Source: EURLEX
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# 52013DC0108

**COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS EU SPACE INDUSTRIAL POLICY RELEASING THE POTENTIAL FOR ECONOMIC GROWTH IN THE SPACE SECTOR /\* COM/2013/0108 final \*/**

  

COMMUNICATION FROM THE COMMISSION TO
THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL
COMMITTEE AND THE COMMITTEE OF THE REGIONS

EU SPACE INDUSTRIAL POLICY

RELEASING THE POTENTIAL FOR ECONOMIC
GROWTH IN THE SPACE SECTOR

1.           A strategic industry
which will contribute to the Europe 2020 strategy

Space is more than a technological issue. It always had and will
continue to have a strong political dimension which has not been developed
properly at European level so far. The European Space Agency (ESA) has been
conceived as an inter-governmental research and development agency allowing
Europe to develop some unique scientific and technological capacities and
placing it at face level with the leading space-faring nations in the world. But
ESA is not a political actor. Over the past decades, the political dimension of
space has been driven by national policies of those countries most active in
space in Europe. However, with increasing competition from new emerging
space-faring nations their individual political weights may no longer suffice
to address the challenges ahead. An EU space policy could reinforce the
European identity at international political level. At the same time, EU
intervention could give space a stronger political impetus, for example by putting
in place the right framework conditions to maintain and foster space activities
in Europe and its industry's competitiveness at global level. This is where
article 189 TFEU, which gives the EU a clear mandate to intervene in space matters,
could make a difference.

Space is at the service of the European citizens. Many of the systems
and services that are today essential for our well-being and security depend directly
or indirectly on space. Without being aware of it, European citizens rely on
space technologies when they use their mobile phones, do financial
transactions, take an airplane, watch the weather forecast or look for the
nearest restaurant in their cars. Space has become part of our daily live.

Space is a driver for growth and innovation, and contributes
directly to the objectives of the European 2020 Strategy, Europe's growth
strategy for a smart, sustainable and inclusive economy[1]. The space sector is both a driver
to scientific progress and enables systems and services with growth potential
in areas such as telecommunications, navigation and Earth observation. These
systems and services guarantee independence and security for the EU. They help
us to address major societal challenges such as climate change, scarce resources,
health, or the ageing of our population. They provide us with strategically
important knowledge underpinning the EU’s external relations in areas such as development-assistance
and humanitarian aid. They stimulate innovation and competitiveness well beyond
the space sector, and contribute to economic growth and job creation in almost
all economic areas.

In December 2008, the European Council highlighted the potential of
space to impact on innovation and economic recovery. In May 2009, the 6th
Space Council emphasized "the
need to mobilise existing innovation support mechanisms at European, national
and regional level, and consider new support instruments to ensure
cross-fertilisation of knowledge, innovation and ideas between space and
non-space sectors, and between space industry and leading research
organisations and universities".

Following the adoption of its Innovation Union flagship initiative,
the Commission has put forward its proposal for the Horizon 2020 programme
under the next Multiannual Financial Framework which encompasses research and
innovation. Out of the proposed 80 billion Euro, 1.7 billion Euro are to be
invested in space research and innovation.

Furthermore, space has become a global business. The European space
industry has to face increasing competition from new emerging space powers such
as China and India. EU intervention in space, together with those of its Member
States and the ESA, needs to aim at strengthening the European space industry's
competitiveness at global level.

The strategic importance and the specificities of this global
industry call for a dedicated approach to industrial policy which is driven by
the need to ensure cost-efficiency and competitiveness at global level, while
ensuring steady consolidation and development of state of the art skills and
competences and reaffirming a strong commitment with economic growth in line
with the Europe 2020 strategy. The Commission underlined its intention to
pursue a space industrial policy developed in cooperation with ESA and the EU
Member States in its Communication on EU industrial policy adopted in October
2010[2]. In April 2011, the
Communication entitled “Towards a space strategy for the European Union that
benefits its citizens”[3]
gave further orientations of a potential European space industrial policy.
Member States supported this approach in the Council conclusions adopted in May
and December 2011[4].

This Communication builds also on the Commission's Industrial Policy
Communication (COM(2012) 582 final) for A Stronger European Industry for Growth and Economic Recovery[5].

Against this background, the EU's space industrial policy should be
centred on five specific objectives:

1.
Establish a coherent and stable regulatory
framework

2.
Further develop a competitive, solid, efficient
and balanced industrial base in Europe and support SME participation;

3.
Support the global competitiveness of the EU
space industry by encouraging the sector to become more cost-efficient along
the value chain;

4.
Develop markets for space applications and services;

5.
Ensure technological non-dependence and an
independent access to space.

Regarding the last objective, it is of fundamental importance that
the EU maintains its autonomy in strategic areas of the space sector such as the
launch services. The EU space industrial policy should, therefore, ensure the
availability of a reliable, secure and cost-efficient launcher system. It
should create the conditions (including the financial conditions) necessary to
maintain and strengthen independent European access to space in line with
institutional needs. To this end, the governance of the exploitation of the
European launchers should evolve to increase financial efficiency in the
management of user programmes. Ultimately, the actors of the European space
policy will have to develop a real European launcher policy which exists in
most space-faring nations.

An EU space industrial policy can only be effective if based on
efficient cooperation between the three actors of the European space policy:
the EU, ESA and their respective Member States. The TFEU states that the EU may
"promote joint initiatives, support research and technological development
and coordinate the efforts needed for the exploration and exploitation of
space". Furthermore, the "Union shall establish any appropriate
relations with the European space agency". Mechanisms should be found to
ensure coordination within the EU framework so that Member States positions expressed
in international organisations forums, including ESA, is consistent with and
supports EU space policy.

2.           A
high tech industry defying global competitions

2.1.        An
industry facing international challenges

The European space industry differs from
its main international competitors to the extent that its budget is smaller, it
relies more on commercial sales, the share of military expenses is smaller and
synergies between civil and defence sectors are far less developed. Unlike the
US, the European market for downstream navigation and Earth observation services
is only emerging. These features account for the fact that the European
industry is facing commercial and innovation challenges.

2.1.1.     Threats
on commercial markets on which EU manufacturing industry is highly dependent

The space manufacturing industry (satellites, launchers and ground segment)
is a strategic, high-tech, high-risk and investment intensive industry with
long development cycles and low production rate. In all space-faring nations,
space industry mainly depends on institutional programmes, which take two
forms: financing of research and development programmes and buying space
products and services, as customers of the industry[6].

Concerning research, institutional space R&D policies are one of
the main instruments to shape the sector. Total European R&D is roughly
estimated to account for 10% of unconsolidated sales turnover of the EU space
sector. In an international context though, the funding of European R&D
pales (into insignificance) in comparison with the US. US civil space budget
spent on RTD is at approximately 25%[7].
Expressed per capita, the US NASA civil space budget[8] is approximately four times
higher than all the European civil space budgets combined (national, ESA and
FP7).

