Regulation (EC) No 683/2008 of the European Parliament and of the Council of 9 July 2008 on the further implementation of the European satellite navigation programmes (EGNOS and Galileo)
Date: 2008-07-09
Institutions: Council of the European Union, European Parliament
Subjects: EU financing, EU programme, exchange of information, satellite navigation, space policy

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I

(Acts adopted under the EC Treaty/Euratom Treaty whose publication is obligatory)

REGULATIONS

REGULATION (EC) No 683/2008 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 9 July 2008

on the further implementation of the European satellite navigation programmes (EGNOS and Galileo)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

(4)

The European Parliament, the Council and the European
Economic and Social Committee have consistently given
their full support to the programmes.

Having regard to the Treaty establishing the European Commu-
nity, 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,

(5)

The development of satellite navigation is fully in line with
the Lisbon Strategy and other Community policies, such as
transport policy as set out in the Commission's White Paper
of 12 September 2001 entitled ‘European transport policy
for 2010: time to decide’. In its work programme the
Commission should, if appropriate, accord special attention
to the development of GNSS applications and services.

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

(6)

Whereas:

(1)

(2)

The aim of European satellite navigation policy is to provide
the Community with two satellite navigation systems
(hereinafter the systems). These systems are established
under the EGNOS and Galileo programmes (hereinafter the
programmes). Each infrastructure is made up of satellites
and a network of earth stations.

The aim of the Galileo programme is to establish the first
global satellite navigation and positioning infrastructure
specifically designed for civilian purposes. The system
established under the Galileo programme is completely
independent of other existing or potential systems.

(7)

(8)

(3)

The aim of the EGNOS programme is to improve the
quality of signals from existing global navigation satellite
systems (hereinafter GNSS).

(1) OJ C 221, 8.9.2005, p. 28.
(2) Opinion of the European Parliament of 23 April 2008 (not yet
published in the Official Journal) and Council Decision of 3 July
2008.

The programmes are among the priority projects included
in the Lisbon Action Programme for Growth and Employ-
ment proposed by the Commission and endorsed by the
European Council. They are also considered one of the
major pillars of the future European Space Programme, as
described in the Commission Communication of 26 April
2007 on European Space Policy.

The Galileo programme consists of a definition phase, a
development and validation phase, a deployment phase and
an exploitation phase. The deployment phase is set to begin
in 2008 and end in 2013. The system should be
operational by 2013.

The definition phase and the development and validation
phase of the Galileo programme, which are the phases of
the programme dedicated to research, have been financed
substantially by the Community budget for trans-European
networks and by the European Space Agency (hereinafter
ESA). The deployment phase should,
in principle, be
financed entirely by the Community. It may be decided at a
later stage that public-private partnerships or any other
form of contract with private sector entities are appropriate
for the operation, maintenance, improvement and renewal
of the system after 2013.

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(9)

The Safety-of-Life Centre in Madrid may decide to evolve
into a fully qualified, equivalent Galileo Satellite Control
Centre,
the assets of which will be owned by the
Community. The investment necessary for this evolution
will be without additional costs to the agreed Community
budget for the programmes for the period 2007-2013. In
that case, whilst not affecting the operational capabilities of
the Galileo Satellite Control Centres in Oberpfaffenhofen
and Fucino, the Commission will ensure that, provided that
it is able to meet all the requirements applicable to all
centres, the Centre in Madrid is fully operationally qualified
as a Galileo Satellite Control Centre by the end of 2013 and
is included in the Galileo network of the centres mentioned
above.

(10)

It is important that the financing of the EGNOS system,
is
including its operations, sustainability and marketing,
ensured by the Community. The operation of EGNOS
might be the subject of one or more public service
contracts, in particular with private sector entities, until it is
integrated into the operations of Galileo.

(11) As the programmes have now reached an advanced stage of
maturity and have gone well beyond the framework of
simple research projects,
it is necessary to give them a
specific legal basis which is better able to satisfy their needs
and respond to the requirement
sound financial
management.

for

the Galileo Interinstitutional Panel in accordance with the
Joint declaration on the Galileo Interinstitutional Panel of
9 July 2008.

(15) Council Regulation (EC) No 1321/2004 of 12 July 2004 on
the establishment of structures for the management of the
European satellite radio-navigation programmes (1) estab-
lishes the Authority. The Authority is a Community agency,
which, as a body within the meaning of Article 185 of
Council Regulation (EC, Euratom) No 1605/2002 of
25 June 2002 on the Financial Regulation applicable to
the European Communities (2)
the general budget of
is subject to the
(hereinafter the Financial Regulation),
obligations laid down for Community agencies.

