CELEX: 52022PC0057
Language: en
Date: 2022-02-15
Title: Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing the Union Secure Connectivity Programme for the period 2023-2027

EUROPEAN
                          COMMISSION
                                                  Strasbourg, 15.2.2022
                                                  COM(2022) 57 final
                                                  2022/0039 (COD)
                                     Proposal for a
   REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
    establishing the Union Secure Connectivity Programme for the period 2023-2027
           {SEC(2022) 77 final} - {SWD(2022) 30 final} - {SWD(2022) 31 final}
EN                                                                                EN
 ---pagebreak---                                      EXPLANATORY MEMORANDUM
   1.       CONTEXT OF THE PROPOSAL
   •          Reasons for and objectives of the proposal
   The general objective of this proposal is to establish a Union secure satellite communication
   system (hereafter the ‘Programme’) that ensures the provision of worldwide secure, flexible
   and resilient satellite communication services to the Union and Member States governmental
   entities.
   Satellite communications provide ubiquitous coverage, which is complementary to terrestrial
   networks (ground-based in a form of cable links such as fibre broadband or wireless). Satellite
   communications can provide the means for seamless digital communication in areas where
   terrestrial networks are absent (e.g. oceans, during flights, or in remote locations / islands with
   no cellular or broadband coverage), have been destroyed (e.g. during flooding events, or
   forest fires) or where local networks cannot be trusted (in crisis situations, or for diplomatic
   services in third countries or for sensitive governmental operations).
   Govsatcom is a strategic asset, closely linked to national security, used by most Member
   States. Public users tend to favour either government-owned1 or public-private solutions2 or
   make use of specific accredited private providers. Use cases include surveillance operations,
   crisis management, including civil protection and humanitarian operations in natural or
   human-made disasters and connection and protection of key infrastructure.
   Because of the scale and complexity of required investments, and the synergies that a
   common capability could bring, Govsatcom has been identified as early as 2013 3 as a
   promising field for Union initiatives, with the possibility of tangibly contributing to the
   objectives for a strong, secure and resilient European Union. It is now an integral part of the
   Space Strategy for Europe4, the European Defence Action Plan5 and the European Union
   Global Strategy. The notion of a Union governmental satellite communication infrastructure
   has been consistently welcomed in ensuing Council conclusions6.
   The adoption of the European Parliament and of the Council of 28 April 2021 establishing the
   Union Space Programme and the European Union Agency for the Space Programme and
   repealing Regulations (EU) No 912/2010, (EU) No 1285/2013 and (EU) No 377/2014 and
   Decision No 541/2014/EU (hereinafter referred to as ‘Space Regulation’) constituted a first
   step towards this resilience objective, through the establishment of a dedicated
   GOVSATCOM component of the Union Space Programme. Its aim is to optimise the use of
   existing satellite communication capacity for governmental users on the basis of pooling and
   sharing of available national and private EU satellite communication resources. Due to the
   limited lifespan of a satellite (approximately 15 years for geostationary orbit (GEO) satellites)
   several of the governmentally owned infrastructures that will constitute part of the pooling
   and sharing of GOVSATCOM will need to be replenished in the coming decade7. For this
   reason, Regulation (EU) 2021/696 foresaw the need to assess the evolution of satellite
   1
            Owners of Governmental SATCOM include France, Germany, Greece, Italy, Luxembourg, Spain.
   2
            Such as Germany’s Satcom BW or Luxemburg’s GovSat.
   3
            European Council Conclusions 19/20 December 2013
   4
            Space Strategy for Europe COM(2016) 705 final.
   5
            European Defence Action Plan COM(2016) 950 final.
   6
     Dec. 2013 EUCO, Dec. 2014 COMPET Space, May 2015 FAC Defence
   7
            PwC (2016) 'Satellite Communication to support EU Security Policies and Infrastructures'.
EN                                                           1                                         EN
 ---pagebreak---    communication needs. According to the Regulation, if this assessment ‘reveals that this
   approach is insufficient to cover the evolving demand, it should be possible to take a decision
   to move to a second phase and develop additional bespoke space infrastructure or capacities
   through one or several public-private partnerships, e.g. with Union satellite operators.’
   Several studies8 have substantiated this evolution of needs: Traditionally, satellite
   communication has been used for voice communication and data transfer in remote areas (e.g.
   at sea), but the nature of use cases is rapidly evolving, requiring low latency9 performance and
   global coverage. While satellite communication has been primarily relying on
   geosynchronous (GEO) spacecraft, technical progress has allowed the emergence of non-
   geostationary-orbit (NGSO) communications constellations, comprising low-Earth-orbit
   (LEO) and medium-Earth-orbit (MEO) satellites to emerge and to offer performance meeting
   these evolving user needs.
   The increasing hybrid and cyber threat levels and the propensity of natural disasters drive the
   changing needs of governmental actors towards higher security, reliability and availability of
   commensurate satellite communication solutions. The rise of quantum computers adds an
   additional threat. With their fundamentally improved capabilities, it is expected that quantum
   computers will be able to decrypt content that is currently encrypted. The European Quantum
   Communication Infrastructure (EuroQCI)10 initiative aims at developing future-proof
   cryptographic systems to offer unprecedented levels of secure communications by resisting
   future quantum computing attacks. EuroQCI is currently financed through Horizon Europe,
   the Digital Europe programme, as well as the Connecting Europe Facility -
   Digital. Furthermore, the Commission Strategic Foresight report11 identifies digital hyper-
   connectivity and technological transformation as one of the prevalent megatrends of the next
   half century, underpinned by an unprecedented demand for services, for example in data
   economy and finance.
   These advances lead global satellite communication connectivity to be increasingly handled
   as a strategic asset. To that end, several major non-EU government-backed projects with a
   variety of connectivity strategic objectives are underway12. These strategic infrastructures
   initiated by all major space powers highlight the growing global need for governmental
   services to ensure a resilient connectivity to support not only their security operations, but
   also to connect critical infrastructures, manage crises as well as to support border and
   maritime surveillance.
   To date, there are no operational or in-the-making EU assets in low Earth orbit (LEO) or
   medium Earth orbit (MEO) that could meet the evolving governmental user needs. The
   existing committed satellite communication capacities providing governmental services at the
   disposal of the Member States are all based on a reduced number of GEO assets, covering
   mainly Europe. The majority of the capacity is dedicated to military missions, with a strong
   governance control (from owned infrastructure to stringent public private partnerships).
   8
            Notably the European Networking for satellite Telecommunication Roadmap for the governmental Users requiring
            Secure, inTeroperable, InnovativE and standardiseD services (ENTRUSTED), a research project funded under the
            EU Horizon 2020 Research and Innovation Programme as well as the ‘Building Blocks Towards a Secure Space
            Connectivity System’ study (DEFIS/2020/OP/008)
   9
            Latency: amount of delay, measured in milliseconds (ms), that occurs in a round-trip data transmission to a
            satellite.
   10
            European Quantum Communication Infrastructure (EuroQCI) Declaration
   11
            Strategic_Foresight_Report_2021_en.pdf (europa.eu).
   12
            Such as the US Space Development Agency’s ‘Transport Layer’, a constellation of 300 to more than 500 satellites
            in LEO) ranging from 750km to 1200km in altitude, or the Russian Roscosmos ‘Sfera’, a constellation of 640
            satellites at an orbit of 870km.
EN                                                            2                                                             EN
 ---pagebreak---    Moreover, as the services provided by these Milsatcom capabilities are tailored to meet
   specific mlitary needs, in particular in terms of frequency, encryption, signal specificities,
   user terminal and level of classification, they cannot be used in most civilian governmental
   applications.
   Spurred by the technological progress of low latency, there has been an emergence of various
   public-supported or subsidised non-EU mega-constellations in the US, China and Russia. At
   the same time, there is shortage of available frequency filings and orbital slots due to the
   dramatic increase of these mega-constellations. Coupled with the limited lifetime of
   GOVSATCOM capacity, this creates an urgency for an EU space-based secure connectivity
   system. The Programme would cover the capacity and capability gaps for governmental
   satellite communication services.
   The Programme should also allow for the provision of commercial satellite communication
   services by the private sector. Such commercial services would in particular enable
   availability of high-speed broadband and seamless connectivity throughout Europe, removing
   dead zones and increasing cohesion across Member State territories, including rural,
   peripheral, remote and isolated areas and islands, and provide connectivity over geographical
   areas of strategic interest outside the Union.
   A public-private partnership was assessed in the impact assessment to be the most appropriate
   implementation model to ensure that the objectives of the Programme could be pursued. It
   would permit to build upon the existing EU satellite communication technological and
   infrastructural base and to provide robust and innovative governmental services. At the same
   time, it would allow the private partners to complement the Programme infrastructure with
   additional capabilities to offer commercial services. This would furthermore optimise
   deployment and operation costs by sharing development and deployment costs on components
   common to both governmental and commercial infrastructures, as well as operational costs by
   allowing a high level of capacity mutualisation. It would stimulate innovation in particular for
   small and medium-sized enterprises and start-ups that deploy novel space technologies and
   applications (‘New Space’) by enabling the sharing of research and development risks
   between public and private partners.
   In parallel with this programme:
                  the Horizon Europe Programme will allocate a dedicated share of its Cluster 4
                   components to R&I activities enabling the sharing of research and development
                   risks between public and private partners, including for the potential
                   technologies that would be developed under New Space;
                  the Neighbourhood, Development and International Cooperation Instrument
                   (NDICI) will allocate a dedicated share of the Global Europe activities
                   enabling the sharing of the deployment and exploitation risks between public
                   and private partners for the connectivity system that will allow to offer an array
                   of services with accrued benefits to international partners;
                  the Union Space Programme will allocate a dedicated share of its
                   GOVSATCOM component for the activities related to the development of the
                   GOVSATCOM Hub which will form part of the ground infrastructure of the
                   Secure Connectivity system.
EN                                                 3                                                  EN
 ---pagebreak---    •         Consistency with existing policy provisions in the policy area
   The proposed Programme is consistent with the existing EU space policy. In particular, the
   programme would enhance the EU’s space capacity, currently consisting of the EU’s satellite
   navigation and Earth observation systems, Galileo and Copernicus respectively as well as the
   Space Situational Awareness capacities. The Programme builds on the EU GOVSATCOM
   component of the Union space programme.
   •         Consistency with other Union policies
   The proposal is consistent with a number of other Union policies. In particular, the provision
   of governmental services would ensure further cohesion in line with the Union’s Digital and
   Cybersecurity Strategies, by ensuring the integrity and resilience of the European
   infrastructure, networks and communications. The Programme would be EU-operated and
   provide a very high level of security, hereby strengthening the ability to provide an integrated
   EU response to security threats as called for in the EU Security Union Strategy and in the
   Global strategy for the European Union’s Foreign and Security Policy. The services would
   connect strategic areas such as Arctic and Africa, in line with policy targets in these regions
   and the Global Gateway strategy.
   2.        LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
   •         Legal basis
   The proposal is based on Article 189(2) of the Treaty on the Functioning of the European
   Union (TFEU), which is the legal basis for the adoption of Union measures related to the
   European space policy.
   •         Subsidiarity (for non-exclusive competence)
   Due to the global scale and nature of connectivity, the issue cannot be addressed either at
   local or even at regional level.
   The Programme would complement the existing EU GOVSATCOM arrangements on pooling
   and sharing of the existing governmental satellite communication capacity. However, no EU
   Member State alone has the capacity to fulfil the totality of evolving user needs and the
   accompanying costs.
   An EU solution provides added value because action and coordination at EU level would
   avoid duplication of efforts across the Union and Member States. It would lead to a better
   exploitation of existing assets, to greater security and resilience, notably through quantum
   cryptography, to better coverage, and to provision of a greater array of services. Other EU and
   Member State thematic policies would benefit too.
   Action at EU level has the benefit of economies of scale. The individual user needs across
   Member States are generally heterogeneous and often unpredictable in terms of scope,
   capacity, timing and location. A common denominator of all use cases is the need for
   flexibility due to the often unpredictable, fluctuating need for satellite communication
   capacity. Acquiring such flexibility of access to capacity requires large investments.
   •         Proportionality
   The proposal does not introduce any measures beyond those necessary to achieve the main
   objectives of this Programme. In particular, the proposal defines the minimum requirements
   for the establishment of a European secure connectivity system and for the provision of
   suitable governmental satellite communication services. In this regard, the system’s capacity
   will be designed to complement inter alia existing Member States satellite communication
EN                                                 4                                                EN
 ---pagebreak---    capacities and cover planned additional capacity needs. The proposal does not introduce any
   restriction to the ability of Member States’ governmental actors to choose those capabilities
   they decide to use.
   The proposal is expected to have a positive spill-over effect on the Union’s space sector,
   including the New Space. In addition, citizens will benefit from an improved operational
   performance in civil protection.
   Finally, the budget allocated to the Programme is apt to achieving the objectives set and does
   not go beyond what is necessary. The funds needed to deliver the Programme have been
   determined based on a several careful analyses and estimates carried out as part of the impact
   assessment and described below.
   •         Choice of the instrument
   A Regulation of the European Parliament and of the Council is the preferred instrument. It
   ensures the uniformity and direct application, required for the effective implementation of the
   Programme, while giving it due visibility and providing it with the financial resources it needs
   for its implementation.
   3.        RESULTS           OF      EX-POST         EVALUATIONS,            STAKEHOLDER
             CONSULTATIONS AND IMPACT ASSESSMENTS
   •         Ex-post evaluations/fitness checks of existing legislation
   N/A
   •         Stakeholder consultations
   This Programme is supported by inputs from expert group meetings, public consultations and
   workshops that gathered the views of all relevant stakeholders (Member States and industry),
   more precisely:
            Since 2016, numerous expert group meetings with Member States have taken place
             in the context of the EU GOVSATCOM initiative, discussing governmental satellite
             communication needs, the establishment of pooling and sharing, implementation
             aspects and developments towards the current Programme.
            In 2021, numerous bilateral meetings with Member States took place to gather their
             specific needs for governmental satellite communication and potential concerns
             relating to the Programme. Most Member States stated that they clearly support the
             Programme and its overall objectives.
            In May and November 2021, the Commission held two workshops with Member
             States on ’Secure Connectivity - State of Play’. During these workshops, progress on
             the technical study on secure connectivity was presented, together with possible
             exploitation models of the system. The workshops allowed for active interventions,
             questions and comments from Member States that were taken into account in the
             development of this proposal.
            In June 2021, the Commission held the ‘Secure Connectivity Workshop for the
             European New Space Ecosystem’. 458 participants (including 196 SME and start-
             ups) discussed innovative ideas for the Secure Connectivity Programme and the
             potential role of New Space.
            As part of the public feedback for the Inception Impact Assessment, the Commission
             received feedback from 13 stakeholders, representing the views of a group of EU
EN                                                 5                                                EN
 ---pagebreak---               sparsely populated territories (1), private companies (8), business associations (2), a
              non-governmental organisation (1), and a private citizen (1). Industry was supportive
              of the Programme, and the majority favoured a public-private partnership (PPP)
              approach.
      There is a general agreement amongst Member States on a need for action. Several Member
      States stressed that national capacities alone might possibly satisfy short-term needs, but will
      not be sufficient in the long term. Some of the gaps (e.g. in the Arctic) are already
      documented. Furthermore, several Member States confirmed their increasing governmental
      needs for guaranteed access to secure satellite communication.
      Member States also stressed the need for the involvement of New Space, as startups have
      demonstrated that they are technologically advanced and eager to contribute with innovative
      solutions.
      EU space industry representatives confirmed during the knowledge-building phase that there
      are no plans for EU private companies alone to create a satellite communication
      constellation to meet the evolving and increasing governmental low-latency needs.
      However, they welcomed the opportunity to partner with the EU for the development of
      such system.
   •          Collection and use of expertise
   The proposal is also underpinned by data collected and findings from the study on ‘Building
   Blocks Towards a Secure Space Connectivity System13’.
   The Commission also contracted an independent consultant to support the analysis of the
   indirect benefits of the Programme by providing the relevant econometric support and
   analysis.
   Finally, quantitative and qualitative data supporting this proposal have been collected from
   Member States and relevant industry stakeholders. This proposal also draws on the work of
   the Commission on the GOVSATCOM component of the EU Space Programme, and
   EuroQCI initiative, as well as on the research activities conducted within the framework of
   the ENTRUSTED project14.
   •          Impact assessment
   In line with its ‘Better Regulation’ policy, the Commission conducted an impact assessment
   in view of the establishment of the Programme.
   The problems analysed in the impact assessment, as evoked as well above, led to formulation
   of three specific policy objectives:
             Ensure the provision of secure satellite communication for evolving public needs;
             Increase the resilience of Member States and EU operations by guaranteed access to
              secure satellite communication;
             Ensure that governmental communication needs are not critically dependent on non-
              EU infrastructure.
   13
            DEFIS/OP/2020/008
   14
            European Networking for satellite Telecommunication Roadmap for the governmental Users requiring
            Secure, inTeroperable, InnovativE and standardiseD services (ENTRUSTED) ENTRUSTED is a
            research project funded under the EU Horizon 2020 Research and Innovation Programme.
EN                                                       6                                                   EN
 ---pagebreak---    To close the capacity gap in the provision of secure governmental services, the following
   policy options were considered in order to achieve the objectives in the most effective and
   efficient manner:
   Under the ‘Baseline scenario’, no EU action would take place beyond what is currently being
   implemented through EU GOVSATCOM. The baseline is taken to mean the continuation of
   the EU GOVSATCOM Phase 1, i.e. limited to the current pooling and sharing of Member
   State and private satellite communication systems. In such a scenario individual Member
   States, or EU companies may decide to develop new satellite communication services, of
   which partial capacity can be sold to the EU GOVSATCOM pool. Transition to EU
   GOVSATCOM phase 2 in the initially planned timeframe would in all cases require a
   legislative act, additional budget and available frequency filings.
   As part of the assessment, it was also considered whether the EU could purchase the secure
   accredited services from established solutions by the public or private sector, currently limited
   to foreign market providers (Option 3 – non-EU constellation). Although the EU satcom
   market is already well developed, there are currently no EU providers that can serve all the
   increasing and evolving governmental needs. However, buying the services from non-EU
   private sources is not the preferred option from a security and open strategic autonomy point
   of view since Member States and EU Institutions require, for governmental needs, a
   guaranteed access in an unrestricted manner to secure connectivity services without soliciting
   the assent of a third party. This option 3 would thus not meet the specific objectives.
   Therefore, the EU needs to act to ensure the provision of these services by either fully funding
   and procuring its own system (Option 1 – fully public) or involving private resources (Option
   2 – in the form of a concession contract with rights of commercial use). Option 1 and 2 would
   achieve the specific objectives to the same extent, but option 2 ranks higher with regard to the
   economic benefits it can generate.
   The common economic benefits of Options 1 and 2 are related to the deployment of a new
   infrastructure that would provide a gross value added (GVA) of EUR 17-24 billion and
   additional jobs in the EU space industry. Investments in Space upstream infrastructure are
   estimated to generate a six-fold impact in downstream sectors15. Spill over effects are created
   by downstream sectors using the services, technologies and data provided by the space sector
   to enhance their business. These are estimated to have a GVA of EUR 10-19 billion.
   The additional possibility offered in Option 2 for the private sector to make further investment
   to develop commercial services should create more economic benefits for the downstream
   sector, as it can address significant commercial market opportunities. Should the private
   partners choose to develop additional infrastructure for commercial services, this could
   generate a further GVA and an additional job increase in the EU space industry for both
   upstream and downstream sectors.