In comparison to other space-faring nations, the European
institutional market is also relatively small. In 2009 the US budget was almost
ten times higher than the European. Moreover, although space is a global
market, it is difficult to speak of "a" European market. The
institutional market is indeed fragmented due to the existence of many public
stakeholders and the implementation of different national and ESA's space
industrial policies, without always the necessary coordination. The European
market alone is therefore not sufficient to sustain the current level of
excellence of the European space industry. In addition, institutional markets
of most space faring nations are closed to other space faring nations'
industry. For these reasons, the European industry has to also rely on
commercial and export sales, which represent 45% of its activities according to
Eurospace data, a situation quite different compared to its competitors.

Overall, the European manufacturing and
launcher industry has performed well in the global commercial market, with a
growing market share for satellites (mostly telecom) and a stable market share
of around 50% for commercial launches. However, sales on the commercial market,
which are vital for the European space industry, are at risk since commercial
sales exhibit cyclical downturns and since commercial and export markets are
subject to increased and sometimes aggressive[9]
competition from other space faring nations. Because of the long lead time in
this sector (10-15 years development for complex systems) it is essential to
anticipate well in advance any possible (market) evolution. Moreover, the
situation can evolve very rapidly in certain strategic sub sectors, such as
launchers[10].

2.1.2.     Securing
its positions: Preserving a world class industry on the telecommunication
markets

The satellite-based service industry is of major importance for the
EU economy as it turns the investment made in space infrastructures into
concrete applications and services to the benefit of citizens. The satellite
communications (SatCom) manufacturing industry is instrumental in sustaining Europe’s
entire space industry. According to Eurospace, sales of telecommunications
satellites represent more than 60% of European satellite manufacturers'
turnover over the last 10 years. Europe can rely on a world-class industry to
develop and deliver SatCom services. Those services are key in delivering
information, one of the most important resources of the growing sectors of the
digital society. They contribute to several actions proposed in the Digital
Agenda for Europe, notably to closing the broadband gap
in low density populated areas. SatCom is a highly
effective solution where terrestrial technologies are too costly or non-existent[11], as well as to provide cross-border
digital services. Besides, it provides a resilient and robust fallback solution
in the event that other networks should fail (natural disasters, terrorist
attacks etc).

Besides increasing competition, the
European SatCom industry faces a technical and political challenge: it has to
face the scarcity of radio spectrum[12],
which is a vital resource for the efficient operation and development of
satellite communications. In order to maintain the SatCom industry's
competitiveness this issue needs to be addressed.

2.1.3.     The
new frontier: Positioning the EU industry on emerging markets of navigation and
Earth observation applications (services and products)

The European satellite
navigation (SatNav) and Earth observation (SatEO) service industry is an
emerging industry with a high worldwide potential for growth and job creation,
mainly made up of SMEs and start-ups (which form the backbone of our economy).
They will be of increasing importance for our economy and citizens' well-being.
GNSS business experts estimate that in ten years this market will reach $ 300
billion[13].

It is estimated
that, already, 6-7% of GDP in Western countries, i.e. € 800 billion in the
European Union, is dependent on satellite radio navigation[14]. The benefits arising from a
fully-fledged operational Copernicus (new name for GMES) programme through 2030
are estimated at 34.7 € billions, comparable to 0.2 % of the EU GDP[15].

The deployment
of GNSS and Copernicus infrastructures will soon open up new opportunities for
the sector in Europe. Galileo and EGNOS are expected to generate economic and
social benefits worth around € 60-90 billion over the next 20 years[16]. Europe cannot afford to miss
out on the growth of space activities and related services. Although some
private applications have already proven successful, satellite enabled products
and services still depend to a large part on public customers at national and
local levels at this stage of development.

In Europe, several barriers slow down the
development of innovative applications and therefore market development: the
uncertainty concerning the service availability and the legal framework, the
lack of awareness by possible users of their potential, the lack of cooperation
between space and non-space sectors, the lack of cooperation between data
providers, service developers and end users, the insufficient support to the
creation of start-ups and the development of high-growth companies.

2.2.        To
address these challenges, Europe should achieve technological non-dependence,
security of supply and maintain independent access to space

Technological non-dependence, security of
supply and independent access to space[17]
not only meet the imperative of strategic independence: they represent the
basic conditions for a sustainable development of the European space industry.

2.2.1.     Technological
leadership, security of supply and non-dependence require sustained efforts and
the availability of the necessary skills

To face the increasing competition on the global market, European
industry must maintain its technological edge and stay at the forefront of
technological progress in selected areas. The challenges faced by industry
include how to ensure technological non-dependence and security of supply, the
need to replace or update existing technologies and products, the challenge to
develop new ones and the difficulty to maintain critical skills in a market
with long programme cycles and highly fluctuating orders. Besides, synergies
between civil and defence sectors are not sufficiently exploited today, which
hinders the emergence of a real European space power. Furthermore, the lack of efficient
cross-fertilisation between space and non-space sectors limits joint R&D
activities and the capacity of technology take-up from both sides.

Technological non-dependence of this strategic sector is not
guaranteed. In a number of critical technology areas European programmes are
fully dependent on one supplier[18].
The European Space Technology
Platform (ESTP)
estimates that, on average, 60% of the electronics on board a European
satellite are currently imported from the United States, because of the lack of
a business case to develop those components at European level. Moreover, those
imports are subject to ITAR export regulations, which evolve according to US
concerns, often create procurement delays and put in the short run the European
industry in a further situation of dependence towards US policy fluctuations. In
addition, space sector represents a small sector in comparison to the industry
worldwide and often also a small part in the turnover of big industrial firms.
It therefore has to cope with evolutions which do not take its specific needs
into account. More than other sectors, space industry is required to anticipate
future evolutions – in terms of products availability and regulations, such as
REACH[19]
– which is all the more difficult given the long time lead to develop space
products. In such a situation, changes in the commercial positioning or
legislation, financial difficulties in key companies or lack of profitability
due to the small market share can put European space programmes at risk, with
delays and cost overruns. Both for industrial and strategic reasons, efforts
made to develop alternative supply sources for technologies and materials
together with ESA and EDA should be strengthened in Horizon 2020.

Without sufficient workload, the space
industry's skilled workforce will be dismantled and it will take significant
time and resources to reassemble the required teams to develop new programmes. Knowledge
and skills in the emerging sector of navigation and Earth observation
technologies are currently not sufficient. In the meantime, new space faring
nations are rapidly closing their "researchers' gap" with
industrialised countries.

