Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the implementation and exploitation of European satellite navigation systems
Date: 2011-11-30
Institutions: European Commission
Subjects: EU financing, EU programme, European Space Agency, public contract, satellite navigation

EUROPEAN COMMISSION 

Brussels, 30.11.2011 
COM(2011) 814 final 

2011/0392 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the implementation and exploitation of European satellite navigation systems 

{SEC(2011) 1446 final} 
{SEC(2011) 1447 final} 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Regulation  (EC)  No  683/2008,  which  entered  into  force  on  25  July  2008,  defines  the 
framework for the public governance and financing of the Galileo and EGNOS programmes1. 
In  particular,  it  allocates  EUR  3405  million  for  the  period  from  1  January  2007  to  31 
December 2013. 

As  provided  for  in  Article  22  of  Regulation  (EC)  No  683/2008,  the  Commission  adopted  a 
report to the European Parliament and to the Council on the mid-term review of the European 
satellite navigation programmes on 18 January 20112. This report provides a detailed review 
of  their  progress  since  the  reform  of  their  governance  in  2007,  sets  out  cost  estimates  and 
future challenges, in particular with regard to risks and outlines specific proposals to deal with 
them,  in  particular  for  taking  into  account  the  operational  requirements  of  the  two  systems 
established under the programmes. 

In the conclusions it adopted on 31 March 2011 after the Commission's report of 18 January 
2011 was submitted, the Council, among other things, expressed its support once again for the 
European satellite navigation programmes as defined in Regulation (EC) No 683/2008. It also 
noted  the  overall  cost  estimates  and  the  fact  that  the  Commission  would  submit  a  proposal 
including  changes  to  the  governance  model  with  a  view  to  the  next  multiannual  financial 
framework.  On  this  point,  it  asked  the  Commission  to  rationalise  and  optimise  the  use  of 
existing structures. 

For its part, in the resolution adopted on 8 June 2011, the Parliament also restated its support 
for the European satellite navigation programmes and considered that it should be principally 
funded  by  the  Union  budget.  It  underlined  the  importance  of  implementing  rigorous  cost 
containment  and  risk  mitigation  policies.  It  asked  the  Commission  to  submit  legislative 
proposals  quickly  with  particular  emphasis  on  the  need  to  provide  a  long-term,  stable 
framework, in particular for operation of the systems. 

In  its  Communication  dated  29  June  20113,  accompanied  by  a  proposal  for  a  Council 
Regulation of the same date4, the Commission proposed to assign EUR [7000] million to the 
financing  of  the  European  satellite  navigation  programmes  during  the  next  multiannual 
financial  framework  for  the  2014-2020  period.  Nevertheless  it  indicated  here  that  it  is 
necessary to maintain efforts to control costs and that new management procedures should be 
planned  for  the  long-term.  It  should  be  noted that  this  sum  of  EUR  [7000]  million,  at  2011 
constant  prices,  is  an  absolute  ceiling  under  the  Article  [14  of  the  proposal]  of  the 
abovementioned  Council  Regulation  and  corresponds  to  a  sum  of  EUR  [7897]  million  at 
current prices. 

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OJ L 196, 24.7.2008, p.1 
COM(2011) 5 final 
COM(2011)  500  final.  A  Communication  from  the  Commission  to  the  European  Parliament,  the 
Council, the European Economic and Social Committee and the Committee of the Regions: a Budget 
for Europe 2020; 
COM(2011)  398  final.  Proposal  for  a  Council  Regulation  laying  down  the  multiannual  financial 
framework for the years 2014-2020 

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It needs to be emphasised that uncertainties, which may lead to cost over-runs and delays, are 
inherent in this type of complex programme. It requires an effective risk management system 
to be set up, and may result in difficult decisions being taken. In this way, the additional cost 
of the development phase, managed by the European Space Agency, amounts to some EUR 
500 million in total. At the request of the Member States the Commission has agreed to bear 
this cost so as to ensure the continuity of the programme. Validation of the system in orbit is 
the  keystone  of  the  Galileo  programme  and  a  lack  of  financing  would  have  jeopardised  its 
continuation, with a loss of industrial know-how and of equipment already partly built. 

The  Regulation  to  which  the  proposal  relates  meets  the  requests  of  the  Parliament  and  the 
Council while taking into account the contents of the Commission Communication of 29 June 
2011. It is the basic act for European satellite navigation programmes for the period covered 
by  the  next  multiannual  financial  framework,  providing  in  particular  for  funding  and  the 
governance  model  for  the  programmes.  Given  the  magnitude  of  the  changes  to  be  made  to 
Regulation (EC) No 683/2008, it was deemed necessary to propose that it be replaced with a 
new Regulation rather than amended. 

It should be borne in mind that the Galileo and EGNOS programmes are flagship projects of 
the  Union.  Promotion  of  this  technology,  which  is  a  powerful  driver  for  emerging  from  the 
crisis,  fits  in  perfectly  with  the  Europe  2020  strategy  and  policies  for  sustainable 
development. The new generations of high-performance satellite navigation services provide 
considerable  opportunities  for  all  fields  of  activity  with  many  new  jobs  bound  up  with  the 
expansion of markets, which have grown at an annual rate of 30% over the past few years. In 
this context, the Commission is working to develop an ecosystem of applications to optimise 
the  use  of  services  provided  by  the  systems  and  maximise  the  socio-economic  benefits. 
Accordingly,  it  is  implementing  the  24  measures  referred  to  in  its  Action  Plan  on  GNSS 
applications of 14 June 20105. This plan provides in particular for financing of research and 
development  projects,  improvement  in  access  to  financing  for  small  and  medium-sized 
enterprises and various measures to promote the Galileo and EGNOS programmes in priority 
sectors for growth, innovation and employment.  

It should also be emphasised that the European satellite navigation programmes does not only 
concern the Member States with the greatest involvement in the space field: they concern all 
the Member States of the Union directly. In fact, all citizens of the Union will benefit from a 
range  of  services  provided  by  the  infrastructures  in  place.  Moreover,  small  and  medium 
enterprises everywhere in Europe play an important role in the programmes since one of the 
objectives of the Union is to promote the widest and most open participation possible for all 
businesses in public procurement procedures. 

For  instance,  as  part  of  Europe  2020's  flagship  initiative  'An  Industrial  Policy  for  the 
Globalisation Era' the Commission is responsible for developing 'an effective space policy to 
provide  the  tools  to  address  some  of  the  key  global  challenges  and  in  particular  to  deliver 
Galileo'. 

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2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

The proposal follows numerous extensive consultations with stakeholders and the public. It is 
accompanied by an impact assessment. 

Stakeholders were consulted on various technical, legal or operational aspects concerning the 
programmes such as provision of services, the cost of the infrastructure and its operation, risk 
analyses  and  potential  governance models.  Thematic  workshops  and  conferences  with  users 
were therefore organised as well as targeted working groups with experts from the European 
Space  Agency,  the  European  GNSS  Agency  and  the  Member  States.  Interviews  were  also 
conducted with experts from the space sector and industry representatives. 

The public was also involved in the Eurobarometers between 2007 and 2009 and in the impact 
assessment concerning the European space policy. 

The range of this research has shown that: 

• 

• 

• 

• 

the  public  supports  the  development  of  an  independent  satellite  navigation  system 
and recognise the growing dependence of modern societies on navigation services; 

stable  governance  must  be  put  in  place  in  the  long  term  to  ensure  that  the 
programmes are managed effectively; 

the  "Safety  of  Life  Service"  (SoL)  provided  by  the  system  established  under  the 
Galileo programme should be redefined in view of changing user expectations; 

finally, civil aviation stakeholders insist on the need to make long-term commitments 
concerning  the  provision  of  EGNOS  services.  This  is  a  prerequisite  for  any  real 
market penetration of EGNOS. 

Moreover,  in  view  of  the  latest  advances  and  challenges  to  be  overcome,  the  impact 
assessment concentrates on the continued implementation of the programmes with a focus on 
two  main  problems:  firstly,  the  configuration  of  future  services,  given  that  the  budget 
allocated for the period 2008-2013 is insufficient to complete the infrastructure of the system 
established  under  the  Galileo  programme  and  to  ensure  the  operation  of  EGNOS;  and 
secondly, the definition of the operational governance model and the financing required. 

On the first point, concerning the system established under the Galileo programme, evaluation 
of  the  various  options  has  shown  that  the  best  option  is  to  retain  the  services  initially 
specified,  with  the  exception  of  the  SoL  service.  This  solution,  which  requires  less 
infrastructure on the ground, reduces the costs.  

With  regard  to  EGNOS,  the  system  is  already  operational  and  many  users  are  enjoying  its 
benefits.  In  addition,  when  the  SoL  service  was  declared  operational,  the  Commission  gave 
assurances regarding the continuity of this service to users who went on to make significant 
investments. Ending the EGNOS programme is not an option in this context. 

On the second point, the impact assessment concluded that the Commission, representing the 
Union,  should  remain  responsible  for  the  programmes  while  the  Union  continues  to  ensure 
their funding alone, as proposed by the Commission in the abovementioned Communication 
of  29  June  2011.  Operational  management  should  be  entrusted  to  a  regulatory  agency.  This 

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would  both  maximise  the  expected  socio-economic  benefits  of  operating  the  systems  and 
ensure  greater  consistency  with  the  other  policies  of  the  Union  while  clearly  defining  the 
financial and political responsibilities of the various stakeholders. In this regard and given the 
abovementioned  conclusions  of  the  Council  on  31  March  2011,  assigning  this  task  to  the 
European  GNSS  Agency  which  was  established  by  Regulation  (EU)  No  912/2010  of  the 
European Parliament and of the Council of 22 September 2010 for the performance of tasks 
associated with the progress of the programmes, and which is both already in place and active 
in  the  field  of  satellite  navigation,  appears  to  be  the  most  natural  solution.  It  would 
nevertheless be necessary to reconfigure the tasks and resources of this agency. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

Like Regulation (EC) No 683/2008 and other texts of the Union acquis concerning European 
satellite navigation programmes, the legal basis of the Commission's proposal is Article 172 
of  the  Treaty  on  the  Functioning  of  the  European  Union,  ex  Article  156  of  the  Treaty 
establishing the European Community. In addition, it retains the form of a Regulation of the 
European Parliament and of the Council since, like Regulation (EC) No 683/2008 which it is 
to  replace,  the  text  has  a  general  scope  and  its  content  is  to  be  directly  applicable  in  all 
Member States. 

The proposal mainly defines the programmes and systems, the budgetary resources allocated 
to  them  and  their  governance  model  and,  in  the  interests  of  rationalising  the  acquis  of  the 
union, also provides for amendment or repeal of other legislative texts concerning European 
satellite navigation programmes. 

The proposal complies with the principles of subsidiarity and proportionality. The objective of 
the  proposal,  namely  the  implementation  and  operation  of  satellite  navigation  systems, 
exceeds the financial and technical capacities of a Member State acting alone and can only be 
achieved in a satisfactory manner at Union level. It does not go beyond what is necessary to 
achieve this objective insofar as the planned budget corresponds to costs estimated following 
extensive analyses and where the governance model used appears to be the most suitable. 

4. 

BUDGETARY IMPLICATIONS 

As  indicated  in  point  2  above,  the  Union  will  continue  to  finance  the  Galileo  and  EGNOS 
programmes  alone.  Its  contribution  to  the  programmes  for  the  period  2014-2020  shall  not 
exceed  EUR  [7897]  million  at  current  prices  in  accordance  with  the  Article  [14  of  the 
proposal]  of  the  Council  Regulation  referred  to  in  point  1  above.  It  covers  three  main 
activities,  namely,  completion  of  the  deployment  phase  of  the  Galileo  programme,  the 
exploitation  phase  of  the  same  programme  and  operation  of  the  EGNOS  system.  The  latter 
includes  ongoing  improvement  of  the  services  provided  by  the  system  in  order  to  meet  the 
changing needs of users. 

The  estimated  costs  of  the  programmes  are  the  result  of  extensive  analyses.  They  are  also 
based  on  the  results  of  discussions  with  experts,  in  particular  from  the  Member  States,  the 
European  Space  Agency  and  the  European  GNSS  Agency.  Various  stakeholders,  such  as 
industrial representatives of the space sector, were also consulted. 

Retaining the expertise acquired within the Commission is an essential factor in ensuring the 
continuity  of  the  programmes.  Consequently,  the  Commission  will  retain  temporary  agents 

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currently in employment for periods to be determined in accordance with the various phases 
of the programmes and will transfer personnel to the European GNSS Agency.  

5. 

OPTIONAL ELEMENTS 

It  is  important  to  emphasise  that  this  Regulation  lays  down,  in  particular,  the  governance 
model for the programmes and their financing for the period 2014-2020. In accordance with 
this model, it will be possible to entrust substantial tasks associated with the operation of the 
systems to the European GNSS Agency, which is a body within the meaning of Article 185 of 
Regulation  (EC,  Euratom)  No  1605/2002  of  25 June 2002  on  the  Financial  Regulation 
applicable to the general budget of the European Communities. Accordingly, the Commission 
intends to conclude one or more delegation agreements with the Agency. 

In  the  opinion  of  the  Commission,  recourse  to  delegation  agreements,  which  include  the 
general  conditions  for  managing  funds  entrusted  to  the  Agency,  including  measures  for 
monitoring  and  controlling  costs,  is  the  most  appropriate  method  for  the  Commission,  the 
European Parliament and the Council to exercise their power of control fully.  

In  order  to  enable  the  European  Parliament  and  the  Council  to  gain  a  full  picture  of  the 
conditions under which the European GNSS Agency would be obliged to carry out the tasks 
entrusted  to  it  under  the  new  governance  model,  particularly  concerning  resources,  the 
Commission  will  submit  a  proposal  in  2012  for  the  amendment  of  Regulation  (EU)  No 
912/2010  and  of  the  associated  financial  statement.  It  should  be  noted  that  the  budget 
allocated  to  the  programmes,  i.e.  EUR  [7897]  million  at  current  prices,  already  takes  into 
account the operating costs of the systems, including the operating costs of entities required to 
manage  the  operation  of  the  systems.  Thus,  performance by  the agency of  new tasks  which 
will be entrusted to it, will not lead to any additional budget expenditure.  

In  addition,  the  Commission  will  assess  the  compatibility  of  Regulation  (EU)  No  912/2010 
with the new governance model concerning the security accreditation of the systems.  

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  Union6, 
should also be updated. 

Simplification  of  the  rules  is  one  of  the  key  goals  of  the  new  approach  proposed  by  the 
Commission in respect of the budgetary expenditure of the Union. In its current form, the text 
introduces simplifying measures, concerning the following points in particular: 

– 

– 

alignment of indicators concerning the 2020 strategy objectives;  

delegation  of  activities  associated  with  system  operation,  in  particular,  the 
management of contracts with the European GNSS Agency. 

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OJ L 246, 20.7.2004, p. 30. 

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2011/0392 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the implementation and exploitation of European satellite navigation systems 

THE EUROPEAN PARLIAMENT AND THE COUNCIL, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 172 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 

Having regard to the opinion of the European Economic and Social Committee7, 

Having regard to the opinion of the Committee of the Regions8, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

The aim of the European satellite navigation policy is to provide the Union with two 
satellite navigation systems, the system established under the Galileo programme and 
the EGNOS system (hereinafter 'the systems'). These systems arise respectively from 
the  Galileo  and  EGNOS  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 and operate 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. 

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

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

Since the programmes are at an advanced development stage leading to systems in an 
exploitation  phase,  a  specific  legal  basis  is  required  which  can  meet  their  needs, 

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OJ C , , p. . 
OJ C , , p. . 

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(6) 

(7) 

(8) 

particularly in terms of governance and to satisfy the requirement for sound financial 
management. 

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

The Galileo and EGNOS programmes are an industrial policy tool and are part of the 
Europe  2020  strategy,  as  illustrated  by  the  Commission  Communication  of  17 
November  2010  entitled  'An  integrated  industrial  policy  for  the  globalisation  era: 
putting  competitiveness  and  sustainability  at  centre  stage'9.  They  also  appear  in  the 
Communication adopted on 4 April 2011 by the Commission entitled 'Towards a space 
strategy for the European Union that benefits its citizens'10. These programmes provide 
many advantages for the economy and citizens of the Union, whose cumulative value 
has been estimated at approximately EUR 130 billion in the period 2014-2034. 

Given  the  increasing  usage  of  satellite  navigation  across  a  great  number  of  fields  of 
activity,  an  interruption  in  the  supply  of  services  could  lead  to  significant  harm  to 
modern society. In addition, due to their strategic aspect, satellite navigation systems 
are  sensitive  infrastructures,  that  could  be  susceptible  to  malicious  use.  The 
abovementioned aspects could affect the security of the Union and its Member States. 
Security  requirements  must 
the  design, 
implementation  and  operation  of  the  infrastructures  emerging  from  the  Galileo  and 
EGNOS programmes. 

into  account 

therefore  be 

taken 

in 

(9) 

The Galileo programme includes a definition phase which is complete, a development 
and  validation  phase  due  for  completion  in  2013,  a  deployment  phase  which  was 
launched in 2008 and is due for completion in 2020 and an exploitation phase which 
should be launched progressively from 2014/15 for a fully operational system in 2020. 

(10)  The EGNOS programme has been in the exploitation phase since its open service and 
'Safety  of  Life'  service  were  declared  operational  in  October  2009  and  March  2011 
respectively. 

(11) 

In  order  to  optimise  the  use  of  the  services  provided,  the  systems,  networks  and 
services emerging from the Galileo and EGNOS programmes must be compatible and 
interoperable with one another and, insofar as possible, with other satellite navigation 
systems and conventional means of radio navigation. 

(12)  Since  the  Union  is  responsible,  in  principle,  for  financing  the  programmes  in  full, 
provision  should  be  made  for  it  to  own  all  tangible  and  intangible  assets  created  or 
developed  under  these  programmes.  In  order  to  comply  fully  with  any  fundamental 
rights relating to ownership, the necessary arrangements with existing owners should 
be made, particularly for essential elements of the infrastructures and their security. In 
order  to  facilitate  adoption  of  satellite  navigation  by  the  markets,  there  is  a  need  to 

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ensure  that  third  parties  can  make  optimum  use  in  particular  of  the  intellectual 
property rights arising from the programmes which belong to the Union, in particular 
at social and economic level. 

(13)  The  deployment  and  exploitation  phases  of  the  Galileo  programme  and  the 
exploitation phase of the EGNOS programme should, in principle, be entirely financed 
by the Union. However in accordance with Regulation (EC, Euratom) No 1605/2002 
of  25  June  2002  on  the  financial  regulation  applicable  to  the  general  budget  of  the 
European  Communities11,  the  Member  States  should  be  able  to  provide  additional 
funding  to  the  programmes  or  a  contribution  in  kind,  on  the  basis  of  appropriate 
agreements, in order to fund additional programme elements requested by them, e.g. 
concerning  the  system  architecture  or  particular  security  needs.  Third  countries  and 
international organisations should also be able to contribute to the programmes. 

(14) 

In  order  to  guarantee  the  continuation  of  the  programmes,  an  appropriate  financial 
framework  must  be  established  to  allow  the  Union  to  continue  to  finance  them.  It  is 
also necessary to indicate the amount of money required between 1 January 2014 to 31 
December  2020  to  finance  completion  of  the  deployment  phase  of  the  Galileo 
programme and operation of the systems. 

(15)  The European Parliament and the Council, on the basis of the Commission proposal of 
29 June 2011, [decided] to allocate a maximum sum of EUR [7897] million at current 
prices  for  the  financing  of  activities  associated  with  the  programmes  for  the  period 
from 1 January 2014 to 31 December 2020. It should be specified that these activities 
also  cover  the  protection  of  the  systems  and  their  operation,  including  during  the 
launch of satellites. In this respect, a contribution to the costs required to benefit from 
services  capable  of  providing  this  protection,  such  as  those  provided  by  the  'Space 
Situational  Awareness'  (SSA)  programme  among  others,  could  be  financed  by  the 
budget  allocated  to  the  programmes  insofar  as  possible  following  rigorous  cost 
management and full compliance with the abovementioned total sum established in the 
Article  [x]  of  Council  Regulation  XYZ  determining  the  financial  framework  for  the 
period  2014-2020.  The  present  Regulation  lays  down,  for  the  continuation  of  the 
programmes, a financial envelope constituting the prime reference, within the meaning 
of point [17] of the Interinstitutional Agreement of xx/yy/201z between the European 
Parliament,  the  Council  and  the  Commission  on  budget  cooperation  and  sound 
financial  management,  and  within  the  meaning  of  Article  14  [of  the  Council 
Regulation  Proposal  of  29  June  2011]  determining  the  multiannual  financial 
framework for 2014-2020[12]. 

(16)  The activities should be specified for which the Union budget appropriations allocated 
to  the  programmes  for  the  period  2014-2020  under  this  Regulation  shall  be  granted. 
These  appropriations  should  be  granted  mainly  for  activities  associated  with  the 
deployment  phase  of  the  Galileo  programme,  including  management  and  monitoring 
activities  for  this  phase,  and  activities  associated  with  the  operation  of  the  system 
established  under  the  Galileo  programme,  including  actions  preceding  or  in 
preparation for this phase, and the operation of the EGNOS system. They should also 

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(17) 

(18) 

(19) 

(20) 

be granted for funding of certain other activities required to manage and achieve the 
objectives of the programmes. 

It  is  important  to  note  that  the  investment  and  operating  costs  of  the  systems  as 
estimated  for  the  period  2014-2020  do  not  take  account of  unforeseen  financial 
obligations  which  the  Union  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. These obligations are the subject 
of a specific analysis by the Commission. 

It should also be noted that the budgetary resources planned under this Regulation do 
not  cover  work  financed  by  funds  allocated  to  the  Horizon  2020  programme,  a 
Framework Programme for Research and Innovation, such as that associated with the 
development of applications derived from the systems. This work will help to optimise 
the  use  of  the  services  provided  in  the  context  of  the  programmes,  to  ensure  a  good 
social and economic return on the investments made by the Union and to increase the 
know-how of businesses in the Union with regard to satellite navigation technology. 

In addition the revenue generated by the systems should accrue to the Union in order 
to  compensate  for  the  investments  that  it  has  made  previously.  A  revenue-sharing 
mechanism  might  also  be  provided  for  in  contracts  concluded  with  private  sector 
companies.  

In order to avoid the cost over-runs and delays which have affected the progress of the 
programmes  over  the  last  few  years,  efforts  need  to  be  stepped  up  to  control  risks 
which  might  lead  to  excess  costs  as  requested  by  the  Council  and  the  Parliament  in 
their respective conclusions and resolutions of 31 March 2011 and 8 June 2011, and as 
shown by the Commission's Communication to the European Parliament, the Council, 
the  Economic  and  Social  Committee  and  the  Committee  of  the  Regions  of  29  June 
2011 entitled 'A budget for Europe 2020'13. 

(21)  Sound  public  governance  of  the  Galileo  and  EGNOS  programmes  assumes,  firstly, 
that  there  is  a  strict  division  of  tasks,  in  particular  between  the  Commission,  the 
European  GNSS  Agency  and  the  European  Space  Agency,  and,  secondly,  that  the 
governance is progressively adapted to the operational requirements of the systems. 

to 

the  programmes  under 

(22)  Given  that  it  represents  the  Union,  which,  in  principle,  provides  financing  for  the 
programmes alone and owns the systems, the Commission must be responsible for the 
progress of the programmes and their political supervision. It must manage the funds 
the 
allocated 
implementation  of  all  activities  of  the  programmes  and  a  clear  division  of  tasks,  in 
particular  between  the  European  GNSS  Agency  and  the  European  Space  Agency. 
Accordingly, in addition to the tasks associated with these general responsibilities and 
the other tasks incumbent upon it under this Regulation, it should be assigned a non-
exhaustive set of specific tasks. In order to optimise the resources and competences of 
the  various  stakeholders,  it  should  be  able  to  delegate  certain  tasks  by  means  of 
delegation  agreements,  in  accordance  with  Regulation  (EC,  Euratom)  No  1605/2002 
and, in particular, Article 54 thereof. 

the  current  Regulation,  supervise 

13 

COM(2011) 500 final. 

EN 

10 

   EN 

 
                                                 
(23)  The European GNSS Agency was established by Regulation (EU) No 912/2010 of the 
European  Parliament  and  of  the  Council  of  22  September  2010  setting  up  the 
European  GNSS  Agency,  repealing  Council  Regulation  (EC)  No  1321/2004  on  the 
establishment  of  structures  for  the  management  of  the  European  satellite  radio 
navigation programmes and amending Regulation (EC) No 683/2008 of the European 
Parliament and of the Council14 in order to achieve the objectives of the Galileo and 
EGNOS programmes and implement certain tasks associated with the progress of the 
programmes.  It  is  an  agency  of  the  Union  which,  as  a  body  within  the  meaning  of 
Article  185  of  Regulation  (EC,  Euratom)  No  165/2002,  is  subject  to  the  obligations 
applicable  to  Union  agencies.  It  should  be  assigned  certain  tasks  associated  with 
programme  security,  its  potential  designation  as  a  competent  PRS  authority  and  its 
contribution  to  the  marketing  of  the  systems.  It  should  also  perform  tasks  which  the 
Commission  may  confer  on  it  by  means  of  one  or  more  delegation  agreements 
covering other various specific tasks associated with the programmes, including tasks 
associated  with  the  exploitation  phases  of  the  systems  and  promotion  of  the 
applications  and  services  on  the  satellite  navigation  market.  In  order  for  the 
Commission,  representing  of  the  Union,  to  exercise  its  power  of  control  fully,  these 
delegation  agreements  should 
the 
management of funds entrusted to the European GNSS Agency. 

the  general  conditions  governing 

include 

(24)  The  Union  should  conclude  a  multiannual  delegation  agreement  with  the  European 
Space  Agency  covering  the  technical  and  planning  aspects  of  the  programmes.  In 
order  for  the  Commission,  representing  the  Union,  to  exercise  its  power  of  control 
fully, the delegation agreement should include the general conditions for managing the 
funds  entrusted  to  the  European  Space  Agency.  Concerning  activities  exclusively 
financed by the Union, these conditions must ensure a degree of control comparable to 
that required if the European Space Agency was an Agency of the Union. 

(25)  Responsibility  for 

includes, 

the  programmes 

the  progress  of 

in  particular, 
responsibility for their security and the security of their systems and operation. Except 
in the case of application of 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 Union15, which could be adapted if necessary to changes in 
the  programmes,  their  governance  and  the  Lisbon  Treaty,  the  Commission  is 
responsible  for  security,  even  if  certain  security-related  tasks  are  entrusted  to  the 
European  GNSS  Agency.  It  is  the  responsibility  of  the  Commission  to  establish 
mechanisms  to  ensure  suitable  coordination  between  the  various  entities  responsible 
for security. 

(26)  Given  the  specific  expertise  of  the  European  External  Action  Service  and  its  regular 
contact with administrations of third countries and international organisations, it is in a 
position to assist the Commission in performing certain of its tasks relating to security 
of  systems  and  programmes  in  the  field  of  external  relations,  in  accordance  with 
Council  Decision  2010/427/EU  of  26  July  2010  determining  the  organisation  and 
operation  of  the  European  External  Action  Service16  and,  in  particular,  Article  2(2) 
thereof. 

14 
15 
16 

OJ L 276, 20.10.10, p. 1. 
OJ L 246, 20.7.2004, p. 30. 
OJ L 201, 03.08.10, p. 30. 

EN 

11 

   EN 

 
                                                 
(27) 

In order to allocate the Union funds attributed to the programmes with a ceiling total 
that the Commission must not exceed, effective public procurement procedures must 
be  applied  and,  in  particular,  contracts  negotiated  so  as  to  ensure  optimum  use  of 
resources,  satisfactory  services,  smooth  running  of  programmes,  good  risk 
management  and  compliance  with  the  proposed  schedule.  The  contracting  authority 
must make every effort to meet these requirements. 