   As to what concerns the social impact, governmental satellite communication enhances the
   resilience of EU infrastructure and public services, hence the social imprint of their
   operational performance. The added value of being able to communicate in case of
   emergencies and disasters is extremely high for citizens as well as for people responsible for
   critical infrastructure sites. Here again, an additional investment in commercial infrastructure
   would increase the social impact further.
   With regard to the environmental impact of the Programme, Option 2, entailing the
   development of an additional infrastructure, would have an environment impact from the
   15
            Council of the EU: EU in space.
EN                                                  7                                                EN
 ---pagebreak---    manufacturing and launching of the system. However, compared to other industries, the
   manufacturing of spacecraft do not emit significant greenhouses gases. In addition, the
   development would comply with the the international standards on the protection of space
   environment (e.g. the United Nations’ Committee on the Peaceful Uses of Outer Space
   (COPUOS) and Inter-Agency Space Debris Coordination Committee (IADC) Space Debris
   Mitigation Guidelines16), as well as the existing national legislation17. Furthermore, the
   Programme is expected to have positive contributions towards the environment similar to
   Galileo and Copernicus, where it has been assessed that the environmental benefits stemming
   from the use of the components are approximately two-fold higher than the environmental
   footprint generated. Environmental benefits include for example satellite communication
   services for maritime surveillance supporting pollution detection and response environmental
   monitoring, and the ability to provide seamless communication capacity whenever
   infrastructure is disrupted, notably due to floods, hurricanes or other extreme weather
   phenomena resulting from climate change.
   Finally, Option 2 has additional advantages insofar as it:
           Improves the provision of governmental services (low latency, resilience, security,
            guaranteed access, autonomous use)
           Allows the provision of additional commercial services (economic growth, social
            benefits)
           Optimises costs incurred in the Union’s budget for:
            –      development and deployment with economies of scale
            –      operations with mutualisation of capacity
           Stimulates the deployment of innovative technologies, in particular with the New
            Space involvement (sharing the technology risk between public and private).
   As to the costs, the estimated cost of the satellite communication capacity designed to serve
   governmental demand is around EUR 6 billion, associated to the deployment of the
   infrastructure needed to provide the governmental services. Under Option 2, the costs are split
   between the contribution from the Union budget, Member States contributions and
   contributions by the private sector.
   The draft impact assessment was submitted to the Regulatory Scrutiny Board on 11 October
   2021. Following the negative opinion by the Board on the first draft impact assessment report,
   a revised draft impact assessment was submitted to the Board for a second opinion on 21
   December 2021. While noting the improvements responding to its initial comments, the
   Board nevertheless maintained its negative opinion on 12 January 2022, because the impact
   assessment still contained significant shortcomings on (1) the analytical coherence between
   the problem definition, objectives, options, criteria for the comparison of options and the
   definition of future monitoring indicators; (2) the lack of explanations on the choice of policy
   options with regard to technical solutions; (3) the absence of a timescale and identification of
   funding sources; (4) clarity on methodological assumptions and validity of secondary data
   cited; and (5) on the lack of explanations on the compatibility of the Programme with the
   objectives of the Climate Law.
   16
           IADC
   17
           Space debris mitigation standards adopted by States and international organizations
EN                                                       8                                          EN
 ---pagebreak---    Therefore, in order to address the comments of the Board’s second negative opinion, the
   impact assessment is complemented by an annex that provides additional clarifications and
   some evidence on the areas where the Board had provided specific suggestions of
   improvements in its opinion.
   The working methods of the European Commission empower the Vice-President for Inter-
   institutional Relations and Foresight to approve the continuation of an initiative that has been
   subject to a second negative opinion by the Regulatory Scrutiny Board. It is important to flag
   also that the opinions of the Regulatory Scrutiny Board are an assessment of the quality of the
   impact assessment and not an assessment of the related legislative proposal.
   Because of the political importance of this Programme, the urgency of action and having the
   additional clarifications and evidence viewed as satisfactorily addressing the identified
   shortcomings and suggested specifications of the Regulatory Scrutiny Board, the Commission
   – also in the light of the agreement by the Vice-President for Inter-Institutional Relations and
   Foresight – has considered it opportune to proceed with the Programme.
   •         Regulatory fitness and simplification
   N/A
   •         Fundamental rights
   The Programme is consistent with the Charter of Fundamental Rights (the ‘Charter’). It puts a
   common tool in the form of secure satellite communication at the disposal of Member States’
   governments and EU actors. In enhancing the operational effectiveness of security actors, the
   Programme can contribute to safeguarding and strengthening citizens’ right to security
   (Article 6 of the Charter) and to diplomatic or consular protection when residing in a third
   state (Article 46 of the Charter). The Programme can also lead to a better protection of
   personal data (Article 8 of the Charter), because the enhanced security of the satellite
   communication will improve the level of information assurance against, in particular
   eavesdropping or spoofing, by third parties.
   4.        BUDGETARY IMPLICATIONS
   The Union's contribution from 2021 until 2027 is EUR 2400 million at current prices, out of
   which EUR 1600 million will be implemented under the new Union Secure Connectivity
   programme from 2023 to 2027, and EUR 800 million under three other Programmes: EUR
   430 million under Horizon Europe, EUR 220 million under the Union Space Programme and
   EUR 150 million under the Neighbourhood, Development and International Cooperation
   Instrument (NDICI).
   The detailed budgetary and financial structure of the proposal on the Union budget are
   presented in the financial statement accompanying the proposal and will be met from the
   available resources of the Multiannual Financial Framework 2021-2027.
   EUR 1600 million are allocated to the Union Secure Connectivity Programme through
   reductions of EUR 260 million of the Union Space Programme, EUR 150 million of the
   Neighbourhood, Development and International Cooperation Instrument (NDICI) ‘emerging
   challenges and priorities cushion’, EUR 400 million of the European Defence Fund (EDF),
   EUR 440 million under the Digital Europe Programme (DEP) and EUR 200 million under the
   digital strand of the Connecting Europe Facility (CEF), EUR 50 million from the unallocated
EN                                                9                                                 EN
 ---pagebreak---    margin of heading 1 and EUR 100 million from the unallocated margin of heading 5 of the
   MFF.
   The Commission proposes to handle the reductions of the financial envelopes of the European
   Space programme, CEF, EDF, DEP and NDICI within the 15% variation provided by point
   18 of the Interinstitutional Agreement of 16 December 2020 between the European
   Parliament, the Council of the European Union and the European Commission on budgetary
   discipline, on cooperation in budgetary matters and on sound financial management, as well
   as on new own resources, including a roadmap towards the introduction of new own
   resources.
   Article 14 of the proposal provides that the Programme will be implemented under direct
   management in accordance with the Financial Regulation or under indirect management with
   the bodies referred to in point (c) of the first subparagraph of Article 62(1) of the Financial
   Regulation.
   The estimated costs of the Programme are the result of extensive analyses, supported by the
   experience acquired by the Commission in the management of the EU Space Programme and
   through preparatory studies and stakeholder consultations. The estimated requirements in
   Human Resources as indicated in the Financial Statement accompanying this Regulation
   reflect the essential need of continuity in the expertise.
   5.        OTHER ELEMENTS
   •         Implementation plans and monitoring, evaluation and reporting arrangements
   Article 6(1) of the proposal specifies that the Programme shall be implemented through
   contracts, including but not limited to concession contracts as defined under Article 2(14) of
   the Financial Regulation or mixed contracts.
   The Programme will be evaluated after three years from the Regulation’s entry into force and
   every four years thereafter. The evaluation of the Programme will, in line with the
   Commission’s Better Regulation Guidelines, assess the effectiveness, efficiency, coherence
   and EU added value of the Programme. In accordance with Article 37 of the proposal, the
   focus will in particular be on the performance of the services provided by the Programme and
   on the evolution of the user needs. In addition, an assessment on critical components and
   maturity of EU supply chain will be carried out, to ensure that governmental communication
   needs are not critically dependent on non-EU infrastructure. End-user EU Institutions and
   Agencies, the concessionaire and the European Union Agency for the Space Programme
   (EUSPA) together with the Commission will perform the evaluation.
    •        Explanatory documents (for directives)
   N/A
   •         Detailed explanation of the specific provisions of the proposal
   The proposal consists of 11 Chapters. It is structured as follows:
   Chapter I contains the general provisions setting out the subject matter of the proposal, which
   is to establish the Union secure connectivity communication system for the period of the
   Union’s 2021-2027 multiannual financial framework. The Chapter also sets out both the
   general and specific objectives of the Programme, as well as its scope. Furthermore, the
   Chapter defines the Programme infrastructure. Finally, the Chapter contains a provision
   specifying that the Programme shall support an innovative and competitive Union space
EN                                                  10                                             EN
 ---pagebreak---    sector and stimulate the New Space ecosystem in the Union, including the participation of
   SMEs, start-ups and innovators from across the Union Member States.
   Chapter II lays down and defines the services to be provided by the Programme. Furthermore,
   the Chapter sets out the rules on the provision of the governmental services and defines the
   participants and the users of the governmental services.
   Chapter III sets out the funding mechanism of the Programme. It defines the funding streams
   and sets out the financial envelope for the contribution from the Union budget.
   Chapter IV sets out the rules on the implementation of the Programme, which shall be carried
   out by means of contracts concluded by the Commission with a contractor. Such a contract
   shall be awarded in accordance with the procurement principles laid down in Article 17, as
   well as the relevant provisions of the Financial Regulation, and may take the form of a
   concession contract or a mixed contract. Should the conclusion of the concession contract or
   mixed contract prove unviable, the Commission, according to paragraph 3, shall have the
   power to implement the Programme by means of a supply/services or works contract. The
   Chapter also sets out the rules governing the ownership and use of the assets forming part of
   that infrastructure
   Chapter V relates to the governance of the Programme. It details the role to be played by this
   Programme’s four main actors, namely the Commission, the European Union Agency for the
   Space Programme, the Member States, and the European Space Agency, and the relations
   between these various actors.
   Chapter VI deals with security, which is particularly important in view of the Programme’s
   strategic nature and the links between space and security. A high level of security has to be
   achieved and maintained by imposing effective governance arrangements that are largely
   based on the Member States’ experience and on the experience gained by the Commission in
   recent years. Furthermore, like any programme with a strategic dimension, the Programme
   has to undergo independent security accreditation following the appropriate standards in this
   respect.
   Chapter VII sets out the criteria for the participation of third countries and international
   organisations in the Programme and for the access of third countries and international
   organisations to the Programme’s governmental services.
   Chapters VIII and IX set out respectively provisions for programming and evaluation of the
   Programme and for delegation and implementing measures.
EN                                                11                                              EN
 ---pagebreak---                                                            2022/0039 (COD)
                                             Proposal for a
       REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
        establishing the Union Secure Connectivity Programme for the period 2023-2027
   THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular
   Article 189(2) thereof,
   Having regard to the proposal from the European Commission,
   After transmission of the draft legislative act to the national parliaments,
   Acting in accordance with the ordinary legislative procedure,
   Whereas:
   (1)     There is a growing demand by the Union governmental actors for secure and reliable
           satellite communication services, particularly because they are the only viable option
           in situations where ground-based communication systems are non-existent, disrupted
           or unreliable. Affordable and cost-effective access to satellite-based communication is
           also indispensable in remote regions and in the high seas and airspace. For instance,
           where lack of high-bandwidth communication currently limits the ability to take full
           advantage of new sensors and platforms observing the 71% of our planet that is ocean,
           satellite communication ensures the long-term availability of worldwide uninterrupted
           access.
   (2)     The conclusions of the European Council of 19-20 December 2013 welcomed the
           preparations for the next generation of Governmental Satellite Communication
           through a close cooperation between the Member States, the Commission and the
           European Space Agency (ESA). Governmental satcom has also been identified as one
           of the elements of the Global Strategy for the European Union’s Foreign and Security
           Policy of June 2016. Governmental satcom is to contribute to the EU response to
           Hybrid Threats and provide support to the EU Maritime Security Strategy and to the
           Union Arctic policy.
   (3)     On 22 March 2017 the Council Political and Security Committee endorsed High
           Level Civil Military User Needs for Governmental Satellite Communications 18 which
           were prepared by the EEAS on the military user's requirements identified by the
           European Defence Agency in its Common Staff Target adopted in 2014 and the
           civilian user needs collected by the Commission have been merged to produce the
           High Level Civil Military User Needs for Governmental Satellite Communications.
   (4)     The EU adopted the GOVSATCOM component of Regulation (EU) 2021/696 on 28
           April 2021, to ensure the long-term availability of reliable, secure and cost-effective
   18
           CSDP/PSDC 152, CFSP/PESC 274, COPS 103.
EN                                                  12                                             EN
 ---pagebreak---         satellite communications services for GOVSATCOM users. Regulation (EU)
        2021/696 envisages that in a first phase, of the GOVSATCOM component until
        approximately 2025, existing capacity would be used. In that context, the Commission
        is to procure GOVSATCOM capacities from Member States with national systems
        and space capacities and from commercial satellite communication or service
        providers, taking into account the essential security interests of the Union. In that first
        phase, GOVSATCOM services are to be introduced by a step-by-step approach. It is
        also based on the premise that if in the course of the first phase a detailed analysis of
        future supply and demand reveals that this approach was insufficient to cover the
        evolving demand, will be necessary to move to a second phase and develop additional
        bespoke space infrastructure or capacities through cooperation with the private sector,
        e.g. with Union satellite operators.
   (5)  It is now clear that the Union’s current satellite communication assets cannot meet
        new needs of the governmental users who are moving towards higher security
        solutions, low latency and global coverage. Although recent technical progress has
        allowed non-geostationary-orbit (NGSO) communications constellations to emerge
        and gradually offer high-speed and low-latency connectivity services. There is a
        window of opportunity for addressing the evolving needs of the governmental users by
        developing and deploying additional infrastructure as filings for the frequencies
        necessary to provide the required services are currently available within the European
        Union. If not used, these filings will become obsolete and be attributed to other
        players. As frequencies are an increasingly scarce resource, the EU may not get this
        opportunity again.
   (6)  The conclusions of the European Council of 21-22 March 2019 stressed that the Union
        needs to go further in developing a competitive, secure, inclusive and ethical digital
        economy with world-class connectivity.
   (7)  The Commission’s ‘Action Plan on synergies between civil, defence and space
        industries’ of 22 February 2021, states that it aims to ‘enable access to high-speed
        connectivity for everyone in Europe, and provide a resilient connectivity system
        allowing Europe to remain connected whatever happens’19.
   (8)  The Union should ensure the provision of resilient, global, guaranteed and flexible
        satellite communication solutions for evolving governmental needs, built on an EU
        technological and industrial base, in order to increase the resilience of Member States’
        and Union institutions’ operations by guaranteed and uninterrupted access to satellite
        communication.
   (9)  Satellite communication can increase the overall resilience of communication
        networks. A space-based communication system is the only viable option in situations
        where ground-based systems are non-existent, disrupted or unreliable. For example, it
        can provide means for digital communication in areas where terrestrial networks are
        absent, including over oceans and during flights, as well as over remote areas, or
        where local networks have been destroyed due to natural disasters, or they cannot be
        trusted in crisis situations.
   (10) Therefore, it is important to establish a new, Union Secure Connectivity Programme
        (‘the Programme’) to provide for the Union satellite based communication
        infrastructure, which should be built upon the GOVSATCOM component of the Union
   19
        COM(2021) 70 final.
EN                                              13                                                  EN
 ---pagebreak---         Space Programme and which should also take advantage of additional national and
        European capacities, which exist at the time the action is being carried out and develop
        further the European Quantum Communication Infrastructure (EuroQCI) initiative.
   (11) The Programme should ensure the provision of the governmental services and allow
        for the provision of the commercial services through a dedicated governmental and
        commercial infrastructure. The Programme should therefore consist of development
        and validation actions for the construction of the initial space and ground
        infrastructure and for the launch of the initial space infrastructure. The Programme
        should then entail deployment activities aimed at completing both the space and
        ground infrastructure required for the provision of governmental services. The
        provision of governmental services, the operation, maintenance and continuous
        improvement of the infrastructure, once deployed, as well as the development of the
        future generations of the governmental services should be part of the exploitation
        activities. The exploitation activities should begin as soon as possible with the
        provision of the initial set of services aimed by 2024 to meet as soon as possible the
        evolving needs of the governmental users.
   (12) Since June 2019, Member States have signed the European Quantum Communication
        Infrastructure (EuroQCI) Declaration, agreeing to work together, with the Commission
        and with the support of ESA, towards the development of a quantum communication
        infrastructure covering the whole EU. According to that Declaration, EuroQCI aims at
        deploying a certified secure end-to-end quantum communication infrastructure,
        enabling information and data to be transmitted and stored ultra-securely and capable
        of linking critical public communication assets all over the Union. To that purpose an
        interconnected space infrastructure and terrestrial infrastructure, should be built to
        enable the generation and distribution of cryptographic keys based on quantum
        information theory. The Programme will contribute to meet the objectives of the
        EuroQCI Declaration by developing a EuroQCI space infrastructure integrated into the
        space and ground infrastructure of the Programme. The EuroQCI space infrastructure
        should be developed in the Programme in two main phases, a preliminary validation
        phase and a full deployment phase, which should see full integration with the
        Programme, including appropriate solutions for inter-satellite connectivity and data
        relay between satellites and the ground. The Programme should integrate the EuroQCI
        in its governmental infrastructure, as it will provide future-proof cryptographic
        systems that offer unprecedented levels of secure communications by resisting future
        quantum computing attacks.
   (13) To optimise all available satellite communication resources, in order to guarantee
        access in unpredictable situations, such as natural disasters, and to ensure operational
        efficiency and short turn-around times, a ground segment is required. It should be
        designed on the basis of operational and security requirements.
   (14) In order to expand the Union satellite communication capacities, the Programme
        infrastructure should integrate the infrastructure developed for the purposes of the of
        the GOVSATCOM component of the Union Space Programme. In particular, the
        Programme’s ground infrastructure should encompass the GOVSATCOM Hubs and
        other ground segment assets.
   (15) The services enabled by the Programme should connect strategic areas such as the
        Arctic and Africa, and contribute to geopolitical resilience by offering additional
EN                                              14                                               EN
 ---pagebreak---         connectivity in line with policy targets in these regions and the Global Gateway
        strategy20.
   (16) It is appropriate that the satellites built for the purposes of the Programme are
        equipped with payloads that can allow to increase the capacity and services of the
        components of the Union Space Programme, enabling thereby the development of
        additional missions under the conditions set out in Regulation (EU) 2021/696It could
        offer alternative positioning, navigation and timing services complementing Galileo,
        ensure the broadcast of EGNOS/SBAS messages with a lower latency, provide space
        based sensors for space surveillance and support enhancement of current Copernicus
        capabilities in particular for emergency and civil security services.
   (17) It is vital for the security of the Union and its Member States and for ensuring the
        security and integrity of the governmental services, that, where possible, the space
        assets of the Programme are launched from the territory of the Member States.
        Furthermore, microlaunchers are able to provide additional flexibility to allow for a
        rapid deployment of the space assets.
   (18) It is important that the Union owns all tangible and intangible assets related to
        governmental infrastructure while ensuring the respect of the Charter of Fundamental
        Rights of the European Union, including its Article 17. Despite the ownership by the
        Union of those assets, it should be possible for the Union, in accordance with this
        Regulation and, where it is deemed appropriate on a case-by-case assessment, to make
        those assets available to third parties or to dispose of them.
