COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT Establishing appropriate relations between the EU and the European Space Agency
Date: 2012-11-14
Institutions: European Commission
Subjects: EU financing, European Space Agency, common foreign and security policy, interinstitutional cooperation (EU), operation of the Institutions

EUROPEAN 
COMMISSION 

Brussels, 14.11.2012  
COM(2012) 671 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE 
EUROPEAN PARLIAMENT 

Establishing appropriate relations between the EU and the European Space Agency 

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COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE 
EUROPEAN PARLIAMENT 

Establishing appropriate relations between the EU and the European Space Agency 

The entry into force of the Lisbon Treaty established the European Union's competence over 
space matters, without prejudice to the Member States' own competences. Space has become 
an instrument for the achievement of the EU objectives and an EU policy in its own right. 

Article  189  of  the  Treaty  on  the  Functioning  of  the  European  Union  calls  for  the  EU  to 
establish any appropriate relations with ESA. 

The  present  Communication  builds  on  the  April  2011  Communication1  "Towards  a  space 
strategy for the EU that benefits its citizens" where the Commission put forward initial ideas 
regarding the evolution of relations between EU and ESA. 

1. 

BACKGROUND 

Over the last decade, the European Union has become a major player in space. EGNOS and 
Galileo, GMES and Space research under the 7th Framework Programme have become major 
landmarks in the European space landscape. 

The  Commission's  space-related  proposals  for  the  next  Multiannual  Financial  Framework 
imply a further increase in the European Union's involvement in space. 

The growing role of the EU in space goes hand in hand with an increasingly close relationship 
with the Member States and ESA, the other two main actors of the European Space Policy. In 
this context the Commission has entrusted ESA with certain responsibilities in implementing 
specific  EU  space  programmes.  In  the  case  of  the  European  Global  Navigation  Satellites 
Systems (GNSS), ESA is currently responsible for the design, development and procurement 
of  the  systems'  ground  and  space  segments  while  the  responsibility  for  operational 
management  related  to  the  exploitation  of  the  systems  is  intended  to  be  entrusted  to  the 
European GNSS Agency (GSA)2. A closer relationship with the ESA would enable a further 
development of divisions of tasks. 

ESA  is  a  world-class  organisation  which  deserves  credit  for  the  successes  that  Europe  has 
achieved over the last four decades. Thanks to the activities conducted by ESA and Member 
States through their national space programmes, Europe now has a strong technological and 
industrial base and is recognised as a reliable partner in international programmes. 

The EU relies heavily on ESA's technical excellence and a large part of the EU space budget 
is delegated to ESA, to the extent that the EU is today among the largest contributors to ESA. 

However,  the  emergence  of  space  as  an  EU  policy,  the  growing  importance  of  EU  space 
programmes  and  the  European  Union's  reliance  on  ESA's  technical  expertise  have  not  yet 

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COM(2011)152 
COM(2011)814 

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translated into an evolution of the governance of space matters at European level. In line with 
the provision of Article 189, the present communication outlines possible short and long term 
avenues for EU relations with ESA with a view to continuing an efficient cooperation. This 
communication  presents  initial  ideas.  Further  proposals  will  have  to  be  substantiated  by  a 
solid cost-benefit analysis and impact assessment. 

2. 

STRUCTURAL OBSTACLES IN THE CURRENT EU/ESA RELATIONS 

2.1.  Mismatch of financial rules 

The  management  of  EU  funding  by  ESA  is  too  complex  given  the  fact  that  the  European 
Union  and  ESA  have  different  rules  which  must  co-exist  within  ESA.  ESA's  largest 
programmes  are  funded  primarily  through  Member  States'  subscriptions.  The  industrial 
procurement  for  those  programmes  follows  the  objective  of  geographical  return  and  ESA 
financial  procedures  are  primarily  designed  to  fit  this  rule.  For  the  implementation  of  EU 
programmes ESA is obliged to follow EU rules and the strict principle of best value embodied 
in  the  EU  Financial  Regulation3.  This  has  given  rise  to  difficulties,  particularly  whenever 
programmes are funded through mixed ESA and EU appropriations. . 

2.2.  Membership asymmetry 

At present, 17 EU Member States are Members of ESA4. ESA's members include Norway and 
Switzerland, which are not EU members. Canada has a bilateral cooperation agreement with 
ESA. As the collaboration between the EU and ESA grows, this asymmetry combined with a 
voting  system  where  each  Member  State  has  one  vote  in  the  ESA  Council  and  the  key 
decisions  within  this  body  are  adopted  by  unanimity  gives  ESA  members,  which  are  not 
members  of  the  EU,  disproportionate  leverage  over  matters  that  may  affect  the  EU.  In 
addition the asymmetry complicates discussions particularly as regards security and defence 
matters as indicated below. 

2.3. 

Asymmetry in security and defence matters 

The EU's competence over security and defence matters has grown stronger with the adoption 
of  the  Lisbon  Treaty  and  the  setting  up  of  the  European  External  Action  Service.  Space 
capacities  have  often  the  potential  to  be  used  for  civil  and  defence  purposes.  In  order  to 
contribute  towards  objectives  of  the  Common  Security  and  Defence  Policy,  the  EU  has  to 
establish  ever  closer  and  stronger  links  and  synergies  between  the  civil  and  defence 
dimensions  of  space.  The  collaboration  of  the  Member  States  and  ESA  is  essential  in  this 
endeavour.  However,  the  relations  between  EU  and  ESA  are  constrained  by  the  fact  that 
ESA's membership includes States not members of the EU, which poses an obvious problem 
in general and an even more acute problem when it comes to security and defence matters. 

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Regulation (EC, Euratom) No 1605/2002, as amended by Regulation (EC, Euratom) No 1081/2010  
Austria,  Belgium,  the  Czech  Republic,  Denmark,  Finland,  France,  Germany,  Greece,  Ireland,  Italy, 
Luxembourg, the Netherlands, Portugal, Romania, Spain, Sweden and the United Kingdom. Poland is 
finalising the ratification process to become ESA's 20th Member State. 

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2.4. 

Absence of mechanisms for policy coordination 

ESA's  space  activities  lack  a  structural  connection  and  coordination  mechanism  within  the 
wider policy-making of the European Union. The 2004 EU/ESA Framework Agreement5, in 
spite of its wide scope, does not provide for them. Specific mechanisms for coordination and 
cooperation need to be agreed in time-consuming negotiations at programme level. There is 
no formal mechanism at policy level to ensure that initiatives taken within ESA are consistent 
with EU policies. This is of particular concern regarding international relations. 

2.5.  Missing political accountability for ESA 

Finally,  the  relations  between  the  EU  and  ESA  are  affected  by  the  asymmetry  regarding 
political accountability. The fact that ESA as a European agency has no formal link with the 
European Parliament deprives ESA of the direct link with citizens that any EU policy enjoys. 

3. 

THE WAY AHEAD 

The EU can provide political dimension (including at the international level) and legitimacy, 
as well as links with other policy areas. The need for greater operational efficiency, symmetry 
in  defence  and  security  matters,  political  coordination  and  accountability  can  only  be 
resolved, in the long term, through the rapprochement of ESA towards the European Union.  

The Commission considers that a clear target date should be set between 2020 and 2025 for 
this  long  term  objective.  The  Commission,  working  closely  with  ESA  could  present  to 
Member States several possible options for such rapprochement before the end of 2013. These 
options  would  include:  improved  cooperation  under  the  “status  quo”,  bringing  ESA  as  an 
intergovernmental  organisation  under  the  authority  of  the  European  Union  (following,  to  a 
certain extent, the model of the European Defence Agency), or transforming ESA into an EU 
agency  (following  the  model  of  existing  regulatory  agencies).  The  Commission,  working 
closely  with  ESA,  will  carry  out  a  detailed  cost  benefit  and  risk  analysis  of  the  different 
options, with a view to maximising synergies between the different actors including the GSA. 

These options would preserve the current essential features of ESA (i.e. optional programmes 
subscribed by Member States) while giving ESA key EU features – such as qualified majority 
decision-making or accountability vis-à-vis the European Parliament. 

In the meantime, it is possible to ensure a well-functioning cohabitation between EU and ESA 
that can help achieving the long-term objective of rapprochement. The delegation agreements 
concluded  between  the  EU  and  ESA  have  already  contributed  to  a  rapprochement  of  ESA 
towards the EU, the leading example being ESA's Navigation Directorate in the framework of 
Galileo.  

In  its  April  2011  Communication6  the  Commission  suggested  that  ESA  should  continue  to 
develop  into  an  organisation  with  an  intergovernmental  and  an  EU  dimension  in  which 
military  and  civil  programmes  can  coexist.  It  should  continue  to  develop  management 
structures  geared  solely  towards  EU  programmes.  A  flexible  membership  structure  should 

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OJ L no 261 of 6.08.2004, p. 64. 
COM(2011)152 

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also  be  established  in  order  to  enable  Switzerland  and  Norway  to  take  part  in  some 
programmes, subject to an agreement with the EU. 

Building on those initial ideas, the Commission suggests that the EU could: 

– 

– 

– 

Work  through  the  Council  of  the  EU,  using  as  appropriate  the  open  method  of 
coordination  to  ensure  coherence  within  the  EU  and  consistency  of  EU  Member 
States' positions in ESA with EU policies; 

Have  systematic  recourse  to  ESA  for  the  design  and  development  of  EU  space 
infrastructures,  whereas  exploitation  activities  will  be  carried  out  by  other  entities, 
such as the GSA.; 

Ensure  a  homogeneous  approach  in  line  with  the  EU  Financial  Regulation  for 
delegating  responsibilities  over  EU  space  programmes  to  ESA  as  a  way  to  prepare 
ESA to working within the EU environment, and for establishing partnerships with 
Member States when appropriate. 

ESA could: 

– 

– 

Make the necessary structural adaptations (financial and internal decision-making) to 
ensure  that  activities  delegated  to  ESA  by  the  Commission  are  managed  within  an 
EU-like environment (e.g. through a dedicated directorate managing EU programmes 
within ESA); 

Make  the  necessary  changes  allowing  unrestricted  access  to  the  European 
Commission to ESA's relevant statutory bodies (e.g. ESA Council and its subordinate 
bodies) in order to give the Commission the possibility to provide input and ensure 
coordination with EU policies using existing mechanisms within ESA. 

4. 

CONCLUSION 

The  Commission  invites  the  Council  and  the  European  Parliament  to  provide  feedback  on 
these suggestions concerning the relationship between the EU and ESA, the long term goal of 
rapprochement  of  ESA  towards  the  EU  framework.  On  this  basis  the  Commission  could 
provide a detailed cost benefits analysis of the possible options.  

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