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

• CELEX: Regulation (EU) 2021/696
• Articles: 112

Article 1 Subject matter

This Regulation establishes the Union Space Programme (‘the Programme’) for the duration of the MFF 2021-2027. It lays down the objectives of the Programme, the budget for the period 2021-2027, the forms of Union funding and the rules for providing such funding, as well as the rules for the implementation of the Programme.

This Regulation establishes the European Union Agency for the Space Programme (‘the Agency’) which replaces and succeeds the European GNSS Agency established by Regulation (EU) No 912/2010 and lays down the rules of operation of the Agency.

Article 2 Definitions

For the purposes of this Regulation, the following definitions apply:

(1)

‘spacecraft’ means an orbiting object designed to perform a specific function or mission, such as communications, navigation or Earth observation, including satellites, launcher upper stages, and a re-entry vehicle; a spacecraft that can no longer fulfil its intended mission is considered non-functional; spacecraft in reserve or standby modes awaiting possible reactivation are considered functional;

(2)

‘space object’ means any man-made object in outer space;

(3)

‘near-Earth objects’ or ‘NEO’ means natural objects in the solar system which are approaching the Earth;

(4)

‘space debris’ means any space object including spacecraft or fragments and elements thereof in Earth’s orbit or re-entering Earth’s atmosphere, that are non-functional or no longer serve any specific purpose, including parts of rockets or artificial satellites, or inactive artificial satellites;

(5)

‘space weather events’ or ‘SWE’ means naturally occurring variations in the space environment at the Sun and around the Earth, including solar flares, solar energetic particles, variations in the solar wind, coronal mass ejections, geomagnetic storms and dynamics, radiation storms and ionospheric disturbances, potentially impacting Earth and space-based infrastructures;

(6)

‘space situational awareness’ or ‘SSA’ means a holistic approach, including comprehensive knowledge and understanding, of the main space hazards, encompassing collision between space objects, fragmentation and re-entry of space objects into the atmosphere, space weather events, and near-Earth objects;

(7)

‘space surveillance and tracking system’ or ‘SST system’ means a network of ground-based and space-based sensors capable of surveying and tracking space objects, together with processing capabilities aiming to provide data, information and services on space objects that orbit around the Earth;

(8)

‘SST sensor’ means a device or a combination of devices, such as ground-based or space-based radars, lasers and telescopes, which is able to perform space surveillance or tracking and that can measure physical parameters related to space objects, such as size, location and velocity;

(9)

‘SST data’ means physical parameters of space objects, including space debris, acquired by SST sensors, or orbital parameters of space objects derived from SST sensors’ observations in the framework of the SST sub-component;

(10)

‘SST information’ means processed SST data which are readily meaningful to the recipient;

(11)

‘return link’ means a functional capacity of the Galileo search and rescue support (SAR) service; the Galileo SAR service will contribute to the global monitoring service of aircraft, as defined by the International Civil Aviation Organisation (ICAO);

(12)

‘Copernicus Sentinels’ means the Copernicus dedicated satellites, spacecraft or spacecraft payloads for space-based Earth observation;

(13)

‘Copernicus data’ means data provided by the Copernicus Sentinels, including their metadata;

(14)

‘Copernicus third-party data and information’ means spatial data and information licensed or made available for use under Copernicus which originate from sources other than the Copernicus Sentinels;

(15)

‘Copernicus in-situ data’ means observation data from ground-based, seaborne or airborne sensors, as well as reference and ancillary data licensed or provided for use in Copernicus;

(16)

‘Copernicus information’ means information generated by the Copernicus Services following processing or modelling, including their metadata;

(17)

‘Copernicus Participating States’ means third countries which contribute financially and participate in Copernicus under the terms of an international agreement concluded with the Union;

(18)

‘Copernicus core users’ means the Union institutions and bodies and European, national, or regional public bodies in the Union or Copernicus Participating States entrusted with a public service mission for the definition, implementation, enforcement or monitoring of civilian public policies, such as environmental, civil protection, safety, including safety of infrastructure, or security policies, which benefit from Copernicus data and Copernicus information and have the additional role of driving the evolution of Copernicus;

(19)

‘other Copernicus users’ means research and education organisations, commercial and private bodies, charities, non-governmental organisations and international organisations, which benefit from Copernicus data and Copernicus information;

(20)

‘Copernicus users’ means Copernicus core users and other Copernicus users;

(21)

‘Copernicus Services’ means value-added services of general and common interest to the Union and the Member States, which are financed by the Programme and which transform Earth observation data, Copernicus in-situ data and other ancillary data into processed, aggregated and interpreted information tailored to the needs of Copernicus users;

(22)

‘GOVSATCOM user’ means a public authority, a body entrusted with the exercise of public authority, an international organisation or a natural or legal person, duly authorised and entrusted with tasks relating to the supervision and management of' security-critical missions, operations and infrastructures;

(23)

‘GOVSATCOM Hub’ means an operational centre the main function of which is to link, in a secure manner, the GOVSATCOM users to the providers of GOVSATCOM capacity and services and thereby optimise the supply and demand at any given moment;

(24)

‘GOVSATCOM use-case’ means an operational scenario in a particular environment in which GOVSATCOM services are required;

(25)

‘EU classified information’ or ‘EUCI’ means any information or material designated by an EU security classification, the unauthorised disclosure of which could cause varying degrees of prejudice to the interests of the Union or of one or more of the Member States;

(26)

‘sensitive non-classified information’ means non-classified information within the meaning of Article 9 of Commission Decision (EU, Euratom) 2015/443  ( 37 ) , under which an obligation to protect sensitive non-classified information applies solely to the Commission and to Union agencies and bodies obliged by law to apply the security rules of the Commission;

(27)

‘blending operation’ means actions supported by the Union budget, including within blending facilities pursuant to Article 2(6) of the Financial Regulation, combining non-repayable forms of support or financial instruments or budgetary guarantees from the Union budget with repayable forms of support from development or other public finance institutions, as well as from commercial finance institutions and investors;

(28)

‘legal entity’ means a natural person, or a legal person created and recognised as such under Union, national, or international law, which has legal personality and capacity to act in its own name, exercise rights and be subject to obligations, or an entity which does not have legal personality as referred to in point (c) of Article 197(2) of the Financial Regulation;

(29)

‘fiduciary entity’ means a legal entity that is independent from the Commission or a third party and that receives data from the Commission or that third party for the purpose of safe storage and treatment of those data.

Article 3 Components of the Programme

1.   The Programme shall consist of the following components:

(a)

‘Galileo’, an autonomous civil global navigation satellite system (GNSS) under civil control, which consists of a constellation of satellites, centres and a global network of stations on the ground, offering positioning, navigation and timing services and integrating the needs and requirements of security;

(b)

‘European Geostationary Navigation Overlay Service’ (EGNOS), a civil regional satellite navigation system under civil control which consists of centres and stations on the ground and several transponders installed on geosynchronous satellites and which augments and corrects the open signals emitted by Galileo and other GNSSs, inter alia for air-traffic management, for air navigation services and for other transport systems;

(c)

‘Copernicus’, an operational, autonomous, user-driven, civil Earth observation system under civil control, building on the existing national and European capacities, offering geo-information data and services, comprising satellites, ground infrastructure, data and information processing facilities, and distribution infrastructure, based on a free, full and open data policy and, where appropriate, integrating the needs and requirements of security;

(d)

‘Space Situational Awareness’ or ‘SSA’, which includes the following sub-components:

(i)

‘SST sub-component’, a space surveillance and tracking system aiming to improve, operate and provide data, information and services related to the surveillance and tracking of space objects that orbit the Earth;

(ii)

‘SWE sub-component’, observational parameters related to space weather events; and

(iii)

‘NEO sub-component’, the risk monitoring of near-Earth objects approaching the Earth;

(e)

‘GOVSATCOM’, a satellite communications service under civil and governmental control enabling the provision of satellite communications capacities and services to Union and Member State authorities managing security critical missions and infrastructures.

2.   The Programme shall include additional measures to ensure efficient and autonomous access to space for the Programme and to foster an innovative and competitive European space sector, upstream and downstream, to strengthen the Union’s space ecosystem and to reinforce the Union as a global player.

Article 4 Objectives

1.   The general objectives of the Programme are to:

(a)

provide or contribute to the provision of high-quality and up-to-date and, where appropriate, secure space-related data, information and services without interruption and wherever possible at global level, meeting existing and future needs and able to support the Union’s political priorities and related evidence-based and independent decision making, inter alia for climate change, transport and security;

(b)

maximise the socio-economic benefits, in particular by fostering the development of innovative and competitive European upstream and downstream sectors, including SMEs and start-ups, thereby enabling growth and job creation in the Union and promoting the widest possible uptake and use of the data, information and services provided by the Programme’s components both within and outside the Union; while ensuring synergies and complementarity with the Union’s research and technological development activities carried out under Regulation (EU) 2021/695;

(c)

enhance the safety and security of the Union and its Member States and reinforce the autonomy of the Union, in particular in terms of technology;

(d)

promote the role of the Union as a global actor in the space sector, encourage international cooperation, reinforce European space diplomacy including by fostering the principles of reciprocity and fair competition, and to strengthen its role in tackling global challenges, supporting global initiatives including with regard to sustainable development and raising awareness of space as a common heritage of humankind;

(e)

enhance the safety, security and sustainability of all outer space activities pertaining to space objects and debris proliferation, as well as space environment, by implementing appropriate measures, including development and deployment of technologies for spacecraft disposal at the end of operational lifetime and for space debris disposal.

2.   The specific objectives of the Programme are:

(a)

for Galileo and EGNOS: to provide long-term, state-of-the-art and secure positioning, navigation and timing services whilst ensuring service continuity and robustness;

(b)

for Copernicus: to deliver accurate and reliable Earth observation data, information and services integrating other data sources, supplied on a long-term sustainable basis, to support the formulation, implementation and monitoring of the Union and its Member States’ policies and actions based on user requirements;

(c)

for SSA: to enhance capabilities to monitor, track and identify space objects and space debris with the aim of further increasing the performance and autonomy of capabilities under the SST sub-component at Union level, to provide SWE services and to map and network Member States’ capacities under the NEO sub-component;

(d)

for GOVSATCOM: to ensure the long-term availability of reliable, secure and cost-effective satellite communications services for GOVSATCOM users;

(e)

to support an autonomous, secure and cost-efficient capability to access space, taking into account the essential security interests of the Union;

(f)

to foster the development of a strong Union space economy, including by supporting the space ecosystem and by reinforcing competitiveness, innovation, entrepreneurship, skills and capacity building in all Member States and Union regions, with particular regard to SMEs and start-ups or natural and legal persons from the Union who are active or wishing to become active in that sector.

Article 5 Access to space

1.   The Programme shall support the procurement and aggregation of launching services for the needs of the Programme and, at their request, the aggregation for Member States and international organisations.

2.   In synergies with other Union programmes and funding schemes, and without prejudice to ESA’s activities in the area of access to space, the Programme may support:

(a)

adaptations, including technology development, to space launch systems which are necessary for launching satellites, including alternative technologies and innovative systems on access to space, for the implementation of the Programme’s components;

(b)

adaptations to the space ground infrastructure, including new developments, which are necessary for the implementation of the Programme.

Article 6 Actions in support of an innovative and competitive Union space sector

1.   The Programme shall promote capacity building across the Union, by supporting:

(a)

innovation activities for making best use of space technologies, infrastructure or services and measures to facilitate the uptake of innovative solutions resulting from research and innovation activities and to support the development of the downstream sector, in particular through synergies with other Union programmes and financial instruments, including the InvestEU Programme;

(b)

activities aiming to foster public demand and public sector innovation, to realise the full potential of public services for citizens and businesses;

(c)

entrepreneurship, including from early stage to scaling-up, in accordance with Article 21, by relying on other provisions on access to finance as referred to in Article 18 and Chapter I of Title III, and by using a first contract approach;

(d)

the emergence of a business-friendly space ecosystem through cooperation amongst undertakings in the form of a network of space hubs which:

(i)

bring together, at national and regional levels, actors from the space, digital and other sectors, as well as users; and

(ii)

aim to provide support, facilities and services to citizens and companies to foster entrepreneurship and skills, to enhance synergies in the downstream sector and to foster cooperation with the digital innovation hubs established under the Digital Europe Programme established by Regulation (EU) 2021/694 of the European Parliament and of the Council  ( 38 ) ;

(e)

the provision of education and training activities, in particular for professionals, entrepreneurs, graduates and students, notably through synergies with initiatives at national and regional levels, for the development of advanced skills;

(f)

access to processing and testing facilities for private and public sector professionals, students and entrepreneurs;

(g)

certification and standardisation activities;

(h)

the reinforcement of European supply chains across the Union through wide participation of enterprises, in particular SMEs and start-ups, in all the Programme’s components, particularly through Article 14, and of measures to underpin their competitiveness at global level.

2.   When implementing activities referred to in paragraph 1, the need to develop capacity in Member States with an emerging space industry shall be supported, in order to provide an equal opportunity to all Member States to participate in the Programme.

Article 7 Participation of third countries and international organisations in the Programme

1.   Galileo, EGNOS and Copernicus, as well as the SWE and NEO sub-components, but excluding the SST sub-component, shall be open to the participation of the members of the European Free Trade Association (EFTA) which are members of the European Economic Area (EEA), in accordance with the conditions laid down in the Agreement on the European Economic Area.

Copernicus and the SWE and NEO sub-components, but excluding the SST sub-component, shall be open to the participation 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.

2.   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 or of an international organisation to any Union programme:

(a)

Galileo and EGNOS shall be open to the participation of third countries referred to in points (a) and (b) of the second subparagraph of paragraph 1;

(b)

GOVSATCOM shall be open to the participation of members of EFTA which are members of the EEA, as well as of third countries referred to in points (a) and (b) of the second subparagraph of paragraph 1; and

(c)

Galileo, EGNOS, Copernicus, GOVSATCOM, as well as the SWE and NEO sub-components, but excluding the SST sub-component, shall be open to the participation of third countries, other than those third countries covered by paragraph 1, and international organisations.

The specific agreement referred to in the first subparagraph of this paragraph 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.

The contributions referred to in point (b) of the second subparagraph of this paragraph shall constitute assigned revenues in accordance with Article 21(5) of the Financial Regulation.

3.   The Programme’s components or sub-components, excluding the SST sub-component, shall only be open to the participation of third countries and international organisations under this Article provided that the essential security interests of the Union and its Member States are preserved, including as regards the protection of classified information under Article 43.

Article 8 Access to SST services, GOVSATCOM services and the Galileo Public Regulated Service by third countries and international organisations

1.   Third countries and international organisations may have access to GOVSATCOM services provided that:

(a)

they conclude an agreement, in accordance with Article 218 TFEU, laying down the terms and conditions for access to GOVSATCOM services; and

(b)

they comply with Article 43 of this Regulation.

2.   Third countries and international organisations not having their headquarters in the Union may have access to SST services referred to in point (d) of Article 55(1) provided that:

(a)

they conclude an agreement, in accordance with Article 218 TFEU, laying down the terms and conditions for access to such SST services; and

(b)

they comply with Article 43 of this Regulation.

3.   No agreement concluded in accordance with Article 218 TFEU shall be required to access SST services which are publicly available, as referred to in points (a), (b) and (c) of Article 55(1). Access to those services shall be subject to a request from the potential users in accordance with Article 56.

4.   The access of third countries and international organisations to the Public Regulated Service (PRS) provided by Galileo shall be governed by Article 3(5) of Decision No 1104/2011/EU of the European Parliament and of the Council  ( 39 ) .

Article 9 Ownership and use of assets

1.   Except as provided under paragraph 2, the Union shall be the owner of all tangible and intangible assets created or developed under the Programme’s components. To that effect, the Commission shall ensure that relevant contracts, agreements and other arrangements relating to the activities which may result in the creation or development of such assets contain provisions ensuring the Union’s ownership of those assets.

2.   Paragraph 1 does not apply to the tangible and intangible assets created or developed under the Programme’s components, where the activities which may result in the creation or development of such assets:

(a)

are carried out pursuant to grants or prizes fully financed by the Union;

(b)

are not fully financed by the Union; or

(c)

relate to the development, manufacture or use of PRS receivers incorporating EUCI, or components of such receivers.

3.   The Commission shall ensure that the contracts, agreements and other arrangements relating to the activities referred to in paragraph 2 of this Article contain provisions setting out the appropriate ownership regime for those assets and, as regards point (c) of paragraph 2 of this Article, that they ensure that the Union can use the PRS receivers in accordance with Decision No 1104/2011/EU.

4.   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 created or developed under the Programme’s components;

(b)

the acquisition of the ownership or license rights in respect of other tangible and intangible assets necessary for the implementation of the Programme.

5.   The Commission shall ensure, by means of an appropriate framework, the optimal use of the tangible and intangible assets referred to in paragraphs 1 and 2 owned by the Union.

6.   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 account of:

(a)

the need to protect and give value to the assets;

(b)

the legitimate interests of all stakeholders concerned;

(c)

the need for harmonious development of markets and new technologies; and

(d)

the need for the continuity of the services provided by the Programme's components.

The Commission shall ensure in particular 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 the Agency can freely enjoy those rights where necessary for carrying out its tasks under this Regulation.

The FFPA provided for in Article 28(4) or the contribution agreements referred to in Article 32(1) shall contain relevant provisions to allow the use of the intellectual property rights referred to in the first subparagraph of this paragraph by ESA and the other entrusted entities where necessary to perform their tasks under this Regulation, and the conditions for that use.

Article 10 Warranty

1.   Without prejudice to the obligations imposed by legally binding provisions, the services, data and information provided by the Programme’s components shall be provided without any express or implied warranty as regards their quality, accuracy, availability, reliability, speed and suitability for any purpose.

2.   The Commission shall ensure that the users of those services, data and information are duly informed of paragraph 1.

Article 11 Budget

1.   The financial envelope for the implementation of the Programme for the period from 1 January 2021 to 31 December 2027 and for covering the associated risks shall be EUR 14,880 billion in current prices.

The distribution of the amount referred to in the first subparagraph shall be broken down in the following categories of expenditure:

(a)

for Galileo and EGNOS: EUR 9,017 billion;

(b)

for Copernicus: EUR 5,421 billion;

(c)

for SSA and GOVSATCOM: EUR 0,442 billion.

2.   The Commission may reallocate funds between the categories of expenditure referred to in paragraph 1 of this Article, up to a ceiling of 7,5 % of the category of expenditure that receives the funds or the category that provides the funds. The Commission may, by means of implementing acts, reallocate funds between the categories of expenditure referred to in paragraph 1 of this Article when that reallocation exceeds a cumulative amount greater than 7,5 % of the amount allocated to the category of expenditure that receives the funds or the category that provides the funds. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 107(3).

3.   Additional measures as provided for in Article 3(2), namely activities referred to in Articles 5 and 6, shall be financed under the Programme’s components.

4.   The Union budget appropriations assigned to the Programme shall cover all the activities required to fulfil the objectives referred to in Article 4. Such expenditure may 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, 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.

5.   Actions that receive cumulative funding from different Union programmes shall be audited only once, covering all involved programmes and their respective applicable rules.

6.   The budgetary commitments relating to the Programme and which cover activities extending over more than one financial year may be broken down over several years into annual instalments.

7.   Resources allocated to Member States under shared management may, at the request of the Member State concerned, be transferred to the Programme, subject to the conditions set out in Article 26 of the Common Provisions Regulation. The Commission shall implement those resources directly in accordance with point (a) of the first subparagraph of Article 62(1) of the Financial Regulation or indirectly in accordance with point (c) of that subparagraph. Those resources shall be used for the benefit of the Member State concerned.

Article 12 Assigned revenue

1.   The revenue generated by the Programme’s components shall be paid into the Union budget and used to finance the component which generated the revenue.

2.   The Member States may endow a component of the Programme with an additional financial contribution to cover additional elements, on condition that such additional elements do not create any financial or technical burden or any delay for the component concerned. The Commission shall, by means of implementing acts, decide whether those conditions have been met. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 107(3).

3.   The additional financial contribution referred to in this Article shall be treated as external assigned revenue in accordance with Article 21(2) of the Financial Regulation.

Article 13 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 point (c) of the first subparagraph 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.

3.   Where the Copernicus budget is implemented under indirect management, the procurement rules of the entities entrusted with budget implementation tasks may apply to the extent allowed under Articles 62 and 154 of the Financial Regulation. Specific adjustments necessary to those procurement rules shall be defined in the relevant contribution agreements.

Article 14 Principles of procurement

1.   In procurement procedures for the purpose of the Programme, 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 and, where possible, to avoid reliance on a single provider, in particular for critical equipment and services, while taking into account the objectives of technological independence and continuity of services;

(c)

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;

(d)

to follow the principles of open access and fair competition throughout the industrial supply chain, 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, including SMEs and start-ups;

(e)

to reinforce the autonomy of the Union, in particular in technological terms;

(f)

to comply with the security requirements of the Programme’s components and to contribute to the protection of the essential security interests of the Union and its Member States;

(g)

to promote service continuity and reliability;

(h)

to satisfy appropriate social and environmental criteria.

2.   The procurement board, within the Commission, shall scrutinise the procurement process related to all of the Programme’s components and monitor the contractual implementation of the Union budget delegated to entrusted entities. A representative of each of the entrusted entities shall be invited where appropriate.

Article 15 Conditional stage-payment contracts

1.   With regard to operational and infrastructure-specific activities, the contracting authority may award a contract in the form of a conditional stage-payment contract in accordance with this Article.

2.   The procurement documents for a conditional stage-payment contract shall refer to the specific features of conditional stage-payment contracts. In particular, they shall specify the subject-matter of the contract, the price or the arrangements for determining the price and the arrangements for the provision of works, supplies and services at each stage.

3.   A conditional stage-payment contract shall include:

(a)

a fixed stage which results in a firm commitment to provide the works, supplies or services contracted for that stage; and

(b)

one or more stages, which are conditional in terms of both budget and execution.

4.   The obligations under the fixed stage and the obligations under each conditional stage shall be part of a consistent whole, taking into account the obligations under the previous or subsequent stages.

5.   Performance of each conditional stage shall be subject to a decision by the contracting authority, notified to the contractor in accordance with the contract.

Article 16 Cost-reimbursement contracts

1.   The contracting authority may opt for a full or partial cost-reimbursement contract under the conditions laid down in paragraph 3.

2.   The price to be paid under a cost-reimbursement contract shall consist of the reimbursement of:

(a)

all direct costs actually incurred by the contractor in performing the contract, such as expenditure on labour, materials, consumables and use of the equipment and infrastructures necessary to perform the contract;

(b)

indirect costs;

(c)

a fixed profit; and

(d)

an appropriate incentive fee based on achieving objectives in respect of performance and delivery schedules.

3.   The contracting authority may opt for a full or partial cost-reimbursement contract in cases where it is difficult or unsuitable to provide an accurate fixed price due to the uncertainties inherent in the performance of the contract because:

(a)

the contract has very complex features or features which require the use of a new technology and, therefore, includes a significant number of technical risks; or

(b)

the activities subject to the contract must, for operational reasons, start immediately even though it is not yet possible to determine an accurate fixed price in full due to significant risks or because the performance of the contract depends in part on the performance of other contracts.

4.   Cost-reimbursement contracts shall stipulate a maximum ceiling price. The maximum ceiling price for a full or partial cost-reimbursement contract shall be the maximum price payable. The price may be modified in accordance with Article 172 of the Financial Regulation.

Article 17 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 which belong to the tenderer’s group.

2.   The tenderer shall justify any derogation from a request made under paragraph 1.

3.   For contracts above EUR 10 million, the contracting authority shall aim to ensure that at least 30 % of the value of the contract is subcontracted by competitive tendering at various levels of subcontracting to companies outside the group of the prime tenderer, particularly in order to enable the cross-border participation of SMEs. The Commission shall inform the Programme committee referred to in Article 107(1) on the fulfilment of that objective for contracts signed after the entry into force of this Regulation.

Article 18 Grants and prizes

1.   The Union may cover up to 100 % of the eligible costs, without prejudice to the co-financing principle.

2.   By way of derogation from Article 181(6) of the Financial Regulation when applying flat rates, the authorising officer responsible may authorise or impose funding of the beneficiary’s indirect costs up to a maximum of 25 % of total eligible direct costs for the action.

3.   Notwithstanding paragraph 2 of this Article, indirect costs may be declared in the form of a lump sum or unit costs when provided for in the work programme referred to in Article 100.

4.   By way of derogation from Article 204 of the Financial Regulation, the maximum amount of financial support that can be paid to a third party shall not exceed EUR 200 000.

Article 19 Joint calls for grants

1.   The Commission or an entrusted entity in the context of the Programme may issue a joint call for proposals with entities, bodies or persons referred to in point (c) of the first subparagraph of Article 62(1) of the Financial Regulation.

2.   In the case of a joint call referred to in paragraph 1 of this Article:

(a)

the rules referred to in Title VIII of the Financial Regulation shall apply;

(b)

the evaluation procedures shall involve a balanced group of experts appointed by each party; and

(c)

the evaluation committees shall comply with Article 150 of the Financial Regulation.

3.   The grant agreement shall specify the arrangement applicable to intellectual property rights.

Article 20 Grants for pre-commercial procurement and procurement of innovative solutions

1.   Actions may involve or have as their primary aim pre-commercial procurement or public procurement of innovative solutions that shall be carried out by beneficiaries which are contracting authorities or contracting entities as defined in Directives 2014/24/EU  ( 40 ) , 2014/25/EU  ( 41 ) and 2009/81/EC  ( 42 ) of the European Parliament and of the Council.

2.   The procurement procedures for innovative solutions:

(a)

shall comply with the principles of transparency, non-discrimination, equal treatment, sound financial management, proportionality and competition rules;

(b)

in the case of pre-commercial procurement, may provide for specific conditions such as the place of performance of the procured activities being limited to the territory of the Member States and of the third countries participating in the Programme;

(c)

may authorise the award of multiple contracts within the same procedure (multiple sourcing); and

(d)

shall provide for the award of the contracts to the tender(s) offering best value for money while ensuring the absence of conflicts of interest.

3.   The contractor generating results in pre-commercial procurement shall own at least the intellectual property rights attached to the results. The contracting authorities shall enjoy at least royalty-free access rights to the results for their own use and the right to grant, or require the contractor to grant, non-exclusive licences to third parties to exploit the results for the contracting authority under fair and reasonable conditions without any right to sub-licence. If a contractor fails to commercially exploit the results within a given period after the pre-commercial procurement as identified in the contract, the contracting authorities may require it to transfer any ownership of the results to the contracting authorities.

Article 21 Blending operations

Blending operations decided under the Programme shall be implemented in accordance with Regulation (EU) 2021/523 and Title X of the Financial Regulation.

Article 22 Cumulative and alternative funding

1.   An action that has received a contribution under the Programme may also receive a contribution from another Union 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 financing 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.

2.   Actions awarded a Seal of Excellence label under the Programme may receive support from the European Regional Development Fund or the European Social Fund Plus, in accordance with Article 73(4) of the Common Provisions Regulation, if they comply with the following cumulative conditions:

(a)

they have been assessed in a call for proposals under the Programme;

(b)

they comply with the minimum quality requirements of that call for proposals;

(c)

they cannot be financed under that call for proposals due to budgetary constraints.

Article 23 Joint procurement

1.   In addition to the provisions of Article 165 of the Financial Regulation, the Commission or the Agency may carry out joint procurement procedures with ESA or other international organisations involved in implementing the Programme’s components.

2.   The procurement rules applicable under Article 165 of the Financial Regulation shall apply by analogy provided that in any case the procedural provisions applicable to the Union institutions are applied.

Article 24 Eligibility and participation conditions for the preservation of the security, integrity and resilience of operational systems of the Union

1.   The Commission shall apply the eligibility and participation conditions set out in paragraph 2 to the procurement, grants or prizes under this Title if it deems that this is necessary and appropriate to preserve the security, integrity and resilience of the operational Union systems, 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.

Before applying the eligibility and participation conditions in accordance with the first subparagraph of this paragraph the Commission shall inform the Programme committee referred to in point (e) of Article 107(1) and shall take utmost account of the Member States’ views on the scope of application of and the justification for those eligibility and participation conditions.

2.   The eligibility and participation conditions shall be as follows:

(a)

the eligible legal entity is established in a Member State and its executive management structures are established in that Member State;

(b)

the eligible legal entity commits to carry out all relevant activities in one or more Member States; and

(c)

the eligible legal entity is not to be subject to control by a third country or by a third country entity.

For the purpose of this Article, ‘control’ means the ability to exercise a decisive influence over a legal entity directly, or indirectly through one or more intermediate legal entities.

For the purpose of this Article, ‘executive management structure’ means the body of a legal entity appointed in accordance with national law, and which, where applicable, reports to the chief executive officer or any other person having comparable decisional power, and which is empowered to establish the legal entity’s strategy, objectives and overall direction, and oversees and monitors management decision-making.

3.   The Commission may waive the conditions under points (a) or (b) of the first subparagraph of paragraph 2 for a particular legal entity upon evaluation based on the following cumulative criteria:

(a)

for specific technologies, goods or services needed for the activities referred to in paragraph 1 no substitutes are readily available in the Member States;

(b)

the legal entity is established in a country which is a member of the EEA or EFTA and which has concluded an international agreement with the Union as referred to in Article 7, its executive management structures are established in that country and the activities linked to the procurement, grant or prize are carried out in that country or in one or more such countries; and

(c)

sufficient measures are implemented to ensure the protection of EUCI under Article 43 and the integrity, security and resilience of the Programme’s components, their operation and their services.

By way of derogation from point (b) of the first subparagraph of this paragraph, the Commission may waive the conditions under points (a) or (b) of the first subparagraph of paragraph 2 for a legal entity established in a third country which is not a member of the EEA or EFTA if no substitutes are readily available in countries which are members of the EEA or EFTA and the criteria set out in points (a) and (c) of the first subparagraph are met.

4.   The Commission may waive the condition under point (c) of the first subparagraph of paragraph 2 if the legal entity established in a Member State provides the following guarantees:

(a)

control over the legal entity is not exercised in a manner that restrains or restricts its ability to:

(i)

carry out the procurement, grant or prize; and

(ii)

deliver results, in particular through reporting obligations;

(b)

the controlling third country or third country entity commits to refrain from exercising any controlling rights over or imposing reporting obligations on the legal entity in relation to the procurement, grant or prize; and

(c)

the legal entity complies with Article 34(7).

5.   The competent authorities of the Member State in which the legal entity is established shall assess whether the legal entity complies with the criteria set out in point (c) of paragraph 3 and guarantees referred to in paragraph 4. The Commission shall comply with that assessment.

6.   The Commission shall provide the following to the Programme committee referred to in point (e) of Article 107(1):

(a)

the scope of application of eligibility and participation conditions referred to in paragraph 1 of this Article;

(b)

details and justifications on the waivers granted in accordance with this Article; and

(c)

the evaluation that formed the basis for a waiver, subject to paragraphs 3 and 4 of this Article, without divulging commercially sensitive information.

7.   The conditions set out in paragraph 2, the criteria set out in paragraph 3 and the guarantees set out in paragraph 4 shall be included in the documents relating to the procurement, grant or prize, as applicable, and, in the case of procurement, they shall apply to the full life cycle of the resulting contract.

8.   This Article is without prejudice to Decision No 1104/2011/EU and Commission Delegated Decision of 15.9.2015  ( 43 ) , Regulation (EU) 2019/452, Decision 2013/488/EU and Decision (EU, Euratom) 2015/444 and to the security vetting carried out by Member States with regard to legal entities involved in activities requiring access to EUCI subject to the applicable national laws and regulations.

If contracts resulting from the application of this Article are classified, eligibility and participation conditions applied by the Commission in accordance with paragraph 1 shall be without prejudice to the competence of national security authorities.

This Article shall not interfere with, amend or contradict any existing Facility Security Clearance and Personnel Security Clearance procedure within a Member State.

Article 25 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 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.

Article 26 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 each of the Programme’s components and measures, in particular between the Member States, the Commission, the Agency, ESA and EUMETSAT, building on their respective competences and avoiding any overlap in tasks and responsibilities;

(b)

relevance of the governance structure to the specific needs of each of the Programme’s components 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’s components, as well as of related scientific and technological evolutions;

(g)

constant efforts to control and reduce risks.

Article 27 Role of the Member States

1.   The Member States may participate in the Programme. Member States which participate in the Programme 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, including by ensuring an efficient and obstacle free access and use of Copernicus in-situ data and cooperating with the Commission to improve the availability of Copernicus in-situ data required by the Programme, taking into account applicable licences and obligations.

2.   The Commission may entrust, by means of contribution agreements, specific tasks to Member State organisations, where such organisations have been designated by the Member State concerned. The Commission shall adopt the contribution decisions regarding the contribution agreements by means of implementing acts. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 107(2).

3.   In certain duly justified circumstances, for the tasks referred to in Article 29 the Agency may entrust, by means of contribution agreements, specific tasks to Member State organisations, where such organisations have been designated by the Member State concerned.

4.   The Member States shall take all the necessary measures to ensure the smooth functioning of the Programme, including by helping to protect, at the appropriate level, the frequencies required for the Programme.

5.   The Member States and the Commission may cooperate to widen the uptake of data, information and services provided by the Programme’s components.

6.   Whenever possible, the contribution of Member States to the User Forum referred to in Article 107(6) shall be based on a systematic and coordinated consultation of end user communities at national level, in particular regarding Galileo, EGNOS and Copernicus.

7.   The Member States and the Commission shall cooperate in order to develop the in-situ component of Copernicus and ground calibration services necessary for the uptake of space systems and to facilitate the use of Copernicus in-situ data and reference data sets to their full potential, building on existing capacities.

8.   In the field of security, the Member States shall perform the tasks referred to in Article 34(6).

Article 28 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 long-term 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 manage any of the Programme’s components or sub-components not entrusted to another entity, in particular GOVSATCOM, NEO sub-component, SWE sub-component and the activities referred to in point (d) of Article 55(1).

3.   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 interest of the Union, guarantee the sound management of the Union’s funds and comply with the Financial Regulation and this Regulation.

4.   The Commission shall conclude with the Agency and, taking into account the 2004 Framework Agreement, ESA, an FFPA as provided for in Article 130 of the Financial Regulation.

5.   Where necessary for the smooth functioning of the Programme and the smooth provision of the services provided by the Programme’s components, the Commission shall, by means of implementing acts, determine the technical and operational requirements needed for the implementation of and evolution of those components and of the services they provide after having consulted users, including through the User Forum referred to in Article 107(6), and other stakeholders. When determining those technical and operational requirements, the Commission shall avoid reducing the general security level and shall imperatively meet backwards compatibility requirements.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 107(3).

6.   Without prejudice to the tasks of the Agency or of other entrusted entities, the Commission shall ensure that the uptake and use of the data and services provided by the Programme’s components is promoted and maximised in the public and private sectors, including by supporting appropriate development of those services and user-friendly interfaces, and by fostering a stable long-term environment. It shall develop appropriate synergies between the applications of the Programme’s various components. It shall ensure complementarity, consistency, synergies and links between the Programme and other Union actions and programmes.

7.   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, when relevant to the Programme, facilitate convergence of their technological capacities and developments in the space domain. To that end, the Commission shall, where appropriate and in their respective field of competence, cooperate with the Agency and ESA.

8.   The Commission shall inform the Programme committee referred to in Article 107 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 29 Role of the Agency

1.   The Agency shall have the following own tasks:

(a)

to ensure, through its Security Accreditation Board, the security accreditation of all the Programme’s components in accordance with Chapter II of Title V;

(b)

to perform tasks referred to in Article 34(3) and (5);

(c)

to undertake communication, market development and promotion activities as regards the services offered by Galileo and EGNOS, in particular activities relating to the market uptake and coordination of user needs;

(d)

to undertake communication, market development and promotion activities as regards data, information and services offered by Copernicus, without prejudice to the activities performed by other entrusted entities and the Commission;

(e)

to provide expertise to the Commission, including for the preparation of the downstream space-related research priorities.

2.   The Commission shall entrust the following tasks to the Agency:

(a)

managing the exploitation of EGNOS and Galileo, as provided for in Article 44;

(b)

overarching coordination of user-related aspects of GOVSATCOM in close collaboration with Member States, relevant Union agencies, EEAS and other entities for the purpose of crisis management missions and operations;

(c)

implementing activities relating to the development of downstream applications based on the Programme’s components and fundamental elements and integrated applications based on the data and services provided by Galileo, EGNOS and Copernicus, including where funding has been made available for such activities in the context of the Horizon Europe or where necessary to fulfil the objectives referred to in point (b) of Article 4(1);

(d)

undertaking activities related to user uptake of data, information and services, offered by the Programme’s components other than Galileo and EGNOS; without affecting Copernicus activities and Copernicus Services entrusted to other entities;

(e)

specific actions referred to in Article 6.

3.   The Commission may, on the basis of the assessments referred to in Article 102(5), entrust other tasks to the Agency, provided that they do not duplicate activities performed by other entrusted entities in the context of the Programme and provided that they aim to improve the efficiency of the implementation of the Programme’s activities.

4.   Whenever activities are entrusted to the Agency, appropriate financial, human and administrative resources shall be ensured for their implementation.

5.   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.

Article 30 Role of ESA

1.   Provided that the interest of the Union is protected, ESA shall be entrusted with the following tasks:

(a)

as regards Copernicus:

(i)

coordination of the space component and of the implementation of the space component and its evolution;

(ii)

design, development and construction of the Copernicus space infrastructure, including the operations of that infrastructure and related procurement, except when those operations are done by other entities; and

(iii)

where appropriate, provision of access to third party data;

(b)

as regards Galileo and EGNOS: systems evolution and design and development of parts of the ground segment, and of satellites, including testing and validation;

(c)

as regards all of the Programme’s components: upstream research and development activities in ESA’s fields of expertise.

2.   On the basis of an assessment by the Commission, ESA may be entrusted with other tasks based of the needs of the Programme, provided that those tasks do not duplicate activities performed by another entrusted entity in the context of the Programme and that they aim to improve the efficiency of the implementation of the Programme’s activities.

3.   Without prejudice to the FFPA provided for in Article 31, the Commission or the Agency may request ESA to provide technical expertise and the information necessary to perform the tasks which are assigned to them by this Regulation under conditions to be mutually agreed.

Article 31 The financial framework partnership agreement

1.   The FFPA referred to in Article 28(4) shall:

(a)

clearly define the roles, responsibilities and obligations of the Commission, the Agency and ESA with regard to each of the Programme’s components and necessary coordination and control mechanisms;

(b)

require that ESA applies the Union security rules defined in the security agreements concluded between the Union, and its institutions and agencies, with ESA, in particular with regard to the processing of classified information;

(c)

stipulate the conditions of the management of funds entrusted to ESA, particularly with regard to public procurement, including the application of Union procurement rules when procuring in the name and on behalf of the Union or the application of the rules of the entrusted entity in accordance with Article 154 of the Financial Regulation, management procedures, the expected results measured by performance indicators, applicable measures in the event of deficient or fraudulent implementation of the contracts in terms of costs, schedule and results, as well as the communication strategy and the rules regarding ownership of all tangible and intangible assets; those conditions shall be in conformity with Titles III and V of this Regulation and with the Financial Regulation;

(d)

require that, whenever a Tender Evaluation Board is established by the Agency or ESA for a procurement performed under the FFPA, experts from the Commission and, where relevant, from the other entrusted entity shall participate as members in the Tender Evaluation Board meetings. Such participation shall not affect the technical independence of the Tender Evaluation Board;

(e)

establish the monitoring and control measures, which shall include, in particular:

(i)

a cost forecast system;

(ii)

the systematic provision of information to the Commission or, where appropriate, to the Agency, on costs and schedule; and

(iii)

in the event of a discrepancy between the planned budgets, performance and schedule, corrective action ensuring performance of the tasks within the allocated budgets;

(f)

establish the principles for the remuneration of ESA for each of the Programme’s components, which shall be commensurate with the conditions under which the actions are implemented, taking due account of situations of crisis and fragility and which, where appropriate, shall be performance based; the remuneration shall only cover general overheads which are associated with the activities entrusted to ESA by the Union;

(g)

provide that ESA takes appropriate measures to ensure the protection of the interests of the Union and to comply with the decisions taken by the Commission for each of the Programme’s components in application of this Regulation.

2.   The Commission shall, by means of implementing acts, decide on the FFPA. Those implementing acts shall be adopted in accordance with the examination procedure referred in Article 107(3). The European Parliament and the Council shall be fully informed about the FFPA well in advance of its conclusion and about its implementation.

3.   Under the FFPA referred to in paragraph 1 of this Article, the tasks referred to in Article 29(2) and (3) shall be entrusted to the Agency and the tasks referred to in Article 30(1) shall be entrusted to ESA, by means of contribution agreements. The Commission shall, by means of implementing acts, adopt the contribution decision regarding the contribution agreements. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 107(2). The European Parliament and the Council shall be fully informed about the contribution agreements well in advance of their conclusion and about their implementation.

