Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the European Union Space Services Agency and amending Regulation (EU) 2021/696

EXPLANATORY MEMORANDUM

The founding act of the European Union Agency for the Space Programme (EUSPA) (‘the Agency’) is Regulation (EU) 2021/696. Title IX provides for aims, statute, tasks and responsibilities requiring the Agency to contribute to implement the space programme components established for the period 2021-2027. While the programme was established for a period of seven years to align its duration with that of the multiannual financial framework (MFF), the Agency was not subject to that time limitation. 

In addition to its tasks stemming from Regulation (EU) 2021/696, the Agency has also been assigned responsibilities under Regulation (EU) 2023/588 establishing the Union Secure Connectivity Programme. Furthermore, upcoming initiatives, such as a proposal for a Regulation on establishing the European Competitiveness Fund (‘ECF Regulation’) envisage conferring more tasks to the Agency.

The Agency's mission in support of the implementation of Union space programmes' components is now consolidated but the legal basis is embedded in a Regulation that will be partly repealed at the end of the MFF. A self-standing founding act, building on the current Regulations, and outlining clear tasks and operation rules will enhance legal certainty and ensure the Agency's continued operations and activities beyond MFF cycles.

This proposal is fully consistent with the proposal for the ECF Regulation and in particular with the provisions of Section 3 (Space systems and space policy implementation) of Chapter VII (Support for resilience and security, defence industry and space), the dedicated policy window within the ECF Regulation. Once adopted, this Regulation will become the founding act of the European Union Space Services Agency which will contribute to implement the activities supported under the proposal for the ECF Regulation.

Not Applicable.

The proposal is based on Article 189(2) of the Treaty on the Functioning of the European Union. Regulation (EU) 2021/696 was adopted using the same legal basis.

The subsidiarity principle applies since the proposal does not fall under the exclusive competence of the Union. The objectives of the proposal cannot be sufficiently achieved by Member States at national, regional, or local level and are better accomplished at Union level. The proposed Regulation aims to enhance legal certainty and ensure the continuity of operations of the Agency enabling it to plan and operate effectively over the long term and beyond the MFF periods. The Agency’s objective is to ensure a high degree of security for Union space activities, support the implementation of Union space components, and promote the user and market uptake of information, services, and data provided by those components – all those objectives that cannot be achieved by the Member States alone.

The proposal is proportionate, as it is necessary to provide legal certainty and clarity as regards the Agency’s mandate that should not depend on the MFF cycles. Union action does not intend to replace national actions or authorities, nor to question their relevance. Building on the current Regulation, the proposal lists the own tasks of the Agency, those that the Commission shall entrust and those that shall be entrusted subject to the Agency's operational readiness. The proposal mainly replicates Title IX of Regulation (EU) 2021/696 and Article 27 of Regulation (EU) 2023/588, including also general provisions typically required when establishing a Union Agency, such as legal status, seat, organisation/composition, tasks, budgetary and financial provisions, and staff provisions.

Given that this proposal aims to provide the legal framework to set and ensure the continuity of operations of a decentralised agency, a Regulation is the most appropriate instrument.

A mid-term evaluation of the Union space programme and of the performance of the Agency was carried out between Q3 2023 and Q2 2024, with a report adopted on 10 July 2024. On the other hand, the proposal for the ECF Regulation was based on an extensive analysis of impact assessments and mid-term evaluations, and activity reports, namely:

0. 2018 Impact assessment of the space programme of the Union and the European Union Agency for the Space Programme 2021-2027;

1. 2023 EUSPA Annual Activity Report 2023;

2. 2024 Interim evaluation of the EU Space Programme and on the performance of the European Union Agency for the Space Programme 2021-2027.

Stakeholder consultations have been conducted in relation to the interim evaluation of the Agency's performance (2024) and the proposal for the ECF Regulation. Extensive information on these matters is provided in the Explanatory Memorandum to the proposal of the ECF Regulation and Annex 2 of the Impact Assessment thereto.

