Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 912/2010 setting up the European GNSS Agency
Date: 2013-02-06
Institutions: European Commission
Subjects: European GNSS Agency, operation of the Institutions, satellite communications, satellite navigation

EUROPEAN 
COMMISSION 

Brussels, 6.2.2013  
COM(2013) 40 final 

2013/0022 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulation (EU) No 912/2010 setting up the European GNSS Agency 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Security  requirements  play  an  essential  role  in  the  design,  implementation  and  operation  of 
the  infrastructures  emerging  from  the  Galileo  and  EGNOS  programmes,  whose  use  could 
affect the security of the Union and its Member States. Due to their strategic aspect, satellite 
navigation  systems  are  sensitive  infrastructures  that  could  be  susceptible  to  malicious  use. 
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. 

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)1 provides that the Commission should manage all aspects relating to security of the 
two systems established under the Galileo and EGNOS programmes. However, the security of 
the systems is itself subject to accreditation which consists of verifying the compliance of the 
systems  with  the  specified  security  requirements  and  ensuring  compliance  with  the  relevant 
security  rules  applicable  to  the  Council  and  the  Commission.  As  is  the  case  for  all 
accreditation activities, security accreditation of the two European satellite navigation systems 
must  be  carried  out  independently,  particularly  with  regard  to  all  parties  involved  in  their 
design, construction and operation. 

The  European  GNSS  agency  is  responsible  for  this  accreditation  activity  pursuant  to  the 
combined provisions of Regulation (EC) No 683/2008 and Regulation (EU) No 912/2010 of 
the European Parliament and of the Council 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 Council2. The latter lays down the 
terms  for  implementing  the  accreditation  task  entrusted  to  the  Agency  and  specifies  that 
security accreditation decisions must be taken independently with regard to the Commission 
and the bodies responsible for implementing the programmes. The obligation of independence 
must also apply to the other tasks assigned to the Agency. 

In  order  to  ensure  that  the  security  accreditation  activities  are  performed  in  an  independent 
manner, including, to a large extent, with regard to the other activities of the European GNSS 
Agency, Regulation (EU) No 912/2010 provides the Agency with an independent body, the 
Security Accreditation Board, which constitutes one of the three separate roles of the Agency 
along with the Executive Director and the Administrative Board. The Security Accreditation 
Board  has  equivalent  status  to  the  Administrative  Board  and  is  solely  responsible  for 
accreditation decisions. These decisions are nevertheless made on behalf of the Agency, in the 

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OJ L 196, 24.07.2008, p. 1. 
OJ L 276, 20.10.2010, p. 11. 

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same  way  as  the  decisions  of  the  Administrative  Board,  since  the  Agency  alone  has  legal 
personality. 

The  European  GNSS  Agency's  internal  structural  organisation  is  unusual  in  as  much  as  it 
separates the activities associated with system security accreditation from the other activities, 
namely, security centre management, contribution to the preparation for commercialisation of 
the  systems  and  any  activities  that  the  Commission  might  entrust  to  the  Agency  via 
delegations. 

On 30 November 2011 the Commission adopted a proposal for a Regulation of the European 
Parliament  and  of  the  Council  on  the  implementation  and  exploitation  of  European  satellite 
navigation systems3. This future GNSS Regulation will replace Regulation (EC) No 683/2008 
as of 1 January 2012 and determine the governance framework during the 2014-2020 period. 
In  particular,  it  stipulates  that  most  of  the  tasks  associated  with  the  operation  of  both  the 
Galileo  and  EGNOS  systems  will  be  entrusted  to  the  European  GNSS  Agency.  The 
commitment  expressed  by  the  Commission  in  its  proposal  to  delegating  these  tasks  to  the 
Agency is shared by the European Parliament and the Council, following discussions of the 
draft since the start of 2012. On 7 June 2012, the Council adopted a partial general approach 
(document 11105/12 of 11 June 2012) confirming this. 

The  question  of  the  future  of  accreditation  activities  within  the  Agency  will  determine 
whether  the  European  GNSS  Agency  will  manage  the  exploitation  of  the  two  systems  after 
2013. In fact, for reasons associated with the potential for conflicts of interest and the fact that 
one  cannot  be  both  judge  and  interested  party,  the  need  for  independence  in  security 
accreditation  decisions,  does  not  appear  to  be  easily  reconciled  with  the  fact  that  such 
decisions are made within a body that is also responsible for exploitation, even though, as has 
been  explained  above,  Regulation  (EU)  No  912/2010  lays  down  terms  for  a  degree  of 
independence  for  the  Security  Accreditation  Board.  In  its  proposal  on  the  future  GNSS 
regulation,  the  Commission,  being  aware  of  this  difficulty,  also  stipulated  that  security 
accreditation  of  the  systems  would  be  one  of  the  Agency's  tasks  'until  30  June  2016  at  the 
latest',  at  which  time  the  exploitation  activities  would  be  in  full  flow.  The  question  of  the 
future of the accreditation activities following this date was therefore left open, which is to be 
the subject of a subsequent proposal. 

The Commission's approach regarding the date of 30 June 2016 was widely supported when 
the draft was discussed by the members of the various parliamentary committees. Within the 
Council,  the  Member  States  emphasised  the  need  to  carry  out  accreditation  activities 
independently  and  wanted  the  issue  of  the  future  of  system  security  accreditation  after 
1 January 2014 to be settled as quickly as possible. Furthermore, on 7 June 2012, the Council 
adopted  a  declaration  (document  11279/12  ADD  1)  in  which  it  deemed  that  accreditation 
activities should be performed in a strictly independent manner with regard to the other tasks 
entrusted  to  the  European  GNSS  Agency,  that  a  structural  and  effective  division  should  be 

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made within the Agency between its various activities by 1 January 2014 at the latest, and that 
the Chairperson of the Security Accreditation Board should be the only person in the Agency 
responsible  for  accreditation  activities.  Accordingly,  the  Council  asked  the  Commission  to 
submit such a proposal to amend Regulation (EU) No 912/2010 in good time. 

It is important to resolve the issue of the future of the security accreditation of the European 
satellite navigation systems during the future financial framework 2014-2020. This means that 
Regulation (EU) No 912/2010 must be amended. 

Amending Regulation (EU) No 912/2010 also presents an opportunity to incorporate changes 
in the text to bring it into line with the principles contained in the common approach of the 
European Parliament, Council and Commission on the decentralised agencies, as approved by 
the Commission on 12 June 2012. 

Finally,  the  proposal  on  the  abovementioned  future  GNSS  Regulation  adopted  by  the 
Commission on 30 November 2011, which provides for the possibility of extending the tasks 
of the European GNSS Agency and assignment of operational tasks, significantly affects its 
staff requirements and, hence, has consequences for its future budget. It is therefore important 
to amend the legislative financial statement associated with Regulation (EU) No 912/2010. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

The Commission's proposal was not subject to an impact assessment nor did it follow formal 
consultation of the parties concerned. 

With  regard  to  the  amendments  designed  to  align  Regulation  (EU)  No  912/2010  with  the 
principles  of  the  interinstitutional  approach  to  the  decentralised  agencies,  an  impact 
assessment  and  formal  consultation  of  the  parties  concerned  was  not  required  because  this 
approach was itself the result of consultation between the Commission, the Council and the 
European Parliament. 

With  regard  to  the  amendments  concerning  security  accreditation  of  the  European  satellite 
navigation systems, it is important to note that the Member States, which are closely involved 
in  all  security-related  matters,  are  in  this  case,  the  main,  or  in  fact  only,  parties  concerned 
other than the institutions of the Union and the European GNSS Agency. The Member States 
were widely consulted on this point during discussions on the future GNSS Regulation within 
the  Council,  which  made  its  position  known  in  the  abovementioned  declaration  of  7 June 
2012.  In  addition,  the  arrangements  finally  adopted  were  the  focal  point  of  extensive 
discussions  with  the  European  GNSS  Agency.  The  European  Parliament  has  received  the 
proposal for the future European GNSS Regulation but has not yet issued a specific opinion 
on the matter. 

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In  addition,  the  various  solutions  that  could  theoretically  be  envisaged  for  system  security 
accreditation after 2013 have been assessed. There are six potential solutions. 

1) Entrusting accreditation to the private sector: 

Accreditation of European satellite navigation system security directly affects the security of 
the Union and its Member States, which want to be closely involved in the accreditation work 
and  decisions.  Consequently,  entrusting  accreditation  to  the  private  sector  is  not  a  serious 
option. 

2) Creating a new regulatory agency for accreditation: 

Creating a regulatory agency for accreditation of the security of the European GNSS systems 
might seem to be a good idea but clashes with the Union institutions' shared commitment over 
the last few years not to create any new regulatory agencies. In addition, this solution would 
have  a  significant  cost,  disproportionate  to  actual  requirements.  In  fact,  the  permanent  staff 
responsible for system security accreditation accounts for approximately ten people. 

3) Entrusting accreditation to another existing regulatory agency: 

An alternative solution to creating a new agency would be to entrust security accreditation to 
another  existing  regulatory  agency.  Among  the  various  agencies  of  the  Union,  only  the 
European  Aviation  Safety  Agency  (EASA)  and,  to  a  lesser  extent,  the  European  Defence 
Agency appear, in principle, capable of providing security accreditation of complex systems 
such as Galileo and EGNOS. 

It should, however, be noted that such an accreditation task does not fall within the scope of 
the  current  tasks  of  these  agencies.  In  addition,  with  regard  to  the  EASA  which  should 
eventually  be  responsible  for  EGNOS  certification,  there  is  a  serious  risk  of  conflict  of 
interests  between  this  future  certification  role  and  any  potential  security  accreditation  task. 
With  regard  to  the  European  Defence  Agency  which  is  principally  concerned  with  the 
promotion of cooperation between Member States in matters relating to arms and the defence 
industries, entrusting it with the security accreditation of Galileo and EGNOS might appear to 
contradict the assertion that both systems are civil systems under civil control. 

4) Entrusting accreditation to the Commission: 

In  2007,  during  the  preparatory  work  for  the  drafting  of  Regulation  (EC)  No  638/2008 
reforming  the  governance  of  the  programmes,  it  was  planned  to  entrust  the  security 
accreditation  of  the  two  European  satellite  navigation  systems  to  the  Commission.  This 
solution was abandoned at the time because it appeared that it could not be reconciled with 
the obligation of independence, with the Commission managing 'all questions relating to the 
security of the systems' under the terms of that Regulation. The same difficulty continues to 
apply today since the future GNSS Regulation which is intended to replace Regulation (EC) 

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No 638/2008 from 1 January 2014 also provides for the Commission to ensure the security of 
the programmes, including system security. Furthermore, the Member States are very attached 
to the structure of the Accreditation Board as it currently exists within the European  GNSS 
Agency and it would be difficult, on an administrative level, to incorporate such a body in the 
Commission departments. 

5) Entrusting accreditation to the Council: 

There are several advantages associated with entrusting the security accreditation of European 
GNSS  systems  to  the  Council.  First  and  foremost,  the  Council  is  not  involved  in  the 
management of the programmes and its independence would not be called into question. It has 
a  degree  of  expertise  in  accreditation  of  complex  systems  since  it  has  already  approved 
around  fifty  systems  for  its  own  needs.  In  addition,  it  is  the  body  most  able  to  assume 
responsibility  for  the  political  consequences  of  accreditation-related  decisions,  which  could 
have  significant  repercussions  on  the  progress  of  the  programmes  in  terms  of  costs  and 
schedules.  Finally,  the  Member  States,  which  want  to  be  very  closely  associated  with  the 
accreditation process, are naturally much better represented in the Council than in any other 
Union body. 

The disadvantages involved in implementing this solution, however, outweigh the advantages. 
In fact, the Council is not a managing authority and although it effectively has experience in 
accrediting  a  number  of  systems,  up  to  now  these  have  been  Council  internal  systems  only 
designed  to  ensure  its  smooth  running.  Furthermore,  transferring  and  incorporating  the 
structure  made  up  of  the  Administrative  Board  and  its  subordinate  components  as  they 
currently stand with staff including permanent officials into the administration of the General 
Secretariat of the Council would present the same administrative difficulties as a transfer to 
the Commission. 

6) Reinforcing the separation of activities within the European GNSS Agency: 

This  involves  modifying  the  internal  organisation  of  the  Agency  so  that  there  can  be  no 
further  doubt  concerning  the  independence  of  the  accreditation  activities  vis-à-vis  the  other 
activities carried out by the Agency. 

This  solution,  which  means  further  separating  the  activities  of  the  European  GNSS  Agency 
and  reinforcing  the  independence  of  the  two  different  bodies  under  a  single  legal  and 
institutional roof, can provide the right degree of independence in the exercise of accreditation 
activities  and  is  ultimately  the  solution  that  is  least  onerous,  simplest  and  easiest  to 
implement. Moreover, it was recommended by the Council in its declaration of 7 June 2012. 

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3. 

LEGAL ELEMENTS OF THE PROPOSAL 

With regard to the need to ensure that activities associated with accreditation of the systems 
are carried out independently and hence to reinforce the separation of these activities and the 
other activities of the European GNSS Agency, the proposal provides mainly for an increase 
in the powers of the Security Accreditation Board and those of the Chairperson of the Security 
Accreditation Board, by partly aligning them with those of the Administrative Board and the 
Executive Director respectively. 