   (19) The Programme should provide services aimed at meeting the needs of the
        governmental users. The High Level Civil Military User Needs for Governmental
        Satellite Communications21, which was endorsed by the Council Security Committee
        in March 2017, identified three pillars of governmental services use-cases:
        surveillance, crisis management and connection and protection of key infrastructures.
   (20) Operational requirements for the governmental services should be based on the use-
        case analysis. From those operational requirements, in combination with security
        requirements and evolving demand of governmental services, the portfolio of
        governmental services should be developed. The service portfolio should establish the
        applicable baseline for the governmental services. The service portfolio for the
        governmental services should take into account the service portfolio of the
        GOVSATCOM services established within the framework of Regulation (EU)
        2021/696. In order to maintain the best possible match between the demand and
        supplied services, the service portfolio for governmental services should be regularly
        updated.
   (21) Satellite communications is a finite resource limited by the satellite capacity,
        frequency and geographical coverage. In order to be cost-effective and to capitalise on
        economies of scale, the Programme should optimise the match between the supply and
        demand of the governmental services. Since the demand and the potential supply both
        change over time, the Commission should monitor the needs to adjust the portfolio for
        the governmental services whenever this appears necessary.
   (22) The Programme should also allow for the provision of commercial services by the
        private sector. Such commercial services could in particular contribute to availability
   20
        JOIN(2021) 30 final.
   21
        EEAS(2017) 359.
EN                                               15                                             EN
 ---pagebreak---         of high-speed broadband and seamless connectivity throughout Europe, removing
        communication dead zones and increasing cohesion across Member State territories,
        including rural, peripheral, remote and isolated areas and islands, and provide
        connectivity over geographical areas of strategic interest.
   (23) Member States, the Council, the Commission and the European External Action
        Service (‘EEAS’), as well as Union agencies and bodies should be able to become the
        Programme participants, insofar as they choose to authorise users of governmental
        services or provide capacities, sites or facilities. Taking into consideration that it is for
        the Member States to decide whether to authorise national users of governmental
        services, Member States should not be obliged to become Programme participants or
        to host Programme infrastructure.
   (24) Each Programme participant should designate a Secure Connectivity Competent
        Authority to monitor whether users, and other national entities that play a role in the
        Programme, comply with the applicable rules and security procedures as laid down in
        the security requirements.
   (25) This Regulation lays down a financial envelope, which is to constitute the prime
        reference amount, within the meaning of point 18 of the Interinstitutional Agreement
        of 16 December 2020 between the European Parliament, the Council of the European
        Union and the European Commission on budgetary discipline, on cooperation in
        budgetary matters and on sound financial management, as well as on new own
        resources, including a roadmap towards the introduction of new own resources 22, for
        the European Parliament and the Council during the annual budgetary procedure.
   (26) The Programme objectives are coherent and complementary with those of other Union
        programmes, particularly Horizon Europe established by Regulation (EU) 2021/695 of
        the European Parliament and of the Council23, the Digital Europe Programme
        established by Regulation (EU) 2021/694 of the European Parliament and of the
        Council24, the Neighbourhood, Development and International Cooperation Instrument
        – Global Europe established by Regulation (EU) 2021/947 of the European Parliament
        and of the Council25, the Connecting Europe Facility established by Regulation (EU)
        2021/1153 of the European Parliament and of the Council26 and, in particular, the
        Union Space Programme established by Regulation (EU) 2021/696 of the European
        Parliament and of the Council27.
   22
        OJ L 433 I, 22.12.2020, p. 28.
   23
        Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing
        Horizon Europe – the Framework Programme for Research and Innovation, laying down its rules for
        participation and dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013
        (OJ L 170, 12.5.2021, p. 1).
   24
        Regulation (EU) 2021/694 of the European Parliament and of the Council of 29 April 2021 establishing
        the Digital Europe Programme and repealing Decision (EU) 2015/2240 (OJ L 166, 11.5.2021, p. 1).
   25
        Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing
        the Neighbourhood, Development and International Cooperation Instrument – Global Europe,
        amending and repealing Decision No 466/2014/EU of the European Parliament and of the Council and
        repealing Regulation (EU) 2017/1601 of the European Parliament and of the Council and Council
        Regulation (EC, Euratom) No 480/2009 (OJ L 209, 14.6.2021, p. 1).
   26
        Regulation (EU) 2021/1153 of the European Parliament and of the Council of 7 July 2021 establishing
        the Connecting Europe Facility and repealing Regulations (EU) No 1316/2013 and (EU) No 283/2014
        (OJ L 249, 14.7.2021, p. 38).
   27
        Regulation (EU) 2021/696 of the European Parliament and of the Council of 28 April 2021 establishing
        the Union Space Programme and the European Union Agency for the Space Programme and repealing
EN                                                    16                                                     EN
 ---pagebreak---    (27) The Horizon Europe Programme will allocate a dedicated share of its Cluster 4
        components to R&I activities related to development and validation of the secure
        connectivity system, including for the potential technologies that would be developed
        under New Space. The Neighbourhood, Development and International Cooperation
        Instrument (NDICI) will allocate a dedicated share of its Global Europe funds for
        activities related to the operation of the system and the worldwide provision of
        services that will allow to offer an array of services to international partners. The
        Union Space Programme will allocate a dedicated share of its GOVSATCOM
        component for the activities related to the development of the GOVSATCOM Hub
        which will form part of the ground infrastructure of the Secure Connectivity system.
        The funding stemming from these programmes should be implemented in accordance
        with the rules of these programmes. Since those rules may differ significantly from the
        rules under this Regulation, the need to achieve effectively the intended policy
        objectives should be taken into account when deciding to finance actions from both
        the allocated funds from Horizon Europe and NDICI and from the Union Secure
        Connectivity Programme.
   (28) Due to its inherent implications on the security of the Union and its Member States,
        the Programme also shares objectives and principles with the European Defence Fund
        established by Regulation (EU) 2021/697 of the European Parliament and of the
        Council28. Therefore, part of the funding from that Programme should be provided to
        fund the activities under this Programme, particularly the actions related to the
        deployment of its infrastructure.
   (29) Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council29
        (the ‘Financial Regulation’) applies to the Programme. The Financial Regulation lays
        down rules on the implementation of the Union budget, including the rules on grants,
        prizes, procurement, indirect management, financial instruments, budgetary
        guarantees, financial assistance and the reimbursement of external experts.
   (30) In accordance with Article 191(3) of the Financial Regulation, in no circumstances are
        the same costs to be financed twice by the Union budget.
   (31) The Commission, in performing certain tasks of a non-regulatory nature, should be
        able to have recourse, as required and insofar as necessary, to the technical assistance
        of certain external parties. Other entities involved in the public governance of the
        Programme should also be able to make use of the same technical assistance in
        performing tasks entrusted to them under this Regulation.
   (32) Horizontal financial rules adopted by the European Parliament and by the Council on
        the basis of Article 322 of the Treaty on the Functioning of the European Union
        (‘TFEU’) apply to this Regulation. Those rules are laid down in the Financial
        Regulation and determine in particular the procedure for establishing and
        implementing the budget through grants, procurement, prizes and indirect
        Regulations (EU) No 912/2010, (EU) No 1285/2013 and (EU) No 377/2014 and Decision No
        541/2014/EU (OJ L 170, 12.5.2021, p. 69).
   28
        Regulation (EU) 2021/697 of the European Parliament and of the Council of 29 April 2021 establishing
        the European Defence Fund and repealing Regulation (EU) 2018/1092 (OJ L 170, 12.5.2021, p. 149).
   29
        Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on
        the financial rules applicable to the general budget of the Union, amending Regulations (EU) No
        1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU)
        No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing
        Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).
EN                                                   17                                                      EN
 ---pagebreak---         implementation, and provide for checks on the responsibility of financial actors. Rules
        adopted on the basis of Article 322 TFEU also include a general regime of
        conditionality for the protection of the Union budget.
   (33) Procurement contracts concluded under the Programme for activities financed by the
        Programme should comply with Union rules. In that context, the Union should also be
        responsible for defining the objectives to be pursued as regards public procurement.
   (34) Article 154 of the Financial Regulation provides that, on the basis of the results of an
        ex-ante assessment, the Commission is to be able to rely on the systems and the
        procedures of the persons or entities entrusted with the implementation of Union
        funds. If necessary, specific adjustments to those systems and procedures
        (‘supervisory measures’), as well as the arrangements for the existing contracts, should
        be defined in the corresponding contribution agreement.
   (35) In order to meet the objectives of the Programme, it is important to be able to call,
        where appropriate, on capacities offered by Union public and private entities active in
        the space domain and also to be able to work at international level with third countries
        or international organisations. For that reason, it is necessary to provide for the
        possibility to use all the relevant tools and management methods provided for by the
        TFEU and the Financial Regulation and joint procurement procedures.
   (36) In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013
        of the European Parliament and of the Council30 and Council Regulations (EC,
        Euratom) No 2988/9531, (Euratom, EC) No 2185/9632 and (EU) 2017/193933 , the
        financial interests of the Union are to be protected by means of proportionate
        measures, including measures relating to the prevention, detection, correction and
        investigation of irregularities including fraud, the recovery of funds lost, wrongly paid
        or incorrectly used, and, where appropriate, the imposition of administrative penalties.
        In particular, in accordance with Regulations (Euratom, EC) No 2185/96 and (EU,
        Euratom) No 883/2013 the European Anti-Fraud Office (OLAF) has the power to
        carry out administrative investigations, including on-the-spot checks and inspections,
        with a view to establishing whether there has been fraud, corruption or any other
        illegal activity affecting the financial interests of the Union. The European Public
        Prosecutor’s Office (EPPO) is empowered, in accordance with Regulation (EU)
        2017/1939, to investigate and prosecute criminal offences affecting the financial
        interests of the Union as provided for in Directive (EU) 2017/1371 of the European
        Parliament and of the Council34.In accordance with the Financial Regulation, any
        person or entity receiving Union funds is to fully cooperate in the protection of the
        financial interests of the Union, grant the necessary rights and access to the
   30
        Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11
        September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and
        repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council
        Regulation (Euratom) No 1074/1999, (OJ L 248, 18.9.2013, p. 1).
   31
        Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European
        Communities financial interests (OJ L 312, 23.12.95, p. 1).
   32
        Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks
        and inspections carried out by the Commission in order to protect the European Communities’ financial
        interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2).
   33
        Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the
        establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1).
   34
        Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight
        against fraud to the Union’s financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29).
EN                                                        18                                                    EN
 ---pagebreak---         Commission, OLAF, the Court of Auditors and, in respect of those Member States
        participating in enhanced cooperation pursuant to Regulation (EU) 2017/1939, the
        EPPO, and ensure that any third parties involved in the implementation of Union funds
        grant equivalent rights.
   (37) In order to ensure the protection of the financial interests of the Union, it is necessary
        to require third countries to grant the necessary rights and access required for the
        authorising officer responsible, OLAF and the Court of Auditors to comprehensively
        exercise their respective competences.
   (38) A public-private partnership is the most appropriate scheme to ensure that the
        objectives of the Programme could be pursued. It would permit to build upon the
        existing EU satellite communication technological and infrastructural base and to
        provide robust and innovative governmental services, while allowing the private
        partner to complement the Programme infrastructure with additional capabilities to
        offer commercial services through additional own investments. Such a scheme would
        furthermore optimise deployment and operation costs by sharing development and
        deployment costs on components common to both governmental and commercial
        infrastructures, as well as operational costs by allowing a high level of capacity
        mutualisation. It would stimulate innovation in particular for New Space by enabling
        the sharing of Research and Development risks between public and private partners.
   (39) The implementation model could take the form of a concession contract or other
        contractual arrangements. Regardless of the implementation model, several key
        principles should be put in place. The contract should establish a clear distribution of
        tasks and responsibilities between the public and private partners. Thus, it should
        avoid any overcompensation of the private partner for the provision of governmental
        services, allow the provision of commercial services to be established by the private
        sector and ensure an appropriate prioritisation of governmental user needs. The
        Commission should be able to assess and approve such services to ensure that the
        Union’s essential interests and Programme’s objectives are preserved and adequate
        safeguards are put in place to prevent potential distortions of competition stemming
        from the provision of commercial services; such safeguards could include separation
        of accounts between governmental and commercial services, open, fair and non-
        discriminatory access to infrastructure necessary for the provision of commercial
        services. The public-private partnership should foster the participation of start-ups and
        SMEs along the whole value chain of the concession and across Member States,
        hereby incentivising the development of innovative and disruptive technologies
   (40) Sound public governance of the Programme requires the clear distribution of
        responsibilities and tasks among the different actors involved to avoid unnecessary
        overlap and reduce cost overruns and delays. All the actors of the governance should
        support, in their field of competence and in accordance with their responsibilities, the
        achievement of the objectives of the Programme.
   (41) Member States have long been active in the field of space. They have systems,
        infrastructure, national agencies and bodies linked to space. They are therefore able to
        make a major contribution to the Programme, especially in its implementation. They
        might cooperate with the Union to promote the Programme’s services and applications
        and ensure coherence between the relevant national initiatives and the Programme.
        The Commission might be able to mobilise the means at Member States’ disposal,
        benefit from their assistance and, subject to mutually agreed conditions, entrust the
        Member States with non-regulatory tasks in the implementation of the Programme.
EN                                              19                                                 EN
 ---pagebreak---         Moreover, the Member States concerned should take all necessary measures to ensure
        the protection of the ground infrastructure established on their territories. In addition,
        Member States and the Commission should work together and with appropriate
        international bodies and regulatory authorities to ensure that the frequencies necessary
        for the Programme are available and protected at the adequate level to allow for the
        full development and implementation of applications based on the services offered, in
        compliance with Decision No 243/2012/EU of the European Parliament and of the
        Council35.
   (42) In accordance with Article 17 of the Treaty on European Union (‘TEU’) and as a
        promoter of the Union’s general interest, it is the Commission’s responsibility to
        implement the Programme, assume overall responsibility and promote its use. In order
        to optimise the resources and competences of the various stakeholders, the
        Commission should be able to entrust certain tasks to other entities under justifiable
        circumstances. Having the overall responsibility for the Programme, the Commission
        should determine the main technical and operational requirements necessary to
        implement systems and services evolution. It should do so after having consulted
        Member States’ experts, users and other relevant stakeholders. Finally, in accordance
        with Article 4(3) TFEU, the exercise of competence by the Union does not result in
        Member States being prevented from exercising their competences. However, to make
        good use of the Union funds, it is appropriate that the Commission ensures, as far as
        possible, the coherence of activities performed in the context of the Programme, with
        those of the Member States.
   (43) The mission of the European Union Agency for the Space Programme (‘the Agency’)
        is to contribute to the Programme, particularly as regards security accreditation.
        Certain tasks linked to those areas should therefore be entrusted to the Agency. In
        relation to security in particular, and given its experience in this area, the Agency
        should be responsible for the security accreditation of the governmental services and
        infrastructure. Furthermore, the Agency should perform the tasks which the
        Commission confers on it. When entrusting tasks to the Agency, adequate human,
        administrative and financial resources should be made available.
   (44) Building on the expertise developed in the past years in management, operation and
        service provision related to the Galileo and EGNOS components of the Union Space
        Programme, the Agency is the most appropriate body to implement, under the
        supervision of the Commission, all the tasks relating to the operation of the
        governmental infrastructure and provision of governmental services. The Agency
        should therefore be entrusted with the operation of the governmental infrastructure and
        the provision of governmental services.
   (45) In order to ensure the operation of the governmental infrastructure and facilitate the
        provision of the governmental services, the Agency should be allowed to entrust, by
        means of contribution agreements, specific activities to other entities, in areas of their
        respective competence, under the conditions of indirect management applying to the
        Commission.
   (46) ESA is an international organisation with extensive expertise in the space domain
        including in satellite communication and is therefore an important partner in the
        implementation of the different aspects of the Union’s space policy. In that regard,
   35
        Decision No 243/2012/EU of the European Parliament and of the Council of 14 March 2012
        establishing a multiannual radio spectrum policy programme (OJ L 81, 21.3.2012, p. 7).
EN                                                    20                                           EN
 ---pagebreak---         ESA should be able to provide technical expertise to the Commission, including for
        the preparation of the technical aspects of the Programme. To this purpose, ESA may
        be entrusted with the development and validation activities of the Programme, and
        support the evaluation of the contracts concluded in the context of the implementation
        of the Programme.
   (47) Owing to the importance of space-related activities for the Union economy and the
        lives of Union citizens, achieving and maintaining a high degree of security should be
        a key priority for the Programme, particularly in order to safeguard the interests of the
        Union and of the Member States, including in relation to classified and sensitive non-
        classified information.
   (48) Under Article 17 TEU, the Commission is responsible of the management of
        programmes which, in accordance with rules set out in the Financial Regulation, may
        be sub-delegated to third parties, in indirect management. In that context, the
        Commission must ensure that the tasks performed by third parties to implement the
        Programme in indirect management do not undermine the security of the Programme
        in particular as regards to the control of classified information. It should therefore be
        clarified that where the Commission entrusts ESA to carry out tasks under the
        Programme, the corresponding contribution agreements must ensure that classified
        information generated by ESA is considered as EU classified information (‘EUCI’) in
        accordance with Commission Decision (EU, Euratom) 2015/44436 and Council
        Decision 2013/488/EU37 created under the authority of the Commission.
   (49) Without prejudice to Member States’ prerogatives in the area of national security, the
        Commission and the High Representative, each within their respective area of
        competence, should ensure the security of the Programme in accordance with this
        Regulation and, where relevant, Council Decision (CFSP) 2021/69838.
   (50) Given the specific expertise of the EEAS and its regular contact with authorities of
        third countries and international organisations, the EEAS should be able to assist the
        Commission in performing certain tasks relating to the security of the Programme in
        the field of external relations, in accordance with Council Decision 2010/427/EU39.
   (51) Without prejudice to the sole responsibility of the Member States in the area of
        national security, as provided for in Article 4(2) TEU, and to the right of the Member
        States to protect their essential security interests in accordance with Article 346 TFEU,
        a specific governance of security should be established to ensure a smooth
        implementation of the Programme. That governance should be based on three key
        principles. Firstly, it is imperative that Member States’ extensive, unique experience in
        security matters be taken into consideration to the greatest possible extent. Secondly,
        in order to prevent conflicts of interest and any shortcomings in applying security
        rules, operational functions should be segregated from security accreditation functions.
        Thirdly, the entity in charge of managing all or part of the Programme’s infrastructure
   36
        Commission Decision (EU, Euratom) 2015/444 of 13 March 2015 on the security rules for protecting
        EU classified information (OJ L 72, 17.3.2015, p. 53).
   37
        Council Decision of 23 September 2013 on the security rules for protecting EU classified information
        (OJ L 274, 15.10.2013, p. 1).
   38
        Council Decision (CFSP) 2021/698 of 30 April 2021 on the security of systems and services deployed,
        operated and used under the Union Space Programme which may affect the security of the Union, and
        repealing Decision 2014/496/CFSP (OJ L 170, 12.5.2021, p. 178).
   39
        Council Decision of 26 July 2010 establishing the organisation and functioning of the European
        External Action Service (2010/427/EU) (OJ L 201, 3.8.2010, p. 30).
EN                                                   21                                                      EN
 ---pagebreak---         is also the best placed to manage the security of the tasks entrusted to it. The security
        of the Programme would build upon the experience gained in the implementation of
        the Union Space Programme over the past years. Sound security governance also
        requires that roles be appropriately distributed among the various players. As it is
        responsible for the Programme, the Commission, without prejudice to Member States
        prerogatives in the area of national security, should determine the general security
        requirements applicable to the Programme.
   (52) The cybersecurity of the Programme infrastructures, both ground and space, is key to
        ensuring the continuity of the service and the operations of the system. The need to
        protect the system and its services against cyberattacks, including by making use of
        new technologies, should therefore be duly taken into account when establishing
        security requirements.
   (53) Where appropriate, after the risk and threat analysis, the Commission should identify a
        security monitoring structure. That security monitoring structure should be the entity
        responding to instructions developed under the scope of Decision (CFSP) 2021/698.
   (54) The governmental services provided by the Programme will be used by the Union’s
        governmental actors in security and safety critical missions. Therefore, such services
        and infrastructure should be subject to security accreditation.
   (55) It is indispensable that security accreditation activities be carried out on the basis of
        collective responsibility for the security of the Union and its Member States, by
        endeavouring to build consensus and involving all those concerned with the issue of
        security, and that a procedure for permanent risk monitoring be put in place. It is also
        necessary that technical security accreditation activities are conducted by professionals
        who are duly qualified in the field of accreditation of complex systems and who have
        an adequate level of security clearance.
   (56) An important objective of the Programme is to ensure the security of the Union and
        the Member States and to strengthen the resilience across key technologies and value
        chains. In specific cases, that objective requires conditions for eligibility and
        participation to be set, to ensure the protection of the integrity, security and resilience
        of the operational systems of the Union. That should not undermine the need for
        competitiveness and cost-effectiveness.
   (57) Considering the importance for the Programme of its ground governmental
        infrastructure and the impact thereof on its security, the location of such infrastructure
        should be determined by the Commission. The deployment of the ground
        governmental infrastructure of the Programme should continue to follow an open and
        transparent process, which could involve the Agency where appropriate based on its
        field of competence.
   (58) The Programme’s governmental services will be used in security and safety critical
        missions and operations by Union and Member State actors. Therefore, in order to
        protect the essential security interest of the Union and its Member States, measures to
        ensure a necessary level of non-dependence on third parties (third countries and
        entities from third countries) are needed, covering all Programme elements. This
        includes space and ground technologies at component, subsystem and system level,
        manufacturing industries, owners and operators of space systems, and physical
        location of ground system components.
   (59) To ensure the competitiveness of the European space industry in the future, the
        Programme should contribute to the development of advanced skills in space-related
EN                                               22                                                 EN
 ---pagebreak---         fields and support education and training activities, promoting equal opportunities,
        gender equality and women's empowerment, in order to realise the full potential of
        Union citizens in that area.
   (60) Given its worldwide coverage, the Programme has a strong international dimension.
        International partners, their governments and citizens will be recipients of the
        Programme’s array of services with accrued benefits to the international cooperation
        of the Union and the Member States with these partners. For matters relating to the
        Programme, the Commission might coordinate, on behalf of the Union and in its field
        of competence, the activities on the international scene. In particular, the Commission,
        as regards the Programme, would defend the interests of the Union and the Member
        States in international fora, including in the area of frequencies, without prejudice to
        Member States’ competence in that area.
   (61) Members of the European Free Trade Association (EFTA) which are members of the
        European Economic Area (EEA), acceding countries, candidate countries and potential
        candidates as well as the European Neighbourhood Policy countries and other third
        countries may be allowed to participate in the Programme only on the basis of an
        agreement to be concluded in accordance with Article 218 TFEU.
   (62) Pursuant to Council Decision 2013/755/EU40, persons and entities established in
        overseas countries or territories are eligible for funding subject to the rules and
        objectives of the Programme and possible arrangements applicable to the Member
        State to which the relevant overseas country or territory is linked.
   (63) In order to ensure uniform conditions for the implementation of this Regulation,
        implementing powers should be conferred on the Commission relating to adoption of
        the location of the centres belonging to the ground governmental infrastructure, the
        operational requirements for governmental services, the service portfolio for
        governmental services, as well as the establishment of additional requirements for the
        participation of third countries and international organisations in the Programme.
        Those powers should be exercised in accordance with Regulation (EU) No 182/2011
        of the European Parliament and of the Council41.
   (64) In principle, the governmental services should be provided free of charge to users of
        the governmental services. If, after analysis, the Commission concludes that there is a
        shortage of capacities, it should be permitted to develop a pricing policy as part of
        those detailed rules on the service provision in order to avoid a distortion of the
        market. The Commission should be conferred with implementing powers to adopt
        such pricing policy. Those powers should be exercised in accordance with Regulation
        (EU) No 182/2011.
   (65) In order to ensure uniform conditions for the implementation of this Regulation,
        implementing powers relating to the location of the ground segment of the
        governmental infrastructure should be conferred on the Commission. For the selection
        of such locations, the Commission should be able to take into account the operational
        and security requirements, as well as the existing infrastructure. Those powers should
        be exercised in accordance with Regulation (EU) No 182/2011.
   40
        Council Decision 2013/755/EU of 25 November 2013 on the association of the overseas countries and
        territories with the European Union (‘Overseas Association Decision’) (OJ L 344, 19.12.2013, p. 1).
   41
        Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011
        laying down the rules and general principles concerning mechanisms for control by the Member States
        of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).
EN                                                    23                                                    EN
 ---pagebreak---    (66) In the interest of sound public governance and given the synergies between this
        Programme and the Union Space Programme, and in particular to ensure appropriate
        synergies with the GOVSATCOM component, the Programme committee established
        within the framework of Regulation (EU) 2021/696 in the GOVSATCOM
        configuration should also serve as the committee for the purposes of this Programme.
        For matters pertaining to the security of the Programme, the Programme committee
        should meet in a dedicated security configuration.
   (67) As sound public governance requires uniform management of the Programme, faster
        decision-making and equal access to information, representatives of the entities
        entrusted with tasks related to the Programme might be able to take part as observers
        in the work of the Programme committee established in application of Regulation
        (EU) No 182/2011. For the same reasons, representatives of third countries and
        international organisations who have concluded an international agreement with the
        Union, relating to the Programme, might be able to take part in the work of the
        Programme committee subject to security constraints and as provided for in the terms
        of such agreement. The representatives of entities entrusted with tasks related to the
        Programme, third countries and international organisations should not be entitled to
        take part in the Programme committee voting procedures. The conditions for the
        participation of observers and ad hoc participants should be laid down in the rules of
        procedure of the Programme committee.
   (68) Pursuant to paragraphs 22 and 23 of the Interinstitutional Agreement of 13 April 2016
        on Better Law-Making42, this Programme should be evaluated on the basis of
        information collected in accordance with specific monitoring requirements, while
        avoiding administrative burden, in particular on Member States, and overregulation.
        Those requirements, where appropriate, should include measurable indicators as a
        basis for evaluating the effects of the Programme. The evaluation of this Programme
        should take into account the findings of the evaluation of the Union Space Programme
        pertaining to the GOVSATCOM component conducted within the framework of
        Regulation (EU) 2021/696.
   (69) In order to ensure the continuing adequacy of the indicators to report on the progress
        of the Programme, as well as the Programme’s monitoring and evaluation framework,
        the power to adopt acts in accordance with Article 290 TFEU should be delegated to
        the Commission in respect of amending the Annex to this Regulation with regard to
        the indicators, as well as to supplement this Regulation with provisions on the
        establishment of a monitoring and evaluation framework, which may consider inter
        alia, the end user uptake and impacts on the internal market. It is of particular
        importance that the Commission carry out appropriate consultations during its
        preparatory work, including at expert level, and that those consultations be conducted
        in accordance with the principles laid down in the Interinstitutional Agreement on
        Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the
        preparation of delegated acts, the European Parliament and the Council receive all
        documents at the same time as Member States' experts, and their experts
        systematically have access to meetings of Commission expert groups dealing with the
        preparation of delegated acts.
   (70) In order to ensure uniform conditions for the implementation of the Programme’s
        security requirements, implementing powers should be conferred on the Commission.
   42
        OJ L 123, 12.5.2016, p. 1.
EN                                              24                                              EN
 ---pagebreak---           Those powers should be exercised in accordance with Regulation (EU) No 182/2011.
          Member States should be able to exert a maximum of control over the Programme’s
          security requirements. When adopting implementing acts in the area of security of the
          Programme, the Commission should be assisted by the Programme committee meeting
          in a dedicated security configuration. In view of the sensitivity of security matters, the
          chair of the Programme committee should endeavour to find solutions which
          command the widest possible support within the committee. The Commission should
          not adopt implementing acts determining the general security requirements of the
          Programme in cases where no opinion is delivered by the Programme committee.
   (71)   Since the objective of this Regulation cannot be sufficiently achieved by the Member
          States, but can rather, by reason of the scale and effects of the action that go beyond
          the financial and technical capacities of any single Member State, be better achieved at
          Union level, the Union may adopt measures, in accordance with the principle of
          subsidiarity as set out in Article 5 TEU. In accordance with the principle of
          proportionality, as set out in that Article, this Regulation does not go beyond what is
          necessary in order to achieve that objective,
   HAVE ADOPTED THIS REGULATION:
                                             Chapter I
                                      General provisions
                                               Article 1
                                            Subject matter
   1.       This Regulation establishes the Union Secure Connectivity Programme (‘the
            Programme’). It lays down the objectives of the Programme, and the rules on the
            activities of the Programme, infrastructure and services of the Programme,
            participants of the Programme, the budget for the period 2023-2027, the forms of
            Union funding and the rules for providing such funding, as well as the rules for the
            implementation of the Programme.
                                               Article 2
                                              Definitions
   For the purposes of this Regulation, the following definitions apply:
   (1)      ‘Critical infrastructure’ means an asset, system or part thereof located in Member
            States which is essential for the maintenance of vital societal functions, health,
            safety, security, economic or social well-being of people, and the disruption or
            destruction of which would have a significant impact in a Member State as a result of
            the failure to maintain those functions;
   (2)      ‘European Quantum Communication Infrastructure (EuroQCI)’ means an
            interconnected space and ground infrastructure belonging to the infrastructure of the
            Programme using quantum-based technology to ensure the distribution of
            cryptographic keys;
   (3)      ‘GOVSATCOM Hub’ shall have the meaning defined in Article 2(23) of Regulation
            (EU) 2021/696;
EN                                                25                                                 EN
 ---pagebreak---    (4)    ‘GOVSATCOM user’ shall have the meaning defined in Article 2(22) of Regulation
         (EU) 2021/696;
   (5)   ‘Infrastructure’ means an asset, system or part thereof, which is necessary for the
         delivery of the services provided by the Programme;
   (6)   ‘New Space industry’ means private companies, small and medium-sized enterprises
         and start-ups that develop novel space technologies and applications;
   (7)   ‘Payload’ means equipment carried by a spacecraft for the performance of a
         particular mission in space;
   (8)   ‘Secure connectivity system’ means the system developed in accordance with this
         Regulation comprising the infrastructure referred to in Article 5 and providing the
         services referred to in Article 7;
   (9)   ‘The Agency’ means the European Union Agency for the Space Programme
         established by Regulation (EU) 2021/696.
                                               Article 3
                                      Programme objectives
   1.    The general objective of the Programme is to establish a secure and autonomous
         space-based connectivity system for the provision of guaranteed and resilient satellite
         communication services, in particular to:
         (a)   ensure the long-term availability of worldwide uninterrupted access to secure
               and cost-effective satellite communication services to governmental users in
               accordance with paragraphs 1 to 3 of Article 7, which supports protection of
               critical infrastructures, surveillance, external actions, crisis management and
               applications that are critical for the economy, environment, security and
               defence, thereby increasing the resilience of Member States;
         (b)   allow for the provision of commercial services by the private sector in
               accordance with Article 7(4).
   2.    The Programme has the following specific objectives:
         (a)   improve the resilience of the Union communication services by developing,
               building and operating a multi-orbital connectivity infrastructure, continuously
               adapted to evolution of demand for satellite communications, while taking into
               account the existing and future assets of the Member States used in the frame
               of the GOVSATCOM component of the Union Space Programme established
               by Regulation (EU) 2021/69643;
         (b)   contribute to cyber resilience by proactive and reactive defence against cyber
               and electromagnetic threats and operational cybersecurity, and integrate the
               space and related ground segment of the European Quantum Communication
               Infrastructure to enable secure transmission of cryptographic keys;
   43
       Regulation (EU) 2021/696 of the European Parliament and of the Council of 28 April 2021 establishing
       the Union Space Programme and the European Union Agency for the Space Programme and repealing
       Regulations (EU) No 912/2010, (EU) No 1285/2013 and (EU) No 377/2014 and Decision No
       541/2014/EU (OJ L 170, 12.5.2021, p. 69).
EN                                                26                                                        EN
 ---pagebreak---       (c)   improve and expand the capabilities and services of other components of the
            Union Space Programme;
      (d)   incentivise the deployment of innovative and disruptive technologies, in
            particular by leveraging the New Space industry; and
      (e)   allow further development of high-speed broadband and seamless connectivity
            throughout the Union, removing communication dead zones and increasing
            cohesion across Member State territories, and allow connectivity over
            geographical areas of strategic interest outside of the Union.
                                           Article 4
                      Implementation activities of the Programme
   1. The provision of the governmental services referred to in Article 7(1) shall be
      ensured through the implementation of the following activities:
      (a)   development and validation activities, comprising the construction and launch
            of the initial space and ground infrastructure required to provide governmental
            services;
      (b)   development and integration of the space and related ground segment of the
            European Quantum Communication Infrastructure into the space and ground
            infrastructure of the secure connectivity system
      (c)   deployment activities to complete the space and ground infrastructure required
            to provide governmental services;
      (d)   exploitation activities for the provision of governmental services, comprising:
            (i)    the operation, maintenance, continuous improvement and protection of
                   the space and ground infrastructure, including replenishment and
                   obsolescence management.
      (e)   development of future generations of the space and ground infrastructure and
            the evolution of the governmental services.
   2. The exploitation activities referred to in paragraph 1, point (d), shall begin
      progressively with the provision of a preliminary set of services by 2024. Those early
      services shall be improved through the gradual deployment of the space and ground
      infrastructure leading to full operational capability aimed by 2027.
   3. Actions referred to in Article 6 shall be provided throughout the whole duration of
      the Programme.
                                          Article 5
                    Infrastructure of the secure connectivity system
   1. The infrastructure of the secure connectivity system shall consist of governmental
      and commercial infrastructure as laid down in paragraphs 2 and 3 respectively.
   2. The governmental infrastructure of the secure connectivity system shall include all
      the related ground and space assets which are required for the provision of the
      governmental services, as set out in Article 7(1), including the following assets:
      (a)   satellites or satellite subcomponents;
EN                                            27                                             EN
 ---pagebreak---       (b)    space and ground subcomponents ensuring the distribution of cryptographic
             keys;
      (c)    infrastructure for monitoring the security of the Programme infrastructure and
             services;
      (d)    infrastructure for the provision of the services to the governmental users;
      (e)    the GOVSATCOM ground segment infrastructure as set out in Article 67 of
             Regulation (EU) 2021/696, including the GOVSATCOM Hubs.
      For the purpose of this Regulation, the right of use of the frequencies necessary for
      the transmission of the signals generated by the ground and space assets of the
      governmental infrastructure shall be part of the governmental infrastructure.
      The governmental infrastructure shall support additional payloads that may be used
      as part of the space-based infrastructure of the components of the Union Space
      Programme listed in Article 3 of Regulation (EU) 2021/696 under the terms and
      conditions set out in that Regulation.
   3. The Commission shall, by means of implementing acts, lay down, where necessary,
      measures required to determine the location of the centres belonging to the ground
      governmental infrastructure, except the GOVSATCOM Hubs, in accordance with
      security requirements, following an open and transparent process. Those
      implementing acts shall be adopted in accordance with the examination procedure
      referred to in Article 42(2) of this Regulation. The location of the GOVSATCOM
      Hubs shall be determined in accordance with Article 67(2) of regulation (EU)
      2021/696.
      For the protection of the security interests of the Union and its Member States the
      centres referred to in the first subparagraph shall be, where possible, located in the
      territory of the Member States and governed by a hosting agreement taking the form
      of an administrative agreement between the Union and the Member State concerned.
      Where it is not possible to locate the centre in the territory of the Member States, the
      Commission may determine the location of such centre in the territory of a third
      country, subject to a hosting agreement between the Union and the third country
      concerned concluded in accordance with Article 218 TFEU.
   4. The commercial infrastructure referred to in paragraph 1 shall include all space and
      ground assets other than those being part of the governmental infrastructure. The
      commercial infrastructure shall be entirely financed by the contractor referred to in
      Article 15(2).
   5. In order to protect the security interests of the Union, the space assets of the secure
      connectivity system shall be launched by a launch service provider that complies
      with the conditions set out in Article 19 and, where possible, from the territory of the
      Member States.
                                           Article 6
       Actions in support of an innovative and competitive Union space sector
   1. The Programme shall support an innovative and competitive Union space sector and
      stimulate the New Space industry in the Union, and in particular the initiatives and
      activities listed in Article 6 of Regulation (EU) 2021/696, including, where
      appropriate, support of commercial services.
EN                                            28                                               EN
 ---pagebreak---    2. The Commission shall contribute to the activities referred to in paragraph 1, by
      taking the following measures:
      (a)   establish criteria for the award of the contracts referred to in Article 15
            ensuring the participation of start-ups and small and medium-sized enterprises
            (SMEs) from across the Union and along the whole relevant value chain;
      (b)   require that the contractor referred to in Article 15(2) provides a plan on the
            integration of start-ups and SMEs from across the Union in the activities under
            the contracts referred to in Article 15;
      (c)   require through the contracts referred to in Article 15 that start-ups and SMEs
            are able to deliver own services to end-users;
      (d)   promote stronger participation of women innovators and establish equality and
            inclusion goals in the tender documentation.
                                       Chapter II
                                         Services
                                          Article 7
                             Definition of Services portfolio
   1. The provision of governmental services shall be ensured as laid down in the service
      portfolio referred to in paragraph 3 and in accordance with the operational
      requirements set out in in paragraph 2.
   2. The Commission shall adopt, by means of implementing acts, the operational
      requirements for governmental services, in the form of technical specifications for
      use-cases related in particular to crisis management, surveillance and key
      infrastructure management, including diplomatic communication networks. Those
      operational requirements shall be based on the detailed analysis of the requirements
      of the Programme users, shall take into account requirements stemming from
      existing user equipment and networks and operational requirements for
      GOVSATCOM services according to Article 63(2) of the Space Programme
      Regulation. Those implementing acts shall be adopted in accordance with the
      examination procedure referred to in Article 42(2).
   3. The Commission shall adopt, by means of implementing acts, the service portfolio
      for the governmental services in the form of a list of services and their attributes,
      including geographical coverage, frequency, bandwidth, user equipment, and
      security features. Those implementing acts shall be based on the operational
      requirements referred to in paragraph 2 of this Article and applicable security
      requirements referred to in Article 27(2). These implementing acts shall be adopted
      in accordance with the examination procedure referred to in Article 42(2).