The proposal builds on the experience accumulated so far by the Agency in the implementation of the space programmes and in the results of the interim evaluation, and takes into account the extensive desk review conducted in relation to the ECF Regulation proposal, with further information available in its Explanatory Memorandum.

The proposal envisages the creation of a self-standing founding act for the European Union Space Services Agency (EUSPA). In this sense, the policy objective of the proposal is to better reflect its current role and the tasks also in view of the future of Union space systems and taking account of the necessary flexibility. Therefore, in line with the Commission's better regulation guidelines, given that a comprehensive impact assessment has already been conducted for the ECF Regulation and that the proposal reproduces the current legal basis, a fully-fledged impact assessment has not been carried out.

The proposed Regulation aims to ensure the continuity of operation of the Agency, so far established by a Regulation tied to a specific MFF cycle, and to provide the legal certainty and clarity necessary for effective long-term planning and operation beyond the MFF periods. This objective aligns with the purpose of the ECF Regulation, which aims at simplifying while providing a stable and predictable budget framework, more efficient and effective, including for space activities.

The proposed Regulation contains the usual stipulations on the protection of personal data and privacy. In particular, it lays down that all personal data handled by the Agency, are to be processed in accordance with the applicable law on personal data protection.

The financial envelope for the Union contribution to the Agency under the MFF 2021-2027 package is EUR 525.7 million. To ensure the continuation of current tasks and to fund new activities under the Agency’s mandate, this proposal provides for an increase in the contribution to the Agency for the next MFF 2028-2034, with an allocation of EUR 979.6 million. The financial and staff resources necessary to conduct the Agency’s tasks will be included in the Union contribution to the Agency and in the overall staff allocation during the annual budgetary procedure. The Commission, in the context of its supervision of decentralised entities, will apply its respective control strategies to this expenditure. In addition, every financial year, the European Parliament, following a recommendation from the Council, grants discharge to each Union agency, and therefore also to EUSPA, for the implementation of its budget.

A detailed overview of the implications of this proposal for the Union budget is provided in the ‘Legislative Financial and Digital Statement’ linked to this proposal.

The Agency shall submit to the Commission a report on the operation of this Regulation every five years. Also every five years, the Commission shall commission an evaluation of the Agency’s performance, in relation to its objectives, mandate, tasks, governance and location(s) in accordance with Commission's guidelines.

This section comments on the main provisions of the proposal explaining in particular the changes made to the previous founding act.

CHAPTER I PRINCIPLES:

Article 1 on subject matter establishes that this Regulation lays down the tasks and rules of operation of the Agency that changes its name to become the European Union Space Services Agency.

Article 2 sets the Agency’s legal status with no change, and Article 3 on Seat and local offices has been modified to bring more clarity to the procedure for establishing local offices, and for locating staff in the Union space components’ ground infrastructure centres. Moreover, this provision as well as all the rest adapt the terminology to refer to Union space components as referred to in the ECF Regulation.

Article 4 lists the Agency’s own tasks, the tasks that shall be delegated by the Commission and the tasks that shall be delegated subject to the operational readiness of the Agency.

First, the Agency will continue to (a) ensure security accreditation of Union space components through the Security Accreditation Board, (b) assure the operational security of 'Position, Navigation and Timing (PNT)’ Union space component and of ‘Earth Observation (EO)’ Union space component or one of its subcomponents when given the responsibility for the exploitation or the operational management, (c) ensure the operation of the space security monitoring structure, (d) establish and manage a user community network and provide analysis on services for government-authorised users, (e) undertake certain activities relating to user uptake, market development, communication and promotion activities, (f) provide its technical expertise and the necessary information to the Commission and (g) perform the tasks assigned to it on the rules of access to the public regulated service (PRS) provided by Galileo subcomponent of PNT. 

Second, like it is the case today, the Commission shall continue to entrust to the Agency (a) the management and exploitation of PNT, (b) the operational management of the ‘Governmental Satellite Communication’ (GOVSATCOM) Hub, and (c) certain activities related to the development of the downstream, integrated applications, data ecosystems, receivers and terminals based on data and services of the Union space components in the interest of the Union space-based economy.