(16) Respecting the Commission's role as manager of

the systems and the operation of

the
programmes and in accordance with guidelines issued by
the Commission, the Authority should ensure the security
accreditation of
the
Galileo security centre and contribute to the preparation of
the commercialisation of
the systems with a view to
smooth functioning, seamless service provision and high
market penetration. In addition, the Authority should also
accomplish other tasks that might be entrusted to it by the
Commission in accordance with the Financial Regulation,
in particular promoting applications and services and
ensuring the certification of
the
systems.

the components of

(12) The systems established under

the programmes are
infrastructures set up as trans-European networks whose
use extends well beyond the national boundaries of the
Member States. Furthermore, the services offered through
these systems contribute, in particular, to the development
of
transport,
trans-European networks in the areas of
telecommunications and energy infrastructures.

(17) The European Parliament and the Council

invite the
Commission to put forward a proposal in order to align
formally the management structures of the programmes as
set out in Regulation (EC) No 1321/2004 with the new
roles of the Commission and the Authority.

(13) Sound public governance of

the Galileo and EGNOS
programmes requires, first, that there is a strict division of
responsibilities between the Commission, the European
GNSS Supervisory Authority (hereinafter the Authority)
and ESA and, second, that the Community, represented by
the Commission, ensures the management of
the pro-
grammes. The Commission should establish the appro-
priate instruments and possess the necessary resources, in
particular in terms of the assistance it requires.

(18)

In order to guarantee the continuation of the programmes,
it is necessary to establish an appropriate financial and legal
framework to allow the Community to continue to fund
the programmes. It is also necessary to indicate the amount
of money required between 1 January 2007 and
31 December 2013 to fund the remainder of
the
development and validation phase and the deployment
phase of Galileo,
the operation of EGNOS and the
preparation for the exploitation phase of the programmes.

(14)

In view of the importance, uniqueness and complexity of
the programmes, the Community ownership of systems
resulting from the programmes, and the full financing from
the Community budget of the programmes for the period
2008-2013, the European Parliament, the Council and the
Commission recognise the usefulness of close cooperation
between the three institutions. To this end, the European
Parliament, the Council and the Commission will meet in

(19) The European Parliament and the Council have decided that
the total estimated operating costs for the Galileo and
EGNOS systems for the period 2007-2013 are EUR 3 405
million. EUR 1 005 million had originally been earmarked
in the multiannual financial framework (2007 to 2013).

(1) OJ L 246, 20.7.2004, p. 1. Regulation as amended by Regulation

(EC) No 1942/2006 (OJ L 367, 22.12.2006, p. 18).

(2) OJ L 248, 16.9.2002, p. 1. Regulation as last amended by Regulation

(EC) No 1525/2007 (OJ L 343, 27.12.2007, p. 9).

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This amount has been increased by EUR 2 000 million (1).
Furthermore, EUR 400 million has been made available
through the Seventh Framework Programme of
the
European Community for research, technological develop-
ment and demonstration activities (2007 to 2013) (2)
thus
(hereinafter
bringing the total available budget to EUR 3 405 million
for the programmes for the period 2007-2013.

the Seventh Framework Programme),

(20)

In the allocation of
those Community funds, effective
procurement procedures and contract negotiations that
obtain the best value for money and secure performance
completion, the seamless continuity of programmes, risk
management and adherence to the proposed timetable are
essential. These should be ensured by the Commission.

(21) Pursuant to the Financial Regulation, Member States, third
countries and international organisations should be free to
contribute financially or in-kind to the programmes on the
basis of appropriate agreements.

(22)

It should be pointed out that the investment costs and the
costs of operating the Galileo and EGNOS systems as
currently estimated for the period 2007-2013 do not take
account of unforeseen financial obligations which the
Community may be obliged to bear, in particular those
relating to non-contractual liability arising from the public
ownership of the systems, especially with regard to force
majeure and catastrophic failure.

(23) Furthermore, revenue from the operation of the Galileo and
EGNOS systems, arising, in particular, from the commercial
service provided by the system established under
the
Galileo programme, should be collected by the Community
in order to ensure that its earlier investments are recovered.
However, it should be possible to provide for a revenue-
sharing mechanism in contracts concluded with private
sector entities.

(24) The Community should conclude a multi-annual delegation
agreement with ESA covering the technical and planning
aspects of the programmes. In order for the Commission,
as representative of the Community, to exercise fully its
power of audit, the delegation agreement should include the
general conditions governing the management of funds
entrusted to ESA.

