European Parliament legislative resolution on the proposal for a regulation of the European Parliament and of the Council on the implementation of the deployment and commercial operating phases of the European programme of satellite radionavigation (COM(2004)0477 - C6-0087/2004 - 2004/0156(COD))
Date: 2005-09-06
Institutions: European Parliament
Subjects: EU programme, Member States' contribution, financial management, financing, satellite navigation

17.8.2006

EN

Official Journal of the European Union

C 193 E/61

Tuesday 6 September 2005

P6_TA(2005)0313

Deployment and commercial operating phases of the European programme of
satellite radionavigation ***I

European Parliament legislative resolution on the proposal for a regulation of the European Parlia-
ment and of the Council on the implementation of the deployment and commercial operating
phases of the European programme of satellite radionavigation (COM(2004)0477 — C6-0087/2004
— 2004/0156(COD))

(Codecision procedure: first reading)

The European Parliament,

— having regard to the Commission proposal to the European Parliament and the Council (COM(2004)

0477) (1),

— having regard to Article 251(2) and Article 156 of the EC Treaty, pursuant to which the Commission

submitted the proposal to Parliament (C6-0087/2004),

— having regard to Rule 51 of its Rules of Procedure,

— having regard to the report of the Committee on Industry, Research and Energy and the opinions of the

Committee on Budgets and the Committee on Transport and Tourism (A6-0212/2005),

1. Approves the Commission proposal as amended;

2.

Points out that the appropriations indicated in the legislative proposal beyond 2006 are subject to the
decision on the next multi-annual financial framework;

3. Calls on the Commission, once the next multi-annual financial framework is adopted, to present, if

appropriate a proposal to adjust the financial reference amount of the programme;

4. Calls on the Commission to refer the matter to Parliament again if it intends to amend the proposal

substantially or replace it with another text;

5.

Instructs its President to forward its position to the Council and Commission.

(1) Not yet published in OJ.

P6_TC1-COD(2004)0156

Position of the European Parliament adopted at first reading on 6 September 2005 with a view to
the adoption of Regulation (EC) No …/2005 of the European Parliament and of the Council on the
implementation of the deployment and commercial operating phases of the European programme
of satellite radionavigation

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 156 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Economic and Social Committee (1),

After consulting the Committee of the Regions,

Acting in accordance with the procedure laid down in Article 251 of the Treaty (2),

(1) OJ C 221, 8.9.2005, p. 28.
(2) Position of the European Parliament of 6 September 2005.

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Whereas:

(1) European satellite radionavigation policy is presently implemented through the Galileo and EGNOS

programmes.

(2) Galileo is a programme aiming at establishing the first worldwide satellite radionavigation and positioning

infrastructure specifically for civil purposes.

(3) EGNOS is a programme aiming at augmenting the American GPS and Russian Glonass signals to
ensure reliability across a broad geographical area. It is independent from and complementary to
Galileo.

(4)

(5)

(6)

(7)

(8)

(9)

The European Parliament, the Council and the European Economic and Social Committee have con-
sistently given their full support to the Galileo programme.

The Galileo programme consists of a technology aiming at improving the everyday life of European
citizens in various domains. In particular, it fits perfectly into the framework of transport policy as
described in the Commission's White Paper, entitled ‘European transport policy for 2010: time to decide’,
particularly as regards freight management, tarification of infrastructures and road safety.

This programme has been taken up as a priority project in the Growth Initiative proposed by the
Commission and endorsed by the Council. It is also one of the main arms of the future European
space programme as set out in the Commission's White Paper, entitled ‘Space: a new European frontier for
an expanding Union — An action plan for implementing the European Space policy’.

The Galileo programme comprises a definition phase, a development phase, a deployment phase and a
commercial operating phase. The deployment phase should start in 2006, and, after two years'
overlap with the commercial operating phase, it should finish in 2010. The commercial operating
phase should start in 2008, and the system should become fully operational in 2010.

The definition and development phases constitute the part of the programme dedicated to research and
have received significant support from the Community Trans-European Network budget.

Council Regulation (EC) No 2236/95 of 18 September 1995 laying down general rules for the granting
of Community financial aid in the field of trans-European networks (1) established the rules for Com-
munity financial support for Community projects such as satellite navigation and positioning systems.

(10) Council Regulation (EC) No 876/2002 of 21 May 2002 (2) created the Galileo Joint Undertaking to

ensure the implementation of the development phase of the Galileo programme.

(11) Council Regulation (EC) No 1321/2004 of 12 July 2004 on the establishment of structures for the
management of the European satellite radionavigation programmes (3) set up the European GNSS
Supervisory Authority (hereinafter referred to as ‘the Supervisory Authority’).

(12)

In order to ensure the continuation of the programmes, it is necessary to secure the financing of the
deployment and commercial operating phases.

(13)

In view of the Council's decision to limit to 1/3 the public contribution to the deployment phase and in
light of the contributions already provided for in the current financial perspective, a Community contribu-
tion of EUR [500] million should be set aside for the deployment phase in the next financial perspective.