Third, subject to operational readiness of the Agency and, where necessary, the establishment of relevant mechanism to ensure service continuity, the Commission shall entrust the Agency with (a) specific actions to support the security of EO Union space component, including the new ‘Earth Observation Governmental Service’ (EOGS) and Copernicus subcomponents, (b) management of all or some of the contracts under EOGS, (c) the provision of ‘GOVSATCOM’ and ‘IRIS2’ governmental services, in particular through the ‘GOVSATCOM’ Hub, (d) management of some contracts under the ‘Secure Connectivity’ Union space component, (e) the overarching coordination of user-related aspects of the Secure Connectivity component, (f) activities related to user uptake of services offered by the Secure Connectivity component, (g) the provision of services of the ‘Space Weather Events’ (SWE) Union space component to end-users, (h) the provision of ‘Space Surveillance and Tracking’ (SST) services, subcomponent of SSA, except the service for government-authorised users, (i) management of all or part of the grant agreements with the ‘SST Partnership’ referred to in the ECF Regulation, (j) the provision of radio-frequency interference monitoring services for the needs of the Union space components, (k) specific actions to support the implementation of the ‘Access to space’ Union space component without prejudice to the activities performed by other entities, (l) specific actions to support the implementation of ‘Space commercialisation and space economy’ Union space component, (m) specific actions to support the implementation of the ‘technological sovereignty, research and innovation’ Union space component and (n) the possibility to the Agency to cooperate with the Commission to support space operators, notably as regards cybersecurity.

Finally, Article 4 recalls that the Commission may entrust other tasks to the Agency based on its assessment; that whenever activities are entrusted to the Agency, appropriate financial, human and administrative resources shall be ensured, and that the Agency shall ensure that contractual operators have competency frameworks, succession planning and operational capability allowing for continuity of services for government-authorised users during crisis or extended disruptions.

CHAPTER II ORGANISATION OF THE AGENCY:

The Agency’s administrative and management structure is adjusted and will be composed of an Administrative Board, an Executive Director, a Deputy Executive Director and a Security Accreditation Board.

Articles 5 to 11 remain very similar, with some improvements aiming at clarifying the voting rules and listing the cases where a favourable vote of Commission is requested. There is also the addition of the position of Deputy Executive Director and a new article to better describe the appointing powers of the Administrative Board. Finally, a new task of the Administrative Board provides for the possibility to adopt a decision declaring a situation of crisis upon proposal of the Executive Director, so as to ensure the continuity of services for government-authorised users. 

Articles 12 and 13 concerning the Executive Director, remain largely the same, with the procedure for establishing a local office through a decision of the Executive Director further clarified. Article 14 on the Deputy Executive Director is added. 

Articles 15 to 23 apply to security accreditation and the Security Accreditation Board (SAB). Some new aspects are the possibility for SAB to provide one single approval for constellations; the Commission to give consent for meetings to take place without its presence; the possibility for the Commission to request a decision to be issued within 3 months in duly justified cases, otherwise the decision would be deemed to be affirmative and the need for a favourable vote of the Commission for financial and human resources matters to align with the Administrative Board. Finally, the decisions of SAB should be based on information to which the Commission had access and had the opportunity to provide an opinion as to their impact on the proper conduct of the Union space components or subcomponents, including in terms of the security of the Union. 

CHAPTER III ESTABLISHMENT AND STRUCTURE OF THE BUDGET:

Articles 24 to 29 remains more or less the same but presented differently to harmonise across all Agencies. There is the addition of fees for any service provided for the Agency to the revenue of the Agency. 

CHAPTER IV STAFF:

Articles 30 to 33 on staff remains mostly unchanged with some new elements: officials assigned or seconded on a temporary basis should be assimilated to the Agency’s staff, the Executive Director can take the necessary measures, including imposing to the staff the performance of their activities to ensure the continuity of services or to preserve the security of the Union space systems’ infrastructures and operations in case of crisis, and staff from Member States could be called for a short-term deployment of no longer than 2 years to face peaks of work or urgent situations affecting the continuity of services. The Agency’s internal rules shall include provisions for crisis management and business continuity. The Articles were also adjusted to include the rules for the appointment and term of office of the Deputy Executive Director.