(25) As the programmes will be financed by the Community,
public procurement under the programmes should comply

and fair

suppliers. Open access

with Community rules on public contracts and should aim,
first and foremost, to attain value for money, control costs,
mitigate risks, improve efficiency and decrease reliance on
single
competition
throughout the industrial supply chain and the balanced
offering of participation opportunities to industry at all
levels, including, in particular, to small and medium-sized
enterprises (SMEs), should be pursued across Member
States. Possible abuse of dominance or long-term reliance
on single suppliers should be avoided. In order to mitigate
programme risks, to avoid reliance on single suppliers and
to ensure better overall control of the programmes and
their costs and schedules, dual sourcing should be pursued,
wherever appropriate. European industries
should be
permitted to rely on non-European sources for certain
components and services where substantial advantages in
taking
terms of quality and costs are demonstrated,
account, however, of
the pro-
grammes and of European Union security and export
control requirements. Advantage should be taken of public
sector investment and industrial experience and compe-
tence, including that acquired during the definition, and
development and validation phases of the programmes,
while ensuring that the rules on competitive tendering are
not prejudiced.

the strategic nature of

(26) All work packages in the framework of the activities of the
deployment phase of Galileo should be open to the
maximum possible competition, in line with the procure-
ment principles of the European Union. In order to ensure
satisfactory procurement, work packages should be widely
open to new entrants and SMEs, while ensuring techno-
logical excellence and cost effectiveness.

(27) As sound public governance requires uniform management
of the programmes, faster decision-making and equal access
to information, representatives of the Authority and ESA
may be involved in the work of
the European GNSS
Programmes Committee (hereinafter the Committee) estab-
lished to assist the Commission.

(28) The measures necessary for the implementation of this
Regulation should be adopted in accordance with Council
Decision 1999/468/EC of 28 June 1999 laying down the
procedures
implementing powers
the exercise of
conferred to the Commission (3).

for

(1)

Interinstitutional Agreement of 17 May 2006 between the European
Parliament, the Council and the Commission on budgetary discipline
and sound financial management (OJ C 139, 14.6.2006, p. 1).
Agreement as amended by Decision 2008/29/EC of the European
Parliament and of the Council (OJ L 6, 10.1.2008, p. 7).

(2) OJ L 412, 30.12.2006, p. 1.

(29)

In particular, the Commission should be empowered to
adopt any measures necessary to ensure the compatibility
and interoperability of the systems. Since those measures

(3) OJ L 184, 17.7.1999, p. 23. Decision as amended by Decision 2006/

512/EC (OJ L 200, 22.7.2006, p. 11).

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are of general scope and are designed to amend non-
essential elements of this Regulation by supplementing it
with new non-essential elements, they must be adopted in
accordance with the regulatory procedure with scrutiny
provided for in Article 5a of Decision 1999/468/EC.

2. The EGNOS system is an infrastructure monitoring and
correcting signals emitted by existing global satellite navigation
systems. It consists of earth stations and several transponders
installed on geostationary satellites.

(30) The Community should be the owner of all tangible and
intangible assets created or developed under the pro-
grammes. In order to fully respect any fundamental rights
relating to ownership, the appropriate agreements should
be concluded with existing owners.

3. The system established under the Galileo programme is an
autonomous global navigation satellite system (GNSS)
infra-
structure consisting of a constellation of satellites and a global
network of earth stations.

4. The specific objectives of the programmes are set out in the
Annex.

(31) Careful attention should be paid to the certification of
EGNOS for all modes of
for
aviation, in order to declare the system operational and
allow its use as soon as possible.

in particular

transport,

(32) This Regulation lays down, for the continuation of the
programmes, a financial envelope constituting the prime
the
reference, within the meaning of point 37 of
Interinstitutional Agreement of 17 May 2006 on budgetary
discipline and sound financial management,
the
budgetary authority during the annual budgetary proce-
dure.

for

(33) Since the objective of this Regulation, namely the establish-
ment of satellite navigation systems, cannot be sufficiently
achieved by the Member States since it exceeds the financial
and technical capacities of any single Member State, and can
therefore be better achieved by action at Community level,
the Community may adopt measures, in accordance with
the principle of subsidiarity as set out in Article 5 of the
Treaty. In accordance with the principle of proportionality,
as set out in that Article, this Regulation does not go
beyond what is necessary in order to achieve that objective.

