This communication concerns a report on the basis of which the Council will consider moving to the deployment and operational phases of the European satellite radionavigation programme.

The report examines the funding of the operational and deployment phases and confirms that there will be substantial funding from the private sector. While the private sector is willing to invest massively in the project, given the commercial prospects, a Community financial contribution is nevertheless necessary in order to ensure the programme's financial stability.

The world market for satellite radionavigation products and services doubled from EUR 10 billion in 2002 to EUR 20 billion in 2003. It will amount to around EUR 300 billion by 2020, with some 3 billion receivers in operation. These receivers will combine all the services offered by the GALILEO, EGNOS and GPS systems.

The cost of the deployment phase is estimated at EUR 2.1 billion. Since each of the shortlisted consortiums has undertaken to bear two-thirds of this cost, i.e. EUR 1.4 billion, EUR 700 million will be needed from the Community budget in order to fund the phase.

The operational phase will be funded by the private sector, but given the constraints arising from the public service obligations imposed on the operation of the major public infrastructure that the GALILEO system represents, and the time needed for the private sector to develop fully the satellite radionavigation market and the marketing of its services, it will be necessary to provide some exceptional public funding during the first years of the operational phase.

In order to ensure funding from the Community budget, the Commission has submitted a proposal for a European Parliament and Council regulation on the implementation of the deployment and commercial operating phases of the European satellite radionavigation programme (Please see COM(2004)0477.)

The report also looks at income from third countries and confirms that several third countries are particularly keen to participate in the GALILEO programme, including financially.

The GALILEO system must offer various services with specific features and guarantee a high degree of security. These are: an open service, a commercial service, a safety-of-life service, a public regulated

service (PRS), and assistance for the search and rescue service of the COSPAS-SARSAT system and other relevant systems. The report looks at this requirement in detail.

It concludes as follows:

In accordance with its terms of reference, the Galileo Joint Undertaking has successfully completed the procedure for selecting the future concession holder. The conditions governing the launch of the GALILEO programme have been met. In particular, the following have been confirmed:

- the strategic aspects of an infrastructure aimed at guaranteeing the independence of the EU while ensuring complementarity with the American GPS system;

- the technical definition of a system giving the EU control over satellite radionavigation technology;

- the commercial viability of the system as a result of the availability of substantial income;

- the complementarity of the five services proposed for the programme, which are designed to meet the needs of civilian users as a whole;

- the integration of EGNOS, the precursor of the European global satellite radionavigation system into the approach pursued, including the concession arrangement;

- a significant financial contribution from the private sector;

- lastly, the international dimension of the project and the growing desire of third countries to participate actively and financially in the programme.

The other conditions set by the Council for moving to the next phases of the programme, namely system deployment and operation, have also been met:

- the conclusion with the United States of an agreement on the interoperability of the American and European systems, which was signed on 26 June 2004;

- the establishment of the future structures for the management of the system, the Supervisory Authority and security arrangements, with the adoption by the Council of two texts of 12 July 2004.

All the conditions are therefore met for the Council to confirm:

- the irrevocable transition to the programme deployment and operational phases;

- the essential features of the system, in particular as regards services;

-the commitment of the public authorities with regard to the funding of the deployment and operational phases and the monitoring of the system.

Confirmation is necessary in order:

- to enable the Joint Undertaking to complete the negotiation of the concession contract due to be signed in the course of 2005, and

- to enable private-sector stakeholders to confirm their bids and financial commitments.

COM(2004)0636
EUR-Lex

PURPOSE : to set up a European Global Navigation Satellite System (GNSS) Supervisory Authority.

LEGISLATIVE ACT : Council Regulation 1321/2004/EC on the establishment of structures for the management of the European satellite radio-navigation programmes.

CONTENT : This Regulation sets up the European GNSS Supervisory Authority (the Authority), to manage the public interests relating to, and to be the regulatory authority for the European GNSS programmes. The tasks of the Authority include the following:

- the Authority will conclude a concession contract with whichever consortium is selected on completion of the development phase of Galileo and take steps to ensure compliance by that consortium with the obligations - in particular the public service obligations - arising from the concession contract. It should be noted that the Council underlined that substantial private sector participation is a fundamental element for the success of Galileo in its deployment and operational phases;

- the Authority will be the concession holder's sole interlocutor on the matter of frequencies;

- the Authority will be responsible for managing and controlling the use of the funds specifically allocated to it for the programmes;

- the Authority will assist the Commission in matters involving satellite radio-navigation, particularly in cases where legislative and regulatory measures prove necessary;

- the Authority will utilise ongoing research, development and technological assessment activities, in particular those carried out by ESA;

In addition, the following points should be noted:

- following its dissolution, the Galileo Joint Undertaking will transfer all property it has acquired to the Authority. All property developed by the concession holder during the deployment phase will be vested in the Authority unless otherwise agreed in advance, as the programme definition, development and validation phases have been financed almost entirely from public funds and all components thus developed will be put at the disposal of the concession holder;

- the Member States and the Commission are represented on an Administrative Board entrusted with the necessary powers to establish the budget, verify its execution, adopt the appropriate financial rules, establish transparent working procedure for decision making by the Authority, approve its work programme and appoint the Executive Director;

- in order to guarantee the full autonomy and independence of the Authority, the latter will have an autonomous budget whose revenue comes essentially from a contribution from the Community.

ENTRY INTO FORCE : 30/07/2004.

Regulation 2004/1321
OJ L 246 20.07.2004, p. 0001-0009

The Council have adopted the following conclusions :

- with regard to the Regulation on management structures : the Council states that the adoption of the Regulation on the establishment of structures for the management of the European satellite radio navigation programmes does not prejudice the outcome of the decisions to be taken on the deployment and operational phases, including its financial aspects. It calls upon the Commission to start the procedures to set up in due time the European GNSS Supervisory Authority. Council states that, when decisions or action relating to substantive security policy issues must be taken by the Council in accordance with the Regulation on the establishment of structures for the management of the European satellite radio navigation programmes, or on the security aspects of international agreements relating to the European GNSS system, the Council Security Committee, meeting in a GNSS security experts formation, will, as appropriate, issue technical recommendations in accordance with the Council's security regulations or, if the matter is entirely security-related, substantively prepare COREPER's work. It is recalled that the Council is the competent institution to authorise the Commission to enter into negotiations with third countries and to subsequently sign and conclude international agreements with third countries, on the subject of the European GNSS system and it is underlined that the procedure set out in the Council Joint Action agreed would be applicable notably in cases where a Member State considers that its national security is under threat;

- with regard to the EU-Israel agreement : the Council welcomes the initialling of the Co-operation Agreement on a civil GNSS between the European Community and its Member States and the State of Israel. It agrees its content and invites the Parties to finalise the legal and linguistic editing of the text in the weeks to come with a view to an early signature;

- with regard to the EU-US agreement : Council welcomes the initialling of the Agreement between the European Community and the United States of America on the promotion, provision and use of GALILEO and GPS satellite-based navigation systems and related applications. It notes with satisfaction the agreement reached recently on the issue of national security compatibility compliance requirements, together with a commitment from the United States, in the spirit of partnership upon which both sides have embarked, to find alternative PRS signal modulations if needed, and is confident that the Agreement which provides substantive benefits for both parties, can be signed in the near future, possibly at the EU-US summit on 26 June provided that the radio frequency compatibility document is finalised;

- with regard to the GJU-NRSCC agreement : the Council welcomes the initialling of the Agreement on the Cooperation in the GALILEO Program between the GALILEO Joint Undertaking and the National Remote Sensing Centre of China (NRSCC). It notes the positive opinion of the GALILEO Joint Undertaking's Supervisory Board on said agreement and invites the Administrative Board to finalise it without delay.

T5-0242/2004
OJ C 103 29.04.2004, p. 0452-0657 E

T5-0242/2004

A5-0209/2004

A5-0209/2004

COM(2003)0471
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COM(2003)0471
EUR-Lex