(1) OJ L 228, 23.9.1995, p. 1. Regulation as last amended by Regulation (EC) No 1159/2005 of the European Parliament

and the Council (OJ L 191, 22.7.2005, p. 16).

(2) OJ L 138, 28.5.2002, p. 1.
(3) OJ L 246, 20.7.2004, p. 1.

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(14) Given the special nature of the market for satellite radionavigation services and the marketing of these
services as well as the guaranteed provision of these services in the interest of the public sector, it will
be necessary to provide some exceptional public financing during the first years of the commercial
operating phase. Moreover, in its conclusions of 25-26 March 2002, and at its meeting of 8-9 March
2004, the Council specifically approved the use of Community funds to finance the commercial oper-
ating phase. The amount of Community funding required is expected to be in the region of EUR [500]
million.

(15)

It is therefore necessary to allocate a sum of EUR 1 000 million from the Community budget to finance
the deployment and the commercial operating phases of the programmes for the period 2007 to
2013, with its own budget line in the Community budget, thereby enabling the Budgetary Auth-
ority to link the funding to the meeting of deadlines for the various programme phases.

(16) In cases where financial guarantees in excess of the above mentioned budgetary allocation are to be
undertaken by the Community either directly or indirectly, they should be subject to approval by the
European Parliament and the Council in accordance with the applicable budgetary rules.

(17) In cases where liability commitments in excess of the above mentioned budgetary allocation are to
be undertaken by the Community either directly or indirectly, they should be subject to approval by
the European Parliament and the Council in accordance with the applicable budgetary rules.

(18) During the deployment and commercial operating phases, the construction and, later, the management
of the system will be entrusted to a private concession holder working under the supervision of the
Supervisory Authority created by Regulation (EC) No 1321/2004.

(19) A profit-sharing mechanism should be established in order to ensure the repayment of the Com-

munity contribution to the deployment and commercial operating phases.

(20) The concession holder should be entitled to receive the revenues deriving from the exploitation of
licences and intellectual property rights for system components, ownership of which should rest
with the Supervisory Authority.

(21) The tasks of the Supervisory Authority include the management of funds allocated to the European
satellite radionavigation programmes and the monitoring of the overall financial management of
the programmes so as to optimise the use of the public money. In addition, the Supervisory Authority
carries out such budgetary implementation tasks as are entrusted to it by the Commission in
accordance with Article 54(2), point (b), of Council Regulation (EC, Euratom) No 1605/2002 of
25 June 2002 on the financial regulation applicable to the general budget of the European Commun-
ities (1). Taking into account the specific nature of the programmes, the European Parliament, in
order to be able to fulfil its budgetary role, should have observer status on the Administrative
Board of the Supervisory Authority.

(22) The Commission proposal for a decision of the European Parliament and of the Council concerning
the seventh framework programme of the European Community for research, technological devel-
opment and demonstration activities (2007 to 2013) provides for support to the European GNSS
satellite navigation system.

(23) The Commission proposal for a decision of the European Parliament and of the Council establishing
a Competitiveness and Innovation Framework Programme (2007-2013) also provides for the
involvement of small and medium-sized European enterprises in developing innovations with the
support of Community funding, which will contribute to the development of the European GNSS
satellite navigation system.

(24) The Galileo programme has now reached an advanced stage of maturity and goes well beyond the
framework of a simple research project. It is thus necessary to provide it with a specific legal basis, better
able to satisfy its needs and respond to the requirements of sound financial management.

(1) OJ L 248, 16.9.2002, p. 1.

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(25) Establishing such a satellite radionavigation infrastructure is a project which clearly exceeds the
technical and financial capabilities of any Member State acting alone. The Galileo and EGNOS
programmes thus fully meet the requirements of the subsidiarity principle since the Community
level is the most appropriate level for action. This is an example of the added value that Europe
can generate when it has clearly defined its objectives and resources.

(26) This Regulation establishes, for the deployment and commercial operating phases of the programmes, a
financial envelope constituting the main reference for the Budgetary Authority, in accorda nce with point
33 of the Interinstitutional Agreement of 6 May 1999 between the European Parliament, the Council and
the Commission on budgetary discipline and the improvement of the budgetary procedure (1),

HAVE ADOPTED THIS REGULATION:

Article 1

This Regulation lays down the detailed arrangements for the Community's financial contribution to the deploy-
ment (2006-2010) and commercial operating (2008 onwards) phases of the European satellite radionavi-
gation Galileo and EGNOS programmes (hereinafter referred to as ‘programmes’)

Article 2

The Community contribution to the programmes under this Regulation is granted with the aim of co-financ-
ing:

(a)

(b)

activities related to the deployment phase, covering the construction and launch of satellites as well as
the complete setting up of the terrestrial infrastructure;

if necessary, the first series of activities connected with the launch of the commercial operating phase,
covering the management of the infrastructure, made up of satellites and associated ground stations, and
the maintenance and updating of the system.

Article 3

The indicative financial framework necessary for the implementation of the actions envisaged in Article 2 of
this Regulation is set at [EUR 1 000 million] for the period of 7 years as from 1 January 2007.