(34)

It is necessary to ensure that the European Parliament and
the Council are kept
the
implementation of the programmes,

regularly informed about

HAVE ADOPTED THIS REGULATION:

CHAPTER I

SUBJECT MATTER AND GENERAL PRINCIPLES

Article 1

European satellite navigation systems and programmes

1. The EGNOS and Galileo programmes shall cover all the
activities needed to define, develop, validate, construct, operate,
renew and improve the two European satellite navigation
systems, namely the EGNOS system and the system established
under the Galileo programme.

Article 2

Subject

This Regulation lays down the rules for the further implementa-
tion of the programmes, including those on governance and the
financial contribution of the Community.

Article 3

The phases of the Galileo programme

The Galileo programme shall consist of the following phases:

(a)

(b)

(c)

(d)

a definition phase during which the structure of the system
was designed and its elements determined, which ended in
2001;

a development and validation phase, comprising the
construction and launch of the first satellites, the establish-
ment of the first ground-based infrastructures and all the
work and operations necessary to validate the system in
orbit. The aim is that this phase shall end in 2010;

a deployment phase consisting of the establishment of all
the space and ground-based infrastructures as well as
related operations. The aim is that this phase shall run from
the
2008 to 2013.
exploitation phase;

include preparations for

It shall

an exploitation phase comprising infrastructure manage-
ment, the maintenance, constant improvement and renewal
of the system, certification and standardisation operations
relating to the programme, the marketing of the system and
all other activities needed to develop the system and ensure
that the programme runs smoothly. The exploitation phase
is set
the
to begin at
deployment phase.

the latest upon conclusion of

Article 4

Financing the Galileo programme

1. The development and validation phase shall be financed by
the Community and ESA.

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2. The deployment phase shall be financed by the Community
without prejudice to paragraphs 4 and 5.

3.
In 2010, the Commission shall, if appropriate, submit to the
European Parliament and the Council, together with its mid-term
review, a proposal concerning the public funds and commit-
ments required for the financing programming period starting in
2014, also covering any financial obligations with regard to the
exploitation phase deriving from its responsibility relating to the
public ownership of the system, the revenue-sharing mechanism
for the exploitation phase, and objectives for a pricing policy
ensuring that customers receive high quality services at fair
prices. It shall, in particular, include a reasoned feasibility study
the use of service
of
concession contracts or public service contracts with private
sector entities.

the advantages and disadvantages of

Where applicable, the Commission shall also propose, together
with its mid-term review, any appropriate measures that facilitate
the development of satellite navigation applications and services.

4. Member States may provide additional
funding to the
Galileo programme to cover the investment necessary for the
evolution to the agreed system architecture in particular cases.
The revenue arising from these contributions shall constitute
assigned revenue in accordance with Article 18(2) of
the
Financial Regulation.
In accordance with the principle of
transparent management, the Commission shall communicate
any impact on the Galileo programme resulting from the
application of this paragraph to the Committee.

funding to the
3. Member States may provide additional
EGNOS programme. The revenue arising from these contribu-
tions shall constitute assigned revenue in accordance with
Article 18(2) of the Financial Regulation.

4. Third countries and international organisations may also
provide additional funding to the EGNOS programme. Agree-
ments concluded by the Community with such entities pursuant
to Article 300 of the Treaty shall lay down the conditions of and
detailed rules governing their involvement.

Article 7

Compatibility and interoperability of the systems

1. The Commission shall make every effort to ensure the
compatibility and interoperability of the systems, networks and
services of EGNOS and Galileo and shall pursue the benefits of
compatibility and interoperability of EGNOS and Galileo with
other navigation systems and where possible with conventional
means of navigation.

2. Measures necessary to that end, designed to amend non-
essential elements of this Regulation by supplementing it, shall
be adopted in accordance with the regulatory procedure with
scrutiny referred to in Article 19(5).

Article 8

Ownership

5. Third countries and international organisations may also
provide additional funding to the Galileo programme. Agree-
ments concluded by the Community with such entities pursuant
to Article 300 of the Treaty shall lay down the conditions of and
detailed rules governing their involvement.

The Community shall be the owner of all tangible and intangible
assets created or developed under the programmes, to which
effect agreements shall be concluded with third parties, wherever
appropriate, with regard to existing ownership rights.

Article 5

Operation of the EGNOS system

The operation of the EGNOS system shall consist primarily of
infrastructure management, maintenance, constant improvement
and renewal of the system, certification and standardisation
operations relating to the programme, and marketing.