It is also provided that the Security Accreditation Board must prepare and approve the part of 
the  Agency  work  programmes  describing  the  operational  activities  associated  with  system 
security  accreditation  as  well  as  the  part  of  the  annual  report  concerning  the  activities  and 
prospects  of  the  Agency  concerning  systems'  security  accreditation  activities  and  forward 
them  in  due  course  to  the  Administrative  Board  so  that  they  can  be  incorporated  in  the 
Agency's work programme and annual report. It must also exercise disciplinary authority over 
its Chairperson. 

The  Chairperson  of  the  Security  Accreditation  Board  plays  a  role  in  relation  to  security 
accreditation  activities  comparable  to  that  of  the  Executive  Director  in  other  Agency 
activities.  In  addition  to  representing  the  Agency,  a  function  which  is  already  laid  down  in 
Regulation  (EU)  No  912/2010  in  its  current  version,  he/she  will  henceforth  manage  the 
security  accreditation  activities  under  the  direction  of  the  Security  Accreditation  Board  and 
ensure  the  implementation  of  the  part  of  the  Agency  work  programmes  associated  with 
accreditation.  At  the  invitation  of  the  Parliament  or  the  Council,  he/she  may  also  submit  a 
report on the performance of its tasks and make a statement before these institutions. 

As regards the implementation of the interinstitutional approach to the decentralised agencies, 
the alignment with the principles set out in this approach notably affects the rules for adopting 
decisions  by  the  Administrative  Board,  the  mandate  of  the  members  of  the  Administrative 
Board  and  the  Security  Accreditation  Board  as  well  as  those  of  their  Chairpersons,  the 
existence  of  a  multiannual  work  programme,  the  powers  of  the  Administrative  Board 
concerning  staff  management,  evaluation  and  revision  of  the  Regulation,  prevention  of 
conflicts of interest and processing of non-classified sensitive information. 

4. 

BUDGETARY IMPLICATIONS 

The legal elements of the proposal referred to in point 3 above do not in themselves have any 
budgetary implications. 

However,  the  legislative  financial  statement  associated  with  Regulation  (EU)  No  912/2010, 
which accompanies the proposal and incorporates the new staff requirements of the Agency 
relating  to  the  new  tasks  which  may  be  entrusted  to  it,  such  as  the  exploitation  of  the 
European GNSS systems, translates these requirements in financial terms. In budgetary terms, 

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the amounts required are already included in the Commission's proposal for the next financial 
framework 2014-2020. They will be financed by redeployment within the budget headings of 
the GNSS programmes in the same way as the additional requirements for 2013. It should be 
noted that the expenditure associated with the new staff requirements of the Agency will be 
partially offset by a reduction of 30 posts in the Commission's establishment plan during the 
same period, i.e. from 2014 to 2020. The budget details are shown in the legislative financial 
statement in Annex. 

It should be noted in any event that the figures referred to in the legislative financial statement 
are  dependent  on  the  adoption  of  the  financial  framework  2014-2020  by  the  budgetary 
authority and the adoption of the future GNSS Regulation. 

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2013/0022 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulation (EU) No 912/2010 setting up the European GNSS Agency 

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 forwarding of the draft legislative act to the national Parliaments, 

Having regard to the opinion of the European Economic and Social Committee4, 

Having regard to the opinion of the Committee of the Regions5, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

It  follows  from  the  combined  provisions  of  Article  16  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)6 and Article 2 of Regulation (EU) No 912/2010 of the European Parliament 
and  of  the  Council  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 Council7 that the European GNSS 
Agency  (hereinafter  the  'Agency')  must  ensure  the  security  accreditation  of  the 
European  satellite  navigation  systems  (the  'systems')  and,  to  this  end,  initiate  and 
monitor the implementation of security procedures and perform security audits. 

The provisions of Regulation (EU) no 912/2010, in particular those in Chapter III of 
the Regulation, expressly lay down the terms under which the Agency must perform 
its task concerning security accreditation of the systems. In particular, they stipulate, 
in  principle,  that  security  accreditation  decisions  must  be  taken  independently  of  the 
Commission  and  the  bodies  responsible  for  implementing  the  European  satellite 
navigation  programmes  (hereinafter  the  'programmes')  and  that  the  systems'  security 

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OJ C , , p.. 
OJ C , , p.. 
OJ L 196; 24.7.2008, p. 1 
OJ L 276; 20.10.2010, p. 11 

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(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

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accreditation  authority  shall  be  a  independent  body  within  the  Agency  that  makes 
decisions independently. 

In  accordance  with  this  principle,  Regulation  (EU)  No  912/2010  establishes  the 
Security  Accreditation  Board  for  European  GNSS  systems  (hereinafter  the  'Security 
Accreditation  Board')  which,  alongside  the  Administrative  Board  and  the  Executive 
Director,  is  one  of  the  three  bodies  of  the  Agency.  This  body  performs  the  tasks 
entrusted  to  the  Agency  concerning  security  accreditation  and  is  authorised  to  make 
security  accreditation  decisions  on  behalf  of  the  Agency.  It  must  adopt  its  rules  of 
procedure and appoint its chairperson. 

Regulation (EU) No xxx/2013 of the European Parliament and of the Council on the 
implementation  and  exploitation  of  European  satellite  navigation  systems8,  replacing 
Regulation (EC) No 683/2008, which will enter into force on 1 January 2014, defines 
the public governance arrangements for the programmes during 2014-2020. It extends 
the tasks entrusted to the Agency and provides, in particular, for the Agency to play a 
major role in the exploitation of the systems. 

In  this  new  context,  it  is  essential  to  ensure  that  the  Security  Accreditation  Board  is 
able to carry out the task entrusted to it with complete independence, in particular vis-
à-vis the other bodies and activities of the Agency. It is therefore essential to further 
separate, within the Agency itself, the activities associated with accreditation from its 
other  activities,  such  as  management  of  the  security  centre,  contribution  to  the 
commercialisation of the systems and any activities that the Commission might entrust 
to the Agency by way of delegation, in particular those associated with exploitation of 
the systems. To this end, a tangible and effective structural division should be set up 
within the Agency between its various activities by 1 January 2014 at the latest. 

In order to achieve this, Regulation (EU) No 912/2010 must be amended in order to 
increase  the  independence  and  powers  of  the  Security  Accreditation  Board  and  its 
chairperson and to align these largely with the Administrative Board and the Executive 
Director  of  the  Agency  respectively,  while  providing  for  a  cooperation  requirement 
between the various bodies of the Agency. 

The  Security  Accreditation  Board  and  not  the  Administrative  Board  prepares  and 
approves  the  part  of  the  Agency  work  programmes  describing  the  operational 
activities associated with security accreditation of the systems as well as the part of the 
annual report concerning the activities and prospects of the Agency with regard to the 
systems'  security  accreditation  activities  and  submits  them  in  good  time  to  the 
Administrative  Board  so  that  they  can  be  incorporated  in  the  Agency's  work 
programme  and  annual  report.  It  must  also  exercise  disciplinary  authority  over  its 
Chairperson. 

It would be desirable to assign a role in relation to security accreditation activities to 
the  Chairperson  of  the  Security  Accreditation  Board  comparable  to  that  of  the 
Executive Director in other Agency activities. Therefore, in addition to the function of 
representing the Agency, already provided for under Regulation (EU) No 912/2010 in 

OJ  L  …  of  …...2013,  p.  …[It  should  be  noted  that,  as  long  as  this  Regulation  and  the  Regulation 
implementing the future multiannual financial framework have not yet been adopted, the scope of the 
tasks  entrusted  to  the  European  GNSS  Agency  and  the  budget  appropriations  assigned  accordingly 
cannot be regarded as definitive] 

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its  draft  of  22 September  2010,  the  Chairperson  of  the  Security  Accreditation  Board 
should manage the security accreditation activities under the direction of the Security 
Accreditation  Board  and  ensure  the  implementation  of  the  part  of  the  Agency  work 
programmes  associated  with  accreditation.  At  the  request  of  the  Parliament  or  the 
Council,  it  should  also  submit  a  report  on  the  performance  of  its  tasks  and  make  a 
declaration before these institutions. 

(9) 

In  addition,  in  the  interests  of  preserving  the  independence  of  the  Security 
Accreditation Board and avoiding any conflicts of interest, it would also be useful for 
the  Security  Accreditation  Board  and  the  Agency  staff  under  its  control  to  carry  out 
their work in a location ensuring their autonomy and independence with regard to the 
Agency's  other  activities,  in  particular  vis-à-vis  the  operational  activities  associated 
with  the  exploitation  of  the  systems  and  for  the  Agency's  internal  rules  on  staff  to 
ensure  the  autonomy  and  independence  of  the  staff  performing  the  security 
accreditation activities vis-à-vis staff carrying out other Agency activities. 

(10)  Furthermore,  given  the  involvement  of  a  number  of  third  countries  in  the  European 
GNSS  programmes,  including  in  security  matters,  express  provision  should  be  made 
for  representatives  of  third  countries  to  be  able  to  participate  under  conditions  to  be 
specified in the work of the Security Accreditation Board. 

(11)  Regulation (EU) No 912/2010 must be made consistent with the principles contained 
in  the  shared  approach  of  the  Parliament,  Council  and  Commission  to  the 
decentralised agencies, adopted by the three institutions on 5 July, 26 June and 12 June 
2012  respectively,  particularly  with  regard  to  the  rules  for  adopting  decisions  of  the 
Administrative Board, the terms of office of the members of the Administrative Board 
and  Security  Accreditation  Board  and  those  of  their  chairpersons,  the  existence  of  a 
multiannual  work  programme,  the  powers  of  the  Administrative  Board  concerning 
staff management, assessment and revision of the Regulation, prevention of conflicts 
of interest and handling of non-classified sensitive information. 

(12)  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. 

(13)  Finally,  given  that  Article  [8]  of  Regulation  (EU)  No  xxx/2013  (future  GNSS 
Regulation)  allows  the  Member  States  to  contribute  extra  funds  in  order  to  finance 
certain programme features, the Agency should be permitted to award joint contracts 
with the Member States when appropriate for performance of its tasks. 

(14)  Regulation (EU) No 912/2010 should be amended accordingly, 

HAVE ADOPTED THIS REGULATION:  

Article 1 

Regulation (EU) No 912/2010 is amended as follows: 

(1) 

Article 3 is replaced by the following: 

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'Article 3 

Bodies 

1. 

The bodies of the Agency shall be: 

a) 

b) 

c) 

the Administrative Board; 

the Executive Director; 

the Security Accreditation Board for European GNSS systems. 

2. 

3. 

The bodies of the Agency shall accomplish their tasks, as specified in Articles 6, 8 
and 11 respectively, in accordance with the guidelines issued by the Commission as 
set out in Article 16 of Regulation (EC) No 683/2008. 

The Administrative Board and the Executive Director on one hand, and the European 
GNSS System Security Accreditation Board and its Chairperson on the other hand, 
shall  cooperate  to  ensure  the  operation  of  the  Agency  in  accordance  with  the 
procedures determined by the Agency's internal rules, such as the rules of procedure 
of  the  Administrative  Board,  the  rules  of  procedure  of  the  Security  Accreditation 
Board,  the  financial  rules  applicable  to  the  Agency,  the  implementing  rules  for  the 
status of staff and the rules governing access to documents.' 

(2) 

Article 4 is replaced by the following: 

'Article 4 

Legal status, local offices 

1. 

2. 

3. 

The Agency is a body of the Union. It has legal personality. 

In  each  Member  State,  the  Agency  shall  enjoy  the  most  extensive  legal  capacity 
accorded to legal persons under national law. In particular, it may acquire or dispose 
of real and personal property and be a party to legal proceedings. 

The Agency may decide to set up local offices in the Member States, subject to their 
agreement, or in third countries participating in the work of the Agency, pursuant to 
Article 23. 

The provisions relating to the installation and operation of the Agency in the Member 
States and host third countries and those relating to advantages accorded by the latter 
to  the  Executive  Director,  members  of  the  Administrative  Board,  Agency  staff  and 
members of their families are subject to specific arrangements made by the Agency 
with  those  Member  States  and  countries.  The  specific  arrangements  shall  be 
approved by the Administrative Board. 

Member States and host third countries shall provide an optimal framework for the 
Agency's activities, in particular as regards: 

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12 

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a) 

accessibility of the premises, 

the  existence  of  suitable  educational  infrastructures  for  the  children  of 

b) 
members of staff and seconded national experts,  

access to the employment market, social security system and healthcare for the 

c) 
families of members of staff and seconded national experts.  

4. 

The Agency shall be represented by its Executive Director, subject to the provisions 
of Article 11a(1)(d). 

(3) 

Article 5 is amended as follows: 

a) 

paragraph 2 is replaced by the following: 

'2. The Administrative Board shall be composed of: 

a) 

b) 

c) 

one representative appointed by each Member State; 

five representatives appointed by the Commission; 

one non-voting representative appointed by the European Parliament. 

The duration of the term of office of the Administrative Board members shall 
be four years and shall be renewable. 