The annual appropriations are authorised by the Budgetary Authority within the limits of the relevant finan-
cial perspective.

Article 4

In cases where financial guarantees in excess of the budgetary allocation indicated in Article 3 are to be
undertaken by the Community either directly or indirectly, including the concession contract, they shall be
subject to approval by the European Parliament and the Council in accordance with the applicable
budgetary rules.

Article 5

In cases where liability commitments in excess of the budgetary allocation indicated in Article 3 are to be
undertaken by the Community either directly or indirectly, including the concession contract, they shall be
subject to approval by the European Parliament and the Council in accordance with the applicable
budgetary rules.

Article 6

A profit-sharing mechanism shall be established in order to ensure the repayment of the Community
contribution to the deployment and commercial operating phases.

(1) OJ C 172, 18.6.1999, p. 1.

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Article 7

Tuesday 6 September 2005

The concession holder shall be entitled to receive the revenues deriving from the exploitation of licences
and intellectual property rights for system components, ownership of which shall rest with the Supervi-
sory Authority.

Article 8

The Supervisory Authority ensures, in accordance with Article 54(2), point (b), of Regulation (EC, Euratom)
No 1605/2002, and the requirements of Regulation (EC) No 1321/2004, the management and control of
the use of Community funds allocated to the programmes.

Taking into account the specific nature of the programmes, the European Parliament, in order to be able
to fulfil its budgetary role, shall have observer status on the Administrative Board of the Supervisory
Authority.

The operational credits necessary for the financing of the Community contribution shall be granted to the
Supervisory Authority, through an agreement, in accordance with the requirements of Article 2(1), point
(g), of Regulation (EC) No 1321/2004. The Budgetary Authority shall be informed of the draft agree-
ment before it is initialled.

The amount allocated under each annual agreement on financing shall be decided in the framework of the EU
budgetary procedure, taking into account the work programme of the Supervisory Authority as approved
by its Administrative Board, in accordance with the procedure laid down in Article 6 of Regulation (EC)
No 1321/2004, and within the limits of the applicable Financial Perspective.

Each agreement shall stipulate in particular the general conditions for the management of the funds granted
to the Supervisory Authority.

Article 9

The Commission shall ensure that, when actions financed under this Regulation are implemented by the
Supervisory Authority, the financial interests of the Community are protected by the application of preven-
tive measures against fraud, corruption and any other illegal activities, by effective checks and by the
recovery of the amounts unduly paid and, if irregularities are detected, by effective, proportional and dis-
suasive penalties, in accordance with Council Regulation (EC, Euratom) No 2988/95 (1), Council Regulation
(Euratom, EC) No 2185/96 (2) and Regulation (EC) No 1073/1999 of the European Parliament and of the
Council (3).

For the Community actions financed under this Regulation, the notion of irregularity referred to in Article 1
(2) of Regulation (EC, Euratom) No 2988/95 shall mean any infringement of a provision of Community law
or any breach of a contractual obligation resulting from an act or omission by an economic operator, which
has, or would have, the effect of prejudicing the general budget of the European Communities or budgets
managed by them, by an unjustified item of expenditure.

Contracts and agreements, as well as agreements with participating third countries, resulting from this
Regulation shall provide in particular for supervision and financial control by the Supervisory Authority or
the Commission, or any authorised representative of those bodies, and audits by the Court of Auditors, including,
if necessary, on-the-spot audits.

Article 10

Every year, upon presentation of the preliminary draft budget, the Commission will present a report to
the European Parliament and the Council on the implementation of the programmes. In 2007 a mid-term
review shall be carried out in order to inform the European Parliament and the Council of the progress
reached by that time.

(1) OJ L 312, 23.12.1995, p. 1.
(2) OJ L 292, 15.11.1996, p. 2.
(3) OJ L 136, 31.5.1999, p. 1.

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Article 11

This Regulation shall enter into force on the 20th day following that of its publication in the Official Journal
of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at …, on …

For the European Parliament
The President

For the Council
The President

P6_TA(2005)0314

Agreement between the EC and Lebanon on certain aspects of air services *

European Parliament legislative resolution on the proposal for a Council decision on the conclusion
of the Agreement between the European Community and the Republic of Lebanon on certain
aspects of air services (COM(2005)0062 — C6-0059/2005 — 2005/0012(CNS))

(Consultation procedure)

The European Parliament,

— having regard to the proposal for a Council decision (COM(2005)0062) (1),

— having regard to Articles 80(2) and 300(2), first subparagraph, first sentence, of the EC Treaty,

— having regard to Article 300(3), first subparagraph, of the EC Treaty, pursuant to which the Council

consulted Parliament (C6-0059/2005),

— having regard to Rules 51 and 83(7) of its Rules of Procedure,

— having regard to the report of the Committee on Transport and Tourism (A6-0232/2005),

1.

Approves the conclusion of the agreement;

Instructs its President to forward its position to the Council and Commission, and the governments

2.
and parliaments of the Member States and the Republic of Lebanon.

(1) Not yet published in OJ.