   4. The provision of commercial services shall be financed by the contractor referred to
      in Article 15(2). The terms and conditions for the provision of commercial services
      shall be determined in the contracts referred to in Article 15. They shall in particular
      specify how the Commission will assess and approve the provision of commercial
      services to ensure that the Union’s essential interests and the Programme’s general
      and specific objectives referred to in Article 3 are preserved. They shall also include
      adequate safeguards to prevent distortions of competition in the provision of
      commercial services, to avoid any conflict of interest, undue discrimination and any
EN                                           29                                                EN
 ---pagebreak---       other hidden indirect advantages to the contractor referred to in Article 15(2). Such
      safeguards may include the obligation of accounting separation between the
      provision of governmental services and the provision of commercial services,
      including the setting up of a structurally and legally separate entity from the
      vertically integrated operator for the provision of governmental services, and the
      provision of open, fair and non-discriminatory access to infrastructure necessary for
      the provision of commercial services.
                                         Article 8
                                  Governmental services
   1. Governmental services shall be provided to the Programme participants referred to
      Article 9(1), (2) and (3).
   2. The Commission shall adopt, by means of implementing acts, detailed rules on the
      provision of governmental services taking into account Article 66 of the Space
      Programme Regulation and the expected demand for the different use-cases, dynamic
      allocation of the resources and prioritisation of the governmental services according
      to relevance and criticality of the users’ needs and, where appropriate, the cost-
      efficiency.
   3. Access to the governmental services shall be free of charge for its users.
   4. By way of derogation from paragraph 3, the Commission may, in duly justified cases
      and on an exceptional basis, determine, by means of implementing acts, a pricing
      policy.
      By determining this pricing policy, the Commission shall ensure that the provision of
      the governmental services does not distort competition, that there is no shortage of
      the governmental services and that the price identified will not result in an
      overcompensation of the beneficiary.
   5.  The implementing acts referred to in paragraphs 2 and 4 of this Article shall be
      adopted in accordance with the examination procedure referred to in Article 42(2).
   6. The provision of governmental services between the users authorised by the same
      Programme participant shall be determined and implemented by that Programme
      participant.
                                         Article 9
                  Programme participants and competent authorities
   1. Member States, the Council, the Commission and the European External Action
      Service (EEAS) shall be the Programme participants insofar as they authorise the
      users of the governmental services.
   2. Union agencies and bodies may become the Programme participants insofar as
      necessary to fulfil their tasks and in accordance with detailed rules laid down in an
      administrative arrangement concluded between the agency concerned and the Union
      institution that supervises it.
   3. Third countries and international organisations may become the Programme
      participants in accordance with Article 36.
EN                                          30                                              EN
 ---pagebreak---    4.   Each Programme participant shall designate one Secure Connectivity Competent
        authority.
      That requirement shall be deemed to be complied with by the Programme participants,
      if they satisfy the following criteria:
        (a)   they are also GOVSATCOM participants referred to in Article 68 of
              Regulation (EU) 2021/696; and
        (b)   they have designated a competent authority in accordance with Article 68(4) of
              Regulation 2021/696.
   5.   A Secure Connectivity Competent authority referred to in paragraph 4 shall ensure
        that:
        (a)   the use of services is in compliance with the applicable security requirements;
        (b)   the access rights to the governmental services are determined and managed;
        (c)   user equipment necessary for the use of the governmental services and
              associated electronic communication connections and information are used and
              managed in accordance with applicable security requirements;
        (d)   a central point of contact is established to assist as necessary in the reporting of
              security risks and threats, in particular the detection of potentially harmful
              electromagnetic interference affecting the services under the Programme.
                                            Article 10
                              Users of the governmental services
   1.   The following entities may be authorised as users of the governmental services:
        (a)   a Union or Member State public authority or a body entrusted with the exercise
              of such public authority;
        (b)   a natural or legal person acting on behalf of and under the control of an entity
              referred to in point (a) of this paragraph.
   2.   The users of the governmental services referred to in paragraph 1 shall be duly
        authorised by the Programme participants referred to in Article 9 to use the
        governmental services and shall comply with the general security requirements
        referred to in Article 27(2).
                                        Chapter III
                  Budgetary contribution and mechanisms
                                            Article 11
                                             Budget
   1.   The financial envelope for the implementation of the Programme for the period
        from 1 January 2023 to 31 December 2027 and for covering the associated risks shall
        be EUR 1,600 billion in current prices.
        The indicative distribution of the amount from the MFF 2021-27 shall be as follows:
        –     EUR 950 million from Heading 1;
EN                                              31                                                 EN
 ---pagebreak---              –      EUR 500 million from Heading 5;
             –      EUR 150 million from Heading 6.
   2.        The Programme shall be complemented by funding implemented under the Horizon
             Europe Programme, the Union Space Programme and the Neighbourhood,
             Development and International Cooperation Instrument (NDICI) for a maximum
             indicative amount of EUR 0,430 billion, EUR 0,220 billion and EUR 0,150 billion
             respectively. This funding shall be implemented in accordance with Regulation (EU)
             No 2021/695, Regulation (EU) No 2021/696 and Regulation (EU) No. 2021/947
             respectively.
   3.        The amount referred to in paragraph 1 may be used to cover all the activities required
             to fulfil the objectives referred to in Article 3. Such expenditure may also cover:
             (a)    studies and meetings of experts, in particular compliance with its cost and time
                    constraints;
             (b)    information and communication activities, including corporate communication
                    on the policy priorities of the Union where they are directly linked to the
                    objectives of this Regulation, with a particular view to creating synergies with
                    other Union policies;
             (c)    the information technology networks whose function it is to process or
                    exchange information, and the administrative management measures
                    implemented by the Commission, including in the field of security,
                    implemented by the Commission;
             (d)    technical and administrative assistance for the implementation of the
                    Programme, such as preparatory, monitoring, control, audit and evaluation
                    activities including corporate information technology systems.
   4.        Budgetary commitments for activities extending over more than one financial year
             may be broken down over several years into annual instalments.
                                                  Article 12
                                   Cumulative and alternative funding
   An action that has received a contribution from another Union programme, including funds
   under shared management, may also receive a contribution under the Programme, provided
   that the contributions do not cover the same costs. The rules of the relevant Union programme
   shall apply to the corresponding contribution to the action. The cumulative funding shall not
   exceed the total eligible costs of the action. The support from the different Union programmes
   may be calculated on a pro-rata basis in accordance with the documents setting out the
   conditions for support.
                                                  Article 13
                                    Contributions to the Programme
   1.        The Programme may receive additional financial contributions or contributions in-
             kind from:
             (a)    Union agencies and bodies;
             (b)    Member States;
EN                                                    32                                             EN
 ---pagebreak---       (c)    Third countries participating in the programme;
      (d)    European Space Agency (ESA) or other international organisations in line with
             relevant agreements.
   2. The additional financial contribution referred to in paragraph 1 of this Article and
      revenues pursuant to Article 8(4) shall be treated as external assigned revenue in
      accordance with Article 21(5) of Regulation (EU, Euratom) 2018/1046 (the
      ‘Financial Regulation’).
                                         Article 14
                      Implementation and forms of Union funding
   1. The Programme shall be implemented under direct management in accordance with
      the Financial Regulation or under indirect management with bodies referred to in the
      first subparagraph of point (c) of Article 62(1) of the Financial Regulation.
   2. The Programme may provide funding in any of the forms laid down in the Financial
      Regulation, in particular grants, prizes and procurement. It may also provide
      financing in the form of financial instruments within blending operations.
                                      Chapter IV
                     Implementation of the Programme
                                         Article 15
                                  Implementation model
   1. The activities set out in Article 4 of this Regulation shall be implemented through
      contracts awarded in compliance with the Financial Regulation and the principles of
      procurement under Article 17 of this Regulation.
   2. The roles, responsibilities, financial scheme and allocation of risks between the
      Union and the contractor for their implementation shall be set out in contracts, which
      may take the form of a concession contract, a supply, service or works contract or a
      mixed contract, taking into account the ownership regime under Article 16 and the
      funding of the Programme under Chapter III.
   3. The contracts referred to in this Article shall be procured under direct and indirect
      management and may take the form of an inter-institutional procurement referred to
      in Article 165(1) of the Financial Regulation, between the Commission and the
      Agency, whereby the Commission shall assume the role of lead contracting
      authority.
   4. If the procurement procedure referred to in paragraph 2 takes the form of a
      concession contract and such procedure leads to the failure to conclude the
      concession contract, the Commission shall restructure the procurement and
      implement a supply, service or works contract, as appropriate for an optimal
      implementation of the Programme.
   5. Where appropriate, the procurement procedures for the contracts referred to in this
      Article may also take the form of joint procurements with Member States, according
      to Article 165(2) of the Financial Regulation.
   6. The contracts referred to in this Article shall include adequate safeguards to avoid
      any overcompensation of the contractor, distortions of competition, any conflict of
EN                                           33                                              EN
 ---pagebreak---       interest, undue discrimination and any other hidden indirect advantages. In
      accordance with Article 7(4), they shall contain provisions on the assessment and
      approval process of commercial services provided by the contractor to ensure that the
      Union’s essential interest and the Programme objectives are preserved.
   7. The contracts referred to in this Article shall contain provisions on the establishment
      of a scheme to offset the CO2 emissions generated by the launches of the
      infrastructure referred to in Article 5.
                                          Article 16
                               Ownership and use of assets
   1. The Union shall be the owner of all tangible and intangible assets laid down in
      Article 5, which form part of the governmental infrastructure. To that effect, the
      Commission shall ensure that contracts, agreements and other arrangements
      concerning activities that may result in the creation or development of such assets
      contain provisions ensuring the Union’s ownership of those assets.
      In particular, the Commission shall ensure that the Union has the following rights:
      (a)   the right of use of the frequencies required for the transmission of the signals
            generated by the Programme, in accordance with the applicable laws,
            regulations and relevant licensing agreements and the filings provided by the
            Member States remaining their property;
      (b)   the right to prioritise the provision of the governmental services over the
            commercial services, according to terms and conditions to be established in the
            contracts referred to in Article 15 and considering the users of the
            governmental services referred to in Article 10(1).
   2. By way of derogation from paragraph 1, the Commission shall seek to conclude
      contracts, agreements or other arrangements with third parties with regard to:
      (a)   pre-existing ownership rights in respect of tangible and intangible assets
            forming part of the Programme infrastructure;
      (b)   the acquisition of the ownership or license rights in respect of other tangible
            and intangible assets necessary for the implementation of the Programme.
   3. Where the assets referred to in paragraphs 1 and 2 consist of intellectual property
      rights, the Commission shall manage those rights as effectively as possible, taking
      into account:
      (a)   the need to protect and give value to the assets;
      (b)   the legitimate interests of all stakeholders concerned;
      (c)   the need to ensure competitive and well-functioning markets and to develop
            new technologies;
      (d)   the need for the continuity of the services provided by the Programme.
   4. The Commission shall, in particular, ensure that the relevant contracts, agreements
      and other arrangements include the possibility of transferring those intellectual
      property rights to third parties or of granting third-party licences for those rights,
      including to the creator of the intellectual property, and that such third parties can
      freely enjoy those rights where necessary for carrying out their tasks under this
      Regulation.
EN                                            34                                              EN
 ---pagebreak---                                           Article 17
                                 Principles of procurement
   1. Procurement under the Programme shall be carried out in accordance with the rules
      on procurement laid down by the Financial Regulation.
   2. In procurement procedures for the purpose of the Programme, complementing the
      principles laid down in the Financial Regulation, the contracting authority shall act in
      accordance with the following principles:
      (a)   to promote in all Member States throughout the Union and throughout the
            supply chain, the widest and most open participation possible by economic
            operators, in particular start-ups, new entrants and SMEs, including in the case
            of sub-contracting by the tenderers;
      (b)   to ensure effective competition in the tendering process, while taking into
            account the objectives of technological independence and continuity of
            services;
      (c)   to follow the principles of open access and competition, by tendering on the
            basis of the provision of transparent and timely information, clear
            communication of the applicable procurement rules and procedures, selection
            and award criteria and any other relevant information allowing a level-playing
            field for all potential tenderers;
      (d)   to protect the security and public interest of the Union and its Member States,
            including through a reinforcement of the autonomy of the Union, in particular
            in technological terms;
      (e)   to comply with the security requirements of the Programme’s core
            infrastructure and to contribute to the protection of the essential security
            interests of the Union and its Member States;
      (f)   by way of derogation from Article 167 of the Financial Regulation, to use,
            wherever appropriate, multiple supply sources in order to ensure better overall
            control of all the Programme’s components, their cost and schedule;
      (g)   to promote service continuity and reliability;
      (h)   to satisfy environmental criteria;
      (i)   to ensure the effective promotion of equal opportunities for all, and the
            implementation of gender mainstreaming, and of the gender dimension and
            shall aim to address the causes of gender imbalance. Particular attention shall
            be paid to ensure gender balance in evaluation panels.
                                          Article 18
                                       Subcontracting
   1. To encourage new entrants, SMEs and start-ups and their cross-border participation,
      and to offer the widest possible geographical coverage while protecting the Union’s
      autonomy, the contracting authority shall request that the tenderer subcontracts part
      of the contract by competitive tendering at the appropriate levels of subcontracting to
      companies other than those affiliated with the tenderer’s group.
   2. The tenderer shall justify any derogation from a request made under paragraph 1.
EN                                             35                                              EN
 ---pagebreak---                                                Article 19
   Eligibility and participation conditions for the preservation of the security, integrity and
                            resilience of operational systems of the Union
   Eligibility and participation conditions shall apply to the award procedures carried out in the
   implementation of the Programme, where necessary and appropriate to preserve the security,
   integrity and resilience of the operational Union systems as set out in Article 24 of Regulation
   (EU) 2021/696, taking into account the objective to promote the Union's strategic autonomy,
   in particular in terms of technology across key technologies and value chains, while
   preserving an open economy.
                                               Article 20
                          Protection of the financial interests of the Union
   Where a third country participates in the Programme by means of a decision adopted pursuant
   to an international agreement or on the basis of any other legal instrument, the third country
   shall grant the necessary rights and access required for the authorising officer responsible,
   OLAF, the European Public Prosecutor’s Office and the Court of Auditors to
   comprehensively exercise their respective competences. In the case of OLAF, such rights
   shall include the right to carry out investigations, including on-the-spot checks and
   inspections, as provided for in Regulation (EU, Euratom) No 883/2013.
                                             Chapter V
                               Governance of the Programme
                                               Article 21
                                       Principles of governance
   The governance of the Programme shall be based on the following principles:
   (a)       clear distribution of tasks and responsibilities between the entities involved in the
             implementation of the Programme
   (b)       relevance of the governance structure to the specific needs of the Programme and
             measures, as appropriate;
   (c)       strong control of the Programme, including strict adherence to cost, schedule and
             performance by all the entities, within their respective roles and tasks in accordance
             with this Regulation;
   (d)       transparent and cost-efficient management;
   (e)       service continuity and necessary infrastructure continuity, including protection from
             relevant threats;
   (f)       systematic and structured consideration of the needs of users of the data, information
             and services provided by the Programme, as well as of related scientific and
             technological evolutions;
   (g)       constant efforts to control and mitigate risks.
EN                                                 36                                               EN
 ---pagebreak---                                                Article 22
                                    Role of the Member States
   1.   Member States shall contribute with their technical competence, know-how and
        assistance, in particular in the field of safety and security, or, where appropriate and
        possible, by making available to the Union the data, information, services and
        infrastructure in their possession or located on their territory.
   2.   Where relevant, the Member States shall ensure coherence and complementarity of
        their recovery and resilience plans under Regulation (EU) 2021/241 of the European
        Parliament and of the Council44 and the Programme.
   3.   The Member States shall take all the necessary measures to ensure the smooth
        functioning of the Programme, including by helping to secure and protect, at the
        appropriate level, the frequencies required for the Programme.
   4.   The Member States and the Commission may cooperate to widen the uptake of
        services provided by the Programme.
   5.   In the field of security, the Member States shall perform the tasks referred to in
        Article 42 of Regulation (EU) 2021/696.
   6.   The Member States shall provide their operational needs for the governmental
        services.
                                               Article 23
                                     Role of the Commission
   1.   The Commission shall have overall responsibility for the implementation of the
        Programme, including in the field of security, without prejudice to Member States’
        prerogatives in the area of national security. The Commission shall, in accordance
        with this Regulation, determine the priorities and evolution of the Programme, in line
        with the user requirements, and shall supervise its implementation, without prejudice
        to other policies of the Union.
   2.   The Commission shall ensure a clear division of tasks and responsibilities between
        the various entities involved in the Programme and shall coordinate the activities of
        those entities. The Commission shall also ensure that all the entrusted entities
        involved in the implementation of the Programme protect the interests of the Union,
        guarantee the sound management of the Union’s funds and comply with the
        Financial Regulation and this Regulation.
   3.   The Commission shall procure, award and sign the contracts referred to in Article 15
        in compliance with the Financial Regulation.
   4.   The Commission may entrust tasks concerning the Programme to the Agency and
        ESA under indirect management, in compliance with their respective roles and
        responsibilities as set out under Articles 24 and 25. In order to facilitate the
        achievement of the objectives under Article 3 and promote the most efficient
        cooperation between the three entities, the Commission may establish contribution
        agreements with each entity.
   44
      Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021
      establishing the Recovery and Resilience Facility (OJ L 57, 18.2.2021, p. 17).
EN                                                 37                                            EN
 ---pagebreak---    5. Without prejudice to the tasks of the contractor referred to in Article 15(2), the
      Agency or other entrusted entities, the Commission shall ensure that the uptake and
      use of the services provided by the Programme is promoted and maximised. It shall
      ensure complementarity, consistency, synergies and links between the Programme
      and other Union actions and programmes.
   6. Where appropriate, the Commission shall ensure the coherence of activities
      performed in the context of the Programme with activities carried out in the space
      domain at Union, national or international level. It shall encourage cooperation
      between the Member States and, where relevant to the Programme, facilitate
      convergence of their technological capacities and developments in the space domain.
   7. The Commission shall inform the Programme committee referred to in Article 42(1)
      of the interim and final results of the evaluation of any procurement procedures and
      of any contracts, including subcontracts, with public and private entities.
                                         Article 24
                                    Role of the Agency
   1. The own task of the Agency shall be to ensure, through its Security Accreditation
      Board, the security accreditation of the governmental infrastructure and
      governmental services in accordance with Chapter II of Title V of Regulation (EU)
      2021/696.
   2. The Commission may entrust, by means of one or more contribution agreements, the
      following tasks to the Agency:
      (a)   operation of the governmental infrastructure of the Programme;
      (b)   operational security of the governmental infrastructure, including risk and
            threat analysis, security monitoring, in particular setting technical
            specifications and operational procedures, and monitoring their compliance
            with the general security requirements referred to in Article 27(2).
      (c)   provision of the governmental services;
      (d)   management of contracts referred to in Article 15, after their award and
            signature;
      (e)   overarching coordination of user-related aspects of the governmental services
            in close collaboration with Member States, relevant Union agencies, EEAS and
            other entities;
      (f)   undertaking activities related to user uptake of services offered by the
            Programme without affecting the activities performed by the contractor
            referred to in Article 15(2) under contracts referred to in Article 15.
   3. By way of derogation from Article 62(1) of the Financial Regulation and subject to
      the Commission’s assessment of the protection of the Union’s interests, the Agency
      may entrust, by means of contribution agreements, specific activities to other entities,
      in areas of their respective competence, under the conditions of indirect management
      applying to the Commission.
   4. Where activities are entrusted to the Agency, appropriate financial, human and
      administrative resources shall be ensured for their implementation. For this purpose,
      the Commission may allocate part of the budget for the activities entrusted to the
      Agency for the funding of human resources necessary for their implementation.