CHAPTER V GENERAL PROVISIONS:

There is no change in substance compared to the current provisions, although the text is harmonised with other Agencies.

CHAPTER VI TRANSITIONAL AND FINAL PROVISIONS:

The proposal includes in Article 42 the transitional arrangements to ensure the continuity of the operations and activities of the Agency as regards all ownership, agreements, legal obligations, employment contracts, financial commitments and liabilities, and of the Agency’s administrative and management structure under Regulation (EU) 2021/696.

Article 43 deletes the specific provisions referring to the Agency in Regulation (EU) 2021/696 and Article 44 sets the rule of entry into force and fix the date of application to 1 of January 2028.

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the European Union Space Services Agency and amending Regulation (EU) 2021/696

(Text with EEA relevance)

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 189 (2) thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Acting in accordance with the ordinary legislative procedure,

Whereas:

1. The European Union Agency for the Space Programme ( ‘the Agency’) was established by Regulation (EU) 2021/696 of the European Parliament and of the Council ¹ (1) to replace and succeed the Union GNSS Agency established by Regulation (EU) No 912/2010 of the European Parliament and of the Council ² (2). The Agency contributes to the implementation of the Union Space Programme, particularly as regards security accreditation as well as market and downstream applications’ development. The administrative and management structure of the Agency is composed of the Administrative Board, the Executive Director, the Deputy Executive Director and the Security Accreditation Board.

2. In relation to security in particular, and given its experience in this area, the Agency is responsible for the security accreditation tasks for all Union actions in the space sector. Building on its positive track-record in promoting the user and market uptake of Galileo and EGNOS, the Agency is also entrusted with user-uptake activities as well as downstream application development activities for all the Union space components.

3. The Agency has received additional tasks and responsibilities under Regulation (EU) 2023/588 of the European Parliament and of the Council ³ (3) establishing the Union Secure Connectivity Programme and should exercise a prominent and substantive role within the [proposal for a Regulation (EU) XXXX/XXX on establishing the European Competitiveness Fund (ECF) (‘ECF Regulation’)] which defines a new framework for the implementation of the Union space systems and space policy actions during the multiannual financial framework for the years 2028 to 2034.

4. While the Union Space Programme was established for a period of seven years to align its duration with that of the multiannual financial framework for the years 2021 to 2027, the Agency, which carries out its own tasks, is not subject to that time limitation. However, Regulation (EC) 2021/696 no longer provides an adequate framework for the future tasks and rules of operation of the Agency.

5. In order to ensure the continuity of operations beyond the multiannual financial framework periods, the tasks and organisational aspects of the Agency should be laid down, and the Agency should be renamed to European Union Space Services Agency to better reflect the new framework for implementation of Union space systems and policy.

6. In accordance with Decision 2010/803/EU ⁴ (4), the seat of the Agency is located in Prague. For the implementation of the Agency’s tasks, the Agency should be able to locate staff in one of the Union space components’ ground-based centres. In addition, for the Agency to operate in the most efficient and effective manner, it should be able to assign a limited number of staff to local offices established in one or more Member States. Such assignment of staff outside the seat of the Agency or in the ground-based infrastructure centres is not to lead to any transfer of the Agency’s core activities to such local offices.

7. The objective of the Agency to ensure a high degree of security for Union space activities, to foster the user and market uptake of the information, services and data provided by those components and to develop market and downstream applications for the Union space components should continue, and the necessary tasks to meet that objective should therefore be assigned to the Agency.

8. Building on its experience in relation to security, the Agency should continue to ensure security accreditation when required. Security accreditation activities should be carried out on the basis of collective responsibility for the security of the Union and Member States. Technical security accreditation activities should be entrusted to professionals who are duly qualified in the field of accrediting complex space systems.

9. In order to prevent conflicts of interest and any shortcomings in applying security rules, the operational functions of Union space systems should be segregated from security accreditation functions. For this reason, the Security Accreditation Board should remain as an autonