Proposal for a COUNCIL DECISION on the signing on behalf of the European Union and the provisional application of the Cooperation Agreement between the European Union and its Member States, of the one part, and the Swiss Confederation, of the other, on the European Satellite Navigation Programmes
Date: 2012-09-04
Institutions: European Commission
Subjects: Switzerland, cooperation agreement (EU), export monitoring, satellite navigation

EUROPEAN COMMISSION 

Brussels, 4.9.2012  
COM(2012) 469 final 

2012/0230 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the signing on behalf of the European Union and the provisional application of the 
Cooperation Agreement between the European Union and its Member States, of the one 
part, and the Swiss Confederation, of the other, on the European Satellite Navigation 
Programmes 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

1.1. 

Grounds for and objectives of the proposal 

Technological, geographical and financial reasons have ensured Switzerland an important role 
in  the  European  GNSS  (Global  Navigation  Satellite  Systems)  programmes.  Switzerland 
provides  critical  technology  to  the  Galileo  programme.  This  Agreement  aims  to  settle  the 
principles of cooperation in general and the rights and obligations of Switzerland in areas such 
as security and export control. The Agreement has been negotiated on the basis of negotiation 
directives adopted by the Council on 29 June 2010. 

Articles 4(5) and 6(4) 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)  allow  for  the  possibility  for  third  countries  to  provide 
additional  funding  to  the  European  GNSS  programmes  in  accordance  with  conditions  to  be 
laid  down  in  Agreements  pursuant  to  Article  218  of  the  Treaty  on  the  Functioning  of  the 
European Union. 

The  Agreement  is  limited  to  topics  that  are  necessary  to  allow  close  cooperation  with 
Switzerland.  The  construction  and  management  of  Galileo  and  EGNOS  as  EU-wide 
programmes  highlight  the  need  for  common  approaches  and  working  methods  between  all 
Member States and some third countries such as Norway and Switzerland. The rules for these 
topics  need  to  be  set  by  the  governments  and  coherently  enforced  Europe-wide.  The 
Commission as programme manager acting on behalf of the Union, the owner of the system, 
needs  to  take  all  reasonable  measures  to  induce  this  coherence.  Failing  to  do  this  would 
increase security risks. 

1.2. 

General context 

Switzerland  is  one  of  the  Union’s  closest  third  country  cooperation  partners  in  the  Galileo 
programme  since  the  early  days  of  the  programme.  Switzerland  has  contributed  politically, 
technically and financially to all phases of the Galileo programme through its membership in 
the  European  Space  Agency  (ESA)  and  its  informal  participation  in  the  Galileo-specific  EU 
governance  structures  over  the  years.  This  Agreement  will  formalise  and  deepen  this  close 
integration of Switzerland in the European GNSS programmes. Without this agreement, there 
would  be  uncertainty  about  the  nature  of  the  collaboration  in  areas  such  as  security,  export 
control, standardisation, certification and radio spectrum. Moreover, the Agreement allows the 
EU to set overall principles including safeguard measures in the areas of security and export 
control.  

1.3. 

Existing provisions in the area of the proposal 

Cooperation of Switzerland in Galileo will be organised in the enclosed Agreement to provide 
an umbrella for the cooperation including principles of future cooperation and complementary 
provisions concerning cooperation in security, standardisation and certification. 

1.4. 

Consistency with the other policies and objectives of the Union 

The  proposal  is  in  line  with  the  policy  of  integrating  into  the  European  GNSS  programmes 
certain third countries that are Member of ESA and therefore participated in the Galileo and 
EGNOS  programmes  from  the  beginning.  Moreover,  it  supports  the  objectives  of  the 
Commission  in  reinforcing  the  Union  aspect  of  cooperation  in  policies  relevant  to  non-

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proliferation. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

2.1. 

Consultation of interested parties 

Consultation methods, main sectors targeted and general profile of respondents 

The Special Committee of the Council, authorities of the Member States and Switzerland have 
been consulted through bilateral meetings both at the stage of negotiation directives and during 
negotiations.  The  respondents  included  technical,  security  and  transport  experts  of  Member 
States  and  Swiss  authorities,  Ministries  of  Foreign  Affairs,  Defence  and  Interior,  ESA  and 
national space agencies. 

Summary of responses and how they have been taken into account 

These stakeholders have supported the close integration of Switzerland in cooperation in the 
European GNSS programmes matters and underlined the importance of including issues such 
as security and export control in the Agreement.  

2.2. 

Collection and use of expertise 

Scientific/expertise domains concerned 

technology/  ground  facilities,  Security/  Industrial  and  governmental  security, 

Space 
information security and international law/ privileges and immunities  

Methodology used 

Meetings and exchange of information 

Main organisations/experts consulted 

EU MS ministries and space agencies ESA, space industry 

Summary of advice received and used 

The  existence  of  potentially  serious  risks  with  irreversible  consequences  has  not  been 
mentioned. 

There was a broad consensus over the principles of cooperation foreseen in the Agreement and 
the  objective  of  closely  integrating  Switzerland  in  the  programme  including  rights  and 
corresponding obligations. 

Means used to make the expert advice publicly available 

The conclusions of the experts have not been made publicly available. 

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2.3. 

Impact assessment 

The  action  aims  at  ensuring  a  close  involvement  of  Switzerland  in  the  construction  and 
operations  phases  of  the  Galileo  and  EGNOS  programmes.  These  two  initiatives  contain 
significant  industrial,  economic  and  strategic  components.  The  governance  of  the  European 
GNSS programmes has been reformed in Regulation (EC) No 683/2008 whereby the focus has 
been shifted from a Public-Private-Partnership to programmes managed and systems owned by 
the Union. This evolution and the content of the cooperation with security implications require 
formal regulatory measures. Consequently, three options were considered to achieve this goal. 

The  first  one  was  an  association  of  Switzerland  to  the  programme  through  a  specific 
international  cooperation  body  (Galileo  International  Board)  grouping  all  third  countries 
interested in the Galileo programme. After long discussions over this body with Switzerland 
and other third countries such as Norway, the option was abandoned. Switzerland felt it was 
unjust to have the same treatment as considerably less integrated non-European third countries 
that do not contribute financially to the programme. 

The second option was the conclusion of the enclosed Agreement. This allowed practically to 
reinforce  provisions  on  security  and  export  control  and  to  provide  principles  and  messages 
paving  the  way  for  a  mutually  beneficial  long  term  cooperative  relationship,  and  to  obtain 
additional funding. 

The third option would have been no action at all. This would have led to uncertain relations in 
the area of GNSS with Switzerland. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

3.1. 

Summary of the proposed action 

The Commission proposes to the Council to authorise the signing and provisional application 
of a Cooperation agreement on European Satellite Navigation Programmes between the EU, its 
Member  States  and  Switzerland.  Provisional  application  for  the  elements  of  the  Agreement 
falling  within  the  EU  competence  is  a  necessary  measure  to  speed  up  the  application  of  the 
Agreement and to receive the Swiss financial contribution to the programmes. 

3.2. 

Legal basis 

Article 172 in conjunction with article 218(5) and the first subparagraph of Article 218(8) of 
the Treaty on the Functioning of the European Union. 

3.3. 

Subsidiarity principle 

The  subsidiarity  principle  applies  insofar  as  the  proposal  does  not  fall  under  the  exclusive 
competence of the Union. 

The  objectives of  the proposal cannot be sufficiently achieved by the Member States for the 
following reasons. 

The Galileo programme, whose costs are estimated at several billions of Euros, is a European 
initiative  that  no  single  state  alone  is  willing  to  finance.  The  content  of  the  proposed 
Agreement  cannot  be  limited  to  any  single  Member  State  or  a  group  of  Member  States  but 
affects the Union as a whole and in some aspects has even a worldwide impact. 

The  industrial  and  technical  knowledge  in  the  space  sector  is  spread  over  several  European 

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countries,  including  Switzerland,  with  no  one  state  capable  of  mastering  all  of  it.  Without  a 
coordinated effort and information sharing, the risks of agreeing on sub-optimal solutions with 
Switzerland  would  increase.  Errors  in  the  area  of  security  could  compromise  the  security  of 
supply of export controlled components to the European GNSS programmes. This would drive 
up the costs of the programmes. 

Also,  the  size  and  complexity  of  the  European  GNSS  programmes  require  centralised  and 
simple management structures and clear interfaces between the Union and third countries. A 
large network of bilateral relations with Switzerland would bear a high risk of inefficiencies, 
delays and contradictions which in an industrial project quickly translate into higher costs to 
be  borne  by  the  Union  budget.  Also,  Member  States  acting  individually  might  have  smaller 
chances  to  impose  principles  and  conditionality  towards  Switzerland  than  what  is  achieved 
through cooperation. 

The Agreement is limited to the common principles and commitments of cooperation and to 
the  specific  issues  forming  part  of  the  Union-owned  European  GNSS  programmes.  The 
Agreement  relies  on  existing  capabilities  of  the  Member  States  (e.g.  in  export  control, 
exchange  of  sensitive  information)  in  the  implementation  of  most  provisions  of  the 
Agreement. 

The proposal therefore complies with the subsidiarity principle. 

3.4. 

Proportionality principle 

The proposal complies with the proportionality principle for the following reasons. 

The  Agreement  is  a  traditional  well-known  instrument  in  international  relations,  defined  in 
collaboration with existing expert working groups and to be approved by the existing decision-
making structures. It does not establish new administrative structures.  

3.5. 

Choice of instruments 

An  international  agreement  is  the  sole  instrument  which  ensures  Union-wide  coherency  in 
relations  with  Switzerland  in  satellite  navigation.  Uniformity  in  application  is  particularly 
important  in  security  which  forms  a  major  part  of  the  Agreement.  At  the  same  time  the 
Agreement  allows  flexibility  as  to  the  implementing  measures  in  particular  in  the  area  of 
standardisation  and certification where the Member States are key actors in the international 
organisations. The Treaties do not provide other viable options for regulating the relationships 
with a third country. 

4. 

BUDGETARY IMPLICATION  

The  proposal  has  only  a  positive  implication  for  the  Union  budget.  Switzerland  will 
financially participate in the European GNSS programmes following the same formula as for 
the  Swiss  participation  in  the  7th  EU  RTD  Framework  Programmes  (FP7).  The  Swiss 
contribution shall be calculated on the basis of the proportionality factor which is obtained by 
establishing the ratio between Switzerland's gross domestic product, at market prices, and the 
sum of the gross domestic products, at market prices of the Member States of the European 
Union. 

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5. 

OPTIONAL ELEMENTS  

The proposal includes a review clause. 

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2012/0230 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the signing on behalf of the European Union and the provisional application of the 
Cooperation Agreement between the European Union and its Member States, of the one 
part, and the Swiss Confederation, of the other, on the European Satellite Navigation 
Programmes 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 172 in conjunction with Article 218(5) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

By  its  Decision  of  29  June  2010,  the  Council  authorised  the  Commission  to  open 
negotiations  with  Switzerland  for  establishing  a  cooperation  agreement  on  satellite 
navigation. 

This  cooperation  agreement  allows  for  Swiss  participation  in  the  European  satellite 
navigation  programmes.  In  return  Switzerland  will  financially  contribute  to  the 
programmes. 

The negotiations were successfully concluded by the initialling of the Agreement on 
[xx 2012]. 

Therefore, the Agreement should be signed on behalf of the European Union, subject 
to its conclusion at a later date. 

In  view  of  ensuring  the  immediate  implementation  and  the  appropriate  Swiss 
participation  in  the  programmes  elements  falling  within  the  European  Union’s 
competence  should  be  provisionally  applied  in  accordance  with  Article  27(2)  of  the 
Agreement, 

HAS ADOPTED THIS DECISION:  

Article 1 

The  signing  of  the  Cooperation  Agreement  on  Satellite  Navigation  between  the  European 
Union  and  its  Member  States  and  Switzerland  is  hereby  approved  on  behalf  of  the  Union, 
subject to the conclusion of the said Agreement.  

The text of the Agreement is attached to this Decision.  

The  Council  Secretariat  General  shall  establish  the  instrument  of  full  powers  to  sign  the 
Agreement,  subject  to  its  conclusion,  for  the  person(s)  indicated  by  the  negotiator  of  the 
Agreement.  

Article 2  

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Article 3  

The Agreement shall be applied on a provisional basis, in accordance with Article 27(2) of the 
Agreement,  pending  the  completion  of  the  procedures  for  its  conclusion.  The  Commission 
shall publish a notice in the Official Journal of the European Union providing information on 
the date of provisional application of the Agreement.  

This Decision shall enter into force on the date of its adoption. 

Done at Brussels,  

Article 4  

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS HAVING A 
BUDGETARY IMPACT EXCLUSIVELY LIMITED TO THE REVENUE SIDE 

1. 

NAME OF THE PROPOSAL:  

COOPERATION AGREEMENT BETWEEN THE EUROPEAN UNION AND ITS 
MEMBER STATES, OF THE ONE PART, AND THE SWISS CONFEDERATION, OF 
THE OTHER, ON THE EUROPEAN SATELLITE NAVIGATION PROGRAMMES. 

2. 

BUDGET LINES: 

Chapter: 66 

Article: 660 

Item: 6600 

Amount budgeted for the year concerned: p.m. 

3. 

FINANCIAL IMPACT  

The proposal has no financial impact on expenditure but has a financial impact 
on revenue – the effect is as follows: 

(in €)  

Budget line 

Revenue 

Article  660; 
Item 6600 

Other assigned contributions 
and 
refunds  – Assigned 
revenue 

12 month period, 
starting on 

2012 

01/01/2012 

20 000 000 

Situation following action 

2013 

2014 

2015 

2016 

… 

Article  660; 
Item 6600 

40 000 000 

20 050 870 

be 

To 
calculated 
later 

To 
calculated 
later 

be 

To 
calculated 
later 

be 

4. 

ANTI-FRAUD MEASURES 

5. 

(a) 

OTHER REMARKS  

This  EU-Switzerland  GNSS  Cooperation  Agreement  is  of  indefinite  duration.  The 
Swiss financial contribution to the European Satellite Navigation Programmes for the 
period 2008-2013 amounts to 60 000 000 € and for 2014 amounts to 20 050 870 €. 

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(b) 

The  Swiss  financial  contribution  will  be  calculated  on  the  proportionality  factor 
spelled  out  in  article  18  of  the  Agreement.  For  the  period  2008-2013  this 
proportionality  factor  is  applied  on  the  amount  of  EUR  3  005  Million.  From  2014 
onwards  the  same  proportionality  factor  will  be  applied  on  the  annual  budget 
appropriations of the European Satellite Navigation Programmes. 

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DECLARATION of the European Commission 

The Commission recalls its general policy objective of negotiating Union only agreements 
where appropriate. 

____________________ 

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