EN                                           38                                                EN
 ---pagebreak---                                                  Article 25
                                               Role of ESA
   1.       Provided that the interest of the Union is protected, ESA may, within the field of its
            expertise, be entrusted with the following tasks:
            (a)    the supervision of the development and validation activities referred to in
                   Article 4(1), point (a), undertaken within the framework of contracts referred to
                   in Article 15, ensuring coordination between the tasks and budget entrusted to
                   ESA under the present article and possible ESA’s own resources made
                   available to the Programme or the contractor referred to in Article 15(2)
                   according to terms and conditions to be agreed in the contribution agreements
                   referred to in Article 23(4);
            (b)    the provision of technical expertise to the Commission; including for the
                   preparation of the technical aspects of the Programme;
            (c)    the support to the evaluation of contracts under Article 15.
   2.       On the basis of an assessment by the Commission, ESA may be entrusted with other
            tasks based on the needs of the Programme, in particular related to space and related
            ground segment of the European Quantum Communication Infrastructure, provided
            that those tasks do not duplicate activities performed by another entity in the context
            of the Programme and that they aim to improve the efficiency of the implementation
            of the Programme’s activities.
                                             Chapter VI
                                 Security of the Programme
                                                 Article 26
                                     General principles of security
   Article 33 of Regulation (EU) 2021/696 shall apply to this Programme.
                                                 Article 27
                                         Governance of security
   1.       The Commission shall, in its field of competence and with the support of the
            Agency, ensure a high degree of security with regard, in particular, to:
            (a)    the protection of infrastructure, both ground and space, and of the provision of
                   services, particularly against physical or cyber-attacks, including interference
                   with data streams;
            (b)    the control and management of technology transfers;
            (c)    the development and preservation within the Union of the competences and
                   know-how acquired;
            (d)    the protection of sensitive non-classified information and classified
                   information.
   2.       For the purposes of paragraph 1 of this Article, the Commission shall ensure that a
            risk and threat analysis is performed for the governmental infrastructure referred to
EN                                                   39                                              EN
 ---pagebreak---             in Article 5(2). Based on that analysis it shall determine, by means of implementing
            acts the general security requirements. In doing so, the Commission shall take
            account of the impact of those requirements on the smooth functioning of the
            governmental infrastructure, in particular in terms of cost, risk management and
            schedule, and shall ensure that the general level of security is not reduced, the
            functioning of the equipment is not undermined and the cybersecurity risks are take
            into account. Those implementing acts shall be adopted in accordance with the
            examination procedure referred to in Article 42(2).
   3.       Article 34(3) to (7) of Regulation (EU) 2021/696 shall apply to this Programme. For
            the purposes of this Regulation, the term ‘component’ in Article 34 of Regulation
            (EU) 2021/696 shall be read as ‘governmental infrastructure’ and all the references
            to Article 34(2) of Regulation (EU) 2021/696 shall be construed as references to
            paragraph 2 of this Article.
                                               Article 28
                            Security of the system and services deployed
   Whenever the security of the Union or its Member States may be affected by the operation of
   the system or the provision of the governmental services, Decision (CFSP) XXX shall apply.
                                               Article 29
                                  Security Accreditation Authority
   The Security Accreditation Board established within the Agency under Article 72(1) of
   Regulation (EU) 2021/696 shall be the security accreditation authority for the governmental
   infrastructure of the Programme.
                                               Article 30
                             General principles of security accreditation
   Security accreditation activities related to the Programme shall be conducted in accordance
   with the principles laid down in Article 37, points (a) to (j), of Regulation (EU) 2021/696. For
   the purposes of this Regulation, the term ‘component’ in Article 37 of Regulation (EU)
   2021/696 shall be read as ‘governmental infrastructure’ and all the references to Article 34(2)
   of Regulation (EU) 2021/696 shall be construed as references to Article 27(2) of this
   Regulation.
                                               Article 31
                   Tasks and composition of the Security Accreditation Board
   1.       Article 38, with the exception of points (c) to (f) of paragraph 2 and point (b) of
            paragraph 3, and Article 39 of Regulation (EU) 2021/696 shall apply to this
            Programme.
   2.       In addition to paragraph 1 and on an exceptional basis, representatives of the
            contractor referred to in Article 15(2) of this Regulation may be invited to attend the
            meetings of the Security Accreditation Board as observers for matters directly
            relating to that contractor.
EN                                                 40                                               EN
 ---pagebreak---                                                    Article 32
                            Voting rules of the Security Accreditation Board
   Article 40 of Regulation (EU) 2021/696 shall apply with regard to the voting rules of the
   Security Accreditation Board.
                                                   Article 33
          Communication and impact of decisions of the Security Accreditation Board
   1.       Article 41(1) to (4) of Regulation (EU) 2021/696 shall apply to the decisions of the
            Security Accreditation Board. For the purposes of this Regulation, the term ‘component’
            in Article 41 of Regulation (EU) 2021/696 shall be read as ‘governmental
            infrastructure’.
   2.       The timetable for the work of the Security Accreditation Board shall not hamper the
            timetable of activities provided in the work programme referred to in Article 37(1).
                                                   Article 34
                          Role of the Member States in security accreditation
   Article 42 of Regulation (EU) 2021/696 shall apply to this Programme.
                                                   Article 35
                                    Protection of classified information
   1.       Article 43 of Regulation (EU) 2021/696 shall apply to classified information related
            to the Programme.
   2.       Classified information generated by ESA in relation with the tasks entrusted under
            Article 25(1) and (2) shall be considered as EU Classified Information in accordance
            with Commission Decision (EU, Euratom) 2015/44445 and Council Decision
            2013/488/EU46, created under the authority of the Commission.
                                               Chapter VII
                                      International relations
                                                   Article 36
       Participation of third countries and international organisations in the Programme
   1.       In accordance with the conditions laid down in a specific agreement concluded in
            accordance with Article 218 TFEU covering the participation of a third country to
            any Union programme, the Programme shall be open to the participation of members
   45
           Commission Decision (EU, Euratom) 2015/444 of 13 March 2015 on the security rules for protecting
           EU classified information (OJ L 72, 17.3.2015, p. 53).
   46
           Council Decision of 23 September 2013 on the security rules for protecting EU classified information,
           (OJ L 274, 15.10.2013, p. 1).
EN                                                     41                                                        EN
 ---pagebreak---            of the European Free Trade Association (EFTA) which are members of the European
           Economic Area (EEA), as well as of the following third countries:
           (a)    acceding countries, candidate countries and potential candidates, in accordance
                  with the general principles and general terms and conditions for the
                  participation of those countries in Union programmes established in the
                  respective framework agreements and Association Council decisions or in
                  similar agreements, and in accordance with the specific conditions laid down in
                  agreements between the Union and those countries;
           (b)    European Neighbourhood Policy countries, in accordance with the general
                  principles and general terms and conditions for the participation of those
                  countries in Union programmes established in the respective framework
                  agreements and Association Council decisions or in similar agreements, and in
                  accordance with the specific conditions laid down in agreements between the
                  Union and those countries;
           (c)    third countries, other than those third countries covered in points (a) and (b).
   2.      The Programme shall be open to the participation of international organisations in
           accordance with agreements concluded in accordance with Article 218 TFEU.
   3.      The specific agreement referred to in paragraphs 1 and 2 shall:
           (a)    ensure a fair balance as regards the contributions and benefits of the third
                  country or international organisation participating in the Union programmes;
           (b)    lay down the conditions of participation in the programmes, including the
                  calculation of financial contributions to individual programmes, and their
                  administrative costs;
           (c)    not confer on the third country or international organisation any decision-
                  making power in respect of the Union programme;
           (d)    guarantee the rights of the Union to ensure sound financial management and to
                  protect its financial interests;
           (e)    be without prejudice to the obligations stemming from existing agreements
                  entered into by the Union, in particular with reference to the right of use of
                  frequencies.
   4.      Without prejudice to the conditions laid down in paragraphs 1, 2 and 3, and in the
           interest of security, the Commission may, by means of implementing acts, establish
           additional requirements for the participation of third countries and international
           organisations in the Programme, to the extent compatible with the existing
           agreements referred to in paragraph 1 and 2. Those implementing acts shall be
           adopted in accordance with the examination procedure referred to in Article 42(2).
                                                Article 37
    Access to the governmental services by third countries and international organisations
   Third countries and international organisations may have access to the governmental services
   provided that:
   (a)     they conclude an agreement, in accordance with Article 218 TFEU, laying down the
           terms and conditions for access to governmental services;
   (b)     they comply with Article 43(1) of Regulation (EU) 2021/696.
EN                                                  42                                             EN
 ---pagebreak---    For the purposes of this Regulation, the references to ‘the Programme’ in Article 43(1) of
   Regulation (EU) 2021/696 shall be construed as references to ‘the Programme’ established by
   this Regulation.
                                          Chapter VIII
              Programming, monitoring, evaluation and control
                                               Article 38
                             Programming, monitoring and reporting
   1.      The Programme shall be implemented by the work programme referred to in Article
           110 of the Financial Regulation. The work programme shall set out the actions and
           associated budget required to meet the objectives of the Programme and, where
           applicable, the overall amount reserved for blending operations. The work
           programme shall complement the work programme for GOVSATCOM component
           of the Union Space Programme referred to in Article 100 of Regulation (EU)
           2021/696.
           The Commission shall adopt the work programme by means of implementing acts.
           Those implementing acts shall be adopted in accordance with the examination
           procedure referred to in Article 42(2).
   2.      Indicators to report on progress of the Programme towards the achievement of the
           general and specific objectives laid down in Article 3 are set out in the Annex.
   3.      The Commission is empowered to adopt delegated acts, in accordance with Article
           43, to amend the Annex with regard to the indicators where considered necessary as
           well as to supplement this Regulation with provisions on the establishment of a
           monitoring and evaluation framework.
   4.      Where imperative grounds of urgency so require, the procedure provided for in
           Article 44 shall apply to delegated acts adopted pursuant to this Article.
   5.      The performance reporting system shall ensure that data for monitoring the
           implementation and the results of the Programme are collected efficiently,
           effectively, and in a timely manner.
           To that end, proportionate reporting requirements shall be imposed on recipients of
           Union funds and, where appropriate, on Member States.
   6.      For the purposes of paragraph 2, the recipients of Union funds shall provide
           appropriate information. The data necessary for the verification of the performance
           shall be collected in an efficient, effective and timely manner.
                                               Article 39
                                              Evaluation
   1.      The Commission shall carry out evaluations of the Programme in a timely manner to
           feed into the decision-making process.
   2.      By [DATE 3 YEARS AFTER THE ENTRY INTO FORCE], and every four years
           thereafter, the Commission shall evaluate the implementation of the Programme. It
           shall assess:
EN                                                 43                                          EN
 ---pagebreak---              (a)    the performance of the services provided under the Programme;
             (b)    the evolution of needs of the users of the Programme.
             If appropriate, the evaluation shall be accompanied by an appropriate proposal.
   3.        The evaluation of the Programme shall take into consideration the results of the
             evaluation of the GOVSATCOM component of the Union Space Programme, carried
             out in accordance with Article 102 of Regulation (EU) 2021/696.
   4.        The Commission shall communicate the conclusions of the evaluations accompanied
             by its observations, to the European Parliament, the Council, the European Economic
             and Social Committee and the Committee of the Regions.
   5.        The entities involved in the implementation of this Regulation shall provide the
             Commission with the data and information necessary for the evaluation referred to in
             paragraph 1.
   6.        Two years after the full operational capability, and every two years thereafter, the
             Agency shall issue a market report, in consultation with relevant stakeholders, on the
             impact of the Programme on the EU commercial satellite industry with a view to
             ensuring the minimum possible impact on competition and the maintenance of
             incentives to innovate.
                                                      Article 40
                                                       Audits
   Audits on the use of the Union contribution carried out by persons or entities, including by
   others than those mandated by the Union institutions or bodies, shall form the basis of the
   overall assurance pursuant to Article 127 of the Financial Regulation.
                                                      Article 41
                                    Personal data and privacy protection
   All personal data handled in the context of the tasks and activities provided for in this
   Regulation, including by the Agency, shall be processed in accordance with the applicable
   law on personal data protection, in particular Regulation (EU) 2016/679 of the European
   Parliament and of the Council47 and Regulation (EU) 2018/1725 of the European Parliament
   and of the Council48.
   47
           Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the
           protection of natural persons with regard to the processing of personal data and on the free movement of
           such data, and repealing Directive 95/46/EC (OJ L 119, 4.5.2016, p. 1).
   48
           Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the
           protection of natural persons with regard to the processing of personal data by the Union institutions,
           bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No
           45/2001 and Decision No 1247/2002/EC (OJ L 295, 21.11.2018, p. 39).
EN                                                        44                                                        EN
 ---pagebreak---                                       Chapter IX
                  Delegation and implementing measures
                                        Article 42
                                 Committee procedure
   1. The Commission shall be assisted by the Programme committee established by
      Article 107 of Regulation (EU) 2021/696, in the GOVSATCOM configuration. That
      committee shall be a committee within the meaning of Regulation (EU) No
      182/2011.
      For the purposes of the adoption of implementing acts referred to in Articles 5(3) and
      27(2) of this Regulation, the committee referred to in the first subparagraph of this
      paragraph shall meet in the security configuration defined in Article 107(1), point
      (e), of Regulation (EU) 2021/696.
   2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No
      182/2011 shall apply.
   3. Where the Programme committee delivers no opinion on the draft implementing act
      referred to in Article 27(2) of this Regulation, the Commission shall not adopt the
      draft implementing act and Article 5(4), third subparagraph of Regulation (EU) No
      182/2011 shall apply.
                                        Article 43
                                Exercise of the delegation
   1. The power to adopt delegated acts is conferred on the Commission subject to the
      conditions laid down in this Article.
   2. The power to adopt delegated acts referred to in Article 38 shall be conferred on the
      Commission until 31 December 2028.
   3. The delegation of power referred to in Article 38 may be revoked at any time by the
      European Parliament or by the Council. A decision to revoke shall put an end to the
      delegation of the power specified in that decision. It shall take effect the day
      following the publication of the decision in the Official Journal of the European
      Union or at a later date specified therein. It shall not affect the validity of any
      delegated act already in force.
   4. Before adopting a delegated act, the Commission shall consult experts designated by
      each Member State in accordance with the principles laid down in the
      Interinstitutional Agreement of 13 April 2016 on Better Law-Making.
   5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to
      the European Parliament and to the Council.
   6. A delegated act adopted pursuant to Article 38 shall enter into force only if no
      objection has been expressed either by the European Parliament or the Council
      within a period of two months of notification of that act to the European Parliament
      and the Council or if, before the expiry of that period, the European Parliament and
      the Council have both informed the Commission that they will not object. That
      period shall be extended by two months at the initiative of the European Parliament
      or of the Council.
EN                                          45                                               EN
 ---pagebreak---                                                 Article 44
                                          Urgency procedure
   1.       Delegated acts adopted under this Article shall enter into force without delay and
            shall apply as long as no objection is expressed in accordance with paragraph 2. The
            notification of a delegated act to the European Parliament and to the Council shall
            state the reasons for the use of the urgency procedure.
   2.       Either the European Parliament or the Council may object to a delegated act in
            accordance with the procedure referred to in Article 43(6). In such a case, the
            Commission shall repeal the act immediately following the notification of the
            decision to object by the European Parliament or by the Council.
                                             Chapter X
                            Transitional and final provisions
                                                Article 45
                             Information, communication and publicity
   1.       The recipients of Union funding shall acknowledge the origin of those funds and
            ensure the visibility of the Union funding, in particular when promoting the actions
            and their results, by providing coherent, effective and proportionate targeted
            information to multiple audiences, including the media and the public.
   2.       The Commission shall implement information and communication actions relating to
            the Programme, to actions taken pursuant to the Programme and to the results
            obtained.
   3.       Financial resources allocated to the Programme shall also contribute to the corporate
            communication of the political priorities of the Union, insofar as those priorities are
            related to the objectives referred to in Article 3.
                                                Article 46
                                   Continuity of services after 2027
   If necessary, appropriations may be entered in the Union budget beyond 2027 to cover the
   expenses necessary to fulfil the objectives provided for in Article 3, to enable the management
   of actions not completed by the end of the Programme, as well as expenses covering critical
   operational activities and services provision.
                                                Article 47
                                            Entry into force
   This Regulation shall enter into force on the twentieth day following that of its publication in
   the Official Journal of the European Union.
EN                                                  46                                              EN
 ---pagebreak---    This Regulation shall be binding in its entirety and directly applicable in all Member States.
   Done at Strasbourg,
   For the European Parliament                   For the Council
   The President                                 The President
EN                                                 47                                             EN
 ---pagebreak---                              LEGISLATIVE FINANCIAL STATEMENT
   1.      FRAMEWORK OF THE PROPOSAL/INITIATIVE
   1.1.    Title of the proposal/initiative
           Proposal for a Regulation of the European Parliament and of the Council establishing
           the Union Secure Connectivity Programme
   1.2.    Policy area(s) concerned
           Union space policy
   1.3.    The proposal/initiative relates to:
            a new action
            a new action following a pilot project/preparatory action 49
            the extension of an existing action
            a merger or redirection of one or more actions towards another/a new action
   1.4.    Objective(s)
   1.4.1.  General objective(s)
           The general objective of the Programme is to establish a secure and autonomous
           space-based connectivity system for the provision of guaranteed and resilient satellite
           communication services, in particular to:
           (a) ensure the long-term availability of worldwide uninterrupted access to secure
           and cost-effective satellite communication services to governmental users, which
           supports protection of critical infrastructures, surveillance, external actions, crisis
           management and applications that are critical for the economy, environment, security
           and defence, thereby increasing the resilience of Member States, in accordance with
           Article 7(1);
           (b) allow for the provision of commercial services by the private sector in
           accordance with Article 7(2).
   1.4.2.  Specific objective(s)
           The specific objectives of the Programme are:
           (a) improve the resilience of the Union communication services by developing,
           building and operating a multi-orbital connectivity infrastructure, continuously
           adapted to evolution of demand for satellite communications, while taking into
           account the existing and future assets of the Member States used in the frame of the
           GOVSATCOM component of the Union Space Programme established by
           Regulation (EU) 2021/696 ;
           (b) contribute to cyber resilience by proactive and reactive defence against cyber
           and electromagnetic threats and operational cybersecurity, and integrate the space
           and related ground segment of the European Quantum Communication Infrastructure
           to enable secure transmission of cryptographic keys;
   49
          As referred to in Article 58(2)(a) or (b) of the Financial Regulation.
EN                                                         48                                      EN
 ---pagebreak---           (c) contribute to cyber resilience by proactive and reactive defence against cyber
          and electromagnetic threats and operational cybersecurity, and integrate the
          European Quantum Communication Infrastructure space infrastructure to enable
          secure transmission of cryptographic keys;
          (d) improve and expand the capabilities and services of other components of the
          Union Space Programme;
          (e) incentivise the development of innovative and disruptive technologies, in
          particular by leveraging the New Space industry; and
          (f) allow further development of high-speed broadband and seamless connectivity
          throughout the Union, removing communication dead zones and increasing cohesion
          across Member State territories, and allow connectivity over geographical areas of
          strategic interest outside of the Union.
   1.4.3. Expected result(s) and impact
          Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted.
          Member States governments and EU institutions should benefit from resilient,
          global, guaranteed and flexible satellite communication solutions covering their
          evolving needs.
          The EU satellite communication industry would benefit from the long-term
          commitment and EU-level security accreditation. With the EU as a long-term anchor
          customer for governmental services, the satellite communication industry business
          case is strengthened and de-risked for them to have better access to finance and
          ultimately be more competitive.
          European citizens would benefit directly and indirectly from the enhanced
          operational effectiveness of the various security actors.
   1.4.4. Indicators of performance
          Specify the indicators for monitoring progress and achievements.
          Specific objective 1: Improve the resilience of the Union communication services by
          developing, building and operating a multi-orbital connectivity infrastructure,
          continuously adapted to evolution of demand for satellite communications, while
          taking into account the existing and future assets of the Member States used in the
          frame of the GOVSATCOM component of the Union Space Programme established
          by Regulation (EU) 2021/696.
          Indicator 1: Member States governments and EU institutions can access initial set of
          governmental services in 2025, with full capacity in 2027
          Indicator 2: Service availability
          Indicator 3: Full integration of existing capacity from the Union pool via the
          integration of GOVSATCOM ground infrastructure
          Indicator 4: Annual number of major outages of the telecommunication networks in
          the Member States mitigated by the secure connectivity system
          Indicator 5: User’s satisfaction with the performance of the secure connectivity
          system
EN                                                      49                                                    EN
 ---pagebreak---           Specific objective 2: Contribute to cyber resilience by proactive and reactive defence
          against cyber and electromagnetic threats and operational cybersecurity, and
          integrate the space and related ground segment of the European Quantum
          Communication Infrastructure to enable secure transmission of cryptographic keys.
          Indicator 1: System obtains security accreditation allowing the services to transmit
          EU Classified Information (EUCI) up to a certain classification level and the national
          classified information of EU Member States of equivalent classification level,
          following the principles set in Council Decision (2013/488/EU) on the security rules
          for protecting EUCI
          Indicator 2: Integration of EuroQCI space infrastructure based on the most suitable
          technical solution
          Specific objective 3: Improve and expand the capabilities and services of other
          components of the Union Space Programme.
          Indicator 1: Number of payloads serving other components of the Union Space
          Programme
          Specific objective 4: Incentivise the deployment of innovative and disruptive
          technologies, in particular by leveraging the New Space industry.
          Indicator 1: Number of start-up, SME and midcap companies participating in the
          development of the infrastructure
          Specific objective 5: Allow further development of high-speed broadband and
          seamless connectivity throughout the Union, removing communication dead zones
          and increasing cohesion across Member State territories, and allow connectivity over
          geographical areas of strategic interest outside of the Union.
          Indicator 1: Speed of the commercial satellite broadband
          Indicator 2: Number of new commercial satellite communication potential users in
          EU rural areas and in geographical areas of strategic interest
   1.5.   Grounds for the proposal/initiative
   1.5.1. Requirement(s) to be met in the short or long term including a detailed timeline for
          roll-out of the implementation of the initiative
          The tasks required to the implementation of the Programme will require:
          - the conclusion of a concession contract or mixed contract with industry, selected in
          line with the procurement process in Title VII of the Financial Regulation;
          - development and deployment of the system;
          - exploitation of services with Member States governments and EU institutions
          being able to access the initial set of governmental services in 2025, with full
          capacity in 2027
          - integration with the GOVSATCOM Hubs in 2025;
           - system security accreditation in 2027 allowing the services to transmit EU
          Classified Information (EUCI) up to a certain classification level and the national
EN                                              50                                               EN
 ---pagebreak---           classified information of EU Member States of equivalent classification level,
          following the principles set in Council Decision (2013/488/EU) on the security rules
          for protecting EUCI;
          - The necessary staffing in the European Commission in order to manage the
          programme and monitor effectively the work of the different agencies in particular
          the Agency
          - The necessary staffing and budget of the Agency in order to properly implement the
          different actions that the Agency will be responsible for in relation to the
          programme.
   1.5.2. Added value of Union involvement (it may result from different factors, e.g.
          coordination gains, legal certainty, greater effectiveness or complementarities). For
          the purposes of this point 'added value of Union involvement' is the value resulting
          from Union intervention which is additional to the value that would have been
          otherwise created by Member States alone.
          The Programme will ensure guaranteed access to secure satellite communications. It
          will thus indirectly contribute to EU security interests. In Member States, it will
          support for example civil protection forces and national police, bodies with public
          security functions, border guard, as well as maritime communities. At EU level, it
          will facilitate the work of EU agencies, such as FRONTEX and EMSA, and enhance
          the effectiveness of civil protection and humanitarian interventions in the EU and
          globally.
          The establishment of an EU-level governance that can leverage secure and edge
          satellite communication services for all national and EU security actors would
          contribute to a more effective and autonomous EU response to risks and threats,
          ranging from cyber-attacks and hybrid threats, and natural disasters to evolving
          secure governmental satellite communication use cases and increasing global needs.
          There is no viable business case for the EU private space sector to develop the
          system without governmental commitment. The R&D investment will contribute to
          the EU industrial competitiveness.
   1.5.3. Lessons learned from similar experiences in the past
          Lessons learned from the management of the Union’s space initiatives and
          programmes:
          i) Public Private Partnership (PPP)
          A PPP model of implementation had been contemplated at the inception of the
          Galileo programme.
          ii) Governance
          The governance set-up for other Union space initiatives has revealed that EUSPA is
          the best suited for the tasks related to the implementation of such initiatives whilst
          ESA is placed to support the development and validation phases.
   1.5.4. Compatibility with the Multiannual Financial Framework and possible synergies
          with other appropriate instruments
          The Programme shares similar objectives with other Union programmes, such as
          Horizon Europe established by Regulation (EU) 2021/695 of the European
          Parliament and of the Council, the Digital Europe Programme established by
EN                                              51                                               EN
 ---pagebreak---           Regulation (EU) 2021/694 of the European Parliament and of the Council, the
          Connecting Europe Facility established by Regulation (EU) 2021/1153 of the
          European Parliament and of the Council, and, in particular, the Union Space
          Programme established by Regulation (EU) 2021/696 of the European Parliament
          and of the Council.
          Due to its implications on the security of the Union and its Member States, the
          Programme also shares objectives and principles with the European Defence Fund
          established by Regulation (EU) 2021/697 of the European Parliament.
          Due to its worldwide coverage, the Programme also shares objectives and principles
          with the Neighbourhood, Development and International Cooperation Instrument –
          Global Europe established by Regulation (EU) 2021/947.
   1.5.5. Assessment of the different available financing options, including scope for
          redeployment
          The financing of the initiative from the Union budget is based on the contribution of
          the funds from the following existing Union programmes that share similar
          objectives with this initiative:
          - Union Space Programme
          - Digital Europe Programme
          - Connecting Europe Facility
          - European Defence Fund
          - Neighbourhood, Development and International Cooperation Instrument –
          Emerging challenges and priorities cushion
          Part of the financing is also secured via the funds available within the margins of
          Headings 1 and 5 of the Multiannual Financial Framework 2021-2027.
          The Programme is also complemented by funding implemented under the Horizon
          Europe Programme, the Union Space Programme and the Neighbourhood,
          Development and International Cooperation Instrument.
EN                                              52                                              EN
 ---pagebreak---    1.6.     Duration and financial impact of the proposal/initiative
             limited duration
            –  in effect from 01/01/2023 to 31/12/2027
            –  Financial impact from 2023 to 2027 for commitment appropriations and from
               2023 to 2030 for payment appropriations.
             unlimited duration
            – Implementation with a start-up period from YYYY to YYYY,
            – followed by full-scale operation.
   1.7.     Management mode(s) planned50
             Direct management by the Commission
            – by its departments, including by its staff in the Union delegations;
            –  by the executive agencies
             Shared management with the Member States
             Indirect management by entrusting budget implementation tasks to:
            –  third countries or the bodies they have designated;
            –  international organisations and their agencies (to be specified);
            –  the EIB and the European Investment Fund;
            –  bodies referred to in Articles 70 and 71 of the Financial Regulation;
            –  public law bodies;
            –  bodies governed by private law with a public service mission to the extent that
               they provide adequate financial guarantees;
            –  bodies governed by the private law of a Member State that are entrusted with
               the implementation of a public-private partnership and that provide adequate
               financial guarantees;
            –  persons entrusted with the implementation of specific actions in the CFSP
               pursuant to Title V of the TEU, and identified in the relevant basic act.
            –  If more than one management mode is indicated, please provide details in the ‘Comments’ section.
   Comments
   The different actors in the governance will have the following responsibilities:
   (i) The Commission shall have overall responsibility for the implementation of the
   Programme, including in the field of security, without prejudice to Member States’
   prerogatives in the area of national security.
   50
          Details of management modes and references to the Financial Regulation may be found on the
          BudgWeb site:
          https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx
EN                                                        53                                                    EN
 ---pagebreak---    (ii) The European Union Agency for the Space Programme (located in Prague) will be
   responsible for
   - the operation of the governmental infrastructure of the Programme;
   - the operational security of the governmental infrastructure, including risk and threat
   analysis, security monitoring;
   - provision of governmental services;
   - management of the concession or mixed contract
   - overarching coordination of user-related aspects of the governmental services in close
   collaboration with Member States, relevant Union agencies, EEAS and other entities;
   - undertaking activities related to user uptake of services offered by the Programme
   (iii) Subject to adaptations to its internal decision making process allowing for the protection
   of EU interests, the European Space Agency (ESA) would be entrusted with:
   - the development and validation activities within the frame of implementation contracts;
   - the provision of technical expertise to the Commission, including for the preparation of the
   technical aspects of the programme;
   - the evaluation of the implementation contracts.
EN                                                  54                                              EN
 ---pagebreak---    2.     MANAGEMENT MEASURES
   2.1.   Monitoring and reporting rules
          Specify frequency and conditions.
          The monitoring of the initiative should cover the following aspects:
          -      Implementation: Infrastructure deployment according to the contractual
          arrangements. Operational objectives will be set for each phase of the PPP’s
          infrastructure deployment, with associated Key Performance Indicators (KPI's) that
          should also be reflected in the contractual arrangements. The KPI's will be defined
          on the basis of operational and security requirements, and will be monitored by the
          Commission. Implementing acts will further define the requirements for the service
          portfolio, provision of governmental services, the general security requirements and
          the work programme.
          -      Application: Performance of the services provided under the initiative and
          evolution of needs of the users of the initiative. Concretely measured through the
          indicators below:
                 - Global coverage
                 - Service availability
                 - Latency
                 - Number of users
                 - Volume of data used (i.e. system is used and capacity is sized properly)
          The indicators will be measured annually.
   2.2.   Management and control system(s)
   2.2.1. Justification of the management mode(s), the funding implementation mechanism(s),
          the payment modalities and the control strategy proposed
          The Commission would have overall responsibility for the implementation of the
          Programme, including in the field of security, without prejudice to Member States’
          prerogatives in the area of national security.
          ESA and EUSPA would be entrusted by the Commission to contribute to the sound
          implementation in terms of development and validation activities, and exploitation
          activities respectively. In addition, EUSPA would carry out the security accreditation
          of the governmental infrastructure and governmental services in accordance with
          Chapter II of Title V of Regulation (EU) 2021/696.
          The payment modalities should remain similar to the modalities experienced in the
          previous MFF: the payment forecast is prepared by the agencies, checked by the
          Commission (in particular regarding the total delegated envelope) and payment is
          made on a regular basis in order to allow the entrusted entities to effectively manage
          the procurement and avoid any treasury issue. The Commission keeps the authority
          when approving a payment, in particular having the legal right to reduce it should the
          demand and associated forecast is considered excessive.
          The control strategy that will be defined in the contribution agreements will be built
          around the experience acquired in the previous MFF, in particular the quarterly
EN                                               55                                              EN
 ---pagebreak---           process of reporting (that includes programmatic, financial and risk management
          reporting) and the different layers of boards (procurement board for instance) and
          meetings. The future control strategy will rely on the definition of all the risks the
          programme may face and will take into account their relative importance and
          potential impact on the programme. This control organisation proved to be effective
          for the main actions Galileo, EGNOS and Copernicus as stated in the respective mid-
          term evaluations.
   2.2.2. Information concerning the risks identified and the internal control system(s) set up
          to mitigate them
          Identified risks:
          Technological Risk: the use of leading-edge technology which has yet to be validated
          and specifications of which are constantly evolving.
          Industrial Risk: establishing and upgrading the infrastructures may involve many
          industrial players, in a number of countries, whose work has to be coordinated
          effectively in order to arrive at systems which are reliable and fully integrated
          particularly with regard to security.
          Timetable Risk: any delay in implementation would jeopardise the window of
          opportunity and would be likely to generate cost over-runs.
          Governance risk: governance of the Programme requires various bodies to work
          together, and an appropriate degree of stability and organisation has to be
          guaranteed. Moreover, differences of opinion between the various parties involved,
          and in particular between the Member States, have to be taken into account on
          several major issues. In this context the sharing of some risks, including financial and
          security-related risks, among those players who are best placed to cope with them,
          should be considered.
          Financial risk: financial risk is linked to the insufficient funding from the Member
          States and from the private sector. This risk will be known in course of the
          procurement process, before inferring any expenditure related to implementation of
          the Programme.
          Internal control:
          The DG DEFIS general internal control system relies on the different reports
          provided by the entrusted entities on a quarterly basis. These reports are followed by
          dedicated reviews to ensure that the planning is respected and to solve any technical
          difficulty, these reviews include a follow-up of the risks associated to programme
          implementation. In addition, ex-post audits are performed by DG DEFIS to ensure
          sound financial management from entrusted entities.
   2.2.3. Estimation and justification of the cost-effectiveness of the controls (ratio of "control
          costs ÷ value of the related funds managed"), and assessment of the expected levels
          of risk of error (at payment & at closure)
          The main budget of the Programme is managed by the Agency and ESA through
          contribution agreements. Based on past data, the overall control costs of all the
          entrusted entities by the Commission are estimated less than 1% of the related funds
          managed. The cost of implementing bodies would be estimated, based on the
          previous period, between 5 and 10%.
EN                                               56                                                 EN
 ---pagebreak---         The expected levels of risk of error both at payment and at closure are limited, taking
        into account the mechanism of procurement: the Commission delegates the
        implementation of the procurements to either the Agency or the ESA under a multi
        annual financial framework and these agencies report on a quarterly basis on the
        actual and forecasted procurements, within the limits of the delegated amounts.
   2.3. Measures to prevent fraud and irregularities
        Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy.
        The contribution agreements resulting from this Regulation that will be concluded
        with third parties shall provide for supervision and financial control by the
        Commission or any representative authorised by it together with audits by the Court
        of Auditors or OLAF, at the discretion of the EU, if necessary on-the-spot.
EN                                                  57                                                       EN
 ---pagebreak---      3.        ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE
     3.1.      Heading(s) of the multiannual financial framework and expenditure budget
               line(s) affected
                Existing budget lines (see table under section 3.2)
               In order of multiannual financial framework headings and budget lines.
                                                                    Type of
                                  Budget line                     expenditure
                                                                                                   Contribution
  Heading of
  multiannual                                                                     from                                 within the
                                                                                 EFTA         from
   financial   Number                                                                                                 meaning of
                                                                   Diff./Non-   countries   candidate   from third
  framework                                                                                                        Article 21(2)(b) of
                                                                     diff.51        52
                                                                                           countries53   countries   the Financial
                                                                                                                       Regulation
               [XX.YY.YY.YY]                                      Diff./Non
                                                                               YES/NO       YES/NO      YES/NO         YES/NO
                                                                     -diff.
                New budget lines requested
               In order of multiannual financial framework headings and budget lines.
                                                                    Type of
                                  Budget line                     expenditure
                                                                                                   Contribution
  Heading of
  multiannual                                                                                                          within the
   financial   Number                                                             from        from                    meaning of
                                                                   Diff./Non-                           from third
  framework                                                                      EFTA       candidate              Article 21(2)(b) of
                                                                      diff.                              countries   the Financial
                                                                                countries   countries
                                                                                                                       Regulation
       1       04.0301                                               Diff          NO          NO          NO             NO
       5       13.05                                                 Diff          NO          NO          NO             NO
       6       14.07                                                 Diff          NO          NO          NO             NO
     51
              Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations.
     52
              EFTA: European Free Trade Association.
     53
              Candidate countries and, where applicable, potential candidates from the Western Balkans.
EN                                                           58                                                          EN
 ---pagebreak---   3.2.   Sources of financing for the Union Secure Connectivity
  3.2.1. Earmarking under existing programmes
           Space Programme       2021          2022           2023          2024          2025    2026     2027   Total
          04.0101.03 Support    0.900          0.550          0.300         0.300         0.300   0.300   0.450   3.100
           space programme
                04.0201         1.325                                                                             1.325
             Galileo/Egnos
                04.0203         18.448        24.641         39.472        41.826        40.435  26.708  26.132  217.662
            Govsatcom/SSA
              Total Space       20.673        25.191         39.772        42.126        40.735  27.008  26.582  222.087
           Horizon Europe -
            Cluster ‘Digital.                                86.000        86.000        86.000  86.000   86.000 430.000
          Industry and Space’
           NDICI — Global
                Europe’                                                                  50.000  50.000   50.000 150.000
            Total earmarking    20.673        25.191        125.772       128.126       176.735  163.008 162.582 802.087
  3.2.2. Source of financing of appropriations under the new Union Secure Connectivity Programme
           Contribution from
                                 2021          2022           2023          2024          2025    2026     2027   Total
           Space Programme
                Support                                       0.250         0.200         0.200   0.200   0.050   0.900
EN                                                                      59                                               EN
 ---pagebreak---          Galileo/EGNOS
         Galileo/EGNOS                                        80.000 80.000   97.013 257.013
               Total                          0.250     0.200 80.200 80.200   97.063 257.913
         Galileo/EGNOS
        Contribution from
                                 2021    2022  2023     2024   2025   2026     2027   Total
               CEF
          Digital Strand                               50.000 50.000 50.000   50.000 200.000
        Contribution from        2021    2022  2023     2024   2025   2026     2027   Total
               DEP
              DEP54                           88.000   88.000 88.000 88.000   88.000 440.000
        Contribution from        2021    2022  2023     2024   2025   2026     2027   Total
       European Defence
               Fund
           Capability                                  51.000 61.000 71.000   85.000 268.000
          development
        Defence research                               25.000 30.000 35.000   42.000 132.000
           Total EDF                                   76.000 91.000 106.000 127.000 400.000
  54
     Expected mostly from cyber security
EN                                                   60                                      EN
 ---pagebreak---         Contribution from
         NDICI — Global       2021 2022    2023        2024    2025    2026    2027    Total
              Europe
       Emerging challenges
       and priorities cushion                                 50.000  50.000  50.000 150.000
        Use of the margins    2021 2022    2023        2024    2025    2026    2027    Total
            Heading 1                     20.000      10.000  10.000  5.000   5.000   50.000
            Heading 5                     30.000      20.000  20.000  15.000  15.000 100.000
          Total Margins                   50.000      30.000  30.000  20.000  20.000 150.000
  SUMMARY OF THE CONTRIBUTION FROM PROGRAMMES AND MARGINS
        Contribution from
         programmes and       2021 2022    2023        2024    2025    2026    2027    Total
              margins
               Space                       0.250       0.200  80.200  80.200  97.063 257.913
                CEF                                   50.000  50.000  50.000  50.000 200.000
               DEP                        88.000      88.000  88.000  88.000  88.000 440.000
         Margin heading 1                 20.000      10.000  10.000  5.000   5.000   50.000
       Sub-total heading 1                108.250    148.200 228.200 223.200 240.063 947.913
               EDF                                    76.000  91.000 106.000 127.000 400.000
         Margin heading 5                 30.000      20.000  20.000  15.000  15.000 100.000
       Sub-total heading 5                30.000      96.000 111.000 121.000 142.000 500.000
EN                                                61                                         EN
 ---pagebreak---                   NDICI                                                                                           50.000        50.000        50.000             150.000
           Sub-total heading 6                                                                                    50.000        50.000        50.000             150.000
            Grand Total Union
                                                                           138.250              244.200          389.200       394.200       432.063            1.597.913
           Secure Connectivity
  3.2.3.   Summary of estimated impact on operational appropriations
           –  The proposal/initiative does not require the use of operational appropriations
           –  The proposal/initiative requires the use of operational appropriations. as explained below:
                                                                                                                                         EUR million (to three decimal places)
             Heading of multiannual financial
                                                                   01         Single Market. Innovation & Digital – Cluster 4 Space
                            framework
                                                                                                                                        Post
                                                                 2021         2022       2023       2024    2025        2026    2027    2027     TOTAL
                                                                                0       108.000    148.000 228.000     223.200 240.013             947.013
                 04.0301 Operational
                 appropriations secure      Commitments   (1)
                 connectivity55
  55
         The following budget will be codelegated to DG CNECT:
        € 390 million (contribution from DEP) for realising the EuroQCI terrestrial segment.