2.2.2.     European
independent access to space must be preserved and strengthened in the long-term

In all space faring countries around the world, launcher development
and operations were and still are financed by public money, without which the
commercial sector would not exist. Moreover, the commercial prices obtained on
the market do not cover the full costs, notably the development phase. The size
of institutional budgets devoted by space faring nations to launchers reflects
their willingness to enjoy independent access to space. In all competitors'
countries, public procurements are paramount for the survival of the sector and
the local launcher industry would not exist without institutional programmes
which are de facto closed to foreign industry.

In Europe, the launchers issue concerns, on the institutional side,
the EU, the ESA and their Member States in two ways: first because of the
political responsibility relating to Europe’s independent access to space;
secondly as customers of the launcher industry aiming to carry out and launch
their programmes cost efficiently. Private operators are also concerned as customers.
They would benefit from a European independent access to space, as this
increases their leverage in negotiating lower launch prices at international
level.

The EU and its Member States support the political objective of
maintaining independent access to space, as stated in several Space Council and
Competitiveness Council resolutions[20].
Historically, the European launch service was created to ensure Europe’s
capacity to develop satellite based services, following the refusal by other
countries to launch European commercial satellites. Besides security and
strategic considerations, were Europe deprived of independent access to space,
such refusals could happen again and would cause delays in the implementation
of our space programmes, which increase costs and threaten European competitive
position both on manufacturing and services markets. The availability of a
reliable and competitive European launch service therefore continues to be a
sine qua non factor ensuring the development of a world-class European space
industry and of satellite-based applications.

As clients, to carry out their programmes
on time and thus avoid cost overruns, the EU, the ESA and their Member States
must have at their disposal a launcher system which is:

·
Reliable from a technical point of view,

·
Secure, which may require launches to take place
from a space port on European soil,

·
Available and independent: this covers control
of the launch manifest and the need to avoid dependency on actors with
conflicting industrial or geopolitical objectives,

·
Cost efficient, as this contributes to
affordability.

Today there are not enough institutional launches in Europe to
ensure the sustainability of the European launcher Ariane 5[21]. Arianespace is facing
stronger international competition and is having difficulties maintaining its
financial balance. Furthermore the current range of launchers will need to be
replaced by 2025 in order to maintain the European launcher capability, an
issue which needs to be addressed now.

With over 30 satellites to be put into orbit, the EU as a whole could
become the European industry's biggest institutional customer over the coming
years. As stated in November 2010 and May 2011 Competitiveness Council
conclusions, all European institutional actors are invited, in order to
maintain and strengthen an independent, reliable and cost effective access to
space at affordable conditions, to consider as a high priority the use of
launchers developed in Europe and to explore issues relating to their possible
participation in launcher-related exploitation activities. European-developed
launchers will therefore be adapted to qualify for the launch of some of these
satellites.

European independent access carries a cost in the short term, in
view of an aggressive commercial policy by our competitors which usually face
lower costs. Parts of these additional costs are justified on objective grounds
(guaranteeing the viability of European know-how and reliability, lower labour
costs of some of our competitors, size of foreign subsidies[22] and institutional market). Another
part of these costs is the result of industrial inefficiencies, which should be
reduced. In the medium term however, independent access would have a positive
economic impact, both for institutional actors and private operators. It would ensure
Europe benefits from space-based applications, offers additional security
(double-sourcing) and constraint its competitors to bid competitive prices on
the European market, favouring private operators. Moreover, for some programmes,
there is no choice but to choose European launchers, for security
considerations.

3.           Objectives
of an EU industrial policy

Considering the strategic importance of the space industry, its
dependence on public funding and the increasing global competition on the
commercial market, the EU will draw up a space industrial policy to support the
development of the sector, thereby fostering economic growth. This policy
should encompass not only space manufacturing industry but also the services.
The objectives of such a policy have been analysed in various studies. The
issue is also addressed in the Resolution of the 7th Space Council
and the May 2011 Competitiveness Council.

Against this background, the EU space industrial policy could be
centred on five specific objectives:

–
Establish a coherent regulatory framework

The expansion of space activities and in particular the growing
market for space products and services raise legal issues which are not being
fully addressed at European level and only partly addressed at national level
by a few Member states through national laws, which reflect national interests.
Fully taking into account existing legislations and according to the respective
competences of the different actors, the Commission will explore whether
actions need to be undertaken to improve legal coherence and foster the
emergence of a European market for space products and services.

–
Further develop a competitive, solid,
efficient and balanced industrial base in Europe and support SME participation

Europe needs a stronger industrial base. The European space industry
should further improve its performance, benefiting from a less fragmented
environment. A balanced industrial base does not mean the equal spread of this
niche industry all over Europe, but an industry that builds on competitive
advantages of the whole supply chain and provides fair access to SMEs as a
means to ensure dynamism and innovation and, in particular, to develop the
space service industry. The participation of small businesses and mid-size
industries in the supply chain is essential for the competitiveness of the
European space manufacturing industry and for not merely consolidating, but
also expanding a skilled workforce.

–
Support the worldwide competitiveness of
European space industry and encourage the sector to become more cost-efficient
along the value chain

The European space industry should maintain and increase its share
of the global market and should remain at the cutting edge of technological
developments with a capacity to produce breakthrough technologies and be
actively involved in cross-fertilisation with other sectors. It should aim at
becoming more cost-efficient along the value chain. The industry should also be
able to rely on sufficient high-skilled manpower, in particular in the emerging
sector of navigation and Earth observation technologies. Policy should support increased
market access.

–
Develop markets for space applications and
services

European industry must be in a position to exploit the potential
offered by space infrastructures (SatCom, SatNav and SatEO) in order to deliver
reliable and cost-efficient services responding to economic and societal needs.
This means for certain service categories not only the development of new
capacities within existing industry but also the quality improvement of Copernicus
data, the creation and stimulation of an environment allowing the take-up of
new satellites technologies and the emergence of new operators, given notably
the importance of small businesses in this area. Together with the second
objective, the achievement of this one will help maintain space investments
attractive to all Member States.

–
Ensure the technological non-dependence and
an independent access to space

For Europe to be able to pursue strategic
policy initiatives and provide key services for citizens' benefit, it requires
an independent access to space. Furthermore, European industry should be
triggered to further develop its technological non-dependence, especially in
critical technologies, to continue to be able to deliver the products and
services needed for economic growth and its citizens' well-being.

4.           How
to achieve the objectives of the EU industrial policy

In order to achieve the objectives of this
policy in collaboration with ESA and the Member States, the EU can use the
instruments at its disposal, which are mainly improving the framework
conditions, supporting research and innovation, promoting better use of
financial instruments and of existing procurement regulations[23].

4.1.        Improving
framework conditions

As space activities
expand, the appropriateness of the existing regulatory framework needs to be
examined to ensure the security, safety and sustainability of such activities
and their economic development.

4.1.1.     Improving
the regulatory framework for the service segment and the manufacturing sector

The expansion of
space activities and in particular the growing market for space products and
services raise legal issues which are not being fully addressed at European
level, but only partly addressed by the most active Member States in this
domain through national law. The majority of Member States have not yet
developed space legislation. The scope and objectives of these emerging space
national laws are diverse and have implications that go beyond national
boundaries.

National legislation
alone will not ensure a coherent coverage of space-related legal issues and a
harmonised legal framework for all Member States. An inconsistent legal
framework may negatively affect the functioning of the internal market. It may
therefore be necessary to take steps towards the establishment of a coherent EU
space regulatory framework to tap the potential of an internal market for space
by filling legal gaps in a coherent way, preventing diverging national legal
frameworks, safeguarding national and European security interests.

To take an example, some European countries
have national legislation on liability which foresees the coverage of physical
damage caused by space activities. Some countries limit, under certain
conditions, the liability up to a certain amount, or provide governmental
guarantee under certain conditions. Some countries request an insurance or another
financial guarantee to compensate possible damages. The absence of coherent
rules in EU countries could create distortions of competition on the internal
market and lead to "forum shopping".

Examine the possibility of a legislative
initiative on certain aspects that have an impact on the emergence of a single
market for space products and services

The Commission will therefore assess to
which extent this fragmented framework could hinder the proper functioning of
the internal market and whether an EU intervention would be justified.

The first step in this direction could be a
legislative initiative on production and dissemination of private satellite
data (see below) and a regulation on EU GNSS third party liability[24].

EU action may also be required in dual-use
export control and spectrum policy. In other fields such as commercial
spaceflights, the opportunity of EU intervention should be further assessed.

In order to ensure the full exploitation of
space-based information and to boost users' access to space data and services,
the EU could consider establishing an overarching data access policy. Such a
data access policy could be based upon principles as: free and open access for
public organisations at EU and national level guaranteed (as a minimum) with
limited restrictions when fully developed and operated with EU public funds; establishment
of specific conditions regarding data access policy (at least for public
organisations) when there is an EU intervention in the development of space
assets or markets.

Consider proposing a legislative initiative
on production and dissemination of private satellite data

The production and dissemination of
satellite data raises three main issues. First, the security restrictions
imposed by national authorities on satellite data according to national
security interests may endanger competitiveness and innovation (downstream
development of related services) and lead to legal uncertainty in the internal
market, and raise liability issues such as compensation claims for potential
damages, for example those caused by incorrect data. Second, the inadvertent
release of data acquired by satellite sensors (e.g. high-resolution imaging)
could pose a threat to security of EU and EU Member States. Third, the
cross-border nature of satellite data exchanges requires cooperation between
countries concerned by Earth observation. Such cooperation would effectively
ensure the compatibility of competitiveness standards with security
considerations.

As national legislation alone cannot guarantee
a coherent regulatory EO framework at EU level, EU action could be justified on
grounds of subsidiarity. Taking into account the benefits in terms of legal
certainty, downstream development of markets and the protection of security, an
EU intervention in this domain could bring clear added value.

Monitor and
improve the export control and intra-EU transfer frameworks

Many components of space systems are considered of dual or military
nature and, hence, are subject to the new regulatory framework on intra-EU
transfer and dual-use export control[25].
Simplified rules and procedures that will facilitate intra-EU transfers of
components of a military nature will be implemented from 2012 onwards[26]. This will improve the
competitiveness of European industry, in particular SMEs.

In conformity to Article 25 of the Dual-use Regulation, which
requires the Commission to prepare a report on the implementation of the EU
export control system, a Green paper[27]
has been adopted to launch a broad public debate concerning the functioning of
the current EU dual-use export control system. A formal report to the European
Parliament and the Council is foreseen in September 2012. In the meantime, the
impact of this regulation on the space industry should be closely monitored
with a view to identifying major problems and proposing appropriate solutions.

Ensure the
availability of spectrum

To contribute to ensuring the availability
of a radio spectrum for space operations that is immune from interference, to
enable economies of scale and optimise operational costs for pan-European
systems, the Commission, together with the EU Member States, will investigate
how to best take into account the future spectrum needs for SatCom in the context
of the Radio Spectrum Policy Programme and contribute to the preparation of the
next ITU World Radio Communications Conference in order to defend EU interests
in the field of global and regional spectrum allocation.

Explore whether commercial
spaceflights activities need to be embedded in a legal framework

“Suborbital aeroplane projects” or commercial spaceflight projects
are emerging, mainly in the United States. Suborbital flights could constitute
a promising market for: (i) scientific experiments: microgravity experiments,
astronauts training, test of satellite payloads, (ii) space tourism and (iii)
future clean, high altitude, high speed and point-to-point air transport
systems. Furthermore, suborbital flight vehicles could offer more
cost-efficient access to space e.g. for small satellites.

Only the US Federal Aviation Administration (FAA) and its office of
Commercial Space Transportation have issued a regulatory framework for
suborbital planes applicable in their country. It is based on an “informed
consent” regime for carrying the crew and space flight participants[28]. Passenger safety is therefore
not ensured by the regulation.

Some European industry stakeholders call upon the EU to put in place
a stricter regulatory framework, with adequate certification rules derived from
aeronautic best practises, to better guarantee passenger safety. Industry
argues that the predictability of the regulatory framework is key for private
investors, since it will drive the technology used and the development
activities. Other European stakeholders call upon the EU to put in place a more
innovation-friendly regulatory framework.

This request is for the time being not a
priority in the rulemaking programme of the European Aviation Safety Agency
(EASA). The Commission will further investigate this issue to determine whether
it needs to be addressed in the near future.

4.1.2.     Pursue
the Standardisation process

The importance of standardisation for space activities in Europe is
growing as the EU, ESA, national space agencies and European industry are faced
with new technical challenges within more demanding economic constraints. Through a more efficient and effective use of space technologies and
space-based applications and services, standardisation has a role to play in
boosting the competitive position of the European space industry in the world
market, notably by increasing the series and thus decreasing the prices, and in
helping SMEs enter certain segments of the space market. Space standardisation
supports the uptake of space-based innovative services and applications. Space missions are moreover a risky business where technology is
pushed to the limit, where there is very limited possibility to correct
problems that were not identified before launch. Standardisation is therefore
seen as a way to decrease the risks of failure, to guarantee the technological
reliability of space products/components and to reduce the development and
operational costs. Finally, since European space production is split between
several countries, the development of "standardised" working
procedures can help reduce some of the inefficiencies currently present in the
value chain.

The main European space agencies and
industry started the European Cooperation for Space Standardisation (ECSS) in
1993. More than 120 standards have been published. While upstream space
activities have been covered, space downstream activities geared toward systems
and services still need standardisation. A comprehensive standardisation
programme was proposed in March 2010 and identifies ten specific sectors
where future standardisation work could be carried out by technical bodies in
CEN/CENELEC, ETSI and ECSS – the European Standardisation Organisations (ESOs).
The programme has been translated into a new mandate (M/496) which has been
issued on the 1st of September 2011 and addressed to the ESOs. The work has
started in 2012 and should extend over a three-year period.

4.1.3.     Ensure
the availability of necessary skills

The availability of a skilled workforce has a direct impact on the
capacity of the European space industry and space activities in return have a
direct impact on workforce availability in the European economy, through the
impact of leading edge development programmes in the development of expertise
in new technologies. In order to remain competitive, Europe will be facing a
triple challenge in the years to come: to keep and expand its own resources (skill-levels
and workforce numbers), to develop new skills to satisfy the need of emerging
sectors and to attract talent from third countries.

Institutional space programmes can help maintaining a sufficient
level of industrial activity, attracting leading talent
to European universities and research centres, and facilitating mobility
between Member States and between the public and private sectors.

The European institutional customers should develop and provide to
industry a long term and clear planning of the institutional market in Europe. The
EU could set up a mapping and foresee regular updates of the supply chain to
ensure the right level of European independence, expertise and competitiveness.

Together with the Member States and their
regions, the EU should address and turn around the shortage of highly-skilled
aerospace engineers and technicians coming out of the European educational
systems, promote the establishment of mutually recognised academic space
qualifications in Europe, include in future R&D framework programmes
dedicated actions in which part of the research must be done by PhD candidates,
encourage the development of lifelong learning programmes through strengthened
cooperation between industry and universities and enhance its appeal to foreign
researchers.

4.1.4.     Support
access of European industry to the global market

It is vital for the European space industry to maintain and
strengthen its position on the commercial market. However, major third
countries' institutional markets are not accessible to the European industry.
Some Member States have proposed Export facilitation mechanisms to support
industry access to the global market. The possibility to develop such
mechanisms should be further assessed.

Commercial agreements and trade negotiations can contribute to
ensuring a "level playing field" for the European space industry at
international level, provided EU has a strong enough stand in international
negotiations. The Commission has therefore recently adopted a proposal on
access of third countries to the EU's public procurement market[29]. If adopted by the Legislator,
this Regulation would to improve the conditions under which EU businesses can
compete for public contracts in third countries, by strengthening the position
of the European Union when negotiating access for EU companies to the public
procurement markets of third countries, in order to open up our trading
partners’ markets, and by improving, in line with the EU’s 2020 strategy,
business opportunities for EU firms on a global scale, thereby creating new
jobs.

More generally, international cooperation
should also serve as a market opener for the promotion of European technology
and services in the space field and help strengthen this strategic industrial
sector. The EU must ensure that space-related matters are better integrated
into the Union's external policy.

4.2.        Supporting
Research and Innovation

Research, development and innovation not
only are key elements of space industrial competitiveness, but also essential
ingredients of a sustainable economic growth, be it in the short run as in the
long run, with effects on the ability of the European Union to remain competitive
in an increasingly globalised economy. The budget for Space under Horizon 2020
(the successor of FP7) is proposed to be 1737 million euro in current price
(1548 million in constant 2011 price) for 7 years. Space in Horizon 2020 will
cover R&D and innovation with the objectives to:

·
Enable European competitiveness in space, non-dependence and innovation in space activities, focussed on
industrial R&I, emphasizing SMEs;

·
Enable advances in space technologies, ranging from basic technology research to close-to-application
technologies for future generations of Copernicus/GMES and Galileo satellites;

·
Full exploitation of space data,
including data from scientific missions and commercial applications of space
data;

·
Enable European R&D in the context of
international space partnerships (e.g. ISS, SSA, global robotic exploration
programmes).

Concerning the latter, cutting edge space
technology is increasingly taking place in international frameworks, making
access to such programmes an important success factor for the competitiveness
of European researchers and space industries.

4.2.1.     Enable
European competitiveness in space worldwide, notably by ensuring European non-dependence
in critical technologies and by fostering innovation

The objective is to maintain a globally leading role in space by
safeguarding and developing a competitive space industry and research community
and by fostering space-based innovation.

First, the survival of a competitive commercial industry in the
space sector in Europe and the capability for European institutional customers
to implement their missions require a decrease in European technical dependence
on non-European countries. It is of utmost importance to identify which
technologies are critical and to ensure that for these Europe develops and
maintains its own technology solutions and production capacities. Once the
technology has been developed, it should be used consequently by institutional
actors and European industry. Otherwise, it will be lost.

The European Commission, together with ESA and EDA have created a
joint task force with the aim of producing a coherent list of critical
technologies for priority development. This joint European non-dependence
process has started in 2009. A list of urgent actions has been agreed upon and
used as the basis for the FP7 4th Call on critical technologies.
This initiative should be pursued.

Secondly, satellite enabled products and services
constitute an emerging market and remain limited and fragmented. At this stage
of development, they still depend to a large part on public customers at
national and local levels. Incentives for new markets using
space based services have been created in the US due to a long term policy of
promoting governmental use which created a virtuous circle by boosting private
businesses that need in turn more space based infrastructures. These initiatives boost the use of space
for the benefit of public policies and make these companies more competitive on
export markets. It should be assessed whether similar
incentives can be provided to European industry.

In order to promote the exploitation of satellite infrastructures
and develop the market for satellite based services, the EU should increase the
promotion of space-based applications in EU policies. The creation of new
applications needs to be stimulated across a variety of potential public and
private users including new user communities (cities, regions, various
industrial sectors, etc), notably through ad-hoc take up actions, such as
vouchers for local authorities or SMEs, to facilitate the adoption of new
services by the final users. Their development and deployment, often by SMEs,
need to be supported on a consistent basis to ensure sustainable effects on
qualified employment.

More specifically, the full innovation potential created by the new
European space infrastructures also needs to be supported. The Commission GNSS
Action Plan to foster the development and adoption of satellite navigation
applications using EGNOS and Galileo is a first step in that direction.

There is need for a much stronger effort, coordinated at European,
national and local level. This requires the deployment of a whole range of
innovation support measures[30]
to industry with a specific focus on SMEs. However, in order to address this
market failure, innovation support should be targeted to those services which
would not be developed by the market otherwise. Such measures should in
particular encourage demand-side innovation, the use of available funding
sources including regional funds, demand aggregation and development of new
businesses.

Finally, a number of challenges in space
technologies have parallels to terrestrial challenges. Cross-fertilisation
should be fostered, by promoting development of innovative products and
services based on satellite infrastructures. As stated in the annex of the
proposal for a Council decision establishing the Specific Programme Implementing
Horizon 2020[31],
"these commonalities offer opportunities for early co-development, in
particular by SMEs, of technologies across space and non-space communities,
potentially resulting in breakthrough innovations more rapidly than achieved in
spin-offs at a later stage".

4.2.2.     Enable
advances in space technologies

The objective is to ensure the capability to access space and to
operate space systems to the benefit of European society in the next decades.
The EU notably intends to boost technological progress in a number of strategic
areas and to contribute to the necessary effort in space research in particular
in breakthrough technologies. With Horizon 2020 the EU would for instance
support the exploitation of synergies in space research at European level,
promoting further coordination of R&D activities, thus complementing ESA
and national programmes already addressing these issues. Key Enabling Technologies have been recognized as key to all
technological industrial competitiveness in Horizon 2020, but also in
particular to innovative space technologies. The space industrial policy should
therefore support their uptake in new space technologies.

Horizon 2020 could for instance promote R&D support to industry
and space research organisations, support the development of
application-oriented R&D programmes at universities related to space
technologies and promote the transition from prototyping to product/market.
Since users require mature technologies (already tested and validated), R&D
support schemes should allow supporting validation and qualification. Hosted
payloads[32]
could contribute demonstrating the required flight heritage for an increasing
number of products and services. In order to mitigate the risk created by new
technologies for the rest of the payload, the possibility of cost-effective launch
opportunities to embark and test new technologies should be assessed.

Furthermore, Horizon 2020 could be used to find
alternatives for the components listed within the REACH framework[33], and which may need
substitutes in the future.

4.2.3.     Stimulate
the full exploitation of space data and the development of innovative
applications

The objective is to ensure more extensive
utilisation of space data from existing and future European missions in the
scientific, public and commercial domain. As stated in the annex of the
proposal for a Council decision establishing the Specific Programme Implementing
Horizon 2020, "a considerably increased
exploitation of data could be achieved if a concerted effort were made to
coordinate and organise the processing, validation and standardisation of space
data from European missions. Innovations in data acquisition and processing,
data fusion, and data dissemination, utilising also innovative ICT enabled
forms of collaboration, can ensure a higher return on investment of space
infrastructure".

4.3.        Expanding
the array and the use of available financial instruments

Space infrastructures funding differs from space components/services
financing. Large scale infrastructures which have to be built, developed,
operated and maintained in order to ensure the continuity of operational
services and applications, need large financial contributions over long
periods, continuity of funding both for operational and financial reasons (any
expense postponement results in additional costs) and flexibility/contingency
instruments, given the associated risks. Existing financial products on the
market might not match these needs, especially because of the important time
lead between the decision to develop such projects and the return on investment
by the deployment of sufficient downstream services. There basically is a
market failure and public funding is needed before the long-term growth
potential of such projects will emerge. Other space-faring nations have
addressed this issue in their own ways[34].
In its proposal concerning the next Multiannual Financial Framework, the
Commission proposes a new type of instrument, i.e. the EU project bond
initiative which would be used as a means of securing investment
resources for infrastructure projects of key strategic European interest by
making use of Public Private Partnership schemes to reinforce EU
competitiveness and growth sustainability. Although the scope of this initiative
is not foreseen to cover space in the first stage, space industry could be
offered at a second stage the possibility to benefit from this mechanism,
provided it fulfils the criteria, in particular regarding revenue generation[35].

SMEs' participation should be encouraged where
appropriate in the supply chain of the manufacturing industry, in particular in
niches, and in the fast-growing sector of satellite enabled services. The
financial instruments of the Competitiveness and Innovation Framework Programme
and also the Risk Sharing Financial Facility for SMEs (RSI) are available to
enhance industrial and SMEs innovation capacities and competitiveness. As of
2014, SMEs may also benefit from the EU financial instruments (debt and equity
finance) foreseen under the forthcoming programmes COSME and HORIZON 2020,
which include venture capital.

Local authorities are key players to
enhance the competitiveness of the space industry. Regions have a major role to
play. The EU has developed a range of instruments strengthening economic,
social and territorial cohesion, in particular the European Regional
Development Fund (ERDF) and its schemes like the Joint European Resources for micro
to medium Enterprises (JEREMIE). If the primary objective of EU cohesion policy
is to reduce the significant economic, social and territorial disparities that
still exist between Europe's regions, cohesion policy also has a key role to
play in delivering the Europe 2020 objectives throughout the EU and could
therefore, through its support to SME competitiveness and innovation,
contribute to space projects financing and to promoting the use of space based
services in accordance with eligibility rules of the Structural Fund (for
instance, proven social and economic impact on the region or regional
innovation impact). Space projects could be relevant to foster research and
innovation in the framework of the national or regional strategies for smart
specialisation.

4.4.        Making
a better use of procurement policy

Several Space Council Resolutions highlighted the need to develop
adequate EU instruments and funding schemes taking into account the
specificities of the space sector". In the space sector procurement is
one means among others to achieve industrial policy objectives. It is perhaps
the most important because it is through procurement that the vast majority of
public funding is channelled to industry in this sector. It is therefore
necessary to determine whether the space procurement approach can be improved.

Like the defence and security sectors, space is strategic and
procurement of space systems and applications for public needs shares
characteristic with those sectors, in particular non-dependence aspects,
national security and safety aspects as well as high and long term investment needs
in R&D phases. The impact of the implementation of the EU Directives on
public procurement and defence procurement[36]
on the national and European space markets should also be further analysed.

EU procurement is governed by the Financial
Regulation and its Implementing Rules which are in line with the WTO Agreement
on Government Procurement. These instruments embody the principle of
non-discrimination and do not allow any form of geo return. As a customer of
the space industry which is to deliver its programmes, the EU should develop
and provide to industry a long term and clear planning of the institutional
market. Besides, for programmes which involve joint funding by both the
Commission and ESA, early coordination should take place to ensure a smooth transition
between the development phase and the operational phase.

4.5.        Establish
and implement a real European launcher policy

EU autonomy in strategic sectors like launch services is of
fundamental importance. In view of this, the EU space industrial policy should
pursue the following objectives:
(i) Ensure a reliable, secure, available and cost efficient launcher system;
(ii) Create the conditions, and in particular the financial conditions, which
are necessary to maintain and strengthen independent European access to space
in line with institutional needs while proposing an evolved governance of the
exploitation of the European launchers to ensure financial efficiency in the
management of user programmes.

A real European launcher policy must be
established by the institutional actors, as is the case in the other
space-faring nations, to avoid short term or case by case decision taking which
would endanger the above goals. The EU should recognize the political stakes of
independent access to space when implementing public programmes such as Galileo
and Copernicus. Member States should consider accepting a share of the burden
by putting their launcher purchasing policies in line with the goal of
independent access and by putting the EU in a position to be able to contribute
to that goal. In addition, the overall governance of the launcher sector, in
particular as concerns its exploitation and the necessary measures to ensure
the efficiency of its production, must evolve, in order to ensure sustainable
financing of the exploitation.

4.6.        Ensure the sustainability
of space activities in Europe

With increasing dependence on space-based systems and services,
ensuring their sustainable operations will become increasingly important. Any
shutdown of even a part of space infrastructures which form the backbone of a
wide range of services could have significant consequences for European
citizens' safety and for the well-functioning of economic activities. However,
space infrastructures are increasingly threatened by collision risks due to the
growing population of satellites or the increasing amount of space debris in
the most commercially exploited orbits.

In order to mitigate the risk of collision it is necessary to
identify and monitor satellites and space debris, catalogue their positions,
and track their movements (trajectory) when a potential risk of collision has
been identified so that satellite operators can be alerted to move their
satellites. This activity is known as space surveillance and tracking (SST). As
operational SST services at European level do not exist, European satellite
operators rely today to a large extent on US SST information. The need for a
proper SST capability to improve the provision of SST information at European
level was highlighted by EU Member States in several Council conclusions. In
accordance with these conclusions, the Commission intends to come forward with
a proposal setting out the organisational framework for the setting up and
operation of a European SST service in partnership with Member States building
on their existing assets and expertise.

5.           CONCLUSIONS

Space industrial policy supports the objectives of the Europe 2020
strategy, Europe's growth strategy for a smart, sustainable and inclusive
economy. It is an integral part of the industrial policy flagship, which calls
for a European industrial policy creating the best environment to maintain and
develop a strong, competitive and diversified industrial base in Europe,
improving employment and knowhow of the sector. However, the Europe 2020
strategy also recognises that space policy contributes to the competitiveness
of European industry well beyond the space sector.

ANNEX

Measures envisaged for the
space industrial policy

1.           Improving
framework conditions

1.1.        Improving
the legislative framework for the service segment and the manufacturing sector

1.1.1.     Develop
space legislative framework to strengthen the European space market

· Propose a legislative instrument on production and dissemination of private satellite data; · Examine the possibility of a legislative instrument on certain aspects that have an impact on the emergence of a single market for space products and services such as: obligation of insurance, registration and authorisation of space activities and services , sanctions, environmental issues.

1.1.2.     Monitor
and improve the export control and intra-EU transfer frameworks

· Monitor the impact on the space industry of the implementation of Regulation (EC) No 428/2009 of 5 May 2009 setting up the EU export control regime for dual-use goods and Directive 2009/43/EC of 6 May 2009 regarding EU intra-Community transfer of defence products.

1.1.3.     Ensure
the availability of spectrum

· Investigate how to best take into account the future spectrum needs for SatCom in the context of the Radio Spectrum Policy Programme; · Contribute to the preparation of the next ITU World Radio Communications Conference in order to defend EU interests in the field of global and regional spectrum allocations.

1.1.4.     Explore
whether commercial spaceflights activities need to be embedded in a legal
framework

· Launch a study to assess the market potential of suborbital spaceflights to determine whether to develop a European regulatory approach.

1.2.        Pursue
the Standardisation process

· Pursue the development of European Standards for the space industry on the basis of the work started by the ECSS (European Cooperation for Space Standardisation) and the third mandate to CEN-CENELEC and ETSI.

1.3.        Ensure
the availability of necessary skills

· Develop and provide to industry a long term and clear vision of the institutional market at EU level; · Carry out and update a mapping of the supply chain to ensure the right level of European independence, expertise and competitiveness; · Support the development of appropriate skills required specifically by the space sector and promote the establishment of mutually recognised academic space qualifications in Europe (initiate and coordinate between Member States the development of space academies); · Include in future R&D framework programmes dedicated actions in which part of the research must be done by PhD candidates – as is currently the case in air traffic management; · Encourage the development of life long learning programmes through strengthened cooperation between industry and universities, in particular in the emerging area of satellite based applications; · Enhance EU appeal to foreign researchers.

1.4.        Support
access of European industry to the global market

· Analyse measures and good practices developed by Member States to support access to international markets; · Ensure that the specificities of the space sector and the European space industry are taken into account in trade negotiations and relevant commercial agreements, to foster a level playing field.

2.           Supporting
Research and Innovation

2.1.        Enable
European competitiveness in space, notably by ensuring non-dependence in
critical technologies and by fostering innovation

· Continue to coordinate the Commission's efforts with those of Member States, ESA and EDA in order to identify the critical space components and to ensure their availability; · Examine whether it is feasible to boost the emerging Earth observation market through incentives such as long term contracts with Earth observation industry; · Promote the use of space-based applications in EU policies; · Support awareness raising campaigns to make possible users (cities, regions, various industrial sectors, etc) aware of the potential of space-based applications, thus stimulate their needs for such applications and facilitate with ad hoc take up actions (e.g. vouchers for local authorities or SMEs) the adoption of new services by the final users; · Support the development of innovation support measures to industry at EU, national and regional level with a specific focus on SMEs in the downstream satellite-enabled services sector; · Implement the Commission GNSS Action Plan to foster the development and adoption of satellite navigation applications using EGNOS and Galileo; · Support space technology cross-fertilisation with other sectors and spin-in/spin-offs in R&D and Innovation programmes.

2.2.        Enable
advances in space technologies

· Increase space research efforts, in particular in breakthrough technologies; · Support the development of alternative technologies to those of competitors; · Promote R&D support to industry and space research organisations, including the downstream service sector and support the development of application-oriented R&D programmes at universities related to space technologies and promote the transition from prototyping to product and market; · Assess hosted payloads business case, to explore the potential for further institutional and scientific use and identify the best ways to address the challenges ahead such as legal issues, government/military requirements, etc; · Assess other cost-effective launch opportunities in order to embark new technologies to test them; · Use Horizon 2020 to accelerate the implementation of substitutes to raw materials needing replacement such as those listed within the framework of the REACH regulation.

2.3.        Stimulate
the full exploitation of space data and the development of innovative
applications

· Ensure more extensive utilisation of space data from existing and future European missions in the scientific, public and commercial domain.

3.           Expanding
the array and the use of available financial instruments

· Explore possibilities to facilitate access to finance, especially by SMEs, by promoting the further development of innovative financial instruments and the use of the existing instruments; · Encourage Member States and regions to increase the use of structural funds and innovative financial instruments to promote the development of innovative satellite-based services by SMEs; · Ensure the rapid extension of the scope of the EU project bond initiative to space infrastructures.

4.           Making
a better use of procurement policy

· Develop and provide to industry a long term and clear planning of the institutional market; · Analyse the impact of the implementation of the EU Directives on public procurement and defence procurement on the national and European space markets; · For programmes which involve joint funding by both the Commission and ESA, early coordination should take place to ensure a smooth transition between the development phase and the operational phase.

5.           Establish
and implement a real European launcher policy

· Establish in coordination with the other institutional actors a real European launcher policy, as is the case in the other space-faring nations.

6.           Support the setting up
and operation of a European SST service

· Provide an organisational framework (governance) to support the setting up and operation of a space surveillance and tracking (SST) service at European level building on existing national assets and expertise; define a related data policy taking into account national security interests.

[1]               "EUROPE
2020 A strategy for smart, sustainable and inclusive growth" COM (2010)
2020

[2]               COM(2010)614

[3]               COM(2011)152

[4]               Council Resolution: “Orientations concerning added
value and benefits of space for the security of European citizens”, 18232/11,
Brussels, 6 December 2011 which concluded "that industrial policy for
space should take into account the specificities of the space sector and the
interest of all Member States to invest in space assets, and aim at the
following common objectives: support the European capability to conceive,
develop, launch, operate and exploit space systems; strengthen the
competitiveness of European industry for both its domestic and export markets;
and promote competition and a balanced development and involvement of
capacities within Europe". It also underlined
"the need to examine whether appropriate measures may be necessary at
European and international level to guarantee the sustainability and economic
development of space activities, including those of the European commercial
sector".

[5]               COM(2012) 582 final, Communication from the
Commission to the European Parliament, the Council, the European Economic and
Social Committee and the Committee of the Regions, Brussels, 10.10.2012.

[6]               The Space Economy at a Glance 2007, OECD

[7]               NASA financial report 2009, Euroconsult 2009, and
estimates of space technology budgets by ESA for 2009.

[8]               It should, however, be noted that a considerable
share of public resources for space research comes not from NASA but directly
from other public agencies.

[9]               High tech competitive products can be released on the
market at marginal costs, since development costs have already been taken in
charge by institutional programmes. The "market price" is arbitrary
and linked to a nation's strategic and political goals.

[10]             Given the very small launch rate for all launch service
providers (fewer than 10 yearly launches for the European operator), every
launch is of crucial importance and a reduction of more than one launch in a
given year endangers the very existence of the sub sector and, in the long run,
of Europe's space industry, with potential dramatic consequences on Europe’s
strategic independence.

[11]             For instance, in the high-sea, satellite communication
services are the only available option. Furthermore, affordable satellite
communication can support the EU's "blue growth" strategy to support
growth in the maritime sector.

[12]             Spectrum is used by an increasing number of wireless
applications in several sectors from short range devices to electronic
communications services like satellite communications and terrestrial
telecommunications services.

[13]             Len Jacobson, GNSS Markets and Applications (GNSS
Technology and Applications), Artech House Inc, 2007

[14]             Report from the Commission to the European Parliament
and the Council, Mid-term review of the European satellite radio navigation
programmes, COM(2011) 5 final, Brussels, 18.1.2011

[15]             Study carried out by PriceWaterhouseCoopers entitled
"Socioeconomic benefits analysis of GMES, available at
http://esamultimedia.esa.int/docs/GMES/261006\_GMES\_D10\_final.pdf, p. 180.

[16]             Report from the Commission to the European Parliament
and the Council, Mid-term review of the European satellite radio navigation
programmes, COM(2011) 5 final, Brussels, 18.1.2011.

[17]             "Independence” implies that all needed space technologies are developed in
Europe, whereas “Non-dependence” refers to the possibility for Europe to have
free, unrestricted access to any required space technology.

[18]             This is
for example the case with the atomic clocks on board the Galileo satellites,
which is the core payload for such satellites and is produced in Europe by one
single non-EU supplier, who is selling to China and India as well.

[19]             Some components or materials used for space (on board
satellites or launchers) are listed in REACH and need substitutes if possible.

[20]             For instance 2007, 2008 and 2010 Space Councils, May
2011 Competitiveness Council.

[21]             A
minimum volume of institutional launches, as well as development programmes are
needed without which reliability is no longer a given and the skills base could
not be retained.

[22]             Whose real level has to be assessed over the entire
value chain, from public funding in the development phase, public support in
the production phase or for the launch base to preference for domestic launches
and access to market.

[23]             The initiatives proposed will be set up and implemented
in full conformity with the Community rules on State aid, in particular with
regard to situations where Member States funds would be involved.

[24]             EU GNSS will have a global
coverage. Claims could be lodged in any country in the world before the local
courts under the applicable local legislation. The EU
is preparing a regulation on EU GNSS third party liability. A similar discussion was held under the aegis of UNIDROIT
("International Institute for the Unification of Private Law") with
respect to all services offered by the GNSS. Discussions
in this forum have been put on hold in order to potentially integrate
initiatives to be adopted at regional level.

[25]             Regulation (EC) No 428/2009 of 5 May 2009 setting up
the EU export control regime for dual-use goods and Directive 2009/43/EC of 6
May 2009 regarding the transfer of defence-related products within the
Community.

[26]             Previous requirements imposed a significant
administrative burden on companies (estimated at 225 hours/licence in the
impact assessment of the Directive 2009/43/EC on EU intra-Community transfer of
defence products). They also implied long lead times – up to several months –
in order to obtain transfer or export licenses.

[27]             The dual-use export control system of the European
Union: ensuring security and competitiveness in a changing world COM(2011) 393
final.

[28]             To
obtain a license, the operators of suborbital aeroplane just have to inform
paying passengers about the risks of the launch and re-entry phases and the
safety record of the vehicle type. The passenger then signs a waiver accepting
the risk taken.

[29]             European Commission Proposal for a Regulation of the
European Parliament and of the Council on the access of third-country goods and
services to the Union's internal market in public procurement and procedures
supporting negotiations on access of Union goods and services to the public procurement
market of third countries, COM(2012)124 final

[30]             For
example market replication, pre-commercial procurement, clusters, living labs
and other user-driven innovation mechanisms.

[31]             COM(2011) 811

[32]             It refers to the utilization of available capacity on
commercial satellites to accommodate additional transponders, instruments, or
other space bound items.

[33]             In general, REACH addresses individual substances in
the different lists associated to its processes. Some of these, like the
"Candidate list" or Annex XIV (list of substances subject to
authorisation) trigger direct information requirements on articles
("components") or require authorisation of the use of the substance
in Europe.

[34]             It refers notably to the two 10-year contracts recently awarded by the US government to two
commercial satellite imaging companies.

[35]             Cf. COM(2011) 659, COM(2011) 660 and COM(2011) 662
concerning the Europe 2020 Project Bond Initiative.

[36]             Directives 2004/18/EC and
2009/81/EC

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