A  representative  of  the  Security  Accreditation  Board  of  the  European  GNSS 
systems,  a  representative  of  the  High  Representative  for  Foreign  Affairs  and 
Security Policy (the 'HR') and a representative of the European Space Agency 
(the 'ESA') shall be invited to attend the meetings of the Administrative Board 
as observers.' 

b) 

paragraph 4 is replaced by the following:  

'4.  The  Administrative  Board  shall  elect  a  Chairperson  and  a  Deputy 
Chairperson  from  among  its  members.  The  Deputy  Chairperson  shall 
automatically  take  the  place  of  the  Chairperson  when  the  Chairperson  is 
prevented from attending to his  duties.  The term of office of the Chairperson 
and  of  the  Deputy  Chairperson  shall  be  two  years,  renewable  once,  and  shall 
expire when they cease to be members of the Administrative Board.' 

c) 

paragraph 6 is replaced by the following:  

'6.  Unless  otherwise  provided  in  this  Regulation,  the  Administrative  Board 
shall take its decisions by an absolute majority of its voting members. 

A majority of two thirds of all voting members is required for election of the 
Chairperson  of  the  Administrative  Board  and  the  Deputy  Chairperson,  and 
adoption of the budget and work programmes.' 

(4) 

Article 6 is replaced by the following: 

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13 

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'Article 6 

Tasks of the Administrative Board 

1. 

The Administrative Board shall ensure that the Agency carries out the work entrusted 
to  it,  under  the  conditions  set  out  in  this  Regulation,  and  shall  take  any  necessary 
decision to this end, without prejudice to the competences entrusted to the Security 
Accreditation Board for the activities under Chapter III. 

2. 

The Administrative Board shall also: 

a) 

b) 

c) 

d) 

e) 

f) 

g) 

h) 

adopt,  by  30 June  of  the  first  year  of  the  multiannual  financial  framework 
provided  for  under  Article  312  of  the  Treaty  on  the  Functioning  of  the 
European  Union,  the  multiannual  work  programme  of  the  Agency  for  the 
period covered by the multiannual financial framework after incorporating the 
section drafted by the Security Accreditation Board in accordance with Article 
11(3)(b) and after having received the Commission's opinion; 

adopt,  by  15 November  each  year  at  the  latest,  the  Agency  work  programme 
for the following year having incorporated the section drafted by the Security 
Accreditation  Body,  in  accordance  with  Article  11(3)(c)  and  after  having 
received the Commission's opinion; 

perform the budgetary functions laid down in Article 13(5), (6), (10) and (11) 
and Article 14(5); 

oversee  the  operation  of  the  Galileo  security  centre  (hereinafter  the  ‘Galileo 
Security Monitoring Centre’ or the ‘GSMC’) as referred to in Article 16(a)(ii) 
of Regulation (EC) No 683/2008; 

adopt  arrangements  to  implement  Regulation  (EC)  No  1049/2001  of  the 
European  Parliament  and  of  the  Council  of  30  May  2001  regarding  public 
access  to  European  Parliament,  Council  and  Commission  documents(*),  in 
accordance with Article 21; 

adopt the annual report on the activities and  prospects of the Agency, having 
incorporated  the  section  drafted  by  the  Security  Accreditation  Board  in 
accordance  with  Article  11(3)d)  and  forward  it,  by  1 July,  to  the  European 
Parliament, the Council, the Commission and the Court of Auditors; 

ensure  adequate  follow-up  to  the  findings  and  recommendations  stemming 
from the evaluations referred to in Article 26, as well as those arising from the 
investigations  conducted  by  the  European  Anti-Fraud  Office  (OLAF)  and  all 
internal  or  external  audit  reports,  and  forward  to  the  budgetary  authority  all 
information relevant to the outcome of the evaluation procedures; 

be consulted by the Executive Director on the delegation agreements made by 
the Commission and the Agency under Article [15(1)(d)] of Regulation [future 
GNSS Regulation] before they are signed; 

i) 

adopt its rules of procedure. 

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3. 

With regard to the Agency's staff, the Administrative Board shall exercise the powers 
conferred  by  the  Staff  Regulations  of  Officials  of  the  European  Union  on  the 
appointing authority and by the Conditions of Employment of other servants on the 
authority  empowered  to  conclude  employment  contracts    ('the  appointing  authority 
powers'). 

The Administrative Board shall adopt, in accordance with the procedure provided for 
in Article 110 of the Staff Regulations, a decision based on Article 2(1) of the Staff 
Regulations  and  on  Article  6  of  the  Conditions  of  Employment  of  other  servants 
delegating  the  relevant  appointing  authority  powers  to  the  Executive  Director  and 
defining the conditions under which this delegation of powers can be suspended. The 
Executive Director shall be authorised to sub-delegate these powers.  

In  application  of  the  previous  subparagraph,  where  exceptional  circumstances  so 
require,  the  Administrative  Board  may,  by  way  of  a  decision,  temporarily  suspend 
the delegation of the appointing authority powers to the Executive Director and those 
sub-delegated  by  the  latter  and  exercise  them  itself  or  delegate  them  to  one  of  its 
members or to a staff member other than the Executive Director. 

However,  by  way  of  derogation  from  the  second  paragraph,  the  Administrative 
Board shall be required to delegate to the Chairperson of the Security Accreditation 
Board  the  powers  referred  to  in  the  first  subparagraph  with  regard  to  recruitment, 
assessment and  recategorising of  staff involved in the activities  covered in Chapter 
III and the disciplinary measures to be taken with regard to the abovementioned staff. 

The  Administrative  Board  shall  adopt  the  implementing  measures  of  the  Staff 
Regulations  of  Officials  of  the  Union  and  the  Conditions  of  Employment  of  other 
servants  in  accordance  with  the  procedure  laid  down  in  Article  110  of  the  Staff 
Regulations. It shall first consult the Security Accreditation Board and duly take into 
account  its  observations  with  regard  to  recruitment,  assessment,  reclassification  of 
the  staff  involved  in  the  activities  under  Chapter  III  and  the  relevant  disciplinary 
measures to be taken. 

It shall also adopt the measures concerning the secondment of the seconded national 
experts referred to in Article 15c, after consulting the Security Accreditation Board 
and duly taking into account its observations. 

4. 

The  Administrative  Board  shall  appoint  the  Executive  Director  and  may  extend  or 
end  his  term  of  office  pursuant  to  Article 15c(4).  It  shall  exercise  disciplinary 
authority over the Executive Director. 

_________________ 

(*)  OJ L 145, 31.5.2001, p. 43. » 

(5) 

Article 7 is replaced by the following; 

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15 

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'Article 7 

Executive Director 

The  Agency  shall  be  managed  by  its  Executive  Director,  who  shall  carry  out  his/her  duties 
under the supervision of the Administrative Board, without prejudice to the powers granted to 
the Security Accreditation Board and the Chairperson of the Security Accreditation Board in 
Article in Articles 11 and 11a respectively.' 

(6) 

Article 8 is amended as follows: 

'Article 8 

Tasks of the Executive Director 

The Executive Director shall carry out the following tasks: 

(1)  he/she  shall  be  responsible  for  representing  the  Agency,  except  in  respect  of 
activities and decisions undertaken in accordance with Chapters II and III, and 
shall  be  in  charge  of  its  management;  he/she  shall  sign  the  delegation 
agreements made by the Commission and the Agency under Article [15(1)(d)] 
of the Regulation [future GNSS Regulation]; 

(2)  he/she  shall  prepare  the  work  of  the  Administrative  Board  and  participate, 
without having the right to vote, in the work of the Administrative Board;  

(3)  he/she shall be responsible for implementing the annual work programmes of 
the Agency under the control of the Administrative Board, with the exception 
of the part of the programmes covered in Chapter III;  

(4)  he/she  shall  take  all  necessary  measures,  including  the  adoption  of  internal 
administrative  instructions  and  the  publication  of  notices,  to  ensure  the 
functioning of the Agency in accordance with this Regulation;  

(5)  he/she shall draw up a draft statement of the Agency’s estimated revenue and 
expenditure  in  accordance  with  Article  13,  and  implement  the  budget  in 
accordance with Article 14;  

(6)  he/she shall prepare a draft general report each year, duly taking into account 
the  comments  of  the  Chairperson  of  the  Security  Accreditation  Board 
concerning  the  activities  covered  in  Chapter  III,  and  submit  it  to  the 
Administrative Board;  

(7)  he/she  shall  ensure  that  the  Agency,  as  the  operator  of  the  GSMC,  is  able  to 

respond to instructions provided under Joint Action 2004/552/CFSP;  

(8)  he/she shall define the organisational structure of the Agency and submit it for 

approval to the Administrative Board; 

(9)  he/she shall exercise, with regard to the Agency's staff, the powers referred to 
in the first subparagraph of Article 6(3), to the extent that these powers shall be 

EN 

16 

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delegated  to  him  in  accordance  with  the  second  subparagraph  of  the  same 
paragraph;  

(10)  he/she  shall  adopt,  after  approval  by  the  Administrative  Board,  the  necessary 
measures to establish local offices in Member States in accordance with Article 
4; 

(11)  he/she  shall  ensure  that  the  secretariat  and  all  the  resources  necessary  for 
proper functioning are provided to the Security Accreditation Board and to the 
bodies referred to in Article 11(11); 

(12)  he/she  shall  prepare  an  action  plan  for  monitoring  the  findings  and 
recommendations of the assessments made and submit a twice-yearly progress 
report to the Commission; 

(13)  he/she  take  the  following  measures  to  protect  the  financial  interests  of  the 

Union:  

i) he/she shall take preventive measures against fraud, corruption or any other 
illegal activity and shall make use of effective supervisory measures; 

ii) he /she shall recover sums unduly paid where irregularities are detected and, 
where appropriate, apply effective, proportionate and dissuasive administrative 
and financial penalties; 

(14)  he/she shall draw up an anti-fraud strategy for the Agency and submit it to the 

Administrative Board for approval.' 

(7) 

the following Article 8a is inserted: 

'Article 8a 

Work programmes and annual report 

1. 

2. 

The multiannual programme of the Agency, referred to in Article 6(2)(a) lays down 
the  actions  that  the  Agency  must  perform  during  the  period  covered  by  the 
multiannual  financial  framework  provided  for  in  Article  312  of  the  Treaty  on  the 
functioning  of  the  European  Union,  including  actions  associated  with  international 
relations  and  the  communication  for  which  it  is  responsible.  This  programme  shall 
determine the human and financial resources assigned to each activity. It shall take 
into account the assessments referred to in Article 26. 

Based on the multiannual work programme, the annual work programme referred to 
in  Article  6(2)(b)  lays  down  the  actions  that  the  Agency  must  perform  during  the 
coming  year,  including  actions  associated  with  international  relations  and  the 
communication  for  which  it  is  responsible.  This  programme  shall  determine  the 
human and financial resources assigned to each activity. For information purposes, it 
shall include the tasks that the Commission has delegated, as required, to the Agency 
pursuant to Article [15(1)(d)] of the Regulation (future GNSS Regulation).  

3. 

The annual general report referred to in Article 8(f) shall record the implementation 
of the Agency work programmes.' 

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17 

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(8) 

Article 10(g) is replaced by the following: 

'g)  the  European  GNSS  system  security  accreditation  authority  shall  be,  within  the 
Agency,  an  autonomous  body  that  takes  its  decisions  in  a  strictly  independent 
manner,  including  with  regard  to  the  Commission  and  other  bodies  responsible  for 
the  implementation  of  the  programmes,  as  well  as  with  regard  to  the  Executive 
Director and the Administrative Board of the Agency;' 

(9) 

Article 11 is amended as follows: 

a) 

paragraph 3 is replaced by the following: 

'3. The Security Accreditation Board shall: 

a) 

b) 

c) 

d) 

e) 

f) 

perform  security  accreditation  of  the  systems  consisting  of  verifying 
compliance  of  the  systems  with  the  security  requirements  referred  to  in 
Article  13  of  Regulation  (EC)  No  683/2008  and  compliance  with  the 
relevant security rules and regulations applicable to the Council and the 
Commission. 

prepare  and  approve  the  part  of  the  multiannual  work  programme 
referred to in Article 8a(1) concerning the operational activities covered 
in  this  chapter  and  the  financial  and  human  resources  needed  to 
accomplish them, and submit it to the Administrative Board in good time 
so  that  it  can  be  incorporated  in  the  abovementioned  multiannual  work 
programme; 

prepare and approve the part of the annual work programme referred to 
in  Article  8a(2)  concerning  the  operational  activities  covered  in  this 
chapter  and  the  financial  and  human  resources  needed  to  accomplish 
them,  and  submit  it  to  the  Administrative  Board  in  good  time  so  that  it 
can be incorporated in the abovementioned annual work programme; 

prepare  and  approve  the  part  of  the  annual  report  referred  to  in 
Article 6(2)(f)  concerning  the  Agency's  activities  and  prospects  covered 
in  this  chapter  and  the  financial  and  human  resources  needed  to 
accomplish them, and submit it to the Administrative Board in good time 
so that it can be incorporated in the abovementioned report; 

exercise disciplinary authority over its Chairperson. 

adopt its rules of procedure;' 

b) 

paragraphs 7 and 8 are replaced by the following:  

'7. The Security Accreditation Board shall be composed of one representative 
per Member State, a Commission representative and an HR representative. The 
term of office of the members of the Security Accreditation Board shall be four 
years and shall be renewable. A representative of ESA shall be invited to attend 
the  meetings  of  the  Security  Accreditation  Board  as  an  observer.  Where 
appropriate,  the  participation  of  representatives  of  third  countries  and  the 

EN 

18 

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conditions  thereof  shall  be  established  in  the  arrangements  referred  to  in 
Article 23. 