        € 50 million (contribution from DEP) will be used for the development of the secure on-board architecture of Secured connectivity with QKD being part of it, incl.
         the links to the space data relay system.
        € 90 million (contribution from CEF) to be spent on the terrestrial part of EuroQCI
EN                                                                                          62                                                                                 EN
 ---pagebreak---                                                                                        100.000     100.000      200.000   200.000  200.000 147.013 947.013
                                                 Payments    (2)
                   04.0101.03 – Support          Commitments
                   expenditure                   = Payments  (3)                        0.250       0.200        0.200     0.200    0.050           0.900
                                                                                       108.250     148.200      228.200   223.200  240.063         947.913
                                                 Commitments
                                                             =1+
                   TOTAL appropriations for                    3
                   the envelop of the
                   programme under heading
                                                                                       100.250     100.200      200.200   200.200  200.050 147.013 947.913
                   1
                                                 Payments
                                                             =2+
                                                               3
                                            Commitm                       -1.950   -2.850      -3.850       -      -5.850         -20.000
                                            ents        (4)                                               5.500
  04 0301 Contribution from secure
  connectivity budget to EUSPA budget                                     -1.950   -2.850      -3.850       -      -5.850         -20.000
                                            Payments    (5)                                               5.500
                                                                                        2022         2023        2024      2025     2026    2027    Total
                                                                                       106.300     145.350      224.350   217.700  234.213         927.913
                   TOTAL appropriations          Commitments
                                                             =1+3
                   for the envelop of the                     +4
          € 110 million (contribution from CEF) to cover the procurement of the EuroQCI satellite infrastructure segment
EN                                                                                         63                                                              EN
 ---pagebreak---      programme                                               98.300  97.350 196.350  194.700  194.200 147.013  927.913
                              Payments
                                          =2+3
                                           +5
                                                            108.250 148.200 228.200  223.200  240.063          947.913
                              Commitments =1+3
     TOTAL
     appropriations under
                                                            100.250 100.200 200.200  200.200  200.050 147.013  947.913
     heading 1                Payments    =2+3
   Heading of multiannual financial
                                                05  Security and Defence – Cluster 13 Defence
                framework
                                                                                                       Post
                                               2021 2022     2023    2024    2025     2026     2027    2027   TOTAL
                              Commitments  (1)               30.000  96.000 111.000  121.000  142.000          500.000
     13.0501 Operational
     appropriations Secure
     connectivity
                              Payments     (2)               30.000  50.000 100.000  100.000  100.000 120.000  500.000
     TOTAL appropriations for Commitments  =1                30.000  96.000 111.000  121.000  142.000          500.000
     the envelop of the
     programme under heading
     5                        Payments     =2                30.000  50.000 100.000  100.000  100.000 120.000  500.000
EN                                                              64                                                     EN
 ---pagebreak---    Heading of multiannual financial
                                                       06  NEIGHBOURHOOD AND THE WORLD – Cluster 14 External Action
                 framework
                                                                                                         Post
                                                      2021 2022  2023    2024    2025    2026    2027    2027    TOTAL
                                     Commitments  (1)                             50.000  50.000  50.000          150.000
     14.07 Operational
     appropriations Secure
     connectivity                                                                 40.000  40.000  40.000  30.000  150.000
                                     Payments     (2)
                                                                                  50.000  50.000  50.000            150.000
     TOTAL appropriations for        Commitments  =1
     the envelop of the
     programme under heading                                                      40.000  40.000  40.000  30.000    150.000
     6                               Payments     =2
                                     Commitments  (4)            138.000 244.000 389.000 394.000 432.013         1 597.013
     TOTAL operational
     appropriations (all operational
     headings. including EUSPA                                   130.000 150.000 340.000 340.000 340.000 297.013 1 597.013
     transfer budget)                Payments     (5)
     TOTAL appropriations of an                                    0.250   0.200   0.200   0.200   0.050              0.900
     administrative nature financed
                                     Commitments
     from the envelope for specific               (6)
                                     = Payments
     programmes (all operational
     headings)
                                                                 138.250 244.200 389.200 394.200 432.063          1 597.913
     TOTAL appropriations            Commitments =4+6
     under HEADINGS 1 to 6 of
     the multiannual financial                                   130.250 150.200 340.200 340.200 340.050 297.013  1 597.913
     framework                       Payments    =5+6
EN                                                                 65                                                       EN
 ---pagebreak---              Heading of multiannual financial
                                                              7        ‘Administrative expenditure’
                        framework
  This section should be filled in using the 'budget data of an administrative nature' to be firstly introduced in the Annex to the Legislative
  Financial Statement (Annex V to the internal rules). which is uploaded to DECIDE for interservice consultation purposes.
                                                                                                               EUR million (to three decimal places)
                                                                                                                                       Post
                                                                          2021  2022       2023    2024    2025      2026      2027
                                                                                                                                       2027
                                                                                                                                            TOTAL
                                                                                  2.334     2.334    2.334  2.334     1.690     1.448          12.474
                Human resources
                                                                                  0.343     0.343    0.343  0.343     0.343     0.343          2.058
                Other administrative expenditure
                 TOTAL appropriations under
                                                    (Total commitments
                 HEADING 7 of the multiannual        = Total payments)
                                                                                2.667      2.667   2.667   2.667    2.033     1.791           14.532
                      financial framework
                                                                                                           EUR million (to three decimal places)
                                                                                                                                      Post
                                                   2021       2022       2023       2024           2025         2026         2027
                                                                                                                                      2027
                                                                                                                                            TOTAL
                    TOTAL         Commitments                 2.677     140.927    246.877        391.877      396.23341    433.854         1 612.445
EN                                                                                66                                                                  EN
 ---pagebreak---                    appropriations
                       across
                    HEADINGS
                 of the multiannual   Payments                  2.677       132.927      152.877       342.877       342.23333    341.841    297.013 1 612.445
                      financial
                     framework
  For information. in addition to the Space Programme and the Union secure connectivity programme. the MFF package includes a separate
  envelope for the EU contribution to the Agency represented by the budget line 04.1001 initially amounting to € 504 million. There is an
  additional contribution of € 20 million to finance the additional staff for EUSPA (30 posts in 2027).
                                                                                                                                               Post
               EUR million (to three decimal places)                  2021       2022      2023     2024       2025       2026        2027
                                                                                                                                               2027  TOTAL
                                                                        56.175    68.345     72.812  75.770     76.059      77.577    77.777              504.515
               Operational appropriations 04.10 01
                                                     Commitments
               EU Contribution to the Agency
                                                                        56.175    68.345     72.812  75.770     76.059      77.577    77.777              504.515
                                                     Payments
                                                                                              1.950   2.850      3.850       5.500     5.850               20.000
               Contribution from secure connectivity Commitments
               budget to EUSPA budget
                                                                                              1.950   2.850      3.850       5.500     5.850               20.000
                                                     Payments
                                                     Commitments       56.175    68.345     74.762  78.620     79.909      83.077    83.627              524.515
               TOTAL EUSPA
                                                     Payments          56.175    68.345     74.762  78.620     79.909      83.077    83.627              524.515
EN                                                                                       67                                                                       EN
 ---pagebreak---   The additional budget for EUSPA is broken down as follows :
                                                                                                                        EUR million (to three decimal places)
                                                                                                                           Post
                  EUR million (to three decimal places)               2021 2022   2023    2024    2025    2026    2027
                                                                                                                           2027    TOTAL
                                                                                    1.225   1.825   2.450   3.700   3.950               13.150
                  Tittle 1 – salaries                     Commitments
                                                                                    1.225   1.825   2.450   3.700   3.950               13.150
                                                          Payments
                                                                                    0.450   0.750   1.000   1.400   1.400                5.000
                  Title 2 – other admin expenditure       Commitments
                                                                                    0.450   0.750   1.000   1.400   1.400                5.000
                                                          Payments
                                                                                    0.275   0.275   0.400   0.400   0.500                1.850
                  Title 3 – operational expenditure       Commitments
                                                                                    0.275   0.275   0.400   0.400   0.500                1.850
                                                          Payments
                                                          Commitments              1.950   2.850   3.850   5.500   5.800               20.000
                  TOTAL           additional       budget
                  EUSPA
                                                          Payments                 1.950   2.850   3.850   5.500   5.800               20.000
EN                                                                              68                                                                            EN
 ---pagebreak---   EUSPA Staff required 2021-2027 (in number of staff):
                              Initial staff EUSPA.
                              according to the         2021    2022   2023   2024   2025   2026   2027
                              space regulation
                              Temporary agents AD         189    229     249   249    249    249    249
                              Temporary agents AST           2      2      2      2      2      2      2
                              CAs                           34    34      34    34     34     34     34
                              SNEs                          13    14      14    14     16     16     16
                              TOTAL                       238    279     299   299    301    301    301
                              Additional       Staff
                              requested          for   2021    2022   2023   2024   2025   2026   2027
                              EUSPA
                              Temporary agents AD            0      0      5      8    10     15     15
                              Temporary agents AST           0      0      0      0      0      0      0
EN                                                                    69                                 EN
 ---pagebreak---                                CAs                             0         0        4         5       7       10       12
                               SNEs                            0         0        1         1       2        3        3
                               TOTAL                           0         0       10       14      19        28       30
                               TOTAL           staff
                                                         2021       2022     2023      2024    2025     2026     2027
                               EUSPA
                               Temporary agents AD           189      229       254      257     259      264       264
                               Temporary agents AST            2         2        2         2       2        2        2
                               CAs                            34       34        38       39      41        44       46
                               SNEs                           13       14        15       15      18        19       19
                               TOTAL                         238      279       309      313     320      329       331
  The 30 additional posts for EUSPA are related to the operation of the governmental infrastructure and provision of the governmental services.
  including management of the related contracts. as well as security accreditation of the governmental infrastructure and services. and overarching
  coordination of user-related aspects of the governmental services.
EN                                                                          70                                                                      EN
 ---pagebreak---    3.2.4.      Summary of estimated impact on administrative appropriations
               –  The proposal/initiative does not require the use of appropriations of an
                   administrative nature
               –  The proposal/initiative requires the use of appropriations of an administrative
                   nature. as explained below:
                                                                     EUR million (to three decimal places)
              Years           2021      2022     2023      2024       2025       2026         2027      TOTAL
       HEADING 7
             of the
        multiannual
           financial
         framework
      Human                                2.334     2.334     2.334      2.334       1.690       1.448      12.474
      resources
      Other                                0.343     0.343     0.343      0.343       0.343       0.343       2.058
      administrative
      expenditure
           Subtotal                        2.677     2.677     2.677      2.677       2.033       1.791      14.532
       HEADING 7
             of the
        multiannual
           financial
         framework
            Outside
       HEADING 7
             of the
        multiannual
           financial
         framework
      Human
      resources
      Other
      expenditure
      of an                                       0.250     0.200      0.200       0.200       0.050       0.900
      administrative
      nature (former BA
      lines)
           Subtotal
            outside
       HEADING 7
             of the                               0.250     0.200      0.200       0.200       0.050       0.900
        multiannual
           financial
         framework
EN                                                   71                                                    EN
 ---pagebreak---            TOTAL                                    2.677          2.927  2.877         2.877        2.233        1.841    15.432
   The appropriations required for human resources and other expenditure of an administrative nature will be met by
   appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the
   DG. together if necessary with any additional allocation which may be granted to the managing DG under the annual
   allocation procedure and in the light of budgetary constraints.
EN                                                                72                                                       EN
 ---pagebreak---            3.2.4.1. Estimated requirements of human resources
                       –  The proposal/initiative does not require the use of human resources.
                       –  The proposal/initiative requires the use of human resources. as explained
                           below:
                                                                             Estimate to be expressed in full time equivalent units
                   Years                     2021         2022          2023         2024          2025          2026          2027
• Establishment plan posts (officials and temporary staff) for DG DEFIS
   Headquarters and
   Commission’s                                             11            11           11           11              8            7
   Representation Offices
   Delegations
   Research
• External staff (in Full Time Equivalent unit: FTE) - AC. AL. END. INT and JED                for DG DEFIS
Heading 7
   Financed from
   HEADING 7 of
   the multiannual        - at Headquarters                  7             7            7            7              5            4
   financial
   framework
                          - in Delegations
   Financed from          - at
   the envelope of        Headquarte
   the programme
                          rs
                          - in
                          Delegation
                          s
   Research
   Other (specify)
   TOTAL                                                    18            18           18           18             13           11
                       The human resources required will be met by staff from the DG who are already assigned to management of the
                       action and/or have been redeployed within the DG. together if necessary with any additional allocation which
                       may be granted to the managing DG under the annual allocation procedure and in the light of budgetary
                       constraints.
EN                                                                    73                                                            EN
 ---pagebreak---       Description of tasks to be carried out:
 Officials and temporary staff            11 FTEs to start the activities. reduced to 7 in 2027 to ensure the management of the
                                          PPP and the operational. financial and legal monitoring of the activities.
 External staff                           7 FTEs to start the activities (3 AC and 4 SNEs). reduced to 4 in 2027 (1 AC and 3
                                          SNEs) to ensure the management of the PPP and the operational monitoring of the
                                          activities.
EN                                                            74                                                        EN
 ---pagebreak---        3.2.5. Compatibility with the current multiannual financial framework
              The proposal/initiative:
              –  can be fully financed through redeployment within the relevant heading of the
                  Multiannual Financial Framework (MFF).
              Heading 1, 5 and 6. See details in section 3.2.
              –  requires use of the unallocated margin under the relevant heading of the MFF
                  and/or use of the special instruments as defined in the MFF Regulation.
              Margins of Heading 1 and 5. See details in section 3.2
              –  requires a revision of the MFF.
              Explain what is required. specifying the headings and budget lines concerned and the corresponding
              amounts.
       3.2.6. Third-party contributions
              The proposal/initiative:
              –  does not provide for co-financing by third parties
              –  provides for the co-financing by third parties estimated below:
                                                              Appropriations in EUR million (to three decimal places)
                             2023        2024          2025       2026         2027         Total
 ESA and/or     Member
                             TBC         TBC           TBC        TBC          TBC         TBC
 States
 TOTAL appropriations
 co-financed
       ESA and/or Member States will confirm their participation to such activity later
EN                                                          75                                                        EN
 ---pagebreak---          3.3.       Estimated impact on revenue
                    –  The proposal/initiative has no financial impact on revenue.
                    –  The proposal/initiative has the following financial impact:
                           –      on own resources
                           –      on other revenue
                           –         please indicate. if the revenue is assigned to expenditure lines 
                                                                   EUR million (to three decimal places)
                             Appropriations                             Impact of the proposal/initiative56
                              available for
 Budget revenue line:
                               the current      Year        Year      Year          Year       Enter as many years as necessary to show
                             financial year      N          N+1        N+2          N+3        the duration of the impact (see point 1.6)
 Article ………….
                    For assigned revenue. specify the budget expenditure line(s) affected.
                    […]
                    Other remarks (e.g. method/formula used for calculating the impact on revenue or any other
                    information).
                    […]
         56
                  As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net
                  amounts, i.e. gross amounts after deduction of 20 % for collection costs.
EN                                                               76                                                              EN
 ---documentbreak---                            EUROPEAN
                           COMMISSION
                                                  Strasbourg, 15.2.2022
                                                  COM(2022) 57 final
                                                  ANNEX
                                        ANNEX
                                         to the
   PROPOSAL FOR A REGULATION OF THE EUROPEAN PARLIAMENT AND OF
                                     THE COUNCIL
     establishing the Union Secure Connectivity Programme for the period 2023-2027
            {SEC(2022) 77 final} - {SWD(2022) 30 final} - {SWD(2022) 31 final}
EN                                                                                 EN
 ---pagebreak---                                              ANNEX
              INDICATORS FOR THE EVALUATION OF THE PROGRAMME
The Programme will be monitored closely on the basis of a set of indicators intended to
measure the extent to which the specific objectives of the Programme have been achieved and
with a view to minimising administrative burdens and costs. To that end, data will be
collected as regards the following set of key indicators:
Indicators should be linked to the specific objectives but without repeating them to avoid
incoherence.
Specific objective 1: Improve the resilience of the Union communication services by
developing, building and operating a multi-orbital connectivity infrastructure, continuously
adapted to evolution of demand for satellite communications, while taking into account the
existing and future assets of the Member States used in the frame of the GOVSATCOM
component of the Union Space Programme established by Regulation (EU) 2021/696.
        Indicator 1: Member States governments and EU institutions can access initial set of
        governmental services in 2025, with full capacity in 2027
        Indicator 2: Service availability
        Indicator 3: Full integration of existing capacity from the Union pool via the
        integration of GOVSATCOM ground infrastructure
        Indicator 4: Annual number of major outages of the telecommunication networks in
        the Member States mitigated by the secure connectivity system
        Indicator 5: User’s satisfaction with the performance of the secure connectivity system
Specific objective 2: Contribute to cyber resilience by proactive and reactive defence against
cyber and electromagnetic threats and operational cybersecurity, and integrate the space and
related ground segment of the European Quantum Communication Infrastructure to enable
secure transmission of cryptographic keys
        Indicator 1: System obtains security accreditation allowing the services to transmit EU
        Classified Information (EUCI) up to a certain classification level and the national
        classified information of EU Member States of equivalent classification level,
        following the principles set in Council Decision (2013/488/EU) on the security rules
        for protecting EUCI
        Indicator 2: Integration of EuroQCI space infrastructure based on the most suitable
        technical solution
Specific objective 3: Improve and expand the capabilities and services of other components
of the Union Space Programme
        Indicator 1: Number of payloads serving other components of the Union Space
        Programme
                                                 1
 ---pagebreak--- Specific objective 4: Incentivise the development of innovative and disruptive technologies,
in particular by leveraging the New Space industry.
        Indicator 1: Number of start-up, SME and midcap companies participating in the
        development of the infrastructure
Specific objective 5: Allow further development of high-speed broadband and seamless
connectivity throughout the Union, removing communication dead zones and increasing
cohesion across Member State territories, and allow connectivity over geographical areas of
strategic interest outside of the Union.
        Indicator 1: Speed of the commercial satellite broadband
        Indicator 2: Number of new commercial satellite communication potential users in EU
        rural areas and in geographical areas of strategic interest
                                                2