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# 52012PC0469

**ANNEX to the Proposal of a Council Decision on the signing on behalf of the European Union and the provisional application of the Cooperation Agreement between the European Union and its Member States, of the one part, and the Swiss Confederation, of the other, on the European Satellite Naviation Programmes /\* COM/2012/0469 final 2012/0230 (NLE)\*/**

  

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

THE EUROPEAN UNION

and

THE KINGDOM OF BELGIUM,

THE REPUBLIC OF BULGARIA,

THE CZECH REPUBLIC,

THE KINGDOM OF DENMARK,

THE FEDERAL REPUBLIC OF GERMANY,

THE REPUBLIC OF ESTONIA,

THE HELLENIC REPUBLIC,

THE KINGDOM OF SPAIN,

THE FRENCH REPUBLIC,

IRELAND,

THE ITALIAN REPUBLIC,

THE REPUBLIC OF CYPRUS,

THE REPUBLIC OF LATVIA,

THE REPUBLIC OF LITHUANIA,

THE GRAND DUCHY
OF LUXEMBOURG,

HUNGARY,

THE REPUBLIC OF MALTA,

THE KINGDOM OF
THE NETHERLANDS,

THE REPUBLIC OF AUSTRIA,

THE REPUBLIC OF POLAND,

THE PORTUGUESE REPUBLIC,

ROMANIA,

THE REPUBLIC OF SLOVENIA,

THE SLOVAK REPUBLIC,

THE REPUBLIC OF FINLAND,

THE KINGDOM OF SWEDEN,

THE UNITED
KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

Contracting
Parties to the Treaty on European Union and to the Treaty on the Functioning of
the European Union, hereinafter referred to as "Member States", of
the one part,

and

the SWISS
CONFEDERATION, hereinafter referred to as “Switzerland”, of the other part,

hereinafter
referred to as "Party" or "Parties"

CONSIDERING the
common interests in the development of a global navigation satellite system
(hereinafter referred to as "GNSS") specifically designed for
civilian purposes,

RECOGNISING the
importance of the European GNSS programmes as a contribution to navigation and
information infrastructure in the European Union and Switzerland,

CONSIDERING the
increasing development of GNSS applications in the European Union, Switzerland and other areas in the world,

CONSIDERING the
common interest in a long-term cooperation between the European Union, its Member States and Switzerland in the field of satellite navigation,

RECOGNISING Switzerland’s close participation in the Galileo and EGNOS programmes since their
definition phases,

CONSIDERING the resolutions of the Space Council, in
particular on the "European
Space Policy" adopted on 22 May 2007, and
"Taking forward the European Space Policy" adopted on 29 September 2008 that recognize the European
Union, the European Space Agency (hereinafter referred to as
"ESA")and their respective Member States as
the three key actors of the European Space Policy, as well as "Global Challenges: Taking Full Benefit of
European Space Systems" adopted on 25 November 2010 that invites the European
Commission and ESA to facilitate the process for Member States not members of
both the EU and ESA to participate in all phases of collaborative programmes,

CONSIDERING the
Communication from the Commission "Towards a space Strategy for the European Union
that benefits its Citizens" of 4 April 2011,

DESIRING to
formally establish collaboration in all aspects of European GNSS programmes,

RECOGNISING Switzerland’s interest in all GNSS services, as provided by EGNOS and Galileo, including
the Public Regulated Service (hereinafter referred to as "PRS"),

CONSIDERING the
Agreement of 25 June 2007 on scientific and technological cooperation between
the European Community and the European Atomic Energy Community, of the one
part, and the Swiss Confederation, of the other part,

RECOGNISING the
Agreement of 28 April 2008 between the Swiss Confederation and the European
Union on the security procedures for the exchange of classified information
(hereinafter referred to as "Security Agreement "),

CONSIDERING the
benefits of an equivalent level of protection of the European GNSS and their
services in the territories of the Parties,

RECOGNISING the
obligations of the Parties under international law, in
particular the obligations of Switzerland as a permanent neutral State,

RECOGNIZING
that Regulation (EC) 683/2008 states that the European Community shall be the
owner of all tangible and intangible asset created or developed under the
European GNSS programmes as defined in regulation (EC) 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),

