Article 1 European satellite navigation systems and programmes
1. The EGNOS and Galileo programmes shall cover all the activities needed to define, develop, validate, construct, operate, renew and improve the two European satellite navigation systems, namely the EGNOS system and the system established under the Galileo programme. 2. The EGNOS system is an infrastructure monitoring and correcting signals emitted by existing global satellite navigation systems. It consists of earth stations and several transponders installed on geostationary satellites. 3. The system established under the Galileo programme is an autonomous global navigation satellite system (GNSS) infrastructure consisting of a constellation of satellites and a global network of earth stations. 4. The specific objectives of the programmes are set out in the Annex.
Article 2 Subject
This Regulation lays down the rules for the further implementation of the programmes, including those on governance and the financial contribution of the Community.
Article 3 The phases of the Galileo programme
The Galileo programme shall consist of the following phases: (a) a definition phase during which the structure of the system was designed and its elements determined, which ended in 2001; (b) a development and validation phase, comprising the construction and launch of the first satellites, the establishment of the first ground-based infrastructures and all the work and operations necessary to validate the system in orbit. The aim is that this phase shall end in 2010; (c) a deployment phase consisting of the establishment of all the space and ground-based infrastructures as well as related operations. The aim is that this phase shall run from 2008 to 2013. It shall include preparations for the exploitation phase; (d) an exploitation phase comprising infrastructure management, the maintenance, constant improvement and renewal of the system, certification and standardisation operations relating to the programme, the marketing of the system and all other activities needed to develop the system and ensure that the programme runs smoothly. The exploitation phase is set to begin at the latest upon conclusion of the deployment phase.
Article 4 Financing the Galileo programme
1. The development and validation phase shall be financed by the Community and ESA. 2. The deployment phase shall be financed by the Community without prejudice to paragraphs 4 and 5. 3. In 2010, the Commission shall, if appropriate, submit to the European Parliament and the Council, together with its mid-term review, a proposal concerning the public funds and commitments required for the financing programming period starting in 2014, also covering any financial obligations with regard to the exploitation phase deriving from its responsibility relating to the public ownership of the system, the revenue-sharing mechanism for the exploitation phase, and objectives for a pricing policy ensuring that customers receive high quality services at fair prices. It shall, in particular, include a reasoned feasibility study of the advantages and disadvantages of the use of service concession contracts or public service contracts with private sector entities. Where applicable, the Commission shall also propose, together with its mid-term review, any appropriate measures that facilitate the development of satellite navigation applications and services. 4. Member States may provide additional funding to the Galileo programme to cover the investment necessary for the evolution to the agreed system architecture in particular cases. The revenue arising from these contributions shall constitute assigned revenue in accordance with Article 18(2) of the Financial Regulation. In accordance with the principle of transparent management, the Commission shall communicate any impact on the Galileo programme resulting from the application of this paragraph to the Committee. 5. Third countries and international organisations may also provide additional funding to the Galileo programme. Agreements concluded by the Community with such entities pursuant to Article 300 of the Treaty shall lay down the conditions of and detailed rules governing their involvement.
Article 5 Operation of the EGNOS system
The operation of the EGNOS system shall consist primarily of infrastructure management, maintenance, constant improvement and renewal of the system, certification and standardisation operations relating to the programme, and marketing.
Article 6 Financing the operation of the EGNOS system
1. The Community shall finance the operation of EGNOS, without prejudice to any contribution from any other source, including those referred to in paragraphs 3 and 4. 2. The operation of EGNOS shall initially be the subject of one or more public service contracts. 3. Member States may provide additional funding to the EGNOS programme. The revenue arising from these contributions shall constitute assigned revenue in accordance with Article 18(2) of the Financial Regulation. 4. Third countries and international organisations may also provide additional funding to the EGNOS programme. Agreements concluded by the Community with such entities pursuant to Article 300 of the Treaty shall lay down the conditions of and detailed rules governing their involvement.
Article 7 Compatibility and interoperability of the systems
1. The Commission shall make every effort to ensure the compatibility and interoperability of the systems, networks and services of EGNOS and Galileo and shall pursue the benefits of compatibility and interoperability of EGNOS and Galileo with other navigation systems and where possible with conventional means of navigation. 2. Measures necessary to that end, designed to amend non-essential elements of this Regulation by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 19(5).