Article 6

Financing the operation of the EGNOS system

1. The Community shall finance the operation of EGNOS,
without prejudice to any contribution from any other source,
including those referred to in paragraphs 3 and 4.

2. The operation of EGNOS shall initially be the subject of one
or more public service contracts.

CHAPTER II

BUDGETARY CONTRIBUTION AND MECHANISMS

Article 9

Activities concerned

1. The Community budgetary appropriations allocated to the
programmes under this Regulation shall be granted to finance:

(a)

activities relating to the completion of the development and
validation phase of the Galileo programme;

(b)

(c)

activities relating to the deployment phase of the Galileo
programme, including actions to manage and monitor this
phase;

activities relating to the operation of EGNOS as well as
actions preceding or preparatory to the exploitation phase
of the programmes.

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In order to allow the costs of the programmes and of the
2.
different phases of the programmes to be clearly identified, the
Commission, in accordance with the principle of the transparent
management, shall
the
allocation of Community funds to each of the activities specified
in the paragraph 1.

inform the Committee annually of

Article 10

Budgetary resources

1. The amount allocated to implement the activities specified in
Article 9 is EUR 3 405 million for the period from 1 January
2007 to 31 December 2013. This includes EUR 400 million
made available from the Seventh Framework Programme.

2. Appropriations shall be authorised annually by the budget-
ary authority within the limits laid down in the multiannual
financial framework. They shall be implemented in accordance
with the provisions of the Financial Regulation.

3. Budgetary commitments for
appropriated in annual instalments.

the programmes shall be

Article 11

Operating income

1.
Income from the operation of the systems shall be collected
by the Community, paid into the Community budget and
allocated to the programmes. If the income proves to be more
than required for
the
to approval by the
principle of allocation shall be subject
budgetary authority on the basis of a proposal
from the
Commission.

the programmes, any adaptation of

2. A revenue-sharing mechanism may be provided for in
contracts concluded with private sector entities.

Member States and it shall carry out financial and technical
audits.

3. The Commission shall establish the appropriate instruments,
including the implementation of integrated risk management at
all levels of the programmes and structural measures to identify,
control, mitigate and monitor risks, and shall ensure that it
possesses the resources needed to accomplish this task. For this
purpose, the Commission shall, in accordance with the advisory
procedure referred to in Article 19(2), establish key decision
points for reviews of the implementation of the programmes.

Article 13

Governance of security matters

1. The Commission shall manage all questions relating to the
security of the systems, duly taking into account the need for
oversight and integration of security requirements in the overall
programmes.

2. The Commission shall, in accordance with the regulatory
procedure referred to in Article 19(4), adopt implementing
measures laying down the main technical requirements for
controlling the access to, and handling of, technologies that
provide security to the systems.

3. The Commission shall ensure that the necessary steps are
taken to comply with the measures referred to in paragraph 2
and that any further requirements related to the security of the
systems are met, taking full account of expert advice.

4. Whenever the security of the European Union or its Member
States may be affected by the operation of the systems, the
procedures set out in Council Joint Action 2004/552/CFSP of
12 July 2004 on aspects of the operation of the European
satellite radio-navigation system affecting the security of the
European Union (1) shall apply.

5. Matters falling exclusively within Title V and/or Title VI of
the Treaty on European Union shall not fall within the remit of
the Committee.

Article 14

CHAPTER III

Application of security regulations

PUBLIC GOVERNANCE OF THE PROGRAMMES

Article 12

General framework for governance of the programmes

Public governance of the programmes shall be based on the
1.
principle of a strict division of responsibilities between the
Community, represented by the Commission, the Authority and
ESA.

2. The Commission, assisted by the Committee, shall be
responsible for the management of the programmes, which it
shall carry out in a transparent manner. It shall avoid duplication
of structures and functions through a clear division of tasks with
the Authority and ESA. It may be assisted by experts from

least equivalent

Each Member State shall ensure that security regulations
1.
ensuring a degree of protection at
to that
guaranteed by the Commission's rules on security set out in the
Annex to Commission Decision 2001/844/EC, ECSC, Eura-
tom (2) and by the security regulations of the Council set out in
the Annex to Council Decision 2001/264/EC (3) apply to all
natural persons resident on its territory and all
legal entities
established on its territory which deal with EU classified
information regarding the programmes.

(1) OJ L 246, 20.7.2004, p. 30.
(2) Commission Decision 2001/844/EC, ECSC, Euratom of 29 Novem-
ber 2001 amending its internal Rules of Procedure (OJ L 317,
3.12.2001, p. 1). Decision as last amended by Decision 2006/548/
EC (OJ L 215, 5.8.2006, p. 38).

(3) Council Decision 2001/264/EC of 19 March 2001 adopting the
Council's security regulations (OJ L 101, 11.4.2001, p. 1). Decision
as last amended by Decision 2007/438/EC (OJ L 164, 26.6.2007,
p. 24).

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2. Member States shall immediately inform the Commission of
the adoption of national security regulations as referred to in
paragraph 1.

(ii)

the operation of the Galileo security centre, imple-
mented in accordance with decisions taken pursuant
to Article 13 and the instructions provided under
Joint Action 2004/552/CFSP;

3. Natural persons resident in third countries and legal entities
established in third countries may deal with EU classified
information regarding the programmes only where they are
subject, in those countries, to security regulations ensuring a
degree of protection at least equivalent to that guaranteed by the
Commission's rules on security set out in the Annex to Decision
2001/844/EC, ECSC, Euratom and by the security regulations of
the Council set out in the Annex to Decision 2001/264/EC. The
security regulations of ESA shall be considered as equivalent to
those rules and regulations. The equivalence of
security
regulations applied in a third country may be recognised in an
agreement with that country.

Article 15

Programming

(b)

it shall contribute to the preparation of the commercialisa-
tion of the systems, including the necessary market analysis;

(c)

it shall also accomplish other tasks that may be entrusted to
it by the Commission, in accordance with Article 54(2)(b)
of the Financial Regulation, addressing specific issues linked
to the programmes, such as:

(i)

promoting applications and services in the satellite
navigation market;

1. The Commission shall manage the funds allocated to the
programmes under this Regulation.

(ii)

ensuring that the components of the systems are
certified by the appropriate, duly authorised, certifica-
tion bodies.

2. The Commission shall adopt measures to define a strategic
framework for the establishment of a work programme in
this Regulation. The
accordance with the requirements of
strategic framework shall include the main actions, the estimated
budget and the time-table necessary to meet the objectives laid
down in the Annex.

Those measures designed to amend non-essential elements of
this Regulation by supplementing it
shall be adopted in
accordance with the regulatory procedure with scrutiny referred
to in Article 19(5).

3. The Commission shall adopt the work programme, which
includes the programme implementation plan and associated
financing, reviewed on an annual basis, and any amendments
thereto in accordance with the management procedure referred
to in Article 19(3).

4. The measures financed under
implemented in accordance with the Financial Regulation.

this Regulation shall be

Article 16

Article 17

Procurement principles related to the deployment phase of
the Galileo programme

tendering on the basis of

1. The Community's public procurement rules, in particular
open access and fair competition throughout
the industrial
supply chain,
the provision of
transparent and timely information, clear communication of
the applicable procurement rules, selection criteria and any other
relevant
information allowing a level-playing field for all
potential bidders, shall apply to the deployment phase of the
Galileo programme without prejudice to measures required to
protect the essential interests of the security of the European
Union or public security or to comply with European Union
export control requirements.

2. During the procurement, the following objectives shall be
pursued:

The role of the European GNSS Supervisory Authority

(a)

promoting the balanced participation of industry at all
levels, including, in particular, SMEs, across Member States;

Subject to the provisions of Article 12 and the respect of the
Commission's role as manager of the programmes, the Authority
shall accomplish the following tasks within the programmes in
accordance with guidelines issued by the Commission:

(b)

avoiding possible abuse of dominance and avoiding long-
term reliance on single suppliers;

(a) with regard to the security of the programmes, and without

prejudice to Articles 13 and 14, it shall ensure:

(c)

(i)

security accreditation; to that effect it shall initiate and
monitor the implementation of security procedures
and perform system security audits,

taking advantage of prior public sector investments and
lessons
learned, as well as industrial experience and
competence, including that acquired in the definition and
development and validation phases of the programmes,
while ensuring that the rules on competitive tendering are
not prejudiced.

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3. To that end, the following principles for the procurement of
the activities of the deployment phase of the Galileo programme
shall apply:

and monitoring and inspection measures, the measures appli-
cable in the event of inadequate performance of contracts and
the rules regarding ownership of all tangible and intangible
assets.

(a)

(b)

(c)

the procurement of the infrastructure shall be split into a
set of six main work packages (system engineering support,
ground mission infrastructure completion, ground control
infrastructure completion, satellites, launchers and opera-
tions), as well as a number of additional work packages,
through a comprehensive overall procurement break-down;
this does not rule out the prospect of multiple simultaneous
procurement strands for individual work packages, includ-
ing for satellites;

competitive tendering shall be ensured for all packages and,
for the six main work packages, a single procedure shall be
applied whereby any one independent legal entity, or a
group represented for
this purpose by a legal entity
belonging to that group, may bid for the role of prime
contractor for a maximum of two of the six main work
packages;

at least 40 % of the aggregate value of the activities shall be
subcontracted by competitive tendering at various levels to
companies other than those belonging to groups of entities
that are prime contractors for any of
the main work
packages; the Commission shall, on a regular basis, report
to the Committee on the fulfilment of this principle. In the
event that projections establish that it may not be possible
to reach the 40 % threshold, the Commission shall,
in
accordance with the management procedure referred to in
Article 19(3), take the appropriate measures;

(d)

dual sourcing shall be pursued wherever appropriate in
order to ensure better overall control of the programme, its
costs and schedule.

Article 18

3. The Committee shall be consulted on the delegation decision
referred to in paragraph 1 of this Article, in accordance with the
advisory procedure referred to in Article 19(2). The Committee
shall be informed of the multi-annual delegation agreement to be
represented by the
concluded between the Community,
Commission, and ESA.

4. The Committee shall be informed by the Commission of the
interim and end results of the evaluation of the procurement
tenders and of the contracts with private sector entities to be
concluded by ESA.

Article 19

Committee procedure

1. The Commission shall be assisted by a committee called the
‘European GNSS Programmes Committee’ (the Committee).

2. Where reference is made to this paragraph, Articles 3 and 7
of Decision 1999/468/EC shall apply, having regard to the
provisions of Article 8 thereof.

3. Where reference is made to this paragraph, Articles 4 and 7
of Decision 1999/468/EC shall apply, having regard to the
provisions of Article 8 thereof.

The period laid down in Article 4(3) of Decision 1999/468/EC
shall be set at one month.

4. Where reference is made to this paragraph, Articles 5 and 7
of Decision 1999/468/EC shall apply, having regard to the
provisions of Article 8 thereof.

The role of the European Space Agency

The period laid down in Article 5(6) of Decision 1999/468/EC
shall be set at one month.

1. On the basis of the principles set out in Article 17, the
Community, represented by the Commission, shall conclude a
multi-annual delegation agreement with ESA, on the basis of a
delegation decision adopted by the Commission in accordance
with Article 54(2) of the Financial Regulation which shall cover
the delegated tasks and budget implementation relating to the
implementation of the Galileo programme,
in particular the
deployment phase.

5. Where reference is made to this paragraph, Article 5a(1) to
(4) and Article 7 of Decision 1999/468/EC shall apply, having
regard to the provisions of Article 8 thereof.

6. Representatives of the Authority and ESA may be involved
as observers in the work of the Committee under the conditions
laid down in its rules of procedure.

2. The delegation agreement shall, insofar as necessary for the
tasks and budget implementation delegated under paragraph 1,
lay down the general conditions for the management of the
in particular, the actions to be
funds entrusted to ESA, and,
implemented, the relevant financing, management procedures

7. Agreements concluded by the Community pursuant
to
Articles 4(5) and 6(4) may provide for the participation of third
countries or international organisations in the work of
the
Committee under the conditions laid down in its rules of
procedure.

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Article 20

Protection of personal data and privacy

The Commission shall ensure that protection of personal data
and privacy is guaranteed and that appropriate safeguards are
integrated into the technical structures of the systems.

CHAPTER IV

FINAL PROVISIONS

Article 21

Protection of the Community's financial interests

fraud, corruption and any other

1. The Commission shall ensure that, when actions financed
under this Regulation are implemented, the financial interests of
the Community are protected by the application of preventive
measures against
illegal
activities, by effective checks and by the recovery of amounts
irregularities are detected, by effective,
unduly paid and,
if
proportional and dissuasive penalties,
in accordance with
Council Regulation (EC, Euratom) No 2988/95 of 18 December
1995 on the protection of the European Communities financial
interests (1), Council Regulation (Euratom, EC) No 2185/96 of
11 November 1996 concerning on-the-spot
and
inspections carried out by the Commission in order to protect
the European Communities' financial interests against fraud and
other irregularities (2) and with Regulation (EC) No 1073/1999
of the European Parliament and of the Council of 25 May 1999
concerning investigations conducted by the European Anti-Fraud
Office (OLAF) (3).

checks

general budget of the European Union or budgets managed by it,
by an unjustified item of expenditure.

resulting from this Regulation,

3. Agreements
including
agreements concluded with participating third countries and
international organisations, shall provide for supervision and
financial control by the Commission, or any representative
authorised by it, and audits by the Court of Auditors, if necessary
on-the-spot.

Article 22

Information to the European Parliament and to the Council

this
The Commission shall ensure the implementation of
Regulation. Each year, when it presents the preliminary draft
budget, it shall present a report to the European Parliament and
to the Council on the implementation of the programmes. A
mid-term review shall be carried out in 2010, which shall
include a review of costs, risks and likely revenues from the
services offered by Galileo, inter alia, in the light of technological
and market developments, to inform the European Parliament
and the Council of the progress made on the programmes.

Article 23

Repeal

Article 7 of Council Regulation (EC) No 876/2002 of 21 May
2002 setting up the Galileo Joint Undertaking (4) shall be
repealed with effect from 25 July 2009.

2.
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

Article 24

Entry into force

This Regulation shall enter into force on the day following 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 Strasbourg, 9 July 2008.

For the European Parliament

The President

H.-G. PÖTTERING

For the Council

The President

J.-P. JOUYET

(1) OJ L 312, 23.12.1995, p. 1. Regulation as amended by Commission
Regulation (EC) No 1233/2007 (OJ L 279, 23.10.2007, p. 10).

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

(4) OJ L 138, 28.5.2002, p. 1. Regulation as amended by Regulation

(EC) No 1943/2006 (OJ L 367, 22.12.2006, p. 21).

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SPECIFIC OBJECTIVES OF THE EUROPEAN SATELLITE NAVIGATION PROGRAMMES

ANNEX

The specific objectives of the Galileo programme are to ensure that the signals emitted by the system can be used to fulfil the
following five functions:

— to offer an open service (OS), which is free to the user and provides positioning and synchronisation information

intended for high-volume satellite navigation applications,

— to offer a safety-of-life service (SoL) aimed at users for whom safety is essential. This service also fulfils the
requirements of certain sectors for continuity, availability and accuracy and includes an integrity message alerting the
user to any failure in the system,

— to offer a commercial service (CS) for the development of applications for professional or commercial use due to

improved performance and data with greater added value than those obtained through the open service,

— to offer a public regulated service (PRS) restricted to government-authorised users, for sensitive applications which

require a high level of service continuity. The public regulated service uses strong, encrypted signals,

— to participate in the search and rescue support service (SAR) of the COSPAS-SARSAT system by detecting emergency

signals given off by beacons and relaying messages to them.

The specific objectives of the EGNOS programme are to ensure that the EGNOS system fulfils the following three functions:

— to offer an open service (OS), which is free to the user and provides positioning and synchronisation information

intended for high-volume satellite navigation applications in the area covered by the system,

— to offer a service for the dissemination of commercial data to assist the development of applications for professional
or commercial use due to improved performance and data with greater added value than those obtained through the
open service,

— to offer a safety-of-life service (SoL) service aimed at users for whom safety is essential. In particular, this service fulfils
the requirements of certain sectors for continuity, availability and accuracy and includes an integrity message alerting
the user to any failure in the system over the coverage area.

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JOINT DECLARATION

by the European Parliament, the Council and the European Commission

on the

GALILEO INTERINSTITUTIONAL PANEL (GIP)

1.

2.

3.

4.

5.

In view of the importance, uniqueness and complexity of the European GNSS programmes, the
Community ownership of systems resulting from the programmes, the full financing of the Community
budget of the programmes for the period 2008-2013, the European Parliament, the Council, and the
European Commission recognise the need for close cooperation of the three institutions.

A Galileo Interinstitutional Panel (GIP) will meet with the objective to facilitate each Community
institution exercising its respective responsibility. To this end, the GIP will be set up in order to follow
closely:

(a)

the progress on the implementation of the European GNSS programmes, in particular with regard
to the implementation of the procurement and the contract agreements, in particular with regard to
the ESA;

(b)

the International Agreements with third countries without prejudice to the provisions of
Article 300 of the Treaty;

(c)

the preparation of satellite navigation markets;

(d)

the effectiveness of the governance arrangements; and

(e)

the annual review of the work programme.

In accordance with existing rules, the GIP will respect the need for discretion in particular in view of the
commercial-in-confidence and sensitive nature of certain data.

The Commission will take account of the views expressed by the GIP.

The GIP will be composed of seven representatives, of which:

— three from the Council,

— three from the EP,

— one from the Commission,

and will meet on a regular basis (in principle four times per year).

6.

The GIP does not affect the established responsibilities or interinstitutional relationships.