Article 32 Role of EUMETSAT and other entities

1.   The Commission may entrust, in full or in part, by means of contribution agreements, the implementation of the following tasks to entities other than those referred to in Articles 29 and 30:

(a)

the upgrading, operations preparation and operation of the Copernicus space infrastructure or parts thereof and, where appropriate, management of access to contributing mission data, which may be entrusted to EUMETSAT;

(b)

the implementation of the Copernicus Services or parts thereof to relevant agencies, bodies or organisations, such as the European Environment Agency, Frontex, the European Maritime Safety Agency, the SATCEN and the European Centre for Medium-Range Weather Forecasts; the tasks entrusted to those agencies, bodies or organisations shall be performed in sites located in the Union; an agency, body or organisation, already in the process of relocating its entrusted tasks to the Union, may continue to perform those tasks in a location outside the Union for a limited period, ending at the latest by 31 December 2023.

2.   The criteria for the selection of such entrusted entities shall, in particular, reflect their ability to ensure the continuity and, where appropriate, the security of the operations with no disruption of the Programme’s activities.

3.   Whenever possible, the conditions of the contribution agreements referred to in paragraph 1 of this Article shall be coherent with the conditions of the FFPA referred to in Article 31(1).

4.   The Programme committee shall be consulted on the contribution decision regarding the contribution agreement referred to in paragraph 1 of this Article in accordance with the advisory procedure referred to in Article 107(2). The Programme committee shall be informed in advance of the contribution agreements to be concluded by the Union, represented by the Commission and the entities referred to in paragraph 1 of this Article.

Article 33 Principles of security

The security of the Programme shall be based on the following principles:

(a)

to take account of the experience of the Member States in the field of security and draw inspiration from their best practices;

(b)

to use the security rules of the Council and of the Commission, which provide, inter alia, for a separation between operational functions and those associated with accreditation.

Article 34 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 purpose of paragraph 1 of this Article, the Commission shall ensure that a risk and threat analysis is performed for each of the Programme’s components. Based on that analysis, it shall determine by the end of 2023, by means of implementing acts, for each of the Programme’s components, the general security requirements. In doing so, the Commission shall take account of the impact of those requirements on the smooth functioning of that component, in particular in terms of cost, risk management and schedule, and shall ensure that the general level of security is not reduced and that the functioning of the existing equipment based on that component is not undermined and shall take into account cybersecurity risks. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 107(3).

After the entry into force of this Regulation, the Commission shall communicate an indicative list of implementing acts to be submitted to and discussed by the Programme committee in security configuration. That list shall be accompanied by an indicative timetable for submission of those implementing acts.

3.   The entity responsible for the management of a component of the Programme shall be responsible for the operational security of that component and shall, to that end, carry out risk and threat analysis and all the necessary activities to ensure and monitor the security of that component, in particular setting of technical specifications and operational procedures, and monitor their compliance with the general security requirements referred to in paragraph 2 of this Article. Pursuant to Article 29, for Galileo and EGNOS that entity shall be the Agency.

4.   Based on the risk and threat analysis, the Commission shall, where appropriate, identify a structure to monitor security and to follow the instructions developed under the scope of Decision (CFSP) 2021/698. The structure shall operate in accordance with the security requirements referred to in paragraph 2. For Galileo, that structure shall be the Galileo Security Monitoring Centre.

5.   The Agency shall:

(a)

ensure the security accreditation of all the Programme’s components in accordance with Chapter II of this Title and without prejudice to the competences of the Member States;

(b)

ensure the operation of the Galileo Security Monitoring Centre in accordance with the requirements referred to in paragraph 2 of this Article and the instructions developed under the scope of Decision (CFSP) 2021/698;

(c)

perform the tasks assigned to it under Decision No 1104/2011/EU;

(d)

provide the Commission with its technical expertise and supply any information necessary for the performance of its tasks under this Regulation.

6.   To ensure the protection of the ground infrastructures which form an integral part of the Programme and which are located on their territory the Member States shall:

(a)

take measures which are at least equivalent to those necessary for:

(i)

the protection of European critical infrastructures within the meaning of Council Directive 2008/114/EC  ( 44 ) ; and

(ii)

the protection of their own national critical infrastructures;

(b)

perform the security accreditation tasks referred to in Article 42 of this Regulation.

7.   The entities involved in the Programme shall take all the necessary measures, including in light of the issues identified in the risk analysis, to ensure the security of the Programme.

Article 35 Security of systems and services deployed

Whenever the security of the Union or its Member States may be affected by the operation of the systems, the procedures set out in Decision (CFSP) 2021/698 shall apply.

Article 36 Security Accreditation Authority

The Security Accreditation Board established within the Agency shall be the security accreditation authority for all of the Programme’s components.

Article 37 General principles of security accreditation

Security accreditation activities for all of the Programme’s components shall be conducted in accordance with the following principles:

(a)

security accreditation activities and decisions shall be undertaken in a context of collective responsibility for the security of the Union and of the Member States;

(b)

efforts shall be made for decisions within the Security Accreditation Board to be reached by consensus;

(c)

security accreditation activities shall be carried out using a risk assessment and management approach, considering risks to the security of the component concerned as well as the impact on cost or schedule of any measure to mitigate the risks, taking into account the objective not to lower the general level of security of that component;

(d)

decisions of the Security Accreditation Board on security accreditation shall be prepared and taken by professionals who are duly qualified in the field of accrediting complex systems, have an appropriate level of security clearance and who act objectively;

(e)

efforts shall be made to consult all relevant parties with an interest in security issues for the component concerned;

(f)

security accreditation activities shall be carried out by all relevant stakeholders of the component concerned in accordance with a security accreditation strategy, without prejudice to the role of the Commission;

(g)

decisions of the Security Accreditation Board on security accreditation shall, following the process defined in the relevant security accreditation strategy defined by that Board, be based on local decisions on security accreditation taken by the respective national security accreditation authorities of the Member States;

(h)

a permanent, transparent and fully understandable monitoring process shall ensure that the security risks for the component concerned are known, that security measures are defined to reduce such risks to an acceptable level, in view of the security needs of the Union and of its Member States, and for the smooth running of the component and that those measures are applied in accordance with the concept of defence in depth. The effectiveness of such measures shall be continuously evaluated. The process relating to security risk assessment and management shall be conducted as an iterative process jointly by the stakeholders of the component concerned;

(i)

the Security Accreditation Board shall take decisions on security accreditation in a strictly independent manner, including with regard to the Commission and the other bodies responsible for the implementation of the component concerned and for the provision of related services, and with regard to the Executive Director and the Administrative Board of the Agency;

(j)

security accreditation activities shall be carried out with due regard for the need for adequate coordination between the Commission and the authorities responsible for implementing security rules;

(k)

the security accreditation of EGNOS performed by the Security Accreditation Board shall be without prejudice to the accreditation activities performed, for aviation, by the European Aviation Safety Agency.

Article 38 Tasks of the Security Accreditation Board

1.   The Security Accreditation Board shall perform its tasks without prejudice to the responsibilities of the Commission or to those entrusted to the Agency’s other bodies, in particular for matters relating to security, and without prejudice to the competences of the Member States as regards security accreditation.

2.   The Security Accreditation Board shall have the following tasks:

(a)

defining and approving a security accreditation strategy which sets out:

(i)

the scope of the activities necessary to perform and maintain the accreditation of the Programme’s components or parts of those components and any interconnections between them and other systems or components;

(ii)

a security accreditation process for the Programme’s components or parts of those components, with a degree of detail commensurate with the required level of assurance and clearly stating the accreditation conditions;

(iii)

the role of relevant stakeholders involved in the accreditation process;

(iv)

an accreditation schedule that complies with the phases of the Programme’s components, in particular as regards the deployment of infrastructure, service provision and evolution;

(v)

the principles of security accreditation for networks connected to systems set up under the Programme’s components or for parts of those components, and for equipment connected to systems established by those components, which shall be performed by the national entities of the Member States competent in security matters;

(b)

taking decisions on security accreditation, in particular on the approval of satellite launches, the authorisation to operate the systems set up under the Programme’s components or the elements of those components in their different configurations and for the various services they provide, up to and including the signal in space, and the authorisation to operate the ground stations;

(c)

taking decisions concerning the networks and the equipment connected to the PRS service referred to in Article 45, or connected to any other secure service stemming from the Programme’s components, only on the authorisation of bodies to develop or manufacture sensitive PRS technologies, PRS receivers or PRS security modules, or any other technology or equipment which has to be checked under the general security requirements referred to in Article 34(2), taking into account the advice provided by national entities competent in security matters and the overall security risks;

(d)

examining and, except as regards documents which the Commission is to adopt under Article 34(2) of this Regulation and Article 8 of Decision No 1104/2011/EU, approving all documentation relating to security accreditation;

(e)

advising, within its field of competence, the Commission on the production of draft texts for acts referred to in Article 34(2) of this Regulation and Article 8 of Decision No 1104/2011/EU, including for the establishment of security operating procedures, and providing a statement with its concluding position;

(f)

examining and approving the security risk assessment drawn up in accordance with the monitoring process referred to in point (h) of Article 37 of this Regulation, taking into account compliance with the documents referred to in point (c) of this paragraph and those drawn up in accordance with Article 34(2) of this Regulation, and with Article 8 of Decision No 1104/2011/EU; and cooperating with the Commission to define risk mitigation measures;

(g)

checking the implementation of security measures in relation to the security accreditation of the Programme’s components by undertaking or sponsoring security assessments, inspections, audits or reviews, in accordance with Article 42(2) of this Regulation;

(h)

endorsing the selection of approved products and measures which protect against electronic eavesdropping (TEMPEST) and of approved cryptographic products used to provide security for the Programme’s components;

(i)

approving or, where relevant, participating in the joint approval, together with the relevant entities competent in security matters, of the interconnection between the systems established under the Programme’s components or under parts of those components and other systems;

(j)

agreeing with the relevant Member State on the template for access control referred to in Article 42(4);

(k)

preparing risk reports and informing the Commission, the Administrative Board and the Executive Director of its risk assessment and advising them on residual risk treatment options for a given decision on security accreditation;

(l)

assisting, in close liaison with the Commission, the Council and the High Representative, with the implementation of Decision (CFSP) 2021/698 upon a specific request from the Council or the High Representative;

(m)

carrying out consultations which are necessary to perform its tasks;

(n)

adopting and publishing its rules of procedure.

3.   Without prejudice to the powers and responsibilities of the Member States, a special subordinate body representing the Member States shall be set up under the supervision of the Security Accreditation Board to perform in particular the following tasks:

(a)

the management of the Programme flight keys;

(b)

the verification, monitoring and assessment of the establishment and enforcement of procedures for accounting, secure handling, storage, distribution and disposal of the PRS keys of Galileo.

Article 39 Composition of the Security Accreditation Board

1.   The Security Accreditation Board shall be composed of a representative of each Member State, a representative of the Commission and a representative of the High Representative. The term of office of the members of the Security Accreditation Board shall be four years and shall be renewable.

2.   Participation in Security Accreditation Board meetings shall be on a need-to-know-basis. Where appropriate, representatives of ESA and representatives of the Agency not involved in security accreditation may be invited to attend the meetings of the Security Accreditation Board as observers. On an exceptional basis, representatives of Union Agencies, third countries or international organisations may also be invited to attend meetings of the Security Accreditation Board as observers for matters directly relating to those third countries or international organisations, especially matters concerning the infrastructure belonging to them or established on their territory. Arrangements for such participation of representatives of third countries or international organisations and the condition for such participation shall be laid down in the relevant agreements and shall comply with the rules of procedure of the Security Accreditation Board.

Article 40 Voting rules of the Security Accreditation Board

If consensus according to the general principle referred to in point (b) of Article 37 of this Regulation cannot be reached, the Security Accreditation Board shall take decisions on the basis of qualified majority voting, in accordance with Article 16 TEU. The representative of the Commission and the representative of the High Representative shall not vote. The Chairperson of the Security Accreditation Board shall sign, on behalf of the Security Accreditation Board, the decisions adopted by the Security Accreditation Board.

Article 41 Communication and impact of decisions of the Security Accreditation Board

1.   The decisions of the Security Accreditation Board shall be addressed to the Commission.

2.   The Commission shall keep the Security Accreditation Board continuously informed of the impact of any decisions envisaged by the Security Accreditation Board on the proper conduct of the Programme’s components and of the implementation of residual risk treatment plans. The Security Accreditation Board shall take note of any such information received from the Commission.

3.   The Commission shall keep the European Parliament and the Council informed, without delay, of the impact of the adoption of the decisions on security accreditation on the proper conduct of the Programme’s components. If the Commission considers that a decision taken by the Security Accreditation Board could have a significant effect on the proper conduct of those components, for example in terms of costs, schedule or performance, it shall immediately inform the European Parliament and the Council.

4.   The Administrative Board shall be kept periodically informed of the evolution of the work of the Security Accreditation Board.

5.   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 100.

Article 42 Role of the Member States in security accreditation

1.   Member States shall transmit to the Security Accreditation Board all information they consider relevant for the purposes of security accreditation.

2.   In agreement with and under the supervision of national entities competent in security matters, Member States shall permit duly authorised persons appointed by the Security Accreditation Board to have access to any information and to any areas and sites related to the security of systems falling within their jurisdiction, in accordance with their national laws and regulations, including for the purposes of security inspections, audits and tests as decided by the Security Accreditation Board and of the security risk monitoring process referred to in point (h) of Article 37. That access shall be without any discrimination on the grounds of nationality against nationals of Member States.

3.   Audits and tests referred to in paragraph 2 shall be performed in accordance with the following principles:

(a)

the importance of security and effective risk management within the entities inspected shall be emphasised;

(b)

countermeasures to mitigate the specific impact of loss of confidentiality, integrity or availability of classified information shall be recommended.

4.   Each Member State shall be responsible for devising a template for access control, which outlines or lists the areas or sites to be accredited. The template for access control shall be agreed in advance between the Member States and the Security Accreditation Board, thereby ensuring that the same level of access control is being provided by all Member States.

5.   Member States shall be responsible, at local level, for the accreditation of the security of sites that are located within their territory and form part of the security accreditation area for the Programme’s components, and report, to this end, to the Security Accreditation Board.

Article 43 Protection of classified information

1.   The exchange of classified information related to the Programme shall be subject to the existence of an international agreement between the Union and a third country or international organisation on the exchange of classified information or, where applicable, an arrangement entered into by the competent Union institution or body and the relevant authorities of a third country or international organisation on the exchange of classified information, and to the conditions laid down therein.

2.   Natural persons resident in and legal persons established in third countries may deal with EUCI regarding the Programme only where they are subject, in those third countries, to security regulations ensuring a degree of protection at least equivalent to that provided by the Commission’s rules on security set out in Decision (EU, Euratom) 2015/444 and by the security rules of the Council set out in the Annexes to Decision 2013/488/EU. The equivalence of the security regulations applied in a third country or international organisation shall be defined in a security of information agreement, including, if relevant, industrial security matters, concluded between the Union and that third country or international organisation in accordance with the procedure provided for in Article 218 TFEU and taking into account Article 13 of Decision 2013/488/EU.

3.   Without prejudice to Article 13 of Decision 2013/488/EU and to the rules governing the field of industrial security as set out in Decision (EU, Euratom) 2015/444, a natural person or legal person, third country or international organisation may be given access to EUCI where deemed necessary on a case-by-case basis, according to the nature and content of such information, the recipient’s need-to-know and the degree of advantage to the Union.

Article 44 Eligible actions

The exploitation of Galileo and EGNOS shall cover the following eligible actions:

(a)

the management, operation, maintenance, continuous improvement, evolution and protection of space-based infrastructure, including upgrades and obsolescence management;

(b)

the management, operation, maintenance, continuous improvement, evolution and protection of the ground-based infrastructure, in particular ground-based centres and stations referred to in Implementing Decision (EU) 2016/413 or Commission Implementing Decision (EU) 2017/1406  ( 45 ) , networks, including upgrades and obsolescence management;

(c)

the development of future generations of the systems and the evolution of the services provided by Galileo and EGNOS, including by taking into account the needs of relevant stakeholders; this shall not affect future decisions on the Union financial perspectives;

(d)

support the development of Galileo and EGNOS downstream applications and the development and evolution of fundamental technological elements, such as Galileo-enabled chipsets and receivers;

(e)

the support of certification and standardisation activities related to Galileo and EGNOS, in particular in the transport sector;

(f)

the continuous provision of the services provided by Galileo and EGNOS and, in complementarity with Member States and private sector initiatives, the market development of those services, in particular in order to maximise the socio-economic benefits referred to in point (b) of Article 4(1);

(g)

cooperation with other regional or global satellite navigation systems, including to facilitate compatibility and interoperability;

(h)

elements to monitor the reliability of the systems and their exploitation, and the performance of the services;

(i)

activities related to the provision of services and to the coordination of the extension of their coverage.

Article 45 Services provided by Galileo

1.   The services provided by Galileo shall comprise:

(a)

a Galileo open service (GOS), which shall be free of charge for users and shall provide positioning and synchronisation information intended mainly for high-volume satellite navigation applications for use by consumers;

(b)

a high-accuracy service (HAS), which shall be free of charge for users and shall provide, through additional data disseminated in a supplementary frequency band, high-accuracy positioning and synchronisation information intended mainly for satellite navigation applications for professional or commercial use;

(c)

a signal authentication service (SAS), based on the encrypted codes contained in the signals, intended mainly for satellite navigation applications for professional or commercial use;

(d)

a public regulated service (PRS), which shall be restricted to government-authorised users for sensitive applications which require a high level of service continuity, including in the area of security and defence, using strong, encrypted signals; it shall be free of charge for the Member States, the Council, the Commission, EEAS and, where appropriate, duly authorised Union agencies; the question of whether to charge the other PRS participants referred to in Article 2 of Decision No 1104/2011/EU shall be assessed on a case-by-case basis and appropriate provisions shall be specified in the agreements concluded pursuant to Article 3(5) of that Decision; access to PRS shall be regulated in accordance with Decision No 1104/2011/EU;

(e)

an emergency service (ES), which shall be free of charge for users and shall broadcast, through emitting signals, warnings regarding natural disasters or other emergencies in particular areas; where appropriate, it shall be provided in cooperation with Member States national civil protection authorities;

(f)

a timing service (TS), which shall be free of charge for users and shall provide an accurate and robust reference time, as well as realisation of the coordinated universal time, facilitating the development of timing applications based on Galileo and the use in critical applications.

2.   Galileo shall also contribute to:

(a)

the search and rescue support service (SAR) of the COSPAS-SARSAT system by detecting distress signals transmitted by beacons and relaying messages to them via a return link;

(b)

integrity-monitoring services standardised at the Union or international level for use by safety-of-life services, on the basis the signals of Galileo open service and in combination with EGNOS and other satellite navigation systems;

(c)

space weather information via the GNSS Service Centre as referred to in Implementing Decision (EU) 2016/413 and early warning services via the Galileo ground-based infrastructure, intended mainly to reduce the potential risks to users of the services provided by Galileo and other GNSSs related to space.

Article 46 Services provided by EGNOS

1.   The services provided by EGNOS shall comprise:

(a)

an EGNOS open service (EOS), which shall be free of direct user charges and shall provide positioning and synchronisation information intended mainly for high-volume satellite navigation applications for use by consumers;

(b)

EGNOS data access service (EDAS), which shall be free of direct user charges and shall provide positioning and synchronisation information intended mainly for satellite navigation applications for professional or commercial use, offering improved performance and data with greater added value than those obtained through the EOS;

(c)

a safety-of-life (SoL) service, which shall be free of direct user charges and shall provide positioning and time synchronisation information with a high level of continuity, availability and accuracy, including an integrity message alerting users to any failure in, or out-of-tolerance signals emitted by, Galileo and other GNSSs which EGNOS augments in the coverage area, intended mainly for users for whom safety is essential, in particular in the sector of civil aviation for the purpose of air navigation services, in accordance with ICAO standards, or other transport sectors.

2.   The services referred to in paragraph 1 shall be provided as a priority on the territory of all Member States geographically located in Europe, including for that purpose Cyprus, the Azores, the Canary Islands and Madeira, by the end of 2026.

3.   The geographical coverage of EGNOS may be extended to other regions of the world, in particular to the territories of candidate countries, of third countries associated with the Single European Sky and of third countries in the European Neighbourhood Policy, subject to technical feasibility and in conformity with security requirements referred to in Article 34(2), and, for the SoL service, on the basis of international agreements.

4.   The cost of the extension of the geographical coverage of EGNOS under paragraph 3 of this Article, including the related operating costs specific to these regions, shall not be covered by the budget referred to in Article 11. The Commission shall consider other programmes or instrument to finance such activities. Such extension shall not delay the offering of the services referred to in paragraph 1 of this Article throughout the territory of Member States geographically located in Europe.

Article 47 Implementing measures for Galileo and EGNOS

Where necessary for the smooth functioning of Galileo and EGNOS and their adoption by the market, the Commission shall, by means of implementing acts, lay down, where necessary, measures required to:

(a)

manage and reduce the risks inherent in the operation of Galileo and EGNOS, in particular to ensure service continuity;

(b)

specify the key decision stages to monitor and evaluate the implementation of Galileo and EGNOS;

(c)

determine the location of the centres belonging to the ground-based infrastructure of Galileo and EGNOS in accordance with security requirements, following an open and transparent process, and ensure their operation;

(d)

determine the technical and operational specifications relating to the services referred to in points (c), (e) and (f) of Article 45(1) and point (c) of Article 45(2).

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 107(3).

Article 48 Compatibility, interoperability and standardisation

1.   Galileo and EGNOS, and the services which they provide, shall be compatible and interoperable from a technical point of view, including at user level.

2.   Galileo and EGNOS, and the services which they provide, shall be compatible and interoperable with other satellite navigation systems and with conventional means of radio navigation, where the necessary compatibility and interoperability requirements and conditions thereof are laid down in international agreements.

Article 49 Scope of Copernicus

1.   Copernicus shall be implemented building on prior investments, including by stakeholders such as ESA and EUMETSAT and, where appropriate and cost-effective, drawing on the national or regional capacities of Member States and taking into account the capacities of commercial suppliers of comparable data and information and the need to foster competition and market development, while maximising opportunities for European users.

2.   Copernicus shall deliver data and information building on the needs of the Copernicus users and based on a free, full and open data policy.

3.   Copernicus shall support the formulation, implementation and monitoring of the Union’s and its Member States’ policies in particular in the fields of the environment, climate change, marine, maritime, atmosphere, agriculture and rural development, preservation of cultural heritage, civil protection, infrastructure monitoring, safety and security, as well as the digital economy with the aim to further reduce the administrative burden.

4.   Copernicus shall comprise the following elements:

(a)

data acquisition, which shall include:

(i)

development and operations of the Copernicus Sentinels;

(ii)

access to third party space-based Earth observation data;

(iii)

access to in-situ and other ancillary data;

(b)

data and information processing through Copernicus Services, which shall include activities for the generation of value-added information to support environmental monitoring, reporting and compliance assurance, civil protection and security services;

(c)

data access and distribution, which shall include infrastructure and services to ensure the discovery, viewing, access to, distribution and exploitation and long-term preservation of Copernicus data and Copernicus information, in a user-friendly manner;

(d)

user uptake, market development and capacity building in accordance with Article 28(6), which shall include relevant activities, resources and services to promote Copernicus, Copernicus data and Copernicus Services, as well as related downstream applications and their development at all levels to maximise socio-economic benefits, as referred to in Article 4(1), as well as the collection and analysis of Copernicus users’ needs.

5.   Copernicus shall promote the international coordination of observation systems and related exchanges of data in order to strengthen its global dimension and complementarity taking account of international agreements and coordination processes.

Article 50 Eligible actions for data acquisition

Eligible actions under Copernicus shall cover:

(a)

actions to provide enhanced continuity of existing Copernicus Sentinel missions and to develop, launch, maintain and operate further Copernicus Sentinels expanding the observation scope, giving priority in particular to observation capacities for monitoring anthropogenic CO 2 and other greenhouse gas emissions, allowing for monitoring polar regions and enabling innovative environmental applications in agriculture, forest, water and marine resources management, and cultural heritage;

(b)

actions to provide access to Copernicus third-party data and information necessary to generate Copernicus Services or for use by the Union’s institutions, agencies, decentralised services and, where appropriate and cost-effective, national or regional public bodies;

(c)

actions to provide and coordinate access to Copernicus in-situ and other ancillary data necessary for the generation, calibration and validation of Copernicus data and Copernicus information, including where appropriate and cost-effective the use of existing national capacities and avoiding duplications.