Article 8 Ownership
The Community shall be the owner of all tangible and intangible assets created or developed under the programmes, to which effect agreements shall be concluded with third parties, wherever appropriate, with regard to existing ownership rights.
Article 9 Activities concerned
1. The Community budgetary appropriations allocated to the programmes under this Regulation shall be granted to finance: (a) activities relating to the completion of the development and validation phase of the Galileo programme; (b) activities relating to the deployment phase of the Galileo programme, including actions to manage and monitor this phase; (c) activities relating to the operation of EGNOS as well as actions preceding or preparatory to the exploitation phase of the programmes. 2. In order to allow the costs of the programmes and of the different phases of the programmes to be clearly identified, the Commission, in accordance with the principle of the transparent management, shall inform the Committee annually of the allocation of Community funds to each of the activities specified in the paragraph 1.
Article 10 Budgetary resources
1. The amount allocated to implement the activities specified in Article 9 is EUR 3 405 million for the period from 1 January 2007 to 31 December 2013. This includes EUR 400 million made available from the Seventh Framework Programme. 2. Appropriations shall be authorised annually by the budgetary authority within the limits laid down in the multiannual financial framework. They shall be implemented in accordance with the provisions of the Financial Regulation. 3. Budgetary commitments for the programmes shall be appropriated in annual instalments.
Article 11 Operating income
1. Income from the operation of the systems shall be collected by the Community, paid into the Community budget and allocated to the programmes. If the income proves to be more than required for the programmes, any adaptation of the principle of allocation shall be subject to approval by the budgetary authority on the basis of a proposal from the Commission. 2. A revenue-sharing mechanism may be provided for in contracts concluded with private sector entities.
Article 12 General framework for governance of the programmes
1. Public governance of the programmes shall be based on the principle of a strict division of responsibilities between the Community, represented by the Commission, the Authority and ESA. 2. The Commission, assisted by the Committee, shall be responsible for the management of the programmes, which it shall carry out in a transparent manner. It shall avoid duplication of structures and functions through a clear division of tasks with the Authority and ESA. It may be assisted by experts from Member States and it shall carry out financial and technical audits. 3. The Commission shall establish the appropriate instruments, including the implementation of integrated risk management at all levels of the programmes and structural measures to identify, control, mitigate and monitor risks, and shall ensure that it possesses the resources needed to accomplish this task. For this purpose, the Commission shall, in accordance with the advisory procedure referred to in Article 19(2), establish key decision points for reviews of the implementation of the programmes.
Article 13 Governance of security matters
1. The Commission shall manage all questions relating to the security of the systems, duly taking into account the need for oversight and integration of security requirements in the overall programmes. 2. The Commission shall, in accordance with the regulatory procedure referred to in Article 19(4), adopt implementing measures laying down the main technical requirements for controlling the access to, and handling of, technologies that provide security to the systems. 3. The Commission shall ensure that the necessary steps are taken to comply with the measures referred to in paragraph 2 and that any further requirements related to the security of the systems are met, taking full account of expert advice. 4. Whenever the security of the European Union or its Member States may be affected by the operation of the systems, the procedures set out in Council Joint Action 2004/552/CFSP of 12 July 2004 on aspects of the operation of the European satellite radio-navigation system affecting the security of the European Union ( 8 ) shall apply. 5. Matters falling exclusively within Title V and/or Title VI of the Treaty on European Union shall not fall within the remit of the Committee.
Article 14 Application of security regulations
1. Each Member State shall ensure that security regulations ensuring a degree of protection at least equivalent to that guaranteed by the Commission's rules on security set out in the Annex to Commission Decision 2001/844/EC, ECSC, Euratom ( 9 ) and by the security regulations of the Council set out in the Annex to Council Decision 2001/264/EC ( 10 ) apply to all natural persons resident on its territory and all legal entities established on its territory which deal with EU classified information regarding the programmes. 2. Member States shall immediately inform the Commission of the adoption of national security regulations as referred to in paragraph 1. 3. Natural persons resident in third countries and legal entities established in third countries may deal with EU classified information regarding the programmes only where they are subject, in those countries, to security regulations ensuring a degree of protection at least equivalent to that guaranteed by the Commission's rules on security set out in the Annex to Decision 2001/844/EC, ECSC, Euratom and by the security regulations of the Council set out in the Annex to Decision 2001/264/EC. The security regulations of ESA shall be considered as equivalent to those rules and regulations. The equivalence of security regulations applied in a third country may be recognised in an agreement with that country.