(28)  As  the  programmes  will  be,  in  principle, financed by the Union, public procurement 
under the programmes should comply with Union rules on public contracts and should 
aim,  first  and  foremost,  to  obtain  best  value  for  money,  control  costs,  mitigate  risks, 
improve  efficiency  and  reduce  reliance  on  a  single  supplier.  Open  access  and  fair 
competition  throughout  the  supply  chain  and  the  balanced  offering  of  participation 
opportunities to industry at all levels, including, in particular, new entrants and small 
and medium-sized enterprises (hereinafter 'SMEs'), should be ensured. Possible abuse 
of dominance and of long-term reliance on single suppliers should be avoided. In order 
to  mitigate  programme  risks,  to  avoid  reliance  on  a  single  source  of  supply  and  to 
ensure better overall control of the programmes and their costs and schedules, multiple 
sourcing  should  be  pursued,  wherever  appropriate.  Union  industries  should  be 
permitted  to  rely  on  non-Union  sources  for  certain  components  and  services  where 
substantial advantages in terms of quality and costs are demonstrated, taking account, 
however, of the strategic nature of the programmes and of Union security and export 
control  requirements.  Advantage  should  be  taken  of  public  sector  investment  and 
industrial  experience  and  competence,  including  that  acquired  during  the  definition 
and  development  and  validation  phases  of  the  programmes,  while  ensuring  that  the 
rules on competitive tendering are not contravened. 

(29)  Satellite  navigation  is  a  new,  complex  and  constantly  changing  technology.  This 
results  in  uncertainty  and  risk  for  public  contracts  concluded  under  the  programmes, 
insofar  as  these  contracts  may  involve  long-term  commitments  to  equipment  or 
services.  These  characteristics  require  specific  measures 
implemented 
concerning  public  contracts  which  apply  in  addition  to  the  rules  laid  down  in 
Regulation (EC, Euratom) No 1605/2002. In this way, the contracting authority should 
be able to restore a level playing field when one or more companies have, prior to a 
call  for  tenders,  privileged  information  on  the  activities  associated  with  this  call  for 
tender.  It  should  be  possible  to  award  a  contract  in  the  form  of  a  conditional  stage-
payment contract, introduce an amendment, under certain conditions, in the context of 
its performance, or even impose a minimum level of subcontracting Finally, due to the 
technological uncertainties that are a feature of the programmes, contract prices cannot 
always  be  forecast  accurately  and  it  is  therefore  desirable  to  conclude  contracts  in  a 
specific form that do not stipulate a firm fixed price and include clauses to safeguard 
the financial interests of the Union. 

to  be 

(30) 

It  should  be  reiterated  that,  in  accordance  with  Article  4(3)  of  the  Treaty  on  the 
European Union, the Member States should not take measures which could harm the 
progress  of  the  programmes,  in  particular  concerning  intellectual  property  rights  and 
the  continuity  of  infrastructure  operation  It  should  also  be  clarified  that  the  Member 
States concerned should take all necessary measures so that the systems' earth stations 
are designated as European critical infrastructures. 

(31) 

In view of the global nature of the systems, it is essential that the Union can enter into 
agreements  with  third  countries  and  international  organisations  in  the  context  of 

EN 

12 

   EN 

 
programmes  under  Article  218  of  the  Treaty  on  the  Functioning  of  the  European 
Union, in particular to ensure their smooth implementation, optimise services provided 
to  citizens  of  the  Union  and  meet  the  needs  of  third  countries  and  international 
organisations.  It  is  also  useful,  where  necessary,  to  adapt  existing  agreements  to 
changes  in  the  programmes.  When  preparing  or  implementing  these  agreements,  the 
Commission  may  have  recourse  to  the  assistance  of  the  European  External  Action 
Service,  the  European  Space  Agency  and  the  European  GNSS  Agency,  within  the 
limits of the tasks allocated to them under this Regulation. 

(32) 

It  should  be  confirmed  that  the  Commission,  in  performing  certain  of  its  tasks  of  a 
non-regulatory nature, may have recourse, as required and insofar as necessary, to the 
technical  assistance  of  certain  external  parties.  Other  bodies  involved  in  the  public 
governance of the programmes may also make use of the same technical assistance in 
performing tasks entrusted to them under this Regulation. 

(33)  Protection of personal data and private life should be ensured under the programmes. 

(34)  The  financial  interests  of  the  Union  must  be  protected  using  proportionate  measures 
throughout the expenditure cycle, in particular, by means of prevention and detection 
of  irregularities,  carrying  out  surveys,  recovering  lost,  unduly  paid  or  poorly 
administered funds and, if necessary, applying penalties. 

(35) 

It  is  necessary  to  ensure  that  the  European  Parliament  and  the  Council  are  kept 
regularly  informed  about  the  implementation  of  the  programmes.  In  addition,  the 
European  Parliament,  the  Council  and  the  Commission  will  meet  in  the  Galileo 
Interinstitutional  Panel  in  accordance  with  the  Joint  declaration  on  the  Galileo 
Interinstitutional Panel of 9 July 2008. 

(36)  Assessments  should  be  carried  out  by  the  Commission  in  order  to  evaluate  the 
effectiveness  and  efficiency  of  the  measures  taken  to  achieve  the  objectives  of  the 
programmes. 

(37) 

In order to set out the necessary measures to ensure compatibility and interoperability 
of systems with other satellite navigation systems as well as with conventional means 
of radio navigation and to ensure the security of the systems and their operation, the 
power should be delegated to the Commission to adopt acts under Article 290 of the 
Treaty  on  the  Functioning  of  the  European  Union  concerning  these  two  areas  of 
competence.  It is  of  particular  importance  that  the Commission  carry  out  appropriate 
consultations during its preparatory work, including at expert level. The Commission, 
when  preparing  and  drawing  up  delegated  acts,  should  ensure  that  the  relevant 
documents are forwarded to the European Parliament and Council in a simultaneous, 
timely and appropriate fashion. 

(38) 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  this  Regulation, 
implementing powers should be conferred on the  Commission. These powers should 
be  exercised  in  accordance  with  Regulation  (EU)  No  182/2011  of  the  European 
Parliament and of the Council of 16 February 2011 laying down the rules and general 

EN 

13 

   EN 

 
principles concerning mechanisms for control by Member States of the Commission's 
exercise of implementing powers17.  

(39)  As sound public governance requires uniform management of the programmes, faster 
decision-making  and  equal  access  to  information,  representatives  of  the  European 
GNSS  Agency  and  the  European  Space  Agency  should  be  able  to  take  part  as 
observers in the work of the European GNSS Programmes Committee in accordance 
with  Article  19  of  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)18. For the same reasons, representatives 
of third countries and international organisations who have concluded an international 
agreement  with  the  Union  should  be  able  to  take  part  in  the  work  of  the  European 
GNSS programmes' committee. These representatives of the European GNSS Agency, 
the  European  Space  Agency,  third  countries  and  international  organisations  cannot 
take part in Committee voting procedures. 

(40)  Since  the  objective  of  this  Regulation,  namely  the  establishment  and  operation  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  Union  level,  the  Union  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. 

(41)  The  Galileo  Joint  Undertaking  created  by  Council  Regulation  (EC)  No  876/2002  19 
ceased its operations on 31 December 2006 and the proceedings involved in winding 
up  the  undertaking  are  now  complete.  It  follows  that  Regulation  (EC)  No  876/2002 
should be repealed. 

(42)  Given the need to evaluate the programmes, the importance of the changes to be made 
to  the  text  and  in  the  interests  of  clarity  and  legal  certainty,  Regulation  (EC)  No 
683/2008 must be repealed,  

HAVE ADOPTED THIS REGULATION:  

CHAPTER I 

GENERAL PROVISIONS  

Article 1 

European satellite navigation systems and programmes 

17 
18 
19 

OJ L 55, 28.02.11, p. 13. 
OJ L 196, 24.7.2008, p.1 
OJ L 138, 28.05.02, p. 1. 

EN 

14 

   EN 

 
                                                 
1. 

2. 

3. 

4. 

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

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

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. 

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

(a) 

(b) 

(c) 

(d) 

(e) 

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 function 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  by  means  of  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; this 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. 

5. 

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

(a) 

(b) 

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, the EGNOS Data 
Access  Service  (EDAS),  to  promote  the  development  of  applications  for 
professional  or  commercial  use  by  means  of  improved  performance  and  data 
with greater added value than those obtained through the open service; 

(c) 

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 

EN 

15 

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for  continuity,  availability  and  accuracy and  includes  an  integrity  message 
alerting the user to any failure in the system over the coverage area. 

The  EGNOS  programme  also  has  the  specific  objective  of  extending  geographic 
coverage  to  these  services  throughout  the  territory  of  the  Union  and,  subject  to 
technical constraints and on the basis of international agreements, to other regions of 
the world, in particular territories of third countries covered by the single European 
sky. 

Article 2 

Subject 

This  Regulation  lays  down  the  rules  in  relation  to  the  implementation  and  operation  of  the 
systems  under  the  European  satellite  navigation  programmes,  in  particular  those  relating  to 
the governance and the financial contribution of the Union. 

Article 3 

Galileo programme phasing 

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 establishment of the first ground-based infrastructures and all the 
work  and  operations  necessary  to  validate  the  system  in  orbit;  the  aim  is  for  this 
phase to be completed in 2013; 

a deployment phase  consisting  of the establishment  and protection of  all  space  and 
ground-based infrastructures as well as related operations which include preparations 
for the exploitation phase; the aim is for this phase, begun in 2008, to be completed 
in 2020; 

an exploitation  phase  comprising infrastructure management, maintenance,  ongoing 
improvement, renewal and protection of the system, certification and standardisation 
operations associated with the programme, the supply and marketing of services and 
all other activities needed to develop the system and ensure that the programme runs 
smoothly;  the  aim  is  for  this  phase  to  begin  progressively  between  2014  and  2015 
with provision of the initial services. 

Article 4 

Operation of the EGNOS system 

Operation  of  the  EGNOS  system  mainly  includes  management  of  the  infrastructure, 
maintenance,  ongoing  improvement,  renewal  and  protection  of  the  system,  approval, 
certification  and  standardisation  activities  associated  with  the  programme,  all  elements 
justifying the reliability of the system and its operation as well as provision and marketing of 
services. 

EN 

16 

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Article 5 

Compatibility and interoperability of the systems 

1. 

2. 

3. 

The  systems,  networks  and  services  resulting  from  the  Galileo  and  EGNOS 
programmes shall be compatible and interoperable.  

The  systems,  networks  and  services  resulting  from  the  Galileo  and  EGNOS 
programmes  shall,  insofar  as  possible,  be  compatible  and  interoperable  with  other 
satellite navigation systems as well as with conventional means of radio navigation. 

The  Commission  shall  lay  down,  by  means  of  delegated  acts,  in  accordance  with 
Article 34, the requirements and standards necessary to ensure the compatibility and 
interoperability referred to in paragraph 2.  

Article 6 

Ownership 

The Union 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.  

In  particular,  the  Commission  shall  ensure  that  the  Union's  intellectual  property  rights  are 
used optimally. 

CHAPTER II 

BUDGETARY CONTRIBUTION AND MECHANISMS 

Article 7 

Activities concerned 

1. 

The  Union  budgetary  appropriations  allocated  to  the  programmes  for  the  period 
2014-2020 under this Regulation shall be granted to finance: 

a) 

b) 

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

activities  relating  to  operation  of  the  system  established  under  the  Galileo 
programme, including advance or preparatory actions for this phase; 

c) 

activities associated with the operation of the EGNOS system. 

2. 

The  Union  budget  appropriations  assigned  to  the  programmes  may  also  cover 
Commission  expenditure  relating  to  preparation,  monitoring,  inspection,  audit  and 
assessment  activities  required  for  their  management  and  the  implementation  of  the 
objectives, in particular expenditure covering: 

(a) 

studies and meetings with experts;  

EN 

17 

   EN 

 
 
(b) 

and 

information 
institutional 
communication  on  the  policy  priorities  of  the  Union  where  they  are  directly 
linked to the objectives of this Regulation; 

communication 

activities, 

including 

3. 

1. 

2. 

3. 

1. 

2. 

(c) 

IT technology networks, with the objective of processing or transferring data;  

(d) 

any  other  technical  or  administrative  assistance  given  to  the  Commission  for 
the management of programmes.  

In  order  to  allow  the  costs  of  the  programmes  and  of  the  different  phases  of  the 
programmes  to  be  clearly  identified,  the  Commission,  in  accordance  with  the 
principle  of  transparent  management,  shall  inform  the  Committee  referred  to  in 
Article  35(1)  annually  of  the  allocation  of  Union  funds  to  each  of  the  activities 
specified in paragraphs 1 and 2. 

Article 8 

Financing of the Galileo programme 

The  deployment  and  exploitation  phases  shall  be  financed  by  the  Union  in 
accordance with Article 10(1) without prejudice to paragraphs 2 and 3 of the present 
Article. 

The Member States may provide additional funding to the Galileo programme. The 
revenue  arising  from  these  contributions  shall  constitute  assigned  revenue  in 
accordance  with  Article  18(2)  of  the  Regulation  (EC,  Euratom)  No  1605/2002.  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 in accordance with Article 35 (1) of this Regulation. 

Third countries and international organisations may also provide additional funding 
to the Galileo programme. The agreements under Article 28 stipulate the conditions 
and arrangements for their involvement. 

Article 9 

Financing of operation of the EGNOS system 

The  Union  shall  finance  operation  of  EGNOS,  in  accordance  with  Article  10(1), 
without prejudice to any contribution from any other funding source, including those 
referred to in paragraphs 2 and 3 of this Article. 

The Member States can provide additional funding to the EGNOS programme. The 
revenue  arising  from  these  contributions  shall  constitute  assigned  revenue  in 
accordance  with  Article  18(2)  of  the  Regulation  (EC,  Euratom)  No  1605/2002.  In 
accordance  with  the  principle  of  transparent  management,  the  Commission  shall 
communicate any impact on the EGNOS programme resulting from the application 
of  this  paragraph  to  the  Committee  in  accordance  with  Article  35  (1)  of  this 
Regulation. 

EN 

18 

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3. 

1. 

2. 

3. 

1. 

2. 

3. 

Third countries and international organisations may also provide additional funding 
to the EGNOS programme. The agreements under Article 28 stipulate the conditions 
and arrangements for their involvement. 

Article 10 

Resources 

The maximum amount allocated by the Union to implement the activities specified in 
Article 7(1) and (2) shall be EUR [7897] million at current prices for the period from 
1 January 2014 to 31 December 2020. 

The  appropriations  shall  be  implemented  in  accordance  with  the  provisions  of  this 
Regulation and Regulation (EC, Euratom) No 1605/2002. 

Budgetary  commitments  for  the  programmes  shall  be  appropriated  in  annual 
instalments. 

Article 11 

Revenue generated by the programmes 

Revenue generated by operation of the systems shall be collected by the Union, paid 
to  the  Union  budget  and  allocated  to  the  programmes.  If  the  income  proves  to  be 
more than required to fund the programme exploitation phases, any adaptation of the 
principle of allocation shall be approved by the budgetary authority on the basis of a 
proposal from the Commission. 

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

The  interest  generated  by  pre-financing  payments  made  to  entities  responsible  for 
implementing the budget indirectly is assigned to activities subject to the delegation 
agreement  or  the  contract  concluded  between  the  Commission  and  the  entity 
concerned.  In  accordance  with  the  principle  of  sound  financial  management,  the 
entities  responsible  for  indirect  implementation  of  the  budget,  shall  open  accounts 
enabling the funds and corresponding interest to be identified. 

CHAPTER III 

PUBLIC GOVERNANCE OF THE PROGRAMMES 

Article 12 

General framework for governance of the programmes 

Public  governance  of  the  programmes  is  based  on  the  principle  of  a  strict  division  of  tasks 
between the various bodies involved, in particular the Commission, European GNSS Agency 
and the European Space Agency.  

EN 

19 

   EN 

 
Article 13 

Commission's role 

1. 

2. 

The Commission is responsible for the progress of the programmes. It manages the 
funds allocated to them under this Regulation and monitors the implementation of all 
programme activities. 

In addition to the general tasks referred to in paragraph 1 and those referred to in the 
other  provisions  of  this  Regulation,  the  Commission's  tasks  under  this  Regulation 
include the following specific tasks: 

(a) 

(b) 

(c) 

(d) 

it shall ensure a clear division of tasks between the various bodies involved in 
the  programmes  and  to  this  end  allocate  the  tasks  referred  to  respectively  in 
Articles  15(1)(d)  and  16,  in  particular  by  means  of  delegation  agreements,  to 
the European GNSS Agency and the European Space Agency; 

it shall implement the correct instruments and structural measures necessary to 
identify,  control,  mitigate  and  monitor 
the 
programmes, in particular in terms of cost and schedule; 

the  risks  associated  with 

it  shall  manage,  on  behalf  of  the  Union  and  in  its  field  of  competence, 
relationships with third countries and international organisations; 

it  shall  ensure  the  security  of  the  programmes  and  establish  coordination 
mechanisms between the various bodies involved. 

3. 

When necessary for the smooth progress of the phases of the Galileo programme and 
the operation of the EGNOS system referred to respectively in Article 3 and 4, the 
Commission shall lay down the measures required to: 

(a)  determine  the  location  and  ensure  the  operation  of  the  ground-based 

infrastructure of the systems;  

(b)  define  the  key  decision  stages  to  evaluate  the  implementation  of  the 

programmes;  

(c) 

reduce the risks inherent in the progress of the programmes. 

These  implementing  measures  shall  be  adopted  in  accordance  with  the  assessment 
procedure referred to in Article 35(3). 

Article 14 

Security of systems and their operation 

1. 

The systems and their operation shall be secure. 

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20 

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2. 

3. 

Without prejudice to Articles 15 and 17 of this Regulation and Article 8 of Decision 
1104/2011/EU  of  the  European  Parliament  and  of  the  Council20,  the  Commission 
may  lay  down,  by  means  of  delegated  acts  in  accordance  with  Article  34,  the 
requirements and standards necessary to ensure the security of the systems and their 
operation referred to in paragraph 1. To this end, it shall take into account the need 
for  the  supervision  and  integration  within  all  the  programmes  of  security-related 
requirements, as well as the effect of these requirements on the successful progress 
of the programmes, in particular in terms of costs and timetable. 

The  European  External  Action  Service  shall  assist  the  Commission,  in  accordance 
with Article 2(2) of Decision 2010/427/EU in implementing security-related tasks in 
the field of external relations. In this same field, it shall also assist the Commission in 
monitoring of compliance with the joint minimum standards provided for in Decision 
1104/2011/EU.  To  this  end,  the  correct  resources  shall  be  made  available  and 
transition  periods  shall  be  put  in  place  to  ensure  the  continuity  of  programmes  and 
services. 

Article 15 

The role of the European GNSS Agency 

1 

In  order  to  achieve  the  programme  objectives,  the  European  GNSS  Agency  shall 
contribute  to  their  implementation  and  carry  out  the  following  tasks,  in  accordance 
with the guidelines laid down by the Commission: 

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

Articles 14 and 17, it shall ensure: 

(i) 

by  30  June  2016  at  the  latest,  security  certification  in  accordance  with 
chapter III of Regulation (EU) No 912/2010; accordingly, it shall initiate 
and  monitor  the  implementation  of  security  procedures  and  perform 
system security audits;  

(ii) 

the  operation  of  the  Galileo  security  centre,  in  accordance  with  the 
standards and requirements referred to in Article 14 and the instructions 
provided under Joint Action 2004/552/CFSP referred to in Article 17; 

it shall perform the tasks of a competent PRS authority provided for in Article 
5 of Decision No 1104/2011/EU, if it is designated as such and it shall assist 
the  Commission  in  monitoring  compliance  with  the  common  minimum 
standards in accordance with Article 8(6) of the abovementioned Decision; 

in  the  context  of  the  operation  of  the  systems,  it  shall  contribute  to  the 
marketing of services, including the necessary market analysis; 

it shall also perform other specific tasks associated with the programmes which 
may be entrusted to it by the Commission by means of a delegation agreement 

(b) 

(c) 

(d) 

20 

OJ L 287, 04.11.11, p. 1. 

EN 

21 

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adopted  on  the  basis  of  a  delegation  decision,  in  accordance  with  Article 
54(2)(b) of Regulation (EC, Euratom) No 1605/2002, which include: 

(i) 

operational activities relating to infrastructure management, maintenance, 
ongoing  improvement  and  renewal  of  the  systems,  certification  and 
standardisation  operations  in  the  context  of  the  programmes  and 
provision of the services referred to in Article 3(d) and in Article 4; 

(ii)  promotion of applications and services in the satellite navigation market; 

In  addition  to  the  tasks  referred  to  in  paragraph  1  and  within  the  confines  of  its 
mission,  the  European  GNSS  Agency  shall  provide  the  Commission  with  its 
technical expertise and supply any information necessary for the performance of its 
tasks under this Regulation. 

The  Committee  referred  to  in  Article  35(1)  shall  be  consulted  on  the  delegation 
decision  referred  to  in  paragraph  1(d)  of  this  Article,  in  accordance  with  the 
consultation procedure referred to in Article 35(2). The Committee shall be informed 
of  the  delegation  agreements  to  be  concluded  by  the  Union,  represented  by  the 
Commission and the European GNSS Agency. 

Article 16 

The role of the European Space Agency 

The  Commission  shall  conclude  a  multiannual  delegation  agreement  with  the 
European  Space  Agency  on  the  basis  of  a  delegation  decision  adopted  by  the 
Commission  in  accordance  with  Article  54(2)  of  Regulation  (EC,  Euratom)  No 
1605/2002. This agreement shall cover the execution of tasks and the budget subject 
to  the  delegation  in  accordance  with  the  implementation  of  the  programmes,  in 
particular completion of the infrastructure under the Galileo programme. 

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 funds entrusted to the European Space Agency, and, in particular, 
the  actions  to  be  implemented,  the  relevant  financing,  management  procedures  and 
monitoring and control measures, the measures applicable in the event of inadequate 
performance  of  contracts  and  the  rules  regarding  ownership  of  all  tangible  and 
intangible property.  

The  monitoring  and  control  measures,  in  particular,  shall  provide  for  a  provisional 
cost forecast system, systematic information from the Commission on costs, and, in 
the  event  of  a  discrepancy  between  the  planned  budgets  and  costs  incurred, 
corrective action ensuring the implementation of the infrastructures within the limits 
of the budgets allocated.  

The  Committee  referred  to  in  Article  35(1)  shall  be  consulted  on  the  delegation 
decision  referred  to  in  paragraph  1  of  this  Article,  in  accordance  with  the 
consultation procedure referred to in Article 35(2). The Committee shall be informed 
of the multiannual delegation agreement to be concluded by the Commission and the 
European Space Agency.  

2. 

3. 

1. 

2. 

3. 

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22 

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4. 

The Committee referred to in Article 35(1) 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 European Space Agency. 

CHAPTER IV 

ASPECTS RELATING TO THE SECURITY OF THE UNION OR OF THE MEMBER 
STATES 

Article 17 

Joint Action 

Whenever the security of the 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 shall apply. 

1. 

2. 

3. 

Article 18 

Application of the Regulation on classified information 

Each  Member  State  shall  ensure  that  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  Commission  Decision  2001/844/EC,  ECSC, 
Euratom21  and  by  the  security  regulations  of  the  Council  set  out  in  the  Annex  to 
Council Decision 2011/292/EC22 apply to all natural persons resident on its territory 
and  all  legal  entities  established  on  its  territory  which  deal  with  Union  classified 
information regarding the programmes. 

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

Natural  persons  resident  in  third  countries  and  legal  entities  established  in  third 
countries may deal with Union classified information regarding the programmes only 
where they are subject, in those countries, to a security regulation 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  2011/292/EU. 
The security regulations of the European Space Agency and Decision 2011/C 304/05 
of  the  High  Representative  of  the  Union  for  Foreign  Affairs  and  Security  Policy23 
shall be considered as equivalent to those rules and regulations. The equivalence of 
the security regulation applied in a third country may be recognised in an agreement 
with that country. 

21 
22 
23 

OJ L 317, 03.12.01, p. 1. 
OJ L 141, 27.05.11, p. 17. 
OJ C 304, 15.10.2011, p. 7. 

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23 

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CHAPTER V 

PUBLIC PROCUREMENT  

SECTION I  

General provisions applicable to public procurement conducted as part of the 
deployment and exploitation phases of the programmes 

Article 19 

General principles 

The Union's public procurement rules laid down in Regulation (EC, Euratom) No 1605/2002, 
and  in  particular  open  access  and  fair  competition  throughout  the  industrial  supply  chain, 
tendering  on  the  basis  of  the  provision  of  transparent  and  timely  information,  clear 
communication  of  the  applicable  procurement  rules,  selection  and  award  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  and  the  exploitation  phases  of  the 
programmes  without  prejudice  to  measures  required  to  protect  the  essential  interests  of  the 
security of the Union or public security or to comply with Union export control requirements. 

Article 20 

Specific objectives 

During the procurement, the following objectives shall be pursued: 

a) 

b) 

c) 

to  promote  the  widest  and  most  open  participation  possible  throughout  the 
Union by all economic operators, in particular by new entrants and SMEs; 

to  avoid  possible  abuse  of  dominance  and  long-term  reliance  on  a  single 
supplier; 

to take advantage of prior public sector investments and lessons learned as well 
as  industrial  experience  and  competences,  including  that  acquired  in  the 
definition,  development  and  validation  and  deployment  phases  of  the 
programmes,  while  ensuring  that  competitive  tendering  rules  are  complied 
with. 

SECTION 2  

Specific provisions applicable to public procurement conducted as part of the 
deployment and exploitation phases of the programmes 

Article 21 

Establishing fair competition conditions 

EN 

24 

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The  contracting  authority  must take  the  appropriate  measures  to  ensure  fair  competition 
conditions when previous involvement of a company in activities associated with the subject 
of the call for tender: 

(a) 

 may  confer  significant  advantages  on  that  company  in  terms  of  privileged 
information  and  therefore  may  give  rise  to  concerns  as  to  compliance  with 
equal treatment; or 

(b) 

affect normal competition conditions or the impartiality and objectivity of the 
award or performance of the contracts. 

These measures must not distort fair competition, equal treatment and confidentiality of data 
collected about undertakings, their business relations and cost structure. In this context, these 
measures shall take into account the nature and particulars of the intended contract. 

Article 22 

Conditional stage-payment contracts 

1. 

2. 

3. 

4. 

The  contracting  authority  may  award  a  contract  in  the  form  of  a  conditional  stage-
payment contract.  

A  conditional  stage-payment  contract  includes  a  fixed  stage  which  is  accompanied 
by  a  budgetary  commitment  and  one  or  more  conditional  stages.  The  tender 
documents  refer  to  the  specific  features  of  conditional  stage-payment  contracts.  In 
particular,  they  specify  the  subject-matter  of  the  contract,  the  price  or  the 
arrangements  for  determining  the  price  and  the  arrangements  for  provision  of 
supplies and services at each stage.  

The fixed stage obligations must be part of a consistent whole; the same is true for 
the  obligations  under  each  conditional  stage,  taking  into  account  the  obligations 
under the previous stages.  

Performance  of  each  conditional  stage  is  subject  to  a  decision  by  the  contracting 
authority,  notified  to  the  contractor  in  accordance  with  the  contract.  When  a 
conditional  stage  is  confirmed  belatedly  or  is  not  confirmed,  the  contractor  may 
benefit, if the contract so provides and under the conditions laid down therein, from a 
tideover allowance or a non-execution allowance. 

Article 23 

Cost-reimbursement contracts 

1. 

In exceptional circumstances, the contracting authority may opt for a full or partial 
cost-reimbursement contract up to a ceiling price, under the circumstances laid down 
in paragraph 2. 

Unlike a contract which provides remuneration for a result and for which the price or 
arrangements for determining the price is fixed initially in the contractual documents, 
a  cost-reimbursement  contract  remunerates  the  resources  used  and  not  a  finished 

EN 

25 

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2. 

3. 

4. 

product or service. The price to be paid consists of reimbursement of all direct costs 
incurred by the contractor in performing the contract, such as expenditure on labour, 
materials,  consumables,  use  of  equipment  and  infrastructures  necessary  to  perform 
the contract. These costs are increased by a fixed fee covering indirect costs and the 
profit,  or  a  sum  covering  indirect  costs  and  incentive  fee  compensation  based  on 
achieving objectives in respect of performance and delivery schedules. 

The  contracting  authority  may  opt  for  a  full  or  partial  cost-reimbursement  contract 
when it is objectively impossible to specify an accurate fixed price and if it can be 
reasonably  shown  that  such  a  fixed  price  would  be  abnormally  high  due  to  the 
uncertainties inherent in performance of the contract because:  

(a) 

either the contract has very complex features or features which require the use 
of a new technology and, therefore, includes a significant number of technical 
risks; 

(b)  or  the  activities  subject  to  the  contract  must,  for  operational  reasons,  start 
immediately even though it is not yet possible to determine a firm fixed price 
in full due to significant risks or because performance of the contract depends 
in part on the performance of other contracts. 

The  ceiling  price  for  a  full  or  partial  cost-reimbursement  contract  is  the  maximum 
price  payable.  It  may  only  be  exceeded  in  duly  justified  exceptional  circumstances 
subject to prior agreement by the contracting authority.  

The  tender  documents  of  a  procurement  procedure  for  a  full  or  partial  cost-
reimbursement contract shall specify: 

(a) 

(b) 

the type of contract, namely whether it is a full or partial cost-reimbursement 
contract up to a ceiling price; 

for a partial cost-reimbursement contract, the elements of the contract subject 
to cost-reimbursement;  

(c) 

the total ceiling price; 

(d) 

(e) 

(f) 

the  award  criteria,  which  must  enable  evaluation  of  the  plausibility  of  the 
estimated  overall  budget,  of  the  reimbursable  costs,  of  the  mechanisms  for 
determining these costs, and the profit referred to in the tender to be evaluated; 

the mechanics of the increase referred to in paragraph 1 to be applied to direct 
costs; 

the rules and procedures which determine the eligibility of the costs planned by 
the tenderer for performance of the contract, in accordance with the principles 
set out in paragraph 5; 

(g) 

the accounting rules with which tenderers must comply; 

(h) 

in the case of a partial cost-reimbursement contract to be converted into a firm 
fixed-price contract, the parameters for this conversion. 

EN 

26 

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5. 

The  costs  declared  by  the  contractor  during  performance  of  a  full  or  partial  cost-
reimbursement contract are only eligible if: 

(a) 

they  are  actually  incurred  during  the  duration  of  the  contract,  with  the 
exception  of  costs  for  equipment,  infrastructures  and  intangible  fixed  assets 
necessary  for  performance  of  the  contract  which  may  be  deemed  eligible  for 
the whole of their purchase value; 

(b) 

they  are  referred  to  in  the  estimated  overall  budget  which  may  be  revised  by 
amendments to the initial contract; 

(c) 

they are necessary for performance of the contract; 

(d) 

they result from the performance of the contract and are attributable to this; 

(e) 

they are identifiable, verifiable, recorded in the Contractor's accounting record 
and determined in accordance with the accounting standards referred to in the 
specifications and in the contract;  

(f) 

they comply with the requirements of applicable tax and social legislation; 

(g) 

they do not derogate from the terms of the contract; 

(h) 

they  are  reasonable,  justified,  and  comply  with  the  requirements  of  sound 
financial management, in particular regarding economy and efficiency.  

The contractor is responsible for its own cost accounting, keeping sound accounting 
records  or  any  other  document  required  to  show  that  the  costs  for  which 
reimbursement  is  requested  have  been  incurred  and  comply  with  the  principles  set 
out  in  this  Article.  Costs  which  cannot  be  substantiated  by  the  contractor  shall  be 
deemed ineligible and their reimbursement shall be refused. 

6. 

The  contracting  authority  is  responsible  for  the  following  tasks  in  order  to  ensure 
correct performance of cost-reimbursement contracts: 

(a) 

(b) 

(c) 

(d) 

it shall determine the most realistic possible ceiling price, while providing the 
necessary flexibility to account for technical difficulties;  

it shall convert a partial cost-reimbursement contract into a full firm fixed-price 
contract  as  soon  as  it  is  possible  to  determine  such  a  firm  fixed-price  during 
performance of the contract. For this reason, it shall determine the conversion 
parameters to convert a contract concluded on a cost-reimbursement basis to a 
firm fixed-price contract; 

it  shall  implement  monitoring  and  inspection  measures  which  provide,  in 
particular, an estimated cost forecast system; 

it  shall  determine  suitable  principles, 
the 
implementation  of  contracts,  in  particular  for  identifying  and  checking  the 
eligibility  of  costs  declared  by  the  contractor  or  its  subcontractors  during 
performance of the contract, and for entering amendments to the contract; 

tools  and  procedures  for 

EN 

27 

   EN 

 
(e) 

it  shall  check  that  the  contractor  and  its  subcontractors  comply  with  the 
accounting  standards  stipulated  in  the  contract  and  with  the  obligation  to 
provide their accounting documents which should present a true and fair view 
of the accounts; 

(f) 

throughout  performance  of  the  contract,  it  shall  ensure  continuously  the 
effectiveness of the principles, tools and procedures referred to in point (e). 

Article 24 

Amendments 

The contract may be changed by an amendment on condition that this amendment fulfils all of 
the following conditions: 

a) 

it does alter the subject-matter of the contract, 

b) 

it does disturb the economic balance of the contract, 

c) 

it  does  not  introduce  conditions  which,  if  they  had  appeared  initially  in  the 
contract  documents,  would  have  allowed  for  the  admission  of  tenderers  other 
than  those  initially  admitted  or  would  have  allowed  for  the  acceptance  of  a 
tender other than the one initially accepted. 

Article 25 

Subcontracting 

1. 

2. 

The contracting authority may ask each tenderer to subcontract part of the contract, 
at  different  levels,  to  companies  which  do  not  belong  to  the  group  to  which  it 
belongs.  This  minimum  sub-contracting  section  is  expressed  as  a  range  from  a 
minimum to a maximum percentage. This range is in proportion to the objective and 
value  of  the  contract  as  well  as  the  nature  of  the  sector  of  activity  concerned,  in 
particular, the competitive conditions and industrial potential observed.  

The contracting authority may reject subcontractors selected by the candidate at the 
stage  of  the  main  contract  award  procedure  or  by  the  tenderer  selected  for  the 
performance of the contract. It shall justify this rejection in writing, which may only 
be based on the criteria used for selection of tenderers for the main contract. 

CHAPTER VI  

MISCELLANEOUS PROVISIONS 

Article 26 

Programming 

28 

EN 

   EN 

 
The Commission shall lay down a multiannual work programme setting out the key actions, 
provisional budget and schedule required to meet the objectives of the Galileo and EGNOS 
programmes laid down in Article 1(4) and (5).  

On the basis of the multiannual work programme, the Commission shall adopt an annual work 
programme  that  includes  the  implementation  plan  for  the  multiannual  programme  and  the 
corresponding funding.  

These implementing measures shall be adopted in accordance with the assessment procedure 
referred to in Article 35(3). 

Article 27  

Member States' action 

1. 

2. 

The  Member  States  shall  not  take  measures  which  could  harm  the  progress  of  the 
programmes, in particular concerning  intellectual property rights  and the continuity 
of the operation of the infrastructures. 

The  Member  States  shall  take  all  necessary  measures  so  that  the  systems'  earth 
stations  are  designed  as  European  critical  infrastructures  within  the  meaning  of 
Council Directive 2008/114/EC24. 

Article 28 

International agreements 

The Union may enter into agreements with third countries and international organisations in 
the context of the programmes, in particular, cooperation agreements in accordance with the 
procedure laid down in Article 218 of the Treaty on the Functioning of the European Union. 

Article 29 

Technical assistance 

In order to complete the technical tasks referred to in Article 13(2), the Commission may have 
recourse to the necessary assistance, in particular the assistance of experts from the national 
agencies competent in the space sector, independent experts and bodies capable of providing 
impartial analyses and opinions on the progress of the programmes.  

The bodies involved in the public governance of the programmes, other than the Commission, 
in particular, the European GNSS Agency and the European Space Agency, may also receive 
the same technical assistance in performing the tasks entrusted to them under this Regulation. 

24 

OJ L 345, 23.12.08, p. 75. . 

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29 

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1. 

2. 

1. 

2. 

Article 30 

Personal data and privacy protection 

The Commission shall ensure that personal data and privacy is protected during the 
design  and  implementation  of  the  systems  and  that  the  appropriate  guarantees  are 
included therein. 

All personal data handled in the context of the tasks and activities provided for in this 
Regulation  shall  be  processed  in  accordance  with  the  applicable  legislation  on 
personal data protection, in particular Regulation (EC) No 45/2001 of the European 
Parliament and of the Council25 and Directive 95/46/EC of the European Parliament 
and of the Council26. 

Article 31 

Protection of the Union’s financial interests 

The  Commission  shall  take  the  appropriate  measures  to  ensure  that  the  financial 
interests of the Union are protected when actions financed under this Regulation are 
implemented, by the application of preventive measures against fraud, corruption and 
any other illegal activities, by effective checks and, if irregularities are detected, by 
the recovery of amounts unduly paid and, if necessary, by effective, proportional and 
dissuasive penalties. 

The  Commission  or  its  representatives  and  the  Court  of  Auditors  shall  have  the 
power  of  audit,  on  the  basis  of  document  and  on-the-spot  checks,  over  all  grant 
beneficiaries,  contractors  and  subcontractors  who  have  received  Union  funds  under 
this Regulation. 

The  European  Anti-fraud  Office  (OLAF)  may  carry  out  on-the-spot  checks  and 
inspections on economic operators concerned directly or indirectly by such funding 
in  accordance  with  the  procedures  laid down  in  Council  Regulation  (Euratom,  EC) 
No 2185/9627
 with a view to establishing whether there has been fraud, corruption or 
any  other  illegal  activity  affecting  the  financial  interests  of  the  European  Union  in 
connection  with  a  grant  agreement  or  decision  or  a  contract  concerning  Union 
financing. 

Without  prejudice  to  the  first  and  second  subparagraphs,  international  agreements 
with  third  countries  and  international  organisations,  grant  agreements,  grant 
decisions  and  contracts  resulting  from  the  application  of  this  Regulation  shall 
expressly entitle the Commission, the Court of Auditors and OLAF to conduct these 
audits and these on-the-spot checks and inspections. 

25 
26 
27 

OJ L 8, 12.01.01, p. 1.  
OJ L 281, 23.11.95, p. 31.  
OJ L 292, 15.11.96, p. 2. 

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30 

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Article 32 

Information to the European Parliament and to the Council 

The  Commission  shall  ensure  the  implementation  of  this  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. 

Article 33 

Review of the implementation of this Regulation  

1. 

By 30 June 2018, the Commission shall present an evaluation report to the European 
Parliament  and  the  Council,  with  a  view  to  a  decision  being  taken  on  the  renewal, 
modification  or  suspension  of  the  measures  taken  pursuant  to  this  Regulation 
concerning: 

(a) 

achieving  the  objectives  of  these  measures,  from  the  point  of  view  of  both 
results and impacts; 

(b) 

effectiveness of the use of resources; 

(c)  European added value.  

The  evaluation  shall  also  address  the  scope  for  simplification,  its  internal  and 
external coherence, the relevance of all objectives, as well as the contribution of the 
measures to the Union priorities of smart, sustainable and inclusive growth. It shall 
take  into  account  evaluation  results  on  the  long-term  impact  of  the  previous 
measures. 

The evaluation will take into account progress made with regard to the objectives of 
the Galileo and EGNOS programmes laid down in Article 1(4) and (5) on the basis 
of the following performance indicators: 

(a) 

(b) 

for  Galileo:  the  number  of  operational  satellites,  the  ground  infrastructure 
version used and the number of services provided; 

for  EGNOS: the  number of changes  to the service  specifications  presented to 
the certification authorities. 

The  bodies  involved  in  the  implementation  of  this  Regulation  shall  provide  the 
Commission with the data and information necessary to enable the actions concerned 
to be monitored and evaluated. 

2. 

3. 

CHAPTER VII 

DELEGATION AND IMPLEMENTING MEASURES 

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31 

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1. 

2. 

3. 

4. 

5. 

1. 

2. 

3. 

4. 

5. 

Article 34 

Exercise of the delegation 

The  power  to  adopt  delegated  acts  is  conferred  on  the  Commission  subject  to  the 
conditions laid down in this Article. 

The power to adopt delegated acts referred to in Articles 5 and 14 shall be conferred 
on the Commission for an indeterminate period from 1 January 2014. 

The delegation of power referred to in Articles 5 and 14 may be revoked at any time 
by the European Parliament or by the Council. A decision to revoke shall put an end 
to  the  delegation  of  the  power  specified  in  that  decision.  The  revocation  shall  take 
effect the day following the publication of the decision in the Official Journal of the 
European Union or at a later date specified in the abovementioned Decision. It shall 
not affect the validity of any delegated acts already in force. 

As soon as it adopts a delegated act, the Commission shall notify it simultaneously to 
the European Parliament and to the Council. 

A delegated act adopted pursuant to Articles 5 and 14 shall enter into force only if no 
objection  has  been  expressed  either  by  the  European  Parliament  or  the  Council 
within a period of 2 months of notification of that act to the European Parliament and 
the Council or if, before the expiry of that period, the European Parliament and the 
Council  have  both  informed  the  Commission  that  they  will  not  object.  That  period 
shall  be  extended  by  2  months  at  the  initiative  of  the  European  Parliament  or  the 
Council. 

Article 35 

Committee Procedure 

The  Commission  shall  be  assisted  by  the  Committee  on  European  GNSS 
Programmes  (hereinafter  'Committee')  set  up  by  Article  19  of  Regulation  (EC)  No 
683/2008.  That  Committee  is  a  committee  within  the  meaning  of  Regulation  (EU) 
No 182/2011. 

Where  reference  is  made  to  this  paragraph,  Article  4  of  Regulation  (EU)  No 
182/2011 shall apply. 

Where  reference  is  made  to  this  paragraph,  Article  5  of  Regulation  (EU)  No 
182/2011 shall apply. 

Representatives  of  the  European  GNSS  Agency  and  the  European  Space  Agency 
may be involved as observers in the work of the Committee under the conditions laid 
down in its rules of procedure. 

International agreements concluded by the Union in accordance with Article 28 may 
provide  for  the  involvement  of  representatives  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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CHAPTER VIII  

FINAL PROVISIONS 

Article 36 

Repeals 

1. 

Regulation (EC) No 876/2002 shall be repealed with effect from 1 January 2014.  

Any measure adopted on the basis of Regulation (EC) No 876/2002 shall continue to 
be governed by that Regulation. 

2. 

Regulation (EC) No 683/2008 shall be repealed with effect from 1 January 2014. 

Any measure adopted on the basis of Regulation (EC) No 683/2008 shall continue to 
be governed by that Regulation.  

References  to  the  repealed  Regulation  shall  be  construed  as  references  to  this 
Regulation  and  shall  be  read  in  accordance  with  the  correlation  table  set  out  in  the 
Annex hereto. 

Article 37 

Entry into force 

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

It shall apply from 1 January 2014. 

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

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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ANNEX 

Correlation table 

Former numbering 
(Regulation (EC) No 
683/200828) 

New numbering  
(This Regulation) 

Article 1 
Article 2 
Article 3 
Article 4 
Article 5 
Article 6 
Article 7 
Article 8 
Article 9 
Article 10 
Article 11 
Article 12(1) 
Article 12(2) and (3) 
Article 13(1) 
Article 13(2) and (3) 
Article 13(4) 
Article 14 
Article 15 
Article 16 
Article 17 
Article 18 
Article 19 
Article 20 
Article 21 
Article 22 
Article 23 
Article 24 
Annex 

Article 1 
Article 2 
Article 3 
Article 8 
Article 4 
Article 9 
Article 5 
Article 6 
Article 7 
Article 10 
Article 11 
Article 12 
Article 13 
Article 13 
Article 14 
Article 17 
Article 18 
Article 26 
Article 15 
Articles 19 to 25 
Article 16 
Article 35 
Article 30 
Article 31 
Article 32 

Article 37 
Article 1 

28 

OJ L 196, 24.07.08, p. 1.  

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s) concerned in the ABM/ABB structure 

1.3.  Nature of the proposal/initiative  

1.4.  Objective(s)  

1.5.  Grounds for the proposal/initiative  

1.6.  Duration and financial impact  

1.7.  Management mode(s) envisaged  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected  

3.2.  Estimated impact on expenditure  

3.2.1. Summary of estimated impact on expenditure  

3.2.2. Estimated impact on operational appropriations  

3.2.3. Estimated impact on appropriations of an administrative nature 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party contributions  

3.3.  Estimated impact on revenue 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

European  satellite  radio  navigation  programmes  -  GALILEO  and  EGNOS  (European 
Geostationary Navigation Overlay Service) 

1.2. 

Policy area(s) concerned in the ABM/ABB structure29  

Title 02: Company 

Chapter 02 05: European satellite navigation programmes (EGNOS and Galileo) 

1.3. 

Nature of the proposal/initiative  

The proposal/initiative relates to a new action  

(cid:133) The proposal/initiative relates to a new action following a pilot project/preparatory action30  

(cid:59) The proposal/initiative relates to the extension of an existing action  

(cid:133) The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objective(s) 

1.4.1.  The Commission's multiannual strategic objective(s) targeted by the proposal/initiative  

It should be noted that the satellite navigation programmes (hereinafter 'the programmes') are 
flagship  projects  of  the  Union.  They  form  part  of  the  Europe  2020  strategy  and  policies  for 
sustainable  development.  This  consists  of  providing  navigation  services,  generating 
considerable  developments  in  numerous  sectors  of  activity,  driving  technological  innovation 
and  growth  of  competitiveness  in  the  European  economy  and  providing  a  source  of  job 
creation, commercial revenue and socio-economic benefits.  

The  objective  of  the  proposal  consists  of  supporting  European  presence  in  space  and  the 
development  of  satellite  services  and,  more  specifically,  providing  two  satellite  navigation 
systems. 

More specifically, the Galileo programme aims to establish Europe's global navigation satellite 
system  (hereafter  GNSS).  It  will  lead  to  the  provision  of  positioning,  timing  and  navigation 
services  to  users  worldwide  for  a  wide  range  of  applications,  from  transport,  financial 
securities clearance, electricity provision, weather forecasting, to road tolling.  

29 
30 

ABM: Activity-Based Management – ABB: Activity-Based Budgeting. 
As referred to in Article 49(6)(a) or (b) of the Financial Regulation. 

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EGNOS  is  a  European  system  developed  to  improve  the  performance  of  the  American  GPS 
over  the  European  area.  It  makes  existing  satellite  navigation  services  suitable  for  safety-
critical  applications  such  as  flying  and  landing  aircraft  or  navigating  ships  through  narrow 
channels in air or maritime transport.  

1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned  

Specific objective No 1 

To  develop  and  provide  global  satellite-based  radio  navigation  infrastructures  and 
services (Galileo) by 2019 

The  specific  objectives  of  the  Galileo  programme,  as  defined  in  the  proposal  for  the 
Regulation, are to ensure that the signals emitted by the system under this programme 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 function alerting the user to any failure in the system; research will 
continue in order to redefine the SoL service in order better to meet user requirements, reduce 
the impact of this service on costs and to take into account complementarity with the EGNOS 
SoL service; 

-  to  offer  a  commercial  service  (CS)  for  the  development  of  applications  for  professional  or 
commercial  use  by  means  of  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 emitted by beacons and relaying messages to them. 

Sub-objective N°1 

To  develop  global  satellite-based  radio  navigation  infrastructures  and  provide  early 
Galileo services by 2014-2015 

The objective of the Galileo programme is to offer the first three initial services by 2014-2015 
(OS, PRS and SAR) 

Specific objective No 2 

To provide satellite-based services improving the performance of GPS to gradually cover 
the whole ECAC (European Civil Aviation Conference) region by 2020 (EGNOS) 

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The EGNOS programme, which complements the signals of the US GPS to provide users with 
a more precise positioning over the European area 31, aims to provide three services:  

— 
the  Open  Service  (OS):  for  mass-market  receivers  and  common  user  applications.  It 
provides  freely  accessible  signals  for  positioning.  It  was  declared  operational32  in  October 
2009 and is already used in several sectors such as agriculture; 

— 
the  Safety-of-Life  service  (SoL):  for  safety-critical  transport  applications,  in  particular 
in  civil  aviation.  It  provides  enhanced  and  guaranteed  performance  and  features  an  integrity 
warning system. It was declared operational in March 2011 and is used by aviation transport 
sectors in Europe; 

— 
the  EGNOS  Data  Access  Service  (EDAS),  for  enhanced  applications,  it  provides 
terrestrial  commercial  data  service  and  is  offered  on  a  controlled  access  basis  (e.g.  through 
Internet or mobile phones). 

Sub-objective N°2 

Taking  the  measures  necessary  to  ensure  continuity  of  the  operations  after  2014  and 
gradually to improve the quality of services by 2020. 

ABM/ABB activity(ies) concerned 

Chapter 02 05: European satellite navigation programmes (EGNOS and Galileo) 

31 

32 

The  European  area  for  the  EGNOS  system  is  the  area  of  44  member  states  of  the  European  Civil  Aviation 
Conference. 
EGNOS Service Definition Document - Open Service: 
http://ec.europa.eu/enterprise/policies/satnav/egnos/files/brochures-leaflets/egnos-os-sdd_en.pdf 

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38 

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1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

The European satellite radio navigation programmes commenced more than 10 years ago on 
the  basis  of  a  political  vision  to  develop  and  operate  a  global  system  that  would  allow  the 
European  Union  to  pursue  the  economic  and  strategic  benefits  thereof  and  provide  satellite 
navigation services optimised for civil use.  

Galileo and EGNOS will bring significant socio-economic benefits to the European Union due 
to: 

i) direct benefits resulting from the growth of the downstream GNSS-based market (receivers 
and applications). For example, if more planes are equipped with GNSS receivers, additional 
revenues will be generated by the manufacturers of these receivers; 

ii)  indirect  benefits,  outcome  of  the  emergence  of  new  applications.  If  flight  duration  is 
reduced thanks to better navigation, planes will pollute less and passengers will save precious 
time. Moreover, safer transport modes and more efficient emergency services will allow more 
lives to be saved; 

iii) direct benefits resulting from the growth of the upstream market and technological spill-
over to other sectors. Investment directly made into the GNSS upstream segment will benefit 
the  industry.  However,  other  sectors  will  also  take  advantage  of  new  developments  in  the 
space sector. For example, instruments developed to evaluate and monitor the structural health 
of  launchers  or  fuel  tanks  can  be  used  in  automotive,  construction,  energy  and  utility 
companies.  

Although  the  system  resulting  from  the  Galileo  programme  will  be  self-contained,  the 
performance of its services will be enhanced thanks to its interoperability with other systems 
such as the US GPS or Russia's GLONASS. Hence cooperation with other countries providing 
satellite navigation services will help maximise benefits for users, the public or the economy 
as a whole. 

1.4.4. 

Indicators of results and impact  

Specify the indicators for monitoring implementation of the proposal/initiative. 

Specific objective No 1 

The  Galileo  programme  aims  to  develop  and  provide  global  satellite-based  navigation 
infrastructures  and  services.  In  order  to  achieve  this  objective,  the  infrastructure  developed 
needs to be constantly maintained and its component renewed if necessary. 

Indicator related to Galileo infrastructure:  

– 

– 

Cumulative number of operational satellites : 18 satellites by 2015, 30 by 2019 

Terrestrial infrastructure deployed version: v2 by 2015  

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Indicator related to Galileo services provision:  

– 

Number of services implemented : 3 initial services by 2015, 5 services by 2020 

Specific objective No 2 

The  EGNOS  programme  aims  to  provide  improved  satellite-based  navigation  services  over 
Europe. Its infrastructure needs to be maintained to its operational level and current coverage 
should  be  increased  in  order  to  cover  the  whole  of  the  European  Union  so  that  users  can 
benefit from its services without discrimination all over the Union. 

Indicators  associated  with  the  quality  of  service  provided  and  the  geographical  extension  of 
EGNOS.  

– 

Number of changes in services presented to the certification authorities: 3 in 2014-2020.  

These changes will be included in the documents setting out services which are available to 
the public.  

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term  

GNSS technologies, with their ability to provide highly reliable accurate position, velocity and 
time data, are fundamental to improving efficiency in many areas. The experience of the US 
GPS  (Global  Positioning  System)  has  demonstrated  the  advantages  of  satellite  navigation  to 
the extent that it is regarded in the USA as the fifth utility, alongside water, electricity, gas and 
telephone. The US military and civil users have developed a considerable dependence on the 
GPS. Several other countries have also been aware of their dependence and are now building 
their own Global Navigation Satellite System (GNSS).  

Nowadays  satellite  navigation  users  in  Europe  have  no  alternative  other  than  to  use  the 
satellite signals from the US GPS or GLONASS for positioning and navigation. Consequently, 
the  European  economy  is  increasingly  relying  on  a  military  infrastructure  not  controlled  by 
Europe  and  not  primarily  designed  to  serve  European  economic  purposes.  Furthermore,  the 
availability of these systems is poor particularly in densely populated urban areas33. Also, they 
do not provide sufficient guarantee for quality and continuity of service to European civilian 
users.  

From  a  political  perspective,  with  GPS  being  fully  operational  in  the  early  1990s,  the 
European Union saw the need for Europe to have its own global satellite navigation system34. 
Long before the wide dissemination of GNSS-based applications like Location Based Services 
or  in-car  navigation,  the  Council  and  Parliament  foresaw  an  increased  need  for  navigation 

33 

34 

Study into the impact on capability of UK commercial and domestic services resulting from the loss of GPS signals 
(2001): http://www.ofcom.org.uk/static/archive/ra/topics/research/topics/other/gpsreport/gps-report.pdf  
Council  Resolution  on  the  European  contribution  to  the  development  of  a  Global  Navigation  Satellite  System 
(GNSS) of 19 December 1994. 

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40 

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aids.  European  independence  in  satellite  navigation  was  the  primary  driver  behind  this 
endeavour. This political vision had the following goals: 

• 
To set up a first self-contained global satellite navigation and positioning infrastructure 
under  civilian  control,  which  would  guarantee  uninterrupted  GNSS  services  and  a  strategic 
advantage for Europe. However, as became clear later, interoperability with other systems, in 
particular with the US GPS, would need to be pursued35 to optimise the quality of the services 
to be provided to users and maximise socio-economic benefits;  

To  reinforce  the  resilience  of  the  European  economic  infrastructure  by  providing  a 

• 
backup system in case of signal failure from other systems; 

• 
To  maximise  indirect  economic  benefits  for  European  civil  society  relying  on  more 
accurate, available and robust signals by exploiting the new opportunities generated by high-
precision satellite navigation to a much fuller extent than currently possible;  

To  demonstrate  Europe's  ability  to  develop,  deploy  and  operate  complex  large-scale 

• 
space infrastructures. 

1.5.2.  Added value of EU involvement 

The EU right to act is based on article 172 of the Treaty on the functioning of the European 
Union  and  the  GNSS  Regulation  on  the  further  implementation  of  the  European  satellite 
navigation programmes (EGNOS and Galileo). 

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

Satellite  navigation  systems  cannot  be  set  up  by  any  single  Member  States  as  this  would 
exceed  its  financial  and  technical  capacities.  Therefore,  it  can  be  only  achieved  by  action  at 
EU level. 

Moreover, the GNSS Regulation provides that the European Union shall be the owner of all 
tangible  and  intangible  assets  created  or  developed  under  the  programmes.  As  owner  of  all 
related tangible and intangible assets, the European Union has to ensure that all the conditions 
for operating and exploiting the systems are in place as of the date of introduction of the first 
positioning services in 2014-2015. Therefore, the governance is de facto of European nature. 

1.5.3.  Lessons learned from similar experiences in the past 

Although it is the first time the Union is the sole owner of an infrastructure of this scale and 
that the Commission manages such a complex programme, the experience gained since 2007 
enables greater improvements to the further implementation of Galileo and EGNOS. 

35 

International  Agreement  of  June  2004  on  the  promotion,  provision  and  use  of  Galileo  and  GPS  satellite-based 
navigation systems and related applications 

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41 

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As  described  in  its  report  from  the  Commission  to  the  European  Parliament  and  Council  on 
the Mid-term review of the European satellite navigation programmes36 and in the proposal for 
a Regulation of the European Parliament and the Council on the further implementation and 
operation  of  the  European  satellite  navigation  programmes,  the  following  lessons  can  be 
learned: 

<Programme administration > 

Following  the  re-profiling  of  the  programmes  undertaken  in  2008,  the  Commission  has 
implemented  a  structure  internally  to  manage  the  programmes  in  their  current  phase.  It  has 
been possible to make considerable progress since then, however the programme management 
must  develop  to  enable  more  operational  functions  associated  with  the  operation  of  the 
systems to be incorporated.  

From  the  point  of  view  of  the  interaction  between  the  various  stakeholders,  principally  the 
European  Space  Agency  and  the  European  GNSS  Agency,  the  new  distribution  of 
competences, the European Space Agency having effectively become an implementing agency 
acting  on  behalf  of  the  EU,  is  delivering  good  results  but  it  must  adapt  to  the  changing 
programmes and the future challenges of the exploitation phase. 

<Cost control and financial instruments> 

Galileo  and  EGNOS  are  complex  projects.  Their  development  is  largely  based  on  new 
bespoke technologies to satisfy the needs of the programmes. As a result, it is difficult to have 
one  single  approach  for  cost  containment;  several  factors  influence  costs  and  a  very  large 
number of risks could imperil the smooth progress of the programmes.  

In  the  past,  the  programmes  suffered  from  delays  and  cost  overruns,  in  particular  due  to 
increased  security  requirements  from  Member  States.  As  indicated  in  the  Communication 
from the Commission "A budget for Europe 2020"37 and as requested by the Council and the 
European Parliament, continued and even increased efforts are necessary to keep costs under 
control. This need has been translated into the new governance framework and already today, the 
Commission acts to keep risks and cost under control.  

- All the risks relating to the programmes are recorded centrally in a register listing, in turn, 
those associated with the industrial supply chain, the European Space Agency, the European 
GNSS  Agency,  external  factors  such  as  the  influence  of  political  authorities  and  security 
requirements,  and  internal  factors  such  as  the  organisation  of  the  programmes.  Each  risk  is 
allocated a degree of probability and an impact rating. The risk register also includes a list of 
measures intended to reduce the probability of a risk materialising;  

- The Commission is studying a possible re-design of the SoL service to reduce its impact on 
overall cost;  

-  It  is  also  working  on  providing  efficient  management  of  the  programmes,  which  should 
prevent future drifts and developing solid governance scheme for the future;  

36 
37 

COM(2011) 5 final. 
COM(2011) 500 final. 

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The Commission, together with the European Space Agency, is putting pressure on industry to 
contain the prices of the various elements of the Galileo infrastructure;  

-  Additional  measures  are  also  taken  at  programme  level  to  control  costs  e.g.  optimised 
contract length, new procurement for the purchase of additional satellites, double sourcing for 
launchers; 

- Finally, the Commission is working on enhancing its cooperation with experts (independent 
and from Member States) to analyse the technical requirements of the systems, their associated 
costs and possible alternatives. 

<Security requirements> 

Finally, where security is concerned, it needs to be remembered that, while the Commission is 
responsible for the management and security of the systems under the Regulation, its freedom 
is constrained in this area in two ways: 

- First, in reality it is the Member States which define security needs. The threats which might 
affect  the  security  of  sensitive  infrastructure  such  as  that  supporting  satellite  navigation  are 
constantly  changing.  The  design  of  the  systems  must  constantly  adapt  to  those  changes. 
Covering part of such risks is a matter for the Member States. 

-  Secondly,  the  current  GNSS  Regulation  (EC)  No  683/2008  assigns  responsibility  for 
accrediting the security of systems to the EU Agency. Separating the functions of management 
and accreditation in this way reflects good governance, and is standard practice and essential 
for this type of project. 

In both cases the choices made or the decisions taken may have a considerable impact on the 
programmes' costs and schedules.  

Considering  the  impact  of  security  requirements  on  costs  and  delays,  the  Commission 
emphasises  the  importance  of  changing  the  governance  framework  of  the  programmes  and 
giving more responsibilities to the different stakeholders (in particular to their contractors and 
through the general terms of the delegation agreements). 

1.5.4.  Coherence and possible synergy with other relevant instruments 

Synergies are possible with other existing or future space programmes, e.g. for expansion of 
user  segments  (applications  for  the  downstream  market) or for  protection of elements of the 
system established under the Galileo programme in space or during launching. 

Synergies  shall  also  be  sought  within  the  other  directorates  of  the  European  Commission 
regarding research and innovation. GNSS-based applications and technologies used in satellite 
navigation  systems  can  impact  various  sectors  of  the  economy  and  of  society  such  as 
information,  transport  and  energy.  It  is  important  to  ensure  that  research  and  innovation 
programmes are coordinated by the Commission to maximise the return on investment. 

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1.6. 

Duration and financial impact  

(cid:133) Proposal/initiative of limited duration  

(cid:133) 

(cid:133) 

Proposal/initiative in effect from [] to []  

Financial impact from 2014 to YYYY  

(cid:59) Proposal/initiative of unlimited duration38 

–  Implementation with a start-up period from 2008 to 2020, 

–  followed by full-scale operation 

1.7.  Management mode(s) envisaged39  

(cid:59) Centralised direct management by the Commission  

(cid:59) Centralised indirect management with the delegation of implementation tasks to: 

–  (cid:133)  executive agencies  

–  (cid:59)  bodies set up by the Communities40  

–  (cid:59)  national public-sector bodies/bodies with a public-service mission41  

–  (cid:59)  international organisations42  

–  (cid:133)  persons entrusted with the implementation of specific actions pursuant to Title V of the 
Treaty  on  European  Union  and  identified  in  the  relevant  basic  act  within  the  meaning  of 
Article 49 of the Financial Regulation  

(cid:133) Shared management with the Member States  

(cid:133) Decentralised management with third countries  

(cid:133) Joint management with international organisations (to be specified) 

If more than one management mode is indicated, please provide details in the "Comments" section. 

38 

39 

40 

41 
42 

Galileo  programme  is  composed  by  4  phases:  definition,  development,  deployment  and  exploitation.  The 
deployment phase will be ended in 2019. The full exploitation phase will be on-going and therefore beyond 2020, 
the  exploitation  of  the  system  and  the  replenishment  of  the  constellation  will  continue  for  years  to  avoid  any 
disruption of the services.  
Details  of  management  modes  and  references  to  the  Financial  Regulation  may  be  found  on  the  BudgWeb  site: 
http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 
As  referred  to  in  Article  185  of  the  Financial  Regulation.  GSA  will  be  involved  in  the  GNSS  programmes 
governance.  
European National Space Agencies. 
ESA (European space Agency)  

EN 

44 

   EN 

 
                                                 
Comments  

The current governance framework was established for Galileo's development and deployment phase as 
well as EGNOS initial exploitation i.e. for the period 2008-2013. This framework needs to be revised 
taking into consideration the fact that the Galileo deployment phase will extend beyond 2013 and that a 
new  phase  of  the  programme  will  start  in  2014  with  the  provision  of  initial  services.  EGNOS 
governance should also be defined as the system has entered its operational phase. 

For the exploitation phase of Galileo a stable, long-term and sustainable governance framework needs 
to  be  defined.  It  shall  optimise  and  rationalise  the  use  of  existing  structures  and  ensure  a  gradual 
transition  between  the  deployment  and  exploitation  phase  safeguarding  continuity  of  service.  The 
governance shall also be tailored to the different services offered, as their requirements and users are 
different.  

The  European  Commission  will  be  responsible  mainly  for  the  overall  political  supervision  of  the 
programmes. It will be able to delegate the management of operational activities to the European GNSS 
Agency and to the European Space Agency, according to their area of competence. 

It will also be able to consult with experts and National Space Agencies on specific technical questions. 

EN 

45 

   EN 

 
2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

The Commission will ensure that all contracts and agreements concluded in the framework of 
the GNSS programmes will provide for supervision and financial control. Particular focus in 
all  monitoring  and  evaluation  mechanisms  will  be  on  containing  programmes'  cost  while 
delivering the services on schedule.  
If  need  be,  assistance  of  external  technical  experts  will  be  requested  when  monitoring  the 
implementation  of  the  programmes.  On  the  basis  of  the  results  of  on-the-spot  checks,  the 
Commission  will  ensure  that,  if  necessary,  the  scale  or  the  conditions  of  allocation  of  the 
financial contribution originally approved and also the timetable for payments are adjusted. 
The Commission will propose:  
- a strategic framework including main actions, estimated budget and time-table necessary to 
meet the objectives of Galileo and EGNOS programmes at latest by 30 June 2014; 
-  an  annual  work  programme  translating  the  strategic  framework  into  detailed  measures  and 
indicators to be proposed at latest by 15 December of the preceding year; 
- an annual implementation report evaluating the fulfilment of the annual work programme to 
be proposed at latest by 15 March of the following year example; 
- an interim evaluation of the Galileo and EGNOS programmes focusing on quantitative and 
qualitative results so far achieved by 30 June 18 in due time for preparation of the next multi-
annual financial framework.  
Beyond  these  standard  measures,  the  Commission  in  exercising  its  powers  of  political 
supervision  over  the  Galileo  and  EGNOS  programmes  will  strengthen  the  monitoring  and 
evaluation mechanisms over the programme management entity by requesting detailed annual 
management  plans  and  implementation  reports  as  well  as  organising  regular  programme 
progress meetings and carrying out financial and technological audits.  
In addition, the monitoring of the programmes should associate Member States for example by 
relying  on  their  technical  capabilities  to  provide  input  on  technical  monitoring  of  the 
programmes and on proposing key performance indicators against which the programmes will 
be evaluated.  
Finally,  in  the  day-to-day  management,  the  Commission  will  implement  a  risk  management 
mechanism  and  appropriate  management  tools  to  contain  programmes'  cost  based  on  better 
cost estimation, taking stock of previous experience and actual system implementation.  

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

The  Commission  has  placed  the  issue  of  risk  management,  the  importance  of  which  was 
highlighted when the governance reform took place in 2007, at the heart of its work. All the 
risks  relating  to  the  programmes  are  recorded  centrally  in  a  register  listing,  in  turn,  those 
associated with the industrial supply chain, ESA, the EU Agency, external factors such as the 
influence  of  political  authorities  and  security  requirements,  and  internal  factors  such  as  the 
organisation of the programmes. Each risk is allocated a degree of probability and an impact 

EN 

46 

   EN 

 
rating. The risk register also includes a list of measures intended to reduce the probability of a 
risk materialising. The risks are classified as follows: 

•  Technological  risks:  satellite  navigation  uses  leading-edge  technology  which  has  yet  to  be 
validated and the specifications of which are constantly evolving. 

• Industrial risks: establishing the infrastructure involves many industrial players, in a number 
of countries, whose work has to be coordinated effectively in order to arrive at systems which 
are reliable and fully integrated, particularly with regard to security. 

•  Market  risk:  what  has  to  be  avoided  is  a  technical  performance  that  is  inferior  to  that 
promised  having  a  negative  effect  among  users  worldwide,  and  the  infrastructure  not  being 
used as a result. In addition, the availability of reliable receivers as from 2014-2015 must be 
ensured for the various initial services to be offered by Galileo, especially the PRS. 

•  Timetable  risk:  any  delay  in  implementation  would  jeopardise  the  window  of  opportunity 
and would be likely to generate cost over-runs. 

•  Governance  risk:  governance  of  the  programmes  requires  various  bodies  to  work  together, 
and  an  appropriate  degree  of  stability  and  organisation  has  to  be  guaranteed.  Moreover, 
differences  of  opinion  between  the  various  parties  involved,  and  in  particular  between  the 
Member  States,  have  to  be  taken  into  account  on  several  major  issues.  In  this  context  the 
sharing of some risks, including financial and security-related risks, among those players who 
are best placed to cope with them, should be considered. 

• Liability-related risk: as with any infrastructure the two European systems may cause direct 
or indirect losses to their users or to third parties. The analysis carried out by the Commission 
reveals  that  the  current  state  of  law  applicable  does  not  provide  an  appropriate  legal 
framework ensuring a fair balance between the interests of the victims and those of the owners 
and operators of the European satellite radio navigation systems. Appropriate initiatives must 
therefore  be  taken,  both  in  Europe  and  worldwide,  to  remedy  this  situation  by  2014.  The 
Commission is carrying out studies in this connection, in collaboration with other international 
bodies. 

2.2.2.  Control method(s) envisaged  

The majority of funds are managed indirectly via delegation agreements. It is very important 
to  know  that  the  GNSS  budget  is  implemented  through  tenders.  The  internal  control 
methodology relies on the ex ante control of contract procedures (evaluation and selection of 
the  contractor)  as  well  as  monitoring  of  transactions  performed  under  the  delegation 
agreements  and  the  management  plans  for  projects  which  have  defined  the  roles  of  all 
stakeholders  and  implemented  specific  procedures  for  workflows  and  control  activities.  In 
particular, this concerns:  

- Participation in regular meetings (management & technical)  

-  Compulsory  quarterly  reporting  with  the  state  of  play  of  the  programme  has  been  put  in 
place. 

EN 

47 

   EN 

 
-  The  obligation  to  draw  up  quarterly  reports  on  the  use  of  community  funds  with  clear 
indications  of  use  by  means  of  contracts  signed  with  industrial  parties  and  updating  of  the 
valued assets. 

Moreover,  concerning  contracts,  the  contract  methodology  is  not  going  to  be  changed:  It  is 
principally  based  on  the  performance  of  technical  stages  legally  associated  with  contract 
payments.  

The  administrative  tasks  of  the  Commission  are  to  follow-up  the  payments  made  by  the 
delegated agent to industry through the above mentioned reporting. A minimal team of around 
5-10  FTEs  is  needed  to  control  the  administrative  and  technical  implementation  of  the 
delegated  agreements.  The  Commission  will  ensure  that  there  will  be  no  dual  financing  of 
certain elements under the framework programme for research and innovation, Horizon 2020. 

Moreover,  as  described  in  paragraph  1.5.3,  the  Commission  has  developed  a  risk  register  to 
monitor potential elements which could influence the programmes. 

Finally, as stated in [Article 29 of the Regulation], the entities in charge of the programmes' 
management will have access to the necessary technical assistance.  

Due to the very technical and specialised nature of the GNSS programmes, major changes are 
not expected in the checks carried out.  

We expect the non-compliance rate to be equivalent to the current rate. In fact, each year ex 
post  audits  are  initiated  to  check  transactions  from  the  preceding  year.  The  error  rate  is  less 
than  1%  for  2009  (financial  adjustment  recommended  as  a  percentage  of  the  total  amount 
paid). This rate will be called upon to be lowered in view of the recommendations made to the 
European Space Agency by the auditors. In view of the nature of the contracts, this rate could 
be extrapolated to the whole of the GNSS budgets.  

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

Agreements resulting from this Regulation, 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 or OLAF, if necessary on-the-spot.  

EN 

48 

   EN 

 
3. 

3.1. 

Heading of 
multiannual 
financial 
framework 

[1] 

[1] 

Headin
g of 
multian
nual 
financia
l 
framew
ork 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected  

•  Existing expenditure budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of  
expenditure

Diff./non-
diff. 
(43) 

Contribution  

from 
EFTA 
countries
44 

from 
candidate 
countries45 

from third 
countries
46 

within the meaning 
of Article 18(1)(aa) 
of the Financial 
Regulation  

02010405  European 
programmes 
Expenditure on administrative management 

satellite  navigation 
(EGNOS  and  Galileo)  — 

Non-
diff. 

YES 

NO 

YES 

NO 

020501 
programmes (EGNOS and Galileo) 

European 

satellite 

navigation 

Diff 

YES 

NO 

YES 

NO 

•  New budget lines requested  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditur
e 

Contribution  

Number  
[Heading………………………………..] 

Diff./non-
diff. 

from 
EFTA 
countries

from 
candidate 
countries 

from third 
countries 

within the meaning 
of Article 18(1)(aa) 
of the Financial 
Regulation  

[1] 

020503  Completion  of 
the  European 
satellite  navigation  programmes  (EGNOS 
and Galileo) 

Diff 

YES 

NO 

YES 

NO 

43 
44 

45 
46 

Diff. = Differentiated appropriations / Non-diff. = Non-Differentiated Appropriations 
EFTA: European Free Trade Association. Negotiations will be carried out with Norway to participate to the budget 
2014-2020 
Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 
Negotiations are on-going with Switzerland to participate to the budget 2014-2020.  

EN 

49 

   EN 

 
 
 
 
 
 
 
                                                 
3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial 
framework:  

1 

Smart and Inclusive Growth 

EUR million (to 3rd decimal place) 

DG: Company 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

Year 
2021 

Year 
2022 

Year 
2023 - 
2030 

TOTAL 

(cid:121) Operational appropriations  

020501 

Commitments 

Payments 

(1) 

(2) 

Appropriations 
administrative 
 from the envelope of specific programmes47  

an 

of 

1 163.5 

1 187.5 

990.25 

1 010 

799.75 

1 049.5 

1 668 

 0 

 0 

 0 

7 868.5 

1 011.5 

1 181.5 

955.25 

1 011 

672.75 

1 010.5 

898 

500 

480 

148 

7 868.5 

nature 

financed 

02010405 

TOTAL 
appropriations 
for DG Enterprise 

Commitments 

Payments 

(3) 

=1+1
a +3 

=2+2
a 

3.5 

3.5 

3.75 

4 

4.25 

4.5 

5 

1 167 

1 191 

994 

1 014 

804 

1 054 

1 673 

0 

 0

0 

0 

0 

0 

28.5 

7 897 

+3 

1 015 

1 185 

959 

1 015 

677 

1 015 

903 

500 

480 

148 

7 897 

47 

EN 

Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former "BA" lines). 

50 

E

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
(cid:121) TOTAL operational appropriations  

Commitments 
Payments 

(cid:121)  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programs  

TOTAL appropriations  
under HEADING <….> 
of the multiannual financial framework 

Commitments 

Payments 

(4) 

(5) 

(6) 

=4+ 6 

=5+ 6 

x

x

x

x

x

If more than one heading is affected by the proposal / initiative: 

(cid:121) TOTAL operational appropriations  

Commitments 
Payments 

(cid:121)  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programs  

(4) 

(5) 

(6) 

TOTAL appropriations  
under HEADINGS 1 to 4 
of the multiannual financial framework 
(Reference amount) 

Commitments 

=4+ 6 

Payments 

=5+ 6 

EN 

51 

E

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Heading of multiannual financial 
framework:  

5 

" Administrative expenditure " 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

TOTAL 

EUR million (to 3rd decimal place) 

DG: ENTR 

(cid:121) Human resources  

(cid:121) Other administrative expenditure  

9.773 

9.773 

9.773 

9.773 

9.392 

8.884 

8.884 

0.850 

0.850 

0.850 

0.850 

0.850 

0.850 

0.850 

TOTAL DG ENTR 

Appropriations  

10.623 

10.623 

10.623 

10.623 

10.242 

9.734 

9.734 

66.252 

5.950 

72.20248 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total 
= Total payments) 

commitments 

10.623 

10.623 

10.623 

10.623 

10.242 

9.734 

9.734 

72.202 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual 
financial framework  

Commitments 

Payments 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

2021 

2022 

2023-
2030 

TOTAL 

1 177,623 

1 201,623 

1 004,623 

1 024,623 

814,242 

1 063,734 

1 682,734 

0,000 

0,000 

0,000 

7 969,202 

EUR million (to 3 decimal places) 

1 025,623 

1 195,623 

969,623 

1 025,623 

687,242 

1 024,734 

912,734 

500,000 

480,000 

148,000 

7 969,202 

48 

EN 

The reduction in human resources directly linked to the new governance and to the allocation of tasks associated with the operation of systems to the European 
GNSS Agency will be presented in detail during the revision of Regulation 912 of the Agency. It is expected that the technical expertise currently provided by 
the Commission will be be transferred to the Agency insofar as required in order to enable performance of the tasks assigned to it. 

52 

E

 
  
 
 
 
 
 
 
 
 
                                                 
3.2.2.  Estimated impact on operational appropriations  

(cid:133) 

(cid:59) 

The proposal/initiative does not require the use of operational appropriations  

The proposal/initiative requires the use of operational appropriations, as explained below: 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

TOTAL 

Commitment appropriations in EUR million (to 3 decimal places) 

OUTPUTS 

r
“—”  
e
b
of the 
m
u
output  N

s
t
u
p
t
u
o

f
o

Costs 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Costs 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Costs 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Costs 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Costs 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Costs

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Costs 

Total 
no 

Total  
Costs 

Indicate 
objectives and 
outputs  

(cid:216) 

Type 
of 
output
49 

SPECIFIC OBJECTIVE No 150 To 
develop and provide global satellite-
based radio navigation 
infrastructures and services 
(Galileo) 

Galileo 

N/A 

3 

930.5 

3 

942.5 

3 

744.25 

3 

763 

3 

552.75 

3/5 

802.5 

5 

1 421 

5 

6 156,5 

5 
servic5 
i

Sub-total for specific objective N°1 

930,5 

942.5 

744.25 

763 

552.75 

802.5 

1 421 

6 156.5 

SPECIFIC OBJECTIVE No 251 To 
provide satellite-based services 
improving the performance of GPS 

49 
50 
51 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
As described in Section 1.4.2. "Specific objective(s)…" 
As described in Section 1.4.2. "Specific objective(s)…" 

EN 

53 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
over Europe (EGNOS) 

EGNOS 

3 
servic5 

N/A 

3 

Sub-total for specific objective N°2 

233 

3 

245 

3 

246 

3 

247 

3 

247 

3 

247 

3 

247 

3 

233 

245 

246 

247 

247 

247 

247 

1 712 

1 712 

TOTAL COST 

N/A  1 163,5  N/A

1 187.5 

N/A 

990.25 

N/A 

1 010  N/A 

799.75  N/A 1 049.5 N/A

1 668 

N/A 

7 868.5 

EN 

54 

EN 

 
  
 
 
 
 
 
 
 
 
 
3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary  

(cid:133) 

The proposal/initiative does not require the use of administrative appropriations  

The proposal/initiative requires the use of administrative appropriations, as explained 

(cid:59) 
below: 

EUR million (to 3 decimal places) 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

TOTAL 

HEADING 5 
of the multiannual 
financial framework 

Human resources  

Other  administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual 
financial framework  

Outside heading 552 of 
the multiannual 
financial framework  

Human resources  

Other 
expenditure  
of  an  administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

9.773 

9.773 

9.773 

9.773 

9.392 

8.884 

8.884 

66.252 

0.850 

0.850 

0.850 

0.850 

0.850 

0.850 

0.850 

5.950 

10.623 

10.623 

10.623 

10.623 

10.242 

9.734 

9.734 

72.202 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

TOTAL 

10.623 

10.623 

10.623 

10.623 

10.242 

9.734 

9.734 

72.202 

52 

Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of  EU 
programmes and/or actions (former "BA" lines), indirect research, direct research. 

EN 

55 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.2.   Estimated requirements of human resources  

(cid:133) 

(cid:59) 

The proposal/initiative does not require the use of human resources  

The proposal/initiative requires the use of human resources, as explained below: 

Estimate to be expressed in full amounts (or at most to one decimal place) 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

(cid:121) Establishment plan posts (officials and temporary agents) 

02 01 01 01 (Headquarters and Commission’s 
Representation Offices) 
02 01 01 02 (Delegations) 
02 01 05 01 (Indirect research) 
10 01 05 01 (Direct research) 

63 

0 

0 

0 

63 

0 

0 

0 

63 

0 

0 

0 

63 

60 

56 

56 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

(cid:121) External personnel (in Full Time Equivalent unit: FTEs53 

02 01 02 01 (CA, INT, SNE from the "global 
envelope") 

02 01 02 02 (CA, INT, JED, LA and SNE in the 
delegations) 

02 01 04 aa 54 

- at headquarters55 

- in delegations  

02 01 05 02 (CA, INT, SNE - Indirect research) 
10 01 05 02 (CA, INT, SNE - Direct research) 
Other budget lines (specify) 

26 

26 

26 

26 

26 

26 

26 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 
N/A 

0 
N/A 

0 
N/A 

0 
N/A 

0 
N/A 

0 
N/A 

0 
N/A 

TOTAL 

89 

89 

89 

89 

86 

82 

82 

XX is the policy area or budget title concerned. 

Description of tasks to be carried out: 

The human resources requirements will be met by staff from the DG who are already assigned 
to  management  of  the  activity  and/or  have  been  redeployed  within  the  DG,  together,  if 
necessary, with any additional allocation which may be granted to the managing DG under the 
annual allocation procedure and in the light of budgetary constraints. DG ENTR envisages a 
partial outsourcing process to an existing agency. Amounts and allocations will be adjusted if 
necessary according to the results of the outsourcing process. 

Officials and temporary agents 

- Supervise the implementation of the European GNSS programmes aiming at efficient 
and coherent deployment and exploitation of EGNOS and Galileo;  

53 

54 
55 

CA= Contract Agent; INT= agency staff ("Intérimaire"); JED= "Jeune Expert en Délégation" (Young 
Experts in Delegations); LA= Local Agent; SNE= Seconded National Expert;  
Under the ceiling for external personnel from operational appropriations (former "BA" lines). 
Essentially  for  Structural  Funds,  European  Agricultural  Fund  for  Rural  Development  (EAFRD)  and 
European Fisheries Fund (EFF). 

EN 

56 

   EN 

 
 
 
 
 
                                                 
- Provide legal and regulatory analysis to support the policy-making process;  

- Ensure the compliance of proposed solutions with the applicable rules; 

- Guarantee sound financial management; 

- Perform activities required to ensure efficient cost control; 

- Manage activities related to international cooperation 

External personnel 

Support the tasks described above 

EN 

57 

   EN 

 
3.2.4.  Compatibility with the current multiannual financial framework  

The proposal/initiative is compatible with the multiannual financial framework 2014-

(cid:59) 
2020, in accordance with Commission Communication COM(2011)500 of 29 June 2011. 

Proposal/initiative  will  entail  reprogramming  of  the  relevant  heading  in  the 

(cid:133) 
multiannual financial framework. 

Explain what reprogramming is required, specifying the budget lines concerned and the corresponding 
amounts. 

–  (cid:133)  Proposal/initiative requires application of the flexibility instrument or revision 

of the multiannual financial framework56. 

Explain what is required, specifying the headings and budget lines concerned and the corresponding 
amounts. 

3.2.5.  Third-party contributions  

–  (cid:133) The proposal/initiative does not provide for co-financing by third parties  

–  (cid:59) The proposal/initiative provides for the co-financing estimated below: 

Some  negotiations  are  currently  ongoing  with  Switzerland  and  Norway,  but  no  formal 
agreement has taken place yet and should not be taken in the short term. Therefore, no third 
party  contribution  can  be  taken  into  account  at  this  stage.  It  should  be  noted  that  these 
countries will not cofinance the GNSS programmes directly as such (and so there will be no 
additional  appropriation  via  revenues  assigned  from  the  Union  budget)  but  will  make  an 
external contribution.  

Appropriations in EUR million (to 3 decimal places) 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

Total 

Specify  the  co-financing 
body  

TOTAL 
cofinanced  

appropriations 

56 

See points 19 and 24 of the Interinstitutional Agreement. 

EN 

58 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.3. 

Estimated impact on revenue  

–  (cid:133)  Proposal/initiative has no financial impact on revenue. 

No revenue is expected before the completion of the constellation insofar as the performances 
of the initial services offered will not be in line with the expectations of potential users before 
full deployment of the infrastructures. 

By  that  time  the  way  to  manage  the  fees  should  have  been  analysed  in  order  to  define  the 
entity  that  will  collect  the  revenues  (private  /  public),  the  exact  types  of  revenues  and  the 
amount of these potential revenues. 

–  (cid:59)  Proposal/initiative has the following financial impact: 

– 

– 

(cid:133) 

(cid:59) 

on own resources  

on miscellaneous revenue  

Budget revenue line: 

Appropriation
s available for 
the ongoing 
budget year 

EUR million (to 3 decimal places) 

Impact of the proposal/initiative57 

2014 

2015 

2016 

2017 

p.m. 

p.m. 

p.m. 

p.m. 

2018 

p.m. 

2019 

p.m. 

2020 

p.m. 

For miscellaneous assigned revenue, specify the budget expenditure line(s) affected. 

Specify the method for calculating the impact on revenue. 

57 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e. gross amounts after deduction of 25% for collection costs. 

EN 

59 

   EN