8.  The  Security  Accreditation  Board  shall  elect  a  Chairperson  and  Deputy 
Chairperson from among its members by a two-thirds majority of all members 
with  the  right  to  vote.  The  Deputy  Chairperson  shall  automatically  take  the 
place of the Chairperson where the Chairperson is prevented from attending to 
his duties. 

The  Security  Accreditation  Board  shall  have  the  power  to  dismiss  the 
Chairperson and the Deputy Chairperson. It shall adopt the decision to dismiss 
by a two-thirds majority. 

The  term  of  office  of  the  Chairperson  and  of  the  Deputy  Chairperson  of  the 
Security  Accreditation  Board  shall  be  two  years,  renewable  once.  The  term 
shall end when the Chairperson or Deputy Chairperson ceases to be a member 
of the Security Accreditation Board.' 

c) 

d) 

paragraph 9 is deleted;  

paragraph 10 is replaced by the following:  

'10. The  Security Accreditation Board shall  have access to all the human and 
material  resources  required  to  provide  appropriate  administrative  support 
functions and to enable it, together with the bodies referred to in paragraph 11, 
to perform its tasks independently, in particular when handling files, initiating 
and  monitoring  the  implementation  of  security  procedures  and  performing 
system security audits, preparing decisions and organising its meetings. It shall 
also have access to any information needed for the performance of its tasks in 
the possession of the Agency, without prejudice to the principles of autonomy 
and independence referred to in Article 10(g).' 

e) 

the following paragraph 17 shall be added:  

'17.  The  Security  Accreditation  Board  and  the  Agency  staff  under  its 
supervision  shall  perform  their  work  in  a  manner  ensuring  autonomy  and 
independence  in  relation  to  the  other  activities  of  the  Agency,  particularly 
operational activities associated with the exploitation of the systems.' 

(10) 

the following Article 11a is inserted after Article 11: 

'Article 11a 

Tasks of the Chairperson of the Security Accreditation Board 

1. 

The  Chairperson  of  the  Security  Accreditation  Board  shall  perform  the  following 
tasks: 

a)  manage  security  accreditation  activities  under  the  supervision  of  the 

Security Accreditation Board; 

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19 

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b) 

c) 

d) 

e) 

ensure  the  implementation  of  part  of  the  Agency's  work  programmes 
the  Security 
in 
covered 
Accreditation Board; 

this  Chapter  under 

the  supervision  of 

cooperate  with  the  Executive  Director  to  help  to  draw  up  the  draft 
establishment plan referred to in Article 13(3); 

represent  the  Agency  for  the  activities  and  decisions  covered  in  this 
chapter; 

exercise,  with  regard  to  the  Agency's  staff  involved  in  the  activities 
concerned  by  this  chapter,  the  powers  referred  to  in  Article  6(3),  first 
subparagraph, delegated to it in accordance with the fourth subparagraph 
of the abovementioned paragraph. 

2. 

The  Chairperson  of  the  Security  Accreditation  Board  may  be  called  upon  by  the 
European  Parliament  or  the  Council  to  submit  a  report  on  the  performance  of  his 
tasks, and to make a statement before those institutions.' 

(11) 

Article 13 is amended as follows: 

a) 

paragraph 3 is replaced by the following: 

'3. The Executive Director shall, in close collaboration with the Chairperson of 
the Security Accreditation Board for activities covered in Chapter III, draw up 
a draft estimate of expenditure and revenue of the Agency for the next financial 
year and forward it to the Administrative Board and the Security Accreditation 
Board, accompanied by a draft establishment plan.' 

b) 

paragraph 5 is replaced by the following:  

'5.  Each  year,  the  Administrative  Board,  based  on  the  draft  estimate  of 
expenditure  and  revenue  and  in  close  cooperation  with  the  Security 
Accreditation  Board  for  activities  covered  in  Chapter  III,  shall  draw  up  the 
estimate of the Agency's revenue and expenditure for the next financial year.' 

(12) 

in Article 14, paragraph 10 is replaced by the following: 

The  European  Parliament,  on  a  recommendation  from  the  Council  acting  on  a 
qualified  majority,  shall,  before  30  April  of  the  year  N  +  2,  grant  discharge  to  the 
Executive Director in respect of the implementation of the budget for year N, with 
the  exception  of  the  part  of  the  budget  implementation  covering  tasks  which  are, 
where  appropriate,  entrusted  to  the  Agency  under  Article  [15(1)(d)]  of  the 
Regulation [future GNSS regulation] to which shall apply the procedure referred to 
in Articles 164 and 165 of Regulation (EU, Euratom) No 966/2012 of the European 
Parliament and of the Council of 25 October 2012 on the financial rules applicable to 
the  general  budget  of  the  Union  and  repealing  Council  Regulation  (EC,  Euratom) 
No 1605/2002.  

_________________ 

(*)  OJ L 298, 26.10.12, p.1.' 

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20 

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(13) 

after Chapter IV, the following Chapter IVa is inserted: 

‘CHAPTER IVa 

HUMAN RESOURCES 

Article 15a 

Staff 

1. 

2. 

1. 

2. 

The  Staff  Regulations  of  Officials  of  the  Union,  the  Conditions  of  Employment  of 
other servants and the  rules  adopted  jointly by  the  institutions  of  the  Union  for  the 
purposes of the application of those Staff Regulations and conditions of employment 
shall apply to the staff employed by the Agency. 

The  Agency's  internal  rules,  such  as  the  rules  of  procedure  of  the  Administrative 
Board, the rules of procedure of the Security Accreditation Board, the financial rules 
applicable to the Agency, the rules for the application of the staff regulations and the 
rules for access to documents, shall ensure the autonomy and independence of staff 
performing  the  security  accreditation  activities  vis-à-vis  staff  performing  the  other 
activities of the Agency, pursuant to Article 10(g). 

Article 15b 

Appointment and Term of Office of the Executive Director 

The  Executive  Director  shall  be  recruited  as  a  temporary  member  of  staff  of  the 
Agency  in  accordance  with  Article  2(a)  of  the  Conditions  of  Employment  of  other 
servants.  

The  Executive  Director  shall  be  appointed  by  the  Administrative  Board  on  the 
grounds  of  merit  and  documented  administrative  and  managerial  skills,  as  well  as 
relevant  competence  and  experience,  from  a  list  of  candidates  proposed  by  the 
Commission, after an open and transparent competition, following publication a call 
for  expressions  of  interest  in  the  Official  Journal  of  the  European  Union  and 
elsewhere.  

The  Chairperson  of  the  Administrative  Board  shall  represent  the  Agency  for  the 
purpose of concluding the Executive Director's contract. 

The Administrative Board shall take its decision to appoint the Executive Director by 
a two-thirds majority of its members. 

3. 

The term of  office  of  the  Executive Director shall be five years. At the end  of  this 
term of office, the Commission shall carry out an assessment taking into account the 
Executive Director's performance and the future tasks and challenges of the Agency. 

Based  on  a  Commission  proposal  taking  into  account  the  assessment  referred  to  in 
the first subparagraph, the Administrative Board may extend the term of office of the 
Executive Director once for a period of up to five years. 

EN 

21 

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The decision to extend the term of office of the Executive Director shall be adopted 
by a two-thirds majority of members of the Administrative Board. 

An Executive Director whose term of office has been extended may not take part in a 
selection procedure for the same post following the extension of the term of office. 

The  Administrative  Board  may  dismiss  the  Executive  Director,  on  the  basis  of  a 
Commission proposal, by means of a decision adopted by a two-thirds majority of its 
members. 

The  European  Parliament  or  the  Council  may  call  upon  the  Executive  Director  to 
submit a report on the performance of his tasks, and to make a statement before those 
institutions. 

4. 

5. 

Articles 15c 

Seconded national experts 

The  Agency  may  also  use  national  experts.  .  These  experts  shall  have  appropriate  security 
clearances.' 

(14) 

Article 16 is amended as follows: 

'Article 16 

Fraud prevention 

1. 

2. 

3. 

4. 

In order to combat fraud, corruption and other unlawful activities, the provisions of 
Regulation  (EC)  No  1073/1999  of  the  European  Parliament  and  of  the  Council  (*) 
shall  apply  without  restriction.  To  this  end,  the  Agency  shall  accede  to  the 
Interinstitutional Agreement of 25 May 1999 between the European Parliament, the 
Council  and  the  Commission  of  the  European  Communities  concerning  internal 
investigations  by  the  European  Anti-Fraud  Office  (OLAF)  (**)  and  shall  issue  the 
appropriate  provisions  to  the  staff  of  the  Agency  and  to  seconded  national  experts 
using the model decision in the Annex to the abovementioned Agreement. 

The  Court  of  Auditors  shall  have  the  authority  to  supervise  beneficiaries  of  the 
Agency's  funding  as  well  as  contractors  and  sub-contractors  who  have  received 
Union funds via the Agency, on the basis of documents provided to it or on-the-spot 
checks. 

With  regard  to  grants  financed  or  contracts  awarded  by  the  Agency,  OLAF  may 
carry out investigations, including on-the-spot checks and inspections in accordance 
with  Regulation  (EC)  No  1073/1999  and  Council  Regulation  (EURATOM,  EC) 
No 2185/96 (***), in order to combat fraud, corruption and any other illegal activity 
detrimental to the Union's financial interests. 

Without  prejudice  to  paragraphs  1,  2  and  3  of  this  Article,  the  cooperation 
agreements  concluded  by  the  Agency  with  non-member  countries  or  international 
organisations,  contracts  and  grant  agreements  concluded  by  the  Agency  with  third 
parties, and any financing decision taken by the Agency shall provide expressly that 

EN 

22 

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the  Court  of  Auditors  and  OLAF  may  carry  out  checks  and  investigations  in 
accordance with their respective powers. 

_________________ 

(*)  OJ L 136, 31.05.99, p. 1. 

(**)  OJ L 136, 31.05.99, p. 15. 

(***) OJ L 292, 15.11.96, p.2.' 

(15) 

Article 17 is replaced by the following: 

'Article 17 

Privileges and immunities 

The Protocol (No 7) on the Privileges and Immunities of the European Union shall apply to 
the Agency and to its staff.' 

(16) 

Article 18 is deleted; 

(17) 

Article 22 is replaced by the following: 

'Article 22 

Security rules on the protection of classified or sensitive information 

The  Agency  shall  apply  the  Commission's  security  rules  regarding  the  protection  of  EU 
classified information, laid down in the Annex to Commission Decision 2001/844/EC, ECSC, 
Euratom  of  29  November  2001  amending  its  internal  Rules  of  Procedure  (*).  It  shall  also 
apply them to non-classified sensitive information. This shall cover, inter alia, provisions for 
the exchange, handling and storage of this information. 

_________________ 

(*)  OJ L317, 3.12.2001, p.1. 

(18) 

the following Article 22a is inserted after Article 22: 

'Article 22a 

Conflict of interest 

1. 

The  Executive  Director,  as  well  as  officials  seconded  by  Member  States  and  the 
Commission  on  a  temporary  basis  shall  make  a  declaration  of  commitments  and  a 
declaration  of  interests  indicating  the  absence  of  any  direct  or  indirect  interests, 
which  might  be  considered  prejudicial  to  their  independence.  These  declarations 
shall be made in writing on their entry into service and shall be renewed in the event 
of a change in their personal circumstances. 

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2. 

3. 

Before any meeting which they are to attend, external experts participating in ad hoc 
working  groups  shall  declare  the  absence  of  any  interest  which  might  place  their 
independence in question in view of the items on the agenda. 

The  Administrative  Board  and  the  Security  Accreditation  Board  shall  implement  a 
policy to avoid conflicts of interest.' 

(19) 

the following Article 23a is inserted after Article 23: 

'Article 23a 

Joint procurement with the Member States 

For the performance of its tasks, the Agency shall be authorised to award contracts jointly 
with the Member States in accordance with Commission Delegated Regulation (EU) 
No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU, Euratom) 
No 966/2012 of the European Parliament and of the Council on the financial rules applicable 
to the general budget of the Union(*). 

_________________ 

(*)  OJ L 362, 31.12.2012, p. 1.' 

(20) 

Article 26 is replaced by the following: 

'Article 26 

Evaluation and revision of this Regulation 

1. 

2. 

3. 

By 2016 at the latest, and every five years thereafter, the Commission shall arrange 
an  evaluation  of  the  Agency,  concerning,  in  particular,  its  impact,  effectiveness, 
smooth  running,  working methods, requirements  and use of the resources entrusted 
to it. This evaluation shall include, in particular, an assessment of any change in the 
Agency's tasks and the financial impact of such a change. 

The Commission shall submit the evaluation report and its conclusions with regard to 
the content of this report to the European Parliament, the Council, the Administrative 
Board  and  the  Security  Accreditation  Board  of  the  Agency.  The  results  of  the 
evaluation shall be made available to the public.  

One  evaluation  in  two  shall  include  an  inspection  of  the  Agency's  balance  sheet  in 
terms of its objectives and tasks. If the Commission considers that the continuation 
of the Agency is no longer justified with regard to the objectives and tasks assigned 
to it, the Commission may propose that this Regulation be repealed.'  

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

Article 2 

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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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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 method(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 [body] appropriations 

3.2.3. Estimated impact on [the body's] human resources 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party participation in financing 

3.3.  Estimated impact on revenue 

3.4.  Estimated impact on the Commission's human resources  

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE 

1.1. 

Title of the proposal/initiative 

Regulation  of  the  European  Parliament  and  of  the  Council  amending  Regulation  (EU) 
No 912/2010 of 22 September 2010 setting up the European GNSS Agency – amendment of 
the financial statement. 

1.2. 

Policy area(s) concerned in the ABM/ABB structure9 

Policy Area(s) concerned: Enterprise and Industry 

Chapter 02.05: SATELLITE NAVIGATION PROGRAMME – GALILEO AND EGNOS 

1.3. 

Nature of the proposal/initiative 

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

(cid:133) The proposal/initiative relates to a new action following a pilot project/preparatory action10 

(cid:133) The proposal/initiative relates to the extension of an existing action 

(cid:59) (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 

To  support  the  European  presence  in  space  and  the  development  of  services  relating  to 
satellites  

The satellite navigation programmes (hereinafter 'the programmes') are flagship projects of the 
Union. They aim to provide navigation services and will foster considerable developments in 
numerous sectors of activity, drive technological innovation and growth of competitiveness in 
the European economy and provide a source of job creation, commercial revenue and socio-
economic  benefits.  As  such,  they  form  part  of  the  Europe  2020  strategy  and  policies  for 
sustainable development.  

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. 

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-

9 
10 

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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critical  applications  such  as  flying  and  landing  aircraft  or  navigating  ships  through  narrow 
channels in air or maritime transport. 

Based  on  the  governance  structure  proposed  by  the  Commission  in  its  proposal  for  a 
regulation  on  the  implementation  and  exploitation  of  the  European  satellite  navigation 
programmes11  governance  structure  supported  by  the  Council  in  its  partial  general  approach 
agreed  on  7  June  2012  and  by  the  European  Parliament,  the  European  GNSS  Agency 
(hereafter  the  "Agency")  will  become  a  major  stakeholder  in  the  exploitation  phase  of  the 
programmes.  

Nevertheless,  considering  that  the  Regulation  on  the  implementation  and  exploitation  of  the 
European satellite navigation systems (hereafter "GNSS Regulation") has not been adopted yet 
– it is currently under discussion at the level of the Budgetary Authority – and is subject to the 
final  decision  on  the  content  of  the  next  multiannual  financial  framework,  some  of  the 
hypotheses used to prepare the present legislative financial statement are not definitive. 

1.4.2. 

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

Considering this more active role of the Agency in the exploitation phase of the programmes, 
the present proposal aims to reinforce the independence of the Security  Accreditation Board 
(one  of  the  three  bodies  of  the  Agency)  and  to  provide  the  appropriate  financial  and  human 
ressources to perform the tasks allocated to the Agency. 

1. Security accreditation: 

Due  to  their  strategic  importance,  the  European  satellite  navigation  systems  are  critical 
infrastructures. They could be misused, threatening the security of the Union and of Member 
States.  Moreover,  any  interruption  of  their  services  could  lead  to  significant  losses  for  the 
European economy as more and more economic sectors are dependent on satellite navigation. 

To  guarantee  the  security  of  the  systems,  an  independent  security  accreditation  needs  to  be 
performed and is crucial for the systems. Such accreditation ensures that the security measures 
are  adequate  to  defend  the  system  against  threats  and  vulnerabilities,  that  the  system  itself 
does not meet any unacceptable risk during its lifecycle and that the system itself can process, 
store  or  forward  sensitive  or  classified  information  without  unacceptable  risks,  according  to 
specific conditions.  

As the Agency will be more involved in the implementation of the programmes under the new 
governance  structure,  the  separation  between  activities  relating  to  security  accreditation  and 
the other activities of the Agency needs to be reinforced to avoid conflict of interest between 
these activities and safeguard the independence of security accreditation. 

2. Market development and applications development: 

The  agency  should  contribute  to  the  commercialisation  of  Galileo  and  EGNOS  services  to 
foster  their  uptake.  As  regards  commercialisation  of  services,  the  latter  is  very  important  to 
maximise the socio-economic benefits expected from the systems. 

11 

COM(2011) 814 final 

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3.  Operation  of  the  Galileo  Security  Monitoring  Centres  and  PRS  applications 
development: 

The Agency will be responsible for the operations of the GSMC (Galileo Security Monitoring 
Centre).  

The GSMC is considered to be the 'brains' of the Galileo system as regards overall security. It 
is a critical operational centre for the system. It will be able to analyse and respond to threats 
or attacks. It will therefore have to be operational prior to the Galileo services being up and 
running and needs to be operated 24 hours per day, seven days per week by qualified experts. 
It is based at two geographical sites located in Saint Germain en Laye in France and Swanwick 
in the United Kingdom. 

4. Exploitation of the systems: 

The objective of the exploitation of the systems is to provide high quality services to satisfy 
users'  needs  and  to  take  all  measures  for  their  widest  and  fastest  adoption.  An  appropriate 
setting-up of the exploitation is critical to ensure the long term running of the systems and the 
maximisation of socio-economic benefits. 

The  governance shall  be tailored  to the different programmes (Galileo and  EGNOS) as they 
are  at  different  stages  of  development  and  to  the  phases  of  the  programmes  to  avoid 
disruption.  While  EGNOS  is  already  operational  and  in  its  exploitation  phase,  Galileo  will 
soon start a crucial step in its development with the provision of services which will mark the 
beginning of its exploitation phase. 

With respect to EGNOS, 

- its exploitation phase started in October 2009; 

-  the  management  of  EGNOS  exploitation  is  currently  under  the  responsibility  of  the 
Commission. The latter will be transferred to the Agency on 1 January 2014, with a gradual 
phasing-in envisaged as from 2012 onwards;  

-  in  the  new  governance  framework  (from  2014  onwards),  the  Agency  will  manage  all 
EGNOS exploitation-related activities from 2014 and will outsource specific operational tasks 
to other entities, in particular the EGNOS operator.  

With respect to Galileo, 

- different phases of the programme will overlap in the coming years; 

- during the on-going deployment phase of the programme, the current set-up will remain in 
place  to  ensure  continuity  and  consistency;  the  Commission  will  remain  responsible  for  the 
completion of the Galileo's infrastructure;  

-  during  the  exploitation  phase,  which  should  start  in  2014  with  the  provision  of  initial 
services,  the  Agency  will  progressively  manage  exploitation-related  activities  under  a 
delegation  agreement  with  the  Commission.  The  Agency  will  ensure  the  coordination  of  all 
the  tasks  relating  to  the  exploitation  of  the  system  such  as  maintenance,  operations,  service 

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provision  and  the  implementation  of  future  generation  of  systems,  as  well  as  supporting  the 
definition  of  system  requirements  for  future  systems  by  providing  feedback  on  changing 
operational needs and users' requirements. This exploitation phase of Galileo constitutes a new 
programme  phase  and  is  subject  to  a  delegation  of  programme  management  from  the 
Commission to the Agency.  

To  perform  tasks  relating  to  the  exploitation  of  the  systems,  the  Agency  will  need  to  be 
sufficiently staffed. To ensure service continuity and a smooth start of the exploitation phase 
of Galileo in 2014, it is also crucial that the appropriate transition period is implemented prior 
to 2014. 

Specific objective 

To  develop  and  provide  infrastructure  and  services  based  on  satellite  radio-navigation 
(Galileo)  

ABM/ABB activities concerned 

02 05 SATELLITE NAVIGATION PROGRAMME – GALILEO AND EGNOS 

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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  reap  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 
spillover  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. 

Managing the exploitation of the systems, as well as security accreditation, the Agency will be 
the cornerstone of service provision. It will also be a major stakeholder to foster downstream 
market development. As such, the Agency performance will have a direct impact on the socio-
economic benefits expected from the systems. 

1.4.4. 

Indicators of results and impact 

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

Indicators  for  monitoring  the  performance  of  the  Agency  will  be  set  based  on  the  type  of 
activity as follows: 

1. Security accreditation: 

The Agency needs to ensure the successful completion of the security accreditation activities 
on time for each milestone of the Galileo programme (e.g. to allow each launch of satellites). 

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Its implementation will be evaluated based on its contribution to the successful deployment of 
the infrastructure and on the number of audit/security checks performed every year.  

These checks consist of detailed technical examination by or for the appropriate authority, or 
its  nominated  competent  representatives,  of  the  security  aspects  of  the  system,  of  a 
cryptographic  or  a  computer  security  product.  The  evaluation  confirms  the  presence  of 
required  security  functionality  and  makes  an  assessment  of  the  incorruptibility  of  such 
functionality.  The  evaluation  determines  the  extent  to  which  the  security  requirements  of  a 
system are satisfied and establishes the assurance level of the system. 

The  number  of  checks  depends  on  the  progress  made  and  on  the  deployment  of  ground 
stations. 

It is estimated that around 10 checks will be performed yearly between 2013 and 2015, and 5 
between 2016 and 2020.  

2. Market development and applications development: 

Activities relating to the performance of the Agency with regard to the commercialisation of 
the services will be evaluated based on the market uptake of the services provided be EGNOS 
and Galileo with specific indicators to be developed by services once they become operational 
such  as  the  number  of  airports  with  EGNOS-based  approach  procedures,  the  number  of 
tractors equipped with EGNOS receivers and the estimated total socio-economic benefits from 
the systems. 

So far 82 airports have developed EGNOS-based approach procedures. The aim is for 50% of 
all the appropriate relevant airports to have developed EGNOS-based approach procedures by 
2020. 

3.  Operation  of  the  Galileo  security  monitoring  centres  and  PRS  applications 
development: 

These  operations  can  be  measured  with  an  indicator  of  the  number  of  operational  processes 
put  in  place.  The  aim  is  for  a  figure  of  500  to  be  reached  in  2016.  As  the  centres  are  not 
operational yet, no processes are in place today. 

4. Exploitation of the systems: 

According  to  the  proposal  for  a  regulation  on  the  implementation  and  exploitation  of  the 
European satellite navigation systems, activities relating to the exploitation of the systems will 
be based on a delegation agreement between the Commission and the Agency. This delegation 
agreement  will  detail  the  operational  indicators  for  monitoring  the  implementation  of  these 
activities as it is currently the case for EGNOS. 

1.5. 

Grounds for the proposal/initiative 

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

In light of current figures on the development of the Agency, it is not possible to carry out the 
new tasks included in the proposal for a regulation on the implementation and exploitation of 

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the European satellite navigation systems, in particular with regard to their exploitation. The 
financial statement should therefore be revised to adapt to the reality of the agency's staffing 
needs.  

Moreover,  it  should  be  noted  that  the  implementation  of  the  proposed  governance  model 
requires  the  Agency  to  have  appropriate  technical  and  operational  staff  with  high  level 
expertise in a very specialised area. The organisational set-up of the Agency should also build 
on the specificities of the activities to be performed. 

Although the Agency will not perform all the activities internally and will outsource a large 
number of tasks relating to service provision and the development of major modifications and 
new  generations  of  systems,  it  needs  to  be  staffed  with  the  appropriate  technical  experts  to 
manage  necessary  procurement,  control  outsourced  activities  and  prepare  high  quality 
reporting  to  the  Commission.  Considering  the  complexity  of  the  programmes,  it  is  also 
important  to  avoid  intellectual  hazard.  Intellectual  hazard  could  prevent  the  appropriate 
acquisition, communication, process and implementation of information crucial to the success 
of the operations and therefore poses a threat to the smooth, orderly, and efficient functioning of 
the programmes. 

The  extra  staff  will  be  funded  by  a  redeployment  within  the  budget  headings  of  the  GNSS 
programmes. 

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. 

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. 

1.5.3.  Lessons learned from similar experiences in the past 

Not relevant. 

1.5.4.  Coherence and possible synergy with other relevant instruments 

Synergies are possible with other existing or future space programmes, e.g. for the expansion 
of user segments (applications for the downstream market). 

Synergies  shall  also  be  sought  within  the  other  directorates  of  the  European  Commission  as 
regards  research  and  innovation.  Applications  and  technologies  using  satellite  navigation 
systems can impact various sectors of the economy and of society such as transport, energy, 
location  based  services,  banking,  agriculture,  etc.  It  is  important  to  ensure  that  research  and 

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innovation programmes are coordinated by the Commission to maximise the socio-economic 
benefits expected from the programmes in those sectors of activities.  

Furthermore,  cooperation  with  the  Joint  Research  Centre  should  be  strengthened.  The 
programmes could benefit from its scientific and technical expertise, as well as its state-of-the-
art  testing  and  measurement  facilities  for  activities  relating  to  the  security  of  the  GNSS 
systems and the development of GNSS-based applications. 

1.6. 

Duration and financial impact 

(cid:133) Proposal/initiative of limited duration 

–  (cid:133)  Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY 

–  (cid:133)  Financial impact from YYYY to YYYY 

(cid:59) Proposal/initiative of unlimited duration 

–  Implementation with a start-up period from 2014 to 2016, 

–  followed by full-scale operation. 

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1.7.  Management mode(s) envisaged12 

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

–  (cid:133)  executive agencies 

–  (cid:59)  bodies set up by the European Union13 

–  (cid:133)  national public-sector bodies/bodies with public-service mission 

–  (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) Joint management with international organisations (to be specified) 

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

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.  The  GNSS 
Regulation, currently under discussion by the Council and the European Parliament, aims to define this 
governance framework. 

As  already  mentioned  in  the  GNSS  Regulation  proposal,  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  phase  and  the  exploitation  phase 
safeguarding continuity of services.  

12 

13 

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. 

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2. 

MANAGEMENT MEASURES 

2.1.  Monitoring and reporting rules 

Specify frequency and conditions. 

For  its  core  activities,  the  Agency  will  apply  monitoring  and  reporting  rules  defined  in  the 
Common Approach on decentralised agencies agreed between the Commission, the European 
Parliament and the Council. The Agency will therefore propose: 

-  a  strategic  framework  (multiannual  work  programme)  including  main  actions,  estimated 
budget and time-table necessary to meet its objectives at the latest by 30 June 2014; 

-  an  annual  work  programme  translating  the  strategic  framework  into  detailed  measures  and 
indicators to be proposed at the latest by 15 November of the preceding year; 

- an annual report evaluating the completion of the annual work programme; 

In  addition,  every  five  years  the  Agency's  performance  will  be  evaluated  according  to  its 
objectives and mission. Its legitimacy will also be re-evaluated every ten years. 

Beyond  these  standard  measures,  for  tasks  delegated  to  it  by  the  Commission,  the  Agency 
should ensure that all contracts and agreements concluded in the framework of the Galileo and 
EGNOS programmes will provide for supervision and financial control. Particular focus in all 
monitoring  and  evaluation  mechanisms  should  be  on  containing  programmes'  cost  while 
delivering the services on schedule. 

In addition, the Commission, in exercising its powers of political supervision over the Galileo 
and  EGNOS  programmes,  will  strengthen  the  monitoring  and  evaluation  mechanisms  by 
requesting  detailed  annual  management  plans  and  implementation  reports  as  well  as 
organising regular programme progress meetings and carrying out financial and technological 
audits. 

Finally,  in  the  day-to-day  management,  the  Agency  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 Agency will be responsible for activities crucial for the systems, their security and their 
market uptake.  

If it cannot have the appropriate organisational set-up and staff to perform these activities the 
overall programmes will be at risk. 

The major risks identified are the following: 

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•  Market  risks:  market  adoption  of  the  services  offered  by  the  European  satellite  navigation 
systems depend on two major factors: the quality of the services offered and the readiness of 
the  market  to  take  on  the  new  services  offered.  Technical  performance  inferior  to  that 
promised  or  service  disruption  will  have  a  negative  effect  among  users  worldwide,  and  the 
infrastructure  will  not  be  used  as  a  result.  Therefore  it  is  crucial  that  the  exploitation  of  the 
systems is efficient. In addition, the availability of reliable receivers must be ensured for all 
services to be offered by Galileo, especially the Public Regulated Service and users awareness 
about  the  services  provided  by  Galileo  and  EGNOS  must  be  raised  to  maximise  market 
adoption and hence the socio-economic benefits expected from the systems. 

•  Technological  risks:  satellite  navigation  uses  leading-edge  technology  which  has  yet  to  be 
validated and the specifications of which are constantly evolving. Effective processes have to 
be put in place to ensure that systems evolution and new generations are based on users' latest 
needs  and  most  high-performance  technologies.  The  Agency  needs  to  have  the  appropriate 
resources  to  put  it  place  these  processes  and  provide  the  necessary  information  to  the 
Commission in order to determine the priorities as regards mission evolution. 

• 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. Lack of resources within 
the Agency could lead to delays and cost overruns, if the programmes cannot be coordinated 
effectively. 

•  Security  risks:  the  Agency  must  see  to  it  that  the  security  of  the  systems  is  safeguarded 
effectively to guarantee the security of the Union and Member States. 

•  Governance  risk:  governance  of  the  programmes  requires  various  bodies  to  work  together, 
and an appropriate degree of stability and organisation has to be guaranteed. The Agency will 
have  a  major  role  in  the  exploitation  of  the  programmes  and  as  such,  it  represents  a  major 
governance risk if it cannot operate efficiently. 

2.2.2.  Control method(s) envisaged 

The  Agency’s  accounts  will  be  submitted  for  the  approval  of  the  Court  of  Auditors,  and 
subject  to  the  discharge  procedure.  The  Commission’s  Internal  Audit  Service  will  be  the 
Agency's  internal  auditor.  In  addition,  the  Agency  is  working  towards  quality  and  security 
certification of its key processes as from 2014. 

2.3.  Measures to prevent fraud and irregularities 

Specify existing or envisaged prevention and protection measures. 

The Agency is subject to monitoring by the Anti-Fraud Office. 

EN 

37 

   EN 

 
3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 

3.1. 

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 

Heading of 
multiannual 
financial 
framework 

Number  
[Description…...……………………………] 

Type of 
expenditure

Diff./non-
diff. 
(14) 

Participation 

from 
EFTA 
countries
15 

from 
candidate 
countries16 

from third 
countries 

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

02.0502.01 

European  GNSS  Agency  (GSA)  – 
Titles 1 and 2 

1 

02.0502.02 

Diff. 

YES 

NO 

NO 

NO 

European  GNSS  Agency  (GSA)  – 
Title 3 

•  New budget lines requested 

In order of multiannual financial framework headings and budget lines. 

Heading of 
multiannual 
financial 
framework 

Budget line 

Type of 
expenditure

Participation 

Number  
[Description…...…………………………….] 

Diff./non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

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

No new budget headings requested. 

14 
15 
16 

= Differentiated appropriations / Non-diff. = Non-Differentiated Appropriations 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 

EN 

38 

   EN 

 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2. 

Estimated impact on expenditure 

Before  going  into  the  details  of  the  estimated  impact  of  the  present  proposal,  it  is  important  to  highlight  that  this  estimated  impact  is 
provisional  at  this  stage  as  it  is  subject  to  the  adoption  of  the  new  Multiannual  Financial  Framework  2014-202017  by  the  Budgetary 
Authority.  

Furthermore, some of the hypotheses used to prepare the present legislative financial statement are not definitive. The governance structure 
of  the  programmes  and  the  subsequent  missions  of  the  Agency  are  not  defined  in  the  present  legislative  proposal  but  in  the  GNSS 
Regulation, which is currently under discussion by the European Parliament and the Council. The need for more personnel is related to the 
new tasks allocated to the Agency in the GNSS Regulation. 

Therefore, the Commission reserves its right to amend the present proposal if major changes occur in the governance or in the financing of 
the programmes. Hence, if the Budgetary Authority decides to drastically cut the budget allocated to the programmes, the tasks and the staff 
allocated to the Agency will have to be re-assessed. Similarly, if the Budgetary Authority decides to assign additional tasks to the Agency, 
staff allocation will also need to be re-evaluated. For example, the draft report of the European Parliament on the proposal for a regulation 
on the implementation and exploitation of the European satellite navigation systems18 (rapporteur: Marian-Jean Marinescu] provides for the 
Agency to be responsible for the management of centres of excellence to promote the development and uptake of GNSS applications, on top 
of the other tasks assigned to it in the Commission's proposal. 

17 
18 

A Budget for Europe 2020 – COM(2011) 500 
PE489.561v02-00 

   EN 

39 

                                                                               EN 

 
                                                 
3.2.1. 

Summary of estimated impact on expenditure 

Heading of multiannual financial 
framework: 

Number  Heading 1 – Smart and Inclusive Growth 

EUR million (to 3 decimal places) 

[Body]: <…….> 

Budget  heading  02.050201  European 
GNSS Agency (GSA) – Titles 1 and 2 

Budget  heading  02.0502  European 
GNSS Agency (GSA) – Title 3 

Commitments 

Payments 
Commitments 

Payments 

TOTAL appropriations 
for GSA 

Commitments 

Payments 

(1) 

(2) 
(1a) 

(2a) 

=1+1a 
-3a 

=2+2a 

-3b 

201319
20 

11.087
21 
11.087 
2.363 

2014 

2015 

2016 

2017 

2018 

2019 

18.632 

21.495 

22.710 

22.272 

24.623 

24.497 

2020 

25.239 

18.632 
6.550 

21.495 
6.150 

22.710 
6.100 

22.272 
6.150 

24.623 
6.800 

24.497 
6.800 

25.239 
6.300 

2.363 

6.550 

6.150 

6.100 

6.150 

6.800 

6.800 

6.300 

TOTAL 
2014-2020 

159.468 

159.468 
44.85 

44.85 

13.450 

25.182 

27.645 

28.810 

28.422 

31.423 

31.297 

31.539 

204.318 

13.450 

25.182 

27.645 

28.810 

28.422 

31.423 

31.297 

31.539 

204.318 

19 

20 

21 

This amount differs from the budget of the Agency for 2013 as it takes into account the financing of 20 additional posts in 2013 by redeployment of the GNSS 
programmes. The Commission will submit a proposal to the Budgetary Authority during 2013. 
The  repayment  of  the  balance  of  the  outturn  account  is  added  to  this  total  (0.709)  and  the  contribution  from  third  countries  (0.325).  Thus,  the  available 
appropriations total is 14.484 for 2013. 
This amount includes 1.75 for the funding of 20 additional posts in 2013. The estimate used consists of 6 months of salaries for 2013 due to the recruitment 
time needed for the 20 new posts. 

   EN 

40 

                                                                               EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
The Agency's budget for 2014-2020 has already been included in the Commission's proposal for the new MFF 2014-2020. The new tasks 
and associated costs will be financed through a redeployment of the GNSS programme as initially planned for the years 2014-2020. The 
impact will be as follows and amounts to EUR 117.1 million. 

Budget  heading  02.0501  European 
programmes 
navigation 
satellite 
(EGNOS and Galileo) 

TOTAL appropriations for the GSA in the 
current MFF 

Commitments 

Payments 

Commitments 

Payments 

(3a) 

(3b) 

=1+1a 
+3a 

=2+2a 

+3b 

-1.750 

-13.482 

-15.645 

-16.610 

-16.022 

-18.723 

-18.297 

-18.339 

-117.118 

-1.750 

-13.482 

-15.645 

-16.610 

-16.022 

-18.723 

-18.297 

-18.339 

-117.118 

11.700 

12.000 

12.200 

12.400 

12.700 

13.000 

13.200 

87.200 

11.700 

12.000 

12.200 

12.400 

12.700 

13.000 

13.200 

87.200 

Heading of multiannual financial 
framework: 

5 

'Administrative expenditure' 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

insert as many columns as 
necessary in order to reflect the 
duration of the impact (see point 
1.6) 

TOTAL 

EUR million (to 3 decimal places) 

DG: <…….> 

(cid:121) Human resources 
(cid:121) Other administrative expenditure 

TOTAL DG <…….> 

Appropriations 

0 

0 

0 

   EN 

41 

                                                                               EN 

 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework 

(Total 
= Total payments) 

commitments 

EUR million (to 3 decimal places) 

Year 
N22 

Year 
N+1 

Year 
N+2 

Year 
N+3 

insert as many columns as 
necessary in order to reflect the 
duration of the impact (see point 
1.6) 

TOTAL 

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

Commitments 

Payments 

0 

0 

22 

Year N is the year in which implementation of the proposal/initiative starts. 

   EN 

42 

                                                                               EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.2.  Estimated impact on appropriations of the GSA Agency – breakdown by objective and by heading 

Commitment appropriations in EUR million (to 3 decimal places) 

Indicate 

objectives and 
outputs 

Year 
2013 

Year 
2014  

Year 
2015 

Year 
2016 

Year 

2017 

Year 

2018 

Year 

2019 

Year 

2020 

OUTPUTS Type of output 

(cid:216) 

Type of 
output 

Averag
e cost 

Nu
mbe
r of 
outp
uts 

Total 
cost 

Num
ber 
of 
outp
uts 

Total 
cost 

Num
ber of 
outpu
ts 

Total 
cost 

Num
ber of 
outpu
ts 

Total 
cost 

Num
ber of 
outpu
ts 

Total 
cost 

Num
ber of 
outpu
ts 

Total 
cost 

Numb
er of 
output
s 

Num
ber of 
outpu
ts 

Tota
l 
cost

Total 
cost 

Objective No 1 GNSS Security 
Accreditation 

Titles 1 and 2 

Title 3 

Sub-total for specific objective N°1 

Objective No 2 Market development and 
applications development, including 
quality certification and GNSS 
communication 

Titles 1 and 2 

Title 3 

Sub-total for specific objective N°2 

Objective No 3 Operation of the Galileo 
security monitoring centres and PRS 
applications development 

Titles 1 and 2 

2.123 

1.043 

3.166 

1.415 

664 

2.079 

2.749 

1.400 

4.149 

1.833 

3.750 

5.583 

2.804 

1.400 

4.204 

1.869 

3.250 

5.119 

2.762 

1.400 

4.162 

1.688 

3.200 

4.888 

2.637 

1.400 

4.037 

1.612 

3.250 

4.862 

2.878 

1.400 

4.278 

1.759 

3.750 

5.509 

2.845 

1.400 

4.245 

1.739 

3.750 

5.489 

2,912 

1,400 

4.312 

1,780 

3.250 

5.030 

3.303 

5.193 

5.763 

6.138 

5.861 

6.396 

6.322 

6.472 

  EN 

43 

                                                                               EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Title 3 

Sub-total for specific objective N°3 

Objective No 4 Exploitation of the 
GNSS Systems 

Titles 1 and 2 

Support (Procurement, Finance, HR, 
Project and control management, Legal, 
Communication) 

Titles 1 and 2 

TOTAL COST GSA 

656 

3.959 

1.400 

6.593 

1.500 

7.263 

1.500 

7.638 

1.500 

7.361 

1.650 

8.046 

1.650 

7.972 

1.650 

8.122 

1.750 

6.567 

8.878 

9.974 

10.110 

11.352 

11.379 

11.811 

2.496 

2.291 

2.181 

2.148 

2.051 

2.238 

2.213 

2.265 

13.450 

25.182 

27.645 

28.810 

28.422 

31.423 

31.297 

31.539 

The assumptions for which the Agency's budget is calculated from 2013 to 2020 are the following: 

– 

– 

The new GNSS Regulation, currently under final discussion between the European Parliament and the Council, is to be adopted according 
to the terms proposed by the Commission. If that is the case, management of EGNOS exploitation should be transferred to the Agency and 
the programme management of the exploitation phase of Galileo should be delegated to the Agency from 01/01/2014. These major tasks 
require  appropriate  staffing  and  budgetary  resources  for  the  Agency  in  order  to  achieve  the  different  programme  milestones.  The  GNSS 
programme requirements and their development ought to entail an expansion of the Agency, which should be particularly fast until 2016 
and gradual thereafter. 

The set up of the Galileo Security Monitoring Centres in France and the United Kingdom is currently under preparation. Full deployment is 
expected to take place in 2013 and 2014 and operational validation tests lasting 24 months are to begin at this time, which explains the need 
for  certain  additional  staff  and  one-off  costs  in  2014.  The  need  for  this  centre  has  been  highlighted  in  particular  during  the  detailed 
preparation work for the services. This centre must be equipped with qualified operators who will use the software and equipment with in-
depth knowledge of the security aspects of the system and who must be trained in the services' deployment and progressive supply phase. In 
particular, they must also meet requirements in terms of access to PRS (Public Regulated Service) for PRS users. They must also draw up 
operational procedures and monitor and manage security incidents across the whole system. 

  EN 

44 

                                                                               EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
– 

– 

– 

– 

– 

– 

– 

Rental costs for the Agency in Prague are free of charge until June 2017. After that, the Agency will have to pay, 25% of the commercial 
market value of the offices as rental costs to the Czech Authorities. An estimation has been carried out based on real Prague prices. Apart 
from headquarters, the Agency will have to cover other rental costs for additional locations where the Agency will perform its tasks i.e., in 
France  (St.  Germain  en  Laye,  Toulouse),  in  the  United  Kingdom  (Swanick)  and  in  the  Netherlands  (ESTEC  Centre,  European  Space 
Agency). 

Staff  costs  of  the  Agency  are  calculated  based  on  the  Commission  average  costs.  They  include  a  relatively  low  turnover  of  staff  and  an 
average entry into service for new recruits of April each year. Cost of living coefficients are also taken into account (Prague is 15% below 
Brussels coefficient, while France is 16% above Brussels coefficient). 

Costs  subject  to  an  estimated  3%  inflation  annual  increase  are  salaries,  rental  costs,  IT  costs  and  services  provided  by  the  Commission, 
postage  and  telecommunications.  The  other  costs  have  not  been  affected  by  inflation,  which  leads  to  a  reduction  in  real  costs  for  the 
Agency. 

Current administrative costs have been calculated based on real costs in 2011 and 2012, without increase due to inflation. 

In 2012 and 2013, the Agency IT networks and IT equipments are being fully renovated due to the relocation of the Agency's headquarters 
to Prague in September 2012. Based on depreciation and usability, a renewal of such equipment is expected in 2018, both for headquarters 
and for the Galileo Security Monitoring Centres. 

During the period 2014-2020 some of the most important communication activities will take place e.g., launch of Galileo early services in 
2014-2015, Galileo full operational capabilities in 2018-2019. These major events will also require more segment markets to be included in 
the Agency's full campaigns, and a major revamp in existing websites and communication tools (including real time content enhancement). 

Costs are calculated on the assumption that the reinforcement of security accreditation independence defined in the present proposal vis-à-
vis the Agency's other tasks will not lead to a duplication of central administrative services. 

  EN 

45 

                                                                               EN 

 
The table here below illustrates the detailed budget of GSA for the period 2013-2020. 

2012

2013

2014-2020

Budget 
line

Heading

2012

DB 2013

Additional 
budget 2013

Revised 
2013

2014

2015

2016

2017

2018

2019

2020

TOTAL

Title 1 - Staff expenditure

1100

Staff expenditure

6,149,109

6,575,000

1,280,000

7,855,000

10,892,552

12,357,217

14,447,117

14,352,913

14,985,347

15,539,313

16,121,796

98,696,255

Tuition fees

350,000

350,000

15,000

365,000

665,000

770,000

1,440,000

1,465,000

1,485,000

1,505,000

1,530,000

8,860,000

1200 Recruitment costs

1300 Missions and travel

1400

Training expenditure

1700 Representation expenditure

70,000

105,000

125,000

230,000

310,000

310,000

310,000

70,000

70,000

70,000

70,000

1,210,000

400,000

385,000

20,000

405,000

650,000

600,000

700,000

700,000

700,000

700,000

700,000

4,750,000

65,000

5,000

70,000

5,000

8,000

78,000

300,000

342,000

362,000

362,000

362,000

362,000

362,000

2,452,000

0

5,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

70,000

Total for title 1

7,039,109

7,490,000

1,448,000

8,938,000

12,827,552

14,389,217

17,269,117

16,959,913

17,612,347

18,186,313

18,793,796

116,038,255

Title 2 - Administrative expenditure

2000 Rental of buildings

2100 Data processing

2200 Movable property

2,050,000

895,000

200,000

184,000

2300 Current administrative costs

485,000

330,000

2400

Postage and telecommunication costs

2500 Meetings

80,000

71,287

150,000

85,000

716,505

540,000

290,000

830,000

2,277,000

4,936,310

3,186,855

3,289,461

4,031,895

4,152,852

4,277,437

26,151,810

0

0

7,000

5,000

895,000

2,199,800

999,700

879,481

821,145

1,769,696

940,535

943,665

8,554,022

184,000

385,000

133,000

270,000

50,000

50,000

50,000

50,000

988,000

337,000

720,000

800,000

840,000

900,000

900,000

900,000

900,000

5,960,000

155,000

157,680

171,433

199,364

186,201

194,488

202,409

209,198

1,320,773

0

85,000

65,000

65,000

65,000

65,000

65,000

65,000

65,000

455,000

Total for title 2

3,602,792

2,184,000

302,000

2,486,000

5,804,480

7,105,443

5,440,701

5,311,807

7,011,079

6,310,796

6,445,300

43,429,605

Total for titles 1 and 2

10,641,901

9,674,000

1,750,000

11,424,000

18,632,032

21,494,660

22,709,818

22,271,720

24,623,425

24,497,109

25,239,096

159,467,860

Title 3 - Operational expenditure

3100

Studies and operations

726,747

1,710,000

3300

SAB operational expenditure

1,370,000

1,350,000

Total for title 3

2,096,747

3,060,000

0

0

0

1,710,000

5,150,000

4,750,000

4,700,000

4,750,000

5,400,000

5,400,000

4,900,000

35,050,000

1,350,000

1,400,000

1,400,000

1,400,000

1,400,000

1,400,000

1,400,000

1,400,000

9,800,000

3,060,000

6,550,000

6,150,000

6,100,000

6,150,000

6,800,000

6,800,000

6,300,000

44,850,000

TOTAL titles 1, 2 and 3

12,738,648

12,734,000

1,750,000

14,484,000

25,182,032

27,644,660

28,809,818

28,421,720

31,423,425

31,297,109

31,539,096

204,317,860

  EN 

46 

                                                                               EN 

 
 
3.2.3.  Estimated impact on the Agency's human resources  

3.2.3.1.  Summary  

–  (cid:133)  The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature. 

–  (cid:59)  The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below: 

EUR million (to 3 decimal places) 

2013 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

TOTAL 

Officials (AD 
Grades) 

Officials  (AST 
grades) 

Contractual 
agents 

Temporary agents 

Seconded 
National Experts 

1.125 

1.276 

1.376 

1.393 

1.435 

1.478 

1.522 

9.606 

9.768 

11.081 

13.071 

12.960 

13.550 

14.061 

14.599 

89.090 

TOTAL 

10.893 

12.357 

14.447 

14.353 

14.985 

15.539 

16.122 

98.696

The main assumptions used to calculate staff costs are the following: 

- TAs rates = Commission average rate (9 5000 EUR + inflation) 

- CAs rate = = Commission average rate (mix of FGIII and FGIV = 40 000 EUR + inflation)  

- Inflation of 3% per year 

- Existing costs of staff reduced by 3% due to rotation 

- New recruited staff cost reduced by 25% - average entry into service 1 April 

-  Installation  costs  according  to  Staff  Regulations:  Installation  allowance,  daily  allowance 
(only three months), removal costs, travelling costs. 

EN 

47 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Agency's staff required 2013-2020 (in number of FTEs) 

2013 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

Temporary agents  

SNEs / CAs 

TOTAL 

77 

17 

94 

97 

25 

109 

117 

121 

123 

124 

125 

29 

31 

31 

31 

31 

31 

122 

138 

148 

152 

154 

155 

156 

The Agency's staff by activity (in number of FTEs) 

2013 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

Staff directly assigned 
to 
of 
exploitation 
GNSS systems 

Staff directly assigned 
to the GSMC  

Staff  for  core  GSA 
tasks (existing tasks)  

TOTAL 

20 

28 

46 

94 

43 

34 

45 

57 

37 

44 

65 

40 

43 

69 

40 

43 

71 

40 

43 

72 

40 

43 

73 

40 

43 

122 

138 

148 

152 

154 

155 

156 

The Agency's staff by activity (as a % of the total) 

2013 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

21% 

35% 

41% 

44% 

45% 

46% 

46% 

47% 

30% 

29% 

27% 

26% 

26% 

26% 

26% 

26% 

49% 

36% 

32% 

30% 

29% 

28% 

28% 

27% 

%  of  GSA 
assigned 
exploitation 

staff 
to 

Percentage  of  GSA 
staff  assigned  to  the 
GSMC 

Percentage  of  GSA 
staff  assigned  to  core 
GSA  tasks  (existing 
tasks)  

TOTAL 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

As previously outlined, the Agency will be responsible for a mix of tasks, some of which are 
new and some of which are a continuation of its current activities. The reduction of 5% of the 
staff  allocated  to  current  tasks  of  the  Agency  has  been  applied,  leading  to  a  reduction  of  3 
FTEs for its current tasks. This is reflected in the decrease of 1 FTE in 2014, 2015 and 2016 
respectively. 

EN 

48 

   EN 

 
 
 
 
 
 
 
The  Agency's  staff  requirements  have  been  assessed  by  the  Commission  after  consultation 
with the Agency and on the basis of a study detailing all the activities to be carried out for the 
exploitation of the programmes23. 

23 

This study was performed by the consultant company Roland Berger in 2011 for EGNOS and 2012 for 
Galileo.  The  outcome  of  the  study  was  a  Work  Breakdown  Structure  of  the  activities  necessary  to 
ensure the exploitation of the systems and the human resources required for each task. An outline of the 
main tasks to be performed by the Agency has been included in the description of tasks to be carried 
out. 

EN 

49 

   EN 

 
                                                 
Description of tasks to be carried out: 

Officials 
agents 

and 

temporary 

1. Security Accreditation of the GNSS systems (Agency's core task) 

2.  Management  of  the  Galileo  Security  Monitoring  Centres  (Agency's 
core task, which will be further increased mainly in 2014, following the 
initial posts in 2012 and 2013) 

3.  Market  Development,  GNSS  applications  development  including 
PRS  user  technology  development  (Agency's  core  task  with  possible 
additional delegated tasks) 

4. GNSS Communication (Agency's core task)  

5.  Exploitation  of  the  GNSS  systems  (new  delegated  task  –  tasks 
relating  to  EGNOS  exploitation  constitute  a  transfer  of  responsibility 
from  the  Commission  to  the  Agency  while  tasks  relating  to  Galileo's 
exploitation phase constitute programme management tasks delegated to 
the Agency). 

The activities to be carried-out during the exploitation phase have been 
identified  and  structured  into  a  Work  Breakdown  Structure  (WBS). 
Responsibility  for  all  exploitation  activities  will  be  delegated  to  the 
Agency, which must ensure their coordination but not necessarily their 
execution.  It  should  be  noted  that  the  majority  of  these  activities  arise 
from  the  need  to  ensure  the  operations  of  service  provision  and  that 
these  activities  are  not  currently  addressed  in  the  existing  organisation 
of  the  programmes.  Within  the  WBS,  all  activities  relating  to 
exploitation can be structured in the following five strands: 

- 

execution management, mainly consisting in 

o 
detailing  the  high-level  objectives  set  by  the  Commission,  the 
international  or  intergovernmental  agreements  and  the  system  security 
requirements in the form of a technical Mission Requirement Document 

o 

controlling programme planning, cost and risk,  

setting-up  and  following-up  agreements  and  contracts  required 

o 
in programme exploitation;  

- 
programme  engineering,  consisting  of  the  design  of  future 
developments  in  line  with  the  Mission  Requirement  Document  , 
coordinating  system  standardisation  processes,  developing  new 
infrastructure,  qualifying  the  new  infrastructure  (including  software 
release), performing mission engineering and assessing the performance 
of the system; 

- 
infrastructure  management,  relating  to  the  management  of  the 
infrastructure  project,  the  performance  of  system  engineering,  building 
the space and ground infrastructures and deploying system updates; 

- 

operations  and  services  provision,  consisting  of  managing  the 

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50 

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service  provisions,  operating  the  infrastructure  and  monitoring  the 
performance of the operations; 

- 
utilisation of the services through definition and maintenance of 
a market strategy, promotion of the use and adoption of the services and 
fostering of the definition and development of new applications. 

External personnel 

Mostly support/administrative tasks for operations.  

From  2015,  the  share  of  support  staff  amounts  to  16%  of  all  Agency's 
staff,  which  is  in  the  lower  band  of  all  Agencies  and  below  Union 
standard levels (this share is estimated at 25% for Union agencies at full 
cruising speed, and is even higher in the Commission).  

EN 

51 

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The table here below illustrates detailed staff numbers of the Agency for the period 2013-2020: 

Exploitation

Op

Support

Galileo

EGNOS

Galileo

EGNOS

Activities 
already 
assigned to 
GSA 
(source: GSA)

Security accreditation/ 
PRS user segment/ 
Security mgt

Current 
situation 

Adoption and market 
development

Delta in 
following 
plans 

GSMC 

Support (incl. ED 
Office)

Security accreditation/ 
PRS user segment/ 
Security mgt

Adoption & market 
development

GSMC 

Support (incl. ED 
Office)

Grand total

2012

TA

SNE+
CA 

Total

TA

2013

SNE+
CA 

1

1

0

0

10

5

14

13

0

0

0

0

5

7

2

3

1

1

0

0

15

12

16

16

8

9

3

0

13

5

26

13

0

0

0

0

5

7

2

3

2014

SNE+
CA 

3

1

3

1

5

7

2

3

Total

TA

20

15

6

2

25

14

4

1

18

13

12

34

15

5

35

12

2015

SNE+
CA 

7

1

4

1

5

7

2

2

Total

TA

32

15

8

2

31

14

4

1

18

13

12

37

14

4

38

12

2016

SNE+
CA 

8

1

5

1

5

7

2

2

Total

TA

8

9

3

0

17

14

3

1

18

13

12

28

16

5

32

12

Total

TA

39

15

9

2

35

14

4

1

18

13

11

40

14

4

38

12

2017

SNE+
CA 

8

1

5

1

5

7

2

2

Total

TA

43

15

9

2

37

14

4

1

18

13

11

40

14

4

38

12

2018

SNE+
CA 

8

1

5

1

5

7

2

2

Total

TA

45

15

9

2

38

14

4

1

18

13

11

40

14

4

38

12

2019

SNE+
CA 

2020

Total

TA

SNE+
CA 

Total

8

1

5

1

5

7

2

2

46

15

9

2

39

14

4

1

18

13

11

40

14

4

38

12

8

1

5

1

5

7

2

2

47

15

9

2

18

11

40

14

44

17

61

77

17

94

97

25

122

109

29

138

117

31

148

121

31

152

123

31

154

124

31

155

125

31

156

The additional staff required by the exploitation of the systems is essentially composed of AD posts, with less than 10% allocated to management tasks 
(AD10-12). The majority of the posts will be recruited under an AD6-9 grade due to the difficulties involved in recruiting experienced people with 
highly specialised technical skills. 

EN 

52 

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3.2.3.2.   Estimated requirements of human resources for the parent DG 

–  (cid:59)  The proposal/initiative does not require the use of human resources.  

The  proposal  does  not  require  the  Commission  to  make  use  of  additional 
human resources. On the contrary, reductions are planned, as also described in 
paragraph 3.4. 

–  (cid:133)  The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

3.2.4.  Compatibility with the current multiannual financial framework  

–  (cid:59)  The  proposal/initiative  is  compatible  with  the  current  multiannual  financial 
framework  for  2013  and  –  as  regards  future  years  –  with  the  Commission's 
proposal for the 2014-2020 financial framework. 

–  (cid:133)  The proposal/initiative will entail reprogramming of the relevant heading in the 

multiannual financial framework. 

–  (cid:133)  The  proposal/initiative  requires  application  of  the  flexibility  instrument  or 

revision of the multiannual financial framework24. 

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

3.2.5.  Third-party contributions 

–  (cid:59) The proposal/initiative does not provide for co-financing by third parties.  

–  The proposal/initiative provides for the co-financing estimated below: 

24 

See points 19 and 24 of the Interinstitutional Agreement. 

EN 

53 

   EN 

 
                                                 
3.3. 

Estimated impact on revenue  

–  (cid:59)  Proposal/initiative has no financial impact on revenue. 

–  (cid:133)  Proposal/initiative has the following financial impact: 

–  (cid:133) 

on own resources 

–  (cid:133) 

on miscellaneous revenue 

3.4. 

Estimated impact on Commission's human resources  

Although this financial statement concentrates on the effects on the Agency of the delegation 
of  new  responsibilities  for  the  operational  management  of  the  GNSS  Programmes,  it  is 
nevertheless  useful  to  reflect  also  on  the  impact  that  the  future  governance  of  the  GNSS 
Programmes may have on the Commission's human resources. 

As  previously  explained,  the  tasks  newly  assigned  to  the  Agency  are  for  the  most  part  new 
tasks for which there are no equivalents in the current organisational framework of the GNSS 
Programmes.  In  fact,  while  the  tasks  associated  with  the  exploitation  of  EGNOS  are  to  be 
transferred from the Commission to the Agency, the tasks associated with the exploitation of 
the system arising from the Galileo programme delegated to the Agency are new tasks as the 
system is not yet operational. This is because today Galileo is not yet providing any services, 
and the teams involved in the Commission and in the Agency have concentrated their efforts 
on  the  deployment  of  the  infrastructure.  The  transition  to  an  operational  infrastructure,  the 
start  of  provision  of  services  on  which  lives  depend  will  require  entirely  new  activities  and 
additional  personnel.  While  this  will  lead  to  a  combined  Commission  and  Agency  staff 
increase of 31%, the average yearly budget managed between 2007-2013 and 214-2020 will 
increase by 103%. 

For some years to come and until the appropriate milestone is achieved, the Commission will 
continue to be responsible for the deployment of the Galileo infrastructure and will have to 
keep in place the teams that supervise these activities. Thereafter the Commission's role will 
focus  on  the  political  supervision  of  the  programmes,  and  this  is  why  the  Commission  has 
proposed to reduce its  establishment plan by a total of 30 posts  over  the 2014-2020 period. 
This reduction reflects notably: 

2) 

3) 

4) 

the process of transferring EGNOS exploitation activities (the exploitation phase of 
the Galileo programme being a new task) to the Agency will lead to a reduction of 
Commission GNSS staff numbers by 3 FTEs (3.3%); 

the staff decrease decided by the Commission for existing activities will lead to a 
further reduction by 12 FTEs (13%); 

the  principle  of  an  additional  staff  reduction  of  15  FTEs  following  internal 
redeployment in the Commission. 

The change in staff numbers at the Commission for GNSS services is therefore as follows: 

EN 

54 

   EN 

 
Commission staff assigned 
to GNSS tasks 

2013 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

Total 
reduc
tion 

Reduction 

TOTAL 

0 

92 

-3 

89 

89 

89 

-3 

86 

-4 

82 

-5 

77 

0 

-15 

77 

The additional reduction referred to in point 3) above will be distributed on a non-linear basis 
over the seven years. The reduction by 30 posts is independent and therefore in addition to the 
horizontal  reduction  of  5%  in  the  Commission's  workforce  between  2013  and  2017;  these 
posts will all be deducted from the Commission's establishment plan.  

Additional reduction in staff at the Commission 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

Total 
reduc
tion 

-2 

-3 

-3 

-2 

-2 

-2 

-1 

-15 

TOTAL Additional 
reduction in staff at the 
Commission 

These  human  resources  requirements  will  be  covered  by  the  workforce  of  the  DG  already 
responsible  for  managing  the  activity  and/or  redeployed  internally  within  the  DG, 
supplemented, as required, by any additional allocation that could be granted to the managing 
DG  in  the  context  of  the  annual  allocation  procedure  and  in  the  light  of  existing  budgetary 
constraints. 

This  reduction  is  applied  despite  the  Commission's  continued  overall  responsibility  for  the 
GNSS Programmes and despite a number of new tasks intended for the Commission by the 
Council and the European Parliament (as witnessed during the negotiations of the new GNSS 
Regulation),  such  as  the  definition  of  a  new  IPR  policy,  mission  evolution  and  stringent 
reporting  requirements  to  the  GNSS  Committee,  the  Council  and  the  European  Parliament. 
The  Commission  will  endeavour  to  accommodate  these  new  tasks  through  internal 
redeployments.  

Specifically, the Commission's future role can be summarised in the following six blocks of 
activities: 

– 

– 

contributing  to  the  EU's  broader  policy  objectives:  the  goal  is  to  promote  the 
inclusion  of  GNSS  technologies  across  different  areas  of  research  and  their 
considerations  in  sectoral  policy  initiatives  ranging  from  the  modes  of  transport,  to 
agriculture,  personal  mobility,  timing,  energy.  The  purpose  is  to  ensure  that  EU 
policies  in  these  sectors  make  the  best  use  of  the  innovative  potential  and  added 
value of the European satellite navigation systems; 

definition  and  developing  the  high-level  objectives  of  the  Programmes  to  reflect 
policy requirements and those of other stakeholders and users, and translating these 
into programme policy and technical requirements; 

EN 

55 

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– 

– 

– 

– 

defining  and  adapting  the  implementation  conditions.  In  accordance  with  the 
strategic objectives of the Commission with regard to the programmes, measures for 
their implementation, such as delegation agreements, need to be defined, site hosting 
agreements  elaborated  and  appropriate  standards  developed.  Moreover, 
the 
Commission  will  remain  responsible  for  the  security  of  the  systems.  Therefore,  it 
needs to define security requirements and ensure coordination with regard to security 
matters; 

defining  and  developing  the  GNSS-related  policies,  creating  the  regulatory  and 
international environment conducive to achieving the GNSS Programmes' objectives. 
As  part  of  the  work  on  the  regulatory  framework  for  the  GNSS  Programmes,  the 
Commission  will  examine  the  safety  and  security  of  the  GNSS  users,  assess  the 
vulnerability of satellite navigation systems and devices and propose countervailing 
measures,  ensure  the  harmonisation  of  European  radionavigation  services,  increase 
stability  to  allow  industry  to  plan  future  investment,  as  well  as  increase  safety  and 
security (for example with the development of measures to reduce the dependency on 
GPS). In the international domain, it will draft and negotiate international agreements 
and coordinate with international organisations in order to ensure compatibility and 
interoperability with other GNSS systems;  

monitoring of the programmes' implementation.  Although  the Commission will not 
be  responsible  for  the  operational  management  of  the  programmes,  it  retains  the 
overall  responsibility  with  regard  to  their  smooth  progress,  and  it  will  be  held 
responsible  for  any  cost  overrun  or  schedule  delay.  Therefore,  it  is  crucial  that  the 
Commission  closely  monitors  the  implementation  of  the  programmes  by  the 
European  Space  Agency  (for  the  completion  of  the  deployment  phase)  and  by  the 
European  GNSS  Agency  (for  the  exploitation  phase).  Member  States  and  the 
European Parliament have also put forward very stringent requirements for reporting 
through 
the 
Commission will ensure the preparation, presentation and circulation of these reports 
to the GNSS Committee and the Budgetary Authority in particular;  

the  draft  GNSS  Regulation  currently 

in  co-decision.  Finally, 

managing stakeholder relations by providing up-to-date, positive, coherent and useful 
information on the status of implementation of EGNOS and Galileo to stakeholders, 
as well as regular, professional reports for internal and external audiences. 

EN 

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   EN