Article 15 Programming
1. The Commission shall manage the funds allocated to the programmes under this Regulation. 2. The Commission shall adopt measures to define a strategic framework for the establishment of a work programme in accordance with the requirements of this Regulation. The strategic framework shall include the main actions, the estimated budget and the time-table necessary to meet the objectives laid down in the Annex. Those measures designed to amend non-essential elements of this Regulation by supplementing it shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 19(5). 3. The Commission shall adopt the work programme, which includes the programme implementation plan and associated financing, reviewed on an annual basis, and any amendments thereto in accordance with the management procedure referred to in Article 19(3). 4. The measures financed under this Regulation shall be implemented in accordance with the Financial Regulation.
Article 16 The role of the European GNSS Supervisory Authority
Subject to the provisions of Article 12 and the respect of the Commission's role as manager of the programmes, the Authority shall accomplish the following tasks within the programmes in accordance with guidelines issued by the Commission: (a) with regard to the security of the programmes, and without prejudice to Articles 13 and 14, it shall ensure: (i) security accreditation; to that effect it shall initiate and monitor the implementation of security procedures and perform system security audits, (ii) the operation of the Galileo security centre, implemented in accordance with decisions taken pursuant to Article 13 and the instructions provided under Joint Action 2004/552/CFSP; (b) it shall contribute to the preparation of the commercialisation of the systems, including the necessary market analysis; (c) it shall also accomplish other tasks that may be entrusted to it by the Commission, in accordance with Article 54(2)(b) of the Financial Regulation, addressing specific issues linked to the programmes, such as: (i) promoting applications and services in the satellite navigation market; (ii) ensuring that the components of the systems are certified by the appropriate, duly authorised, certification bodies.
Article 17 Procurement principles related to the deployment phase of the Galileo programme
1. The Community's public procurement rules, in particular open access and fair competition throughout the industrial supply chain, tendering on the basis of the provision of transparent and timely information, clear communication of the applicable procurement rules, selection criteria and any other relevant information allowing a level-playing field for all potential bidders, shall apply to the deployment phase of the Galileo programme without prejudice to measures required to protect the essential interests of the security of the European Union or public security or to comply with European Union export control requirements. 2. During the procurement, the following objectives shall be pursued: (a) promoting the balanced participation of industry at all levels, including, in particular, SMEs, across Member States; (b) avoiding possible abuse of dominance and avoiding long-term reliance on single suppliers; (c) taking advantage of prior public sector investments and lessons learned, as well as industrial experience and competence, including that acquired in the definition and development and validation phases of the programmes, while ensuring that the rules on competitive tendering are not prejudiced. 3. To that end, the following principles for the procurement of the activities of the deployment phase of the Galileo programme shall apply: (a) the procurement of the infrastructure shall be split into a set of six main work packages (system engineering support, ground mission infrastructure completion, ground control infrastructure completion, satellites, launchers and operations), as well as a number of additional work packages, through a comprehensive overall procurement break-down; this does not rule out the prospect of multiple simultaneous procurement strands for individual work packages, including for satellites; (b) competitive tendering shall be ensured for all packages and, for the six main work packages, a single procedure shall be applied whereby any one independent legal entity, or a group represented for this purpose by a legal entity belonging to that group, may bid for the role of prime contractor for a maximum of two of the six main work packages; (c) at least 40 % of the aggregate value of the activities shall be subcontracted by competitive tendering at various levels to companies other than those belonging to groups of entities that are prime contractors for any of the main work packages; the Commission shall, on a regular basis, report to the Committee on the fulfilment of this principle. In the event that projections establish that it may not be possible to reach the 40 % threshold, the Commission shall, in accordance with the management procedure referred to in Article 19(3), take the appropriate measures; (d) dual sourcing shall be pursued wherever appropriate in order to ensure better overall control of the programme, its costs and schedule.
Article 18 The role of the European Space Agency
1. On the basis of the principles set out in Article 17, the Community, represented by the Commission, shall conclude a multi-annual delegation agreement with ESA, on the basis of a delegation decision adopted by the Commission in accordance with Article 54(2) of the Financial Regulation which shall cover the delegated tasks and budget implementation relating to the implementation of the Galileo programme, in particular the deployment phase. 2. The delegation agreement shall, insofar as necessary for the tasks and budget implementation delegated under paragraph 1, lay down the general conditions for the management of the funds entrusted to ESA, and, in particular, the actions to be implemented, the relevant financing, management procedures and monitoring and inspection measures, the measures applicable in the event of inadequate performance of contracts and the rules regarding ownership of all tangible and intangible assets. 3. The Committee shall be consulted on the delegation decision referred to in paragraph 1 of this Article, in accordance with the advisory procedure referred to in Article 19(2). The Committee shall be informed of the multi-annual delegation agreement to be concluded between the Community, represented by the Commission, and ESA. 4. The Committee shall be informed by the Commission of the interim and end results of the evaluation of the procurement tenders and of the contracts with private sector entities to be concluded by ESA.
Article 19 Committee procedure
1. The Commission shall be assisted by a committee called the ‘European GNSS Programmes Committee’ (the Committee). 2. Where reference is made to this paragraph, Articles 3 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof. 3. Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof. The period laid down in Article 4(3) of Decision 1999/468/EC shall be set at one month. 4. Where reference is made to this paragraph, Articles 5 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof. The period laid down in Article 5(6) of Decision 1999/468/EC shall be set at one month. 5. Where reference is made to this paragraph, Article 5a(1) to (4) and Article 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof. 6. Representatives of the Authority and ESA may be involved as observers in the work of the Committee under the conditions laid down in its rules of procedure. 7. Agreements concluded by the Community pursuant to Articles 4(5) and 6(4) may provide for the participation of third countries or international organisations in the work of the Committee under the conditions laid down in its rules of procedure.
Article 20 Protection of personal data and privacy
The Commission shall ensure that protection of personal data and privacy is guaranteed and that appropriate safeguards are integrated into the technical structures of the systems.
Article 21 Protection of the Community's financial interests
1. The Commission shall ensure that, when actions financed under this Regulation are implemented, the financial interests of the Community are protected by the application of preventive measures against fraud, corruption and any other illegal activities, by effective checks and by the recovery of amounts unduly paid and, if irregularities are detected, by effective, proportional and dissuasive penalties, in accordance with Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests ( 11 ) , 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 ( 12 ) and with Regulation (EC) No 1073/1999 of the European Parliament and of the Council of 25 May 1999 concerning investigations conducted by the European Anti-Fraud Office (OLAF) ( 13 ) . 2. For the Community actions financed under this Regulation, the notion of irregularity referred to in Article 1(2) of Regulation (EC, Euratom) No 2988/95 shall mean any infringement of a provision of Community law or any breach of a contractual obligation resulting from an act or omission by an economic operator, which has, or would have, the effect of prejudicing the general budget of the European Union or budgets managed by it, by an unjustified item of expenditure. 3. Agreements resulting from this Regulation, including agreements concluded with participating third countries and international organisations, shall provide for supervision and financial control by the Commission, or any representative authorised by it, and audits by the Court of Auditors, if necessary on-the-spot.
Article 22 Information to the European Parliament and to the Council
The Commission shall ensure the implementation of this Regulation. Each year, when it presents the preliminary draft budget, it shall present a report to the European Parliament and to the Council on the implementation of the programmes. A mid-term review shall be carried out in 2010, which shall include a review of costs, risks and likely revenues from the services offered by Galileo, inter alia , in the light of technological and market developments, to inform the European Parliament and the Council of the progress made on the programmes.
Article 23 Repeal
Article 7 of Council Regulation (EC) No 876/2002 of 21 May 2002 setting up the Galileo Joint Undertaking ( 14 ) shall be repealed with effect from 25 July 2009.
Article 24 Entry into force
This Regulation shall enter into force on the day following its publication in the Official Journal of the European Union .