brussels, London, Madrid, Paris, Prague and
Rome.

Additional events may be organised as part of conferences already planned.

These  workshops  will  permit  an  open  exchange  of  views.  Presentations  prepared  by  the
Commission/European Space Agency joint Task Force will launch and structure the debates.

29

IMPACT ASSESSMENT FORM

IMPACT OF THE PROPOSAL ON BUSINESS WITH SPECIAL REFERENCE TO
SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs)

TITLE OF PROPOSAL

"Green Paper - European Space Policy"

DOCUMENT REFERENCE NUMBER

D/549542

THE PROPOSAL

The  aim  of  the  enclosed  communication  is  to  initiate  a  large-scale  consultation  process
principally meant to:

–  meet the request from the European Parliament (cf. recent Resolution on space7), inviting

the Commission to prepare a White Paper on the future of Europe in space.

–  further evolve and strengthen European space policy

–  facilitate the use of space in implementing European policies

–  foster the development of a political position on the strategic role of space for Europe and

raising awareness among citizens

–  address  remaining  politically  sensitive  issues  such  as  security,  multiple  use  and  certain

institutional matters

IMPACT ON BUSINESS

In  recent  years,  globalisation  and  the  increasing  commercialisation  of  space  has  led  to
significant  restructuring  of the space sector in Europe  and  world-wide.  The  European  space
industry  shows  balance  between  commercial  and  institutional  activities,  in  contrast  to  US
space  industry.  Europe’s  industrial  policy  has  to  ensure  the  existence  of  the  necessary
technological  and  industrial  base  in  space  in  order  to  safeguard  European  independence  in
strategic key areas and a high degree of global competitiveness and cost-effectiveness.

Nevertheless,  Europe's  space  industry  is  facing  a  very  difficult  market  situation.  The
European  industry,  strongly  dependent  on  the  commercial  market,  is  facing  a  further  major
restructuring in the years to come.

The  EU  Commission  and  the  ESA  share  in  particular  the  view  that  small  and  medium
enterprises (SMEs)  can play  an important role in the exploitation of technologies  developed

7

P5_TAPROV(2002)0015 «Europe and Space» European Parliament Resolution C5-0146/2001.

30

                                                
under  institutional  funding  because  they  are  close  to  the  market  and  users,  are  present
everywhere  and  are  able  to  rapidly  innovate  and  adapt  to  needs.  Both  institutions  intend  to
encourage  this  exploitation  in  particular,  for  example,  in  the  fields  of  navigation  or
telecommunications.

The  European  space  industry  will  be  widely  consulted  and  subsequently  involved  in  the
Green Paper consultation process and its consequent political actions. If the exercise can be
conducted successfully the result may be conducive to the level of employment in space and
space-related  industries.  The  existing  level  of  employment  should  at  least  be  maintained,  if
not increased.

CONSULTATION

Major  firms  and  SMEs  directly  or  indirectly  involved  or  interested  in  the  space  sector
(equipment suppliers, launching companies, telecom providers, etc.) will be the target group.
It is important to  define the  players  involved,  the  topics  for  discussion  and  the  consultation
procedures.

Due to the large number of issues, the heterogeneity of partners involved, the complexity of
the  task  in  hand  and  the  time  constraints,  the  consultation  procedure  has  to  be  carefully
prepared.

The consultation process can be subdivided into the following stages:

Information campaign: dissemination and website.

Targeted consultation: workshops and conferences

Wide consultation: e-mail, web forum, regular mail

Initial  reactions  from  industry  were  obtained  during  an  informal  workshop  (Brussels,  3
October 2002). The overall tenor was that the consultation process should be set in motion as
soon as possible through the Green Paper on space.

Industrial associations consulted:

EUROSPACE:
Eurospace  was created in 1961 as  the organisation  of  European  space
industry. It is an international non-profit association whose members are the main European
industrial  space  companies.  Its  members  represent  90%  of  total  space  turnover  of  the
European space manufacturing industry.

EASO : European Association of Satellite Operators

Individual companies consulted so far:

EUTELSAT

EUMETSAT

EADS

ARIANESPACE

31

ALENIA SPAZIO

ALCATEL SPACE

SES-GLOBAL

32