CONSIDERING the
Regulation EU 912/2010 of 22 September 2010 setting up the European GNSS
Agency,

CONSIDERING the
Decision N°1104/2011/EU of 25 October 2011 on the rules for access to the
Public Regulated Service,

HAVE AGREED AS
FOLLOWS:

I.            GENERAL PROVISIONS

Article 1

Objective

1. The
objective of this Agreement is to encourage, facilitate and enhance long-term
cooperation between the Parties in satellite navigation under civil control and
in particular by the participation of Switzerland in the European GNSS
programmes.

2. The form and
conditions of the Swiss participation to the programmes
shall be as laid down in this Agreement.

Article 2

Definitions

For the
purposes of this Agreement:

1. "European global navigation satellite
systems" (European GNSS)
means the system established under the Galileo programme and the European
Geostationary Navigation Overlay Service (EGNOS);

2.
"Augmentation" means regional or local mechanisms such as EGNOS,
which enable users of global GNSS to obtain enhanced performance, such as
increased accuracy, availability, integrity and reliability;

3.
"Galileo" means an autonomous European global satellite navigation
and timing system under civil control, for the provision of GNSS services
designed and developed by the European Union, the ESA and their respective Member States. The operation of Galileo may be transferred to a private party. Galileo
envisages open, commercial, safety of life and search and rescue services in
addition to a secured public regulated service with restricted access specifically
designed to meet the needs of authorised public sector users;

4.
"Galileo local elements" are local mechanisms that provide the users
of Galileo satellite-based navigation and timing signals with input
information, extra to that derived from the main constellation in use. Local
elements may be deployed for additional performance around airports, seaports
and in urban or other geographically challenging environments. Galileo will
provide generic models for local elements;

5. "Global
navigation, positioning and timing equipment" means any civil end user
equipment designed to transmit, receive, or process satellite-based navigation
or timing signals to provide a service, or to operate with a regional
augmentation;

6. "Public
Regulated Service" (PRS) means a service provided by the system
established under the Galileo programme which is restricted to government
authorised users for sensitive applications which require effective access
control and a high level of service continuity;

7.
"Regulatory measure" means any law, regulation, policy, rule,
procedure, decision or similar administrative action by a Party;

8. "Interoperability" means the
ability of global and regional navigation satellite systems and augmentations,
and of the services they provide, to be used together to provide better
capabilities at the user level than would be achieved by relying solely on the
open service of one system;

9.
"Intellectual property" shall have the meaning as in Article 2 (viii)
of the Convention Establishing the World Intellectual Property Organisation
signed at Stockholm on 14 July 1967;

10.
"Classified information" is information, in any form, that requires
protection against unauthorised disclosure, which could harm in various degrees
the essential interests, including national security, of the Parties or of
individual Member States. Its classification is indicated by a classification
marking. Such information is classified by the Parties in accordance to
applicable laws and regulations and must be protected against any loss of
confidentiality, integrity and availability.

Article 3

Principles of cooperation

The Parties
agree to apply the following principles to cooperation activities covered by
this Agreement:

1. Mutual
benefit based on an overall balance of rights and obligations including
contributions and access to all services as laid down in Article 15;

2. Reciprocal opportunities to engage in cooperative activities in the
European Union and Swiss GNSS projects;

3. Timely
exchange of information that may affect cooperative activities;

4. Adequate and
effective protection of intellectual property rights as referred to in Article
9 of this Agreement;

5. Freedom to
provide satellite navigation services in the territories of the Parties;

6. Unrestricted
trade in European GNSS goods in the territories of the Parties.

II. PROVISIONS ON COOPERATION

Article 4

Cooperation activities

1. The sectors
for cooperation activities in satellite navigation and
timing are namely radio-spectrum, scientific research and training, procurement,
industrial cooperation, intellectual property rights, export control, trade and
market development, standards, certification and regulatory measures, security,
exchange of classified information, staff exchanges and access to services. The
Parties may amend this list of sectors in accordance with Article 25 of this
Agreement.

2. This
Agreement shall not affect the institutional autonomy of the European Union to
regulate the European GNSS programmes nor the structure established by the
European Union for the purpose of the operations of the European GNSS
programmes. Nor does this Agreement affect the applicable regulatory measures
implementing non-proliferation commitments, export control, controls of
intangible transfers of technology nor does it affect national security
measures.

3. Subject to
their applicable regulatory measures, the Parties shall foster, to the fullest
extent practicable, the cooperation activities under this Agreement with a view
to providing comparable opportunities for participation in their activities in
the sectors listed under paragraph 1.

Article 5

Radio spectrum

1. The Parties
agree to continue cooperation and mutual support in radio-spectrum issues in
the framework of the International Telecommunication Union (hereinafter referred
to as "ITU"), taking into account the Memorandum of Understanding on
the Management of ITU filings of the Galileo radio-navigation satellite service
system of 5 November 2004.

2. In this
context the Parties shall exchange information on frequency filings and protect
adequate frequency allocations for Galileo in order to ensure the availability
of Galileo services for the benefit of users worldwide and notably in Switzerland and in the European Union.

3. Moreover,
the Parties recognise the importance to protect radio navigation spectrum from
disruption and interference. To this end they shall identify sources of
interference and seek mutually acceptable solutions to combat such
interference.

4. Nothing in
this Agreement shall be construed so as to derogate from the applicable
provisions of the ITU, including the ITU Radio Regulations.

Article 6

Scientific research and training

1. The Parties
shall promote joint research and training activities in the field of European
GNSS through European Union and Swiss research programmes and other relevant
research programmes of the Parties. The joint research activities shall
contribute to planning the future developments of European GNSS.

2. The Parties
agree to define the appropriate mechanism aimed at ensuring effective contacts
and participation in the relevant research programmes.

Article 7

Procurement

1. For
acquisitions relating to the European GNSS programmes, the Parties shall apply
their commitments under the Agreement of Government Procurement (hereinafter
referred to as "GPA") of the World Trade Organization (hereinafter
referred to as "WTO") and under the Agreement of 21 June 1999 between
the European Community and the Swiss Confederation on certain aspects of
government procurement.

2. Without
prejudice to Article XXIII of the GPA (Article III of the revised GPA), Swiss
entities shall have the right to participate in the procurement for the
provision of services related to the European GNSS programmes.

Article 8

Industrial cooperation

The Parties
shall encourage and support the cooperation between the industries of the
Parties, including by the means of joint ventures and Swiss participation in
relevant European industrial associations, as well as, participation from the
European Union in relevant Swiss industrial associations, with the objective of
the well-functioning of the European satellite navigation systems as well as
promoting the use and development of Galileo applications and services.

Article 9

Intellectual property rights

To facilitate
industrial cooperation the Parties shall grant and ensure an adequate and
effective protection of intellectual property rights in the fields and sectors
relevant to the development and operation of the European GNSS, in accordance
with the highest international standards as set in the "Agreement on Trade
Related Aspects of Intellectual Property Rights (TRIPS)" of the WTO,
including effective means of enforcing such standards.

Article 10

Export control

1. In order to
ensure the application of a uniform policy of export control and
non-proliferation concerning the European GNSS programmes between the Parties,
Switzerland shall timely adopt and enforce, within its jurisdiction and in accordance with its national legislation and procedures, measures of export control and non-proliferation of technologies,
data and items which are specially designed or modified for the European GNSS
programmes. These measures shall provide a degree of export control and
non-proliferation equivalent to that in force in the European Union.

2. In case an event occurs where such an
equivalent degree of export control and non-proliferation cannot be achieved,
the procedure of Article 22 applies.

Article 11

Trade and market development

1. The Parties
shall encourage trade and investment in European Union and Swiss satellite navigation infrastructure, equipment, including local elements
and applications relevant to the European GNSS programmes.

2. To this end
the Parties shall raise the level of public awareness concerning the Galileo
satellite navigation activities, identify potential barriers to growth in GNSS
applications and take appropriate measures to facilitate this growth.

3. To identify
and respond effectively to user needs, entities of the Parties may use the
future GNSS User Forum.

4. This
Agreement shall not affect the rights and obligations of the Parties under the
Agreement establishing the WTO.

Article 12

Standards, Certification and Regulatory Measures

1. Recognising
the value of coordinating approaches in international standardisation and
certification fora concerning global satellite navigation services the
Parties agree, in particular, to jointly support the development of Galileo and
EGNOS standards and promote their application worldwide, emphasising
interoperability with other GNSS.

One objective
of the coordination is to promote a broad and innovative use of the Galileo
services for open, commercial and safety of life purposes as a worldwide
navigation and timing standard. The Parties agree to create favourable
conditions for developing Galileo applications.

2.
Consequently, to promote and implement the objectives of this Agreement, the
Parties shall, as appropriate, cooperate on all GNSS matters that arise notably
in the International Civil Aviation Organisation, the International Maritime
Organisation and the ITU.

3. The Parties
shall ensure that measures relating to technical standards, certification and
licensing requirements and procedures concerning European GNSS do not
constitute unnecessary barriers to trade. Domestic requirements shall be based
on objective, non-discriminatory, pre-established transparent criteria.

4. The Parties
shall take the necessary regulatory measures to allow the complete use of
Galileo receivers, ground and space segments in the territories under their
jurisdiction. In this regard, Switzerland shall grant Galileo treatment in the
territory under its jurisdiction no less favourable than that accorded to any
other like radionavigation-satellite services systems.

Article 13

Security

1. In view to
protect the European GNSS programmes against threats such as misuse,
interference, disruption and hostile acts, the Parties shall take all
practicable steps to ensure the continuity, safety and security of the
satellite navigation services and the related infrastructure and critical
assets in their territories without prejudice of Article 4, paragraph 2.

2. In this
context Switzerland shall timely adopt and enforce, within its jurisdiction and in accordance with its national legislation and procedures, measures providing an equivalent degree of security and safety as
those applicable in the European Union as regards the protection, control and
management of sensitive assets, information and technologies of the European
GNSS programmes against threats and undesired divulgation.

3. In case an event occurs where such an
equivalent degree of security and safety cannot be achieved, the procedure of
Article 22 applies.

Article 14

Exchange of classified information

1. Exchange and
protection of European Union classified information shall be in accordance with
the Security Agreement as well as the Implementing Arrangements of the Security
Agreement.

2. Switzerland may exchange classified information with national classification marking on
European GNSS programmes with those Member States of the European Union with
which it has concluded bilateral agreements to that effect.

3. The Parties
shall seek to establish a comprehensive and coherent legal framework allowing
exchanges between all the Parties to this Agreement of classified information
concerning the Galileo programme.

Article 15

Access to services

Switzerland shall have access to all European GNSS services subject to this
Agreement and to the PRS subject to a separate PRS Agreement.

Switzerland has expressed its interest in the PRS, considering it an important
element of its participation in the European GNSS programmes. The Parties
endeavour to conclude a PRS Agreement to ensure the Swiss PRS participation as
soon as a request to this regard is submitted by Switzerland and the procedure
provided for in Article 218 of the Treaty on the Functioning of the European
Union has been completed.

Article 16

Participation
in the European GNSS Agency

Switzerland shall have the right to participate in the European GNSS Agency under
the conditions to be laid down by an Agreement between the European Union and Switzerland. These negotiations will start as soon as a request to this regard is submitted
by Switzerland and the necessary procedures on the side of the European Union
have been completed.

Article 17

Participation in Committees

Representatives
of Switzerland shall be invited to participate as observers in the committees
established for the management, development and implementation of the
activities under the European GNSS programmes in accordance with the relevant
rules and procedures and without the right to vote. This includes in particular
participation in the GNSS Programme Committee and the GNSS Security Board
including their working groups and task forces.

III. FINANCIAL PROVISIONS

Article 18

Funding

Switzerland shall contribute to the funding of the European GNSS programmes.
The Swiss contribution shall be calculated on the basis of the proportionality factor which is obtained by establishing the
ratio between Switzerland’s gross domestic product, at market prices, and the
sum of gross domestic products, at market prices, of the Member States of the
European Union.

For the period
2008-2013 the Swiss financial participation to the European GNSS programmes
amounts to 80.050.870 euro.

This amount
will be paid as follows:

2012:
20.000.000 euro

2013:
40.000.000 euro

2014:
20.050.870 euro

For the period
2014 and following, the Swiss contribution shall be paid annually.

IV. FINAL PROVISIONS

Article 19

Liability

As Switzerland will not be the owner of the European GNSS, it will not face any liability
resulting from the ownership.

Article 20

Joint Committee

1. A Joint
Committee known as the "European Union/Switzerland GNSS Committee" is
hereby established; it shall be made up of representatives of the Parties and
be responsible for the management and proper application of this Agreement. To
this end, it shall draw up recommendations. It shall take decisions in the
cases provided for in this Agreement; these decisions shall be carried out by
the Parties in accordance with their own rules. The Joint Committee shall reach
its decisions by common agreement.

2. The Joint
Committee shall establish its rules of procedure, which shall contain, inter
alia, provisions on the convening of meetings, the appointment of the chairman
and the latter's term of office.

3. The Joint
Committee shall meet as and when necessary. The European Union or Switzerland may request the convening of a meeting. The Joint Committee shall meet within
15 days of a request under Article 22 paragraph 2.

4. The Joint
Committee may decide to set up such working groups or groups of experts as it
sees fit to assist it in the accomplishment of its tasks.

5. The Joint Committee may decide to amend the Annex.

Article 21

Consultations

1. In order to
ensure the satisfactory implementation of this Agreement, the Parties shall
exchange information on a regular basis and, at the request of one of them,
shall hold consultations within the Joint Committee.

2. The Parties
shall promptly consult, at the request of one of them, on any question arising
out of the interpretation or application of this Agreement.

Article 22

Safeguard measures

1. Each Party may, after consultations within the Joint Committee,
take appropriate safeguard measures, including the suspension of one or several
cooperation activities, if it finds that an equivalent degree of export control
or security is no longer assured between the Parties. Where any delay could
jeopardise the good functioning of GNSS, provisional protective measures may be
taken, without prior consultation, provided that consultations are held
immediately after their adoption.

2. The scope and duration of such measures shall be limited
to what is necessary in order to remedy the situation and to secure a fair
balance of rights and obligations under this Agreement. The other Party may ask
the Joint Committee to hold consultations about the proportionality of these
measures. If it is not possible to settle this dispute within 6 months, the
dispute may be submitted by either Party for binding arbitration in accordance
with the procedure laid down in the Annex. No question of interpretation of
provisions of this Agreement that are identical to corresponding provisions of
European Union law may be resolved within this framework.

Article 23

Settlement of disputes

Without prejudice to Article 22, any
disputes concerning the interpretation or application of this Agreement shall
be settled by consultations within the Joint Committee.

Article 24

Annexes

The Annexes to
this Agreement shall form an integral part thereof.

Article 25

Revision

This Agreement
may be amended and developed at any time by mutual agreement between the
Parties.

Article 26

Termination

1. The European
Union or Switzerland may terminate this Agreement by notifying the other Party.
This Agreement shall cease six months after the receipt of such notification.

2. The
termination of this Agreement shall not affect the validity or duration of any
arrangements made under it or any specific rights and obligations that have
accrued in the field of intellectual property rights.

3. In case of
termination of this Agreement the Joint Committee shall make a proposal in
order to enable the Parties to settle any outstanding questions including
financial consequences taking into account the principle of pro rata
temporis.

Article 27

Entry into force

1. This
Agreement shall be approved by the Parties in accordance with their own
internal procedures. This Agreement shall enter into force the first day of the
second month following the date of the last notification of approval.

2. Notwithstanding paragraph 1, Switzerland and the
European Union, as regards elements falling within its competence, agree to
apply provisionally this Agreement from the first day of the month following
the date of the second notification confirming the completion of the procedures
necessary for this purpose.

3. This
Agreement is concluded for an indefinite period.

4. This Agreement is drawn up in duplicate
in the Bulgarian, Czech, Danish, Dutch, English, Estonian, Finnish, French,
German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish,
Portuguese, Romanian, Slovakian, Slovenian, Spanish and Swedish languages, all
texts being authentic.

--------------------------------

ANNEX I

ARBITRATION PROCEDURE

(1)
If a dispute has been referred to arbitration
there shall be three arbitrators, unless the Parties decide otherwise.

(2)
Each Party shall appoint one arbitrator within
30 days.

(3)
The two arbitrators so appointed shall nominate
by common agreement one umpire who shall not be a national of either of the
Parties. If they cannot agree within two months of their appointment, the
umpire shall be chosen by them from seven persons on a list established by the
Joint Committee. The Joint Committee shall draw up and update this list in
accordance with its rules of procedure.

(4)
Unless the Parties
decide otherwise, the arbitration tribunal shall adopt its rules of procedure.
It shall take its decisions by majority vote.

ANNEX II

Financial contribution of Switzerland to the European GNSS
programmes.

1. For the
period 2008-2013, the financial contribution to be made by Switzerland to the
budget of the European Union in order to participate in the European
GNSS programmes, shall be as follows (in €):

2012 || 2013 || 2014

20 000 000 || 40 000 000 || 20 050 870

For the period
2014 and following, the Swiss contribution shall be paid annually.

2. The
Financial Regulation applicable to the general budget of the European
Communities[1]
and its implementing rules[2]
shall apply, in particular to the management of Switzerland's contribution.

3. The travel
and subsistence expenses of representatives and experts from Switzerland in connection with their participation in meetings organised by the Commission in
conjunction with implementation of the programmes shall be reimbursed by the
Commission on the same basis and in accordance with the procedures currently in
force for experts from the Member States of the Union.

4. Following
the provisional application of this Agreement, and at the beginning of each
subsequent year, the Commission will send to Switzerland a request for funds
corresponding to its contribution to the budget for the programmes, in
accordance with this Agreement.

This
contribution shall be expressed in euro and shall be paid into a euro bank
account held by the Commission.

5. Switzerland shall pay its contribution by 1 April, if the request for funds is sent by the
Commission before 1 March, or no later than 30 days after the request for funds
if this is sent by the Commission after that date.

Any delay in
the payment of the contribution will entail the payment of interest by Switzerland on the outstanding amount from the due date. The interest rate shall correspond
to the rate applied by the European Central Bank, on the due date, for its
operations in euro, increased by 3,5 percentage points.

JOINT DECLARATION

on Switzerland's participation in Committees

The
Contracting Parties declare that Switzerland's participation in committees
established within the EU for the management, development and
implementation of the activities under the European GNSS programmes by
virtue of Article 17 should not be considered as a precedent for other
agreements between the EU and Switzerland.

[1]               Council Regulation (EC, Euratom) N° 1605/2002 of 25
June 2002 on the Financial Regulation applicable to the general budget of the
European Communities (OJ L 248 of 16.9.2002, p.1), as last modified by
Regulation 1525/2007 of 17 December 2007 (OJ L 343, 27.12.2007, p.9).

[2]               Commission Regulation (EC, EURATOM) N°2342/2002 of 23
December 2002 laying down detailed rules for the implementation of Council
Regulation (EC, Euratom) N°1605/2002 (OJ L 357 of 31.12.2002, p.1) as last
modified by Commission Regulation (EC, Euratom) N°478/2007 of 23 April 2007 (OJ
L 111, 28.4.2007, p.13).

EXPLANATORY
MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

1.1.        Grounds for and objectives of the proposal Technological, geographical and financial reasons have ensured Switzerland an important role in the European GNSS (Global Navigation Satellite Systems) programmes. Switzerland provides critical technology to the Galileo programme. This Agreement aims to settle the principles of cooperation in general and the rights and obligations of Switzerland in areas such as security and export control. The Agreement has been negotiated on the basis of negotiation directives adopted by the Council on 29 June 2010. Articles 4(5) and 6(4) of Regulation (EC) No 683/2008 of the European Parliament and of the Council of 9 July 2008 on the further implementation of the European satellite navigation programmes (EGNOS and Galileo) allow for the possibility for third countries to provide additional funding to the European GNSS programmes in accordance with conditions to be laid down in Agreements pursuant to Article 218 of the Treaty on the Functioning of the European Union. The Agreement is limited to topics that are necessary to allow close cooperation with Switzerland. The construction and management of Galileo and EGNOS as EU-wide programmes highlight the need for common approaches and working methods between all Member States and some third countries such as Norway and Switzerland. The rules for these topics need to be set by the governments and coherently enforced Europe-wide. The Commission as programme manager acting on behalf of the Union, the owner of the system, needs to take all reasonable measures to induce this coherence. Failing to do this would increase security risks.

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

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

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

2.           RESULTS OF CONSULTATIONS WITH THE
INTERESTED PARTIES AND IMPACT ASSESSMENTS

2.1.        Consultation of interested parties

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

Summary of responses and how they have been taken into account These stakeholders have supported the close integration of Switzerland in cooperation in the European GNSS programmes matters and underlined the importance of including issues such as security and export control in the Agreement.

2.2.        Collection and use of expertise

Scientific/expertise domains concerned Space technology/ ground facilities, Security/ Industrial and governmental security, information security and international law/ privileges and immunities

Methodology used Meetings and exchange of information

Main organisations/experts consulted EU MS ministries and space agencies ESA, space industry

Summary of advice received and used The existence of potentially serious risks with irreversible consequences has not been mentioned.

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

Means used to make the expert advice publicly available The conclusions of the experts have not been made publicly available.

2.3.        Impact assessment The action aims at ensuring a close involvement of Switzerland in the construction and operations phases of the Galileo and EGNOS programmes. These two initiatives contain significant industrial, economic and strategic components. The governance of the European GNSS programmes has been reformed in Regulation (EC) No 683/2008 whereby the focus has been shifted from a Public-Private-Partnership to programmes managed and systems owned by the Union. This evolution and the content of the cooperation with security implications require formal regulatory measures. Consequently, three options were considered to achieve this goal. The first one was an association of Switzerland to the programme through a specific international cooperation body (Galileo International Board) grouping all third countries interested in the Galileo programme. After long discussions over this body with Switzerland and other third countries such as Norway, the option was abandoned. Switzerland felt it was unjust to have the same treatment as considerably less integrated non-European third countries that do not contribute financially to the programme. The second option was the conclusion of the enclosed Agreement. This allowed practically to reinforce provisions on security and export control and to provide principles and messages paving the way for a mutually beneficial long term cooperative relationship, and to obtain additional funding. The third option would have been no action at all. This would have led to uncertain relations in the area of GNSS with Switzerland.

3.           LEGAL ELEMENTS OF THE PROPOSAL

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

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

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

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

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

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

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

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

The proposal therefore complies with the subsidiarity principle.

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

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

3.5.        Choice of instruments

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

4.           BUDGETARY IMPLICATION

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

5.           OPTIONAL ELEMENTS

The proposal includes a review clause.

2012/0230 (NLE)

Proposal for a

COUNCIL DECISION

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

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the
European Commission,

Whereas:

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

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

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

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

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

HAS ADOPTED THIS DECISION:

Article 1

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

The text of the Agreement is attached to
this Decision.

Article 2

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

Article 3

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

Article 4

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

Done at Brussels,

                                                                       For
the Council

                                                                       The
President

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

1.           NAME OF THE PROPOSAL:

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

2.           BUDGET LINES:

Chapter: 66

Article: 660

Item: 6600

Amount budgeted for the year concerned:
p.m.

3.           FINANCIAL IMPACT

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

(in €)

|| ||

Budget line || Revenue || 12 month period, starting on || 2012

Article 660; Item 6600 || Other assigned contributions and refunds – Assigned revenue || 01/01/2012 || 20 000 000

Situation following action

|| 2013 || 2014 || 2015 || 2016 || …

Article 660; Item 6600 || 40 000 000 || 20 050 870 || To be calculated later || To be calculated later || To be calculated later

4.           ANTI-FRAUD MEASURES

5.           OTHER REMARKS

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

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

DECLARATION of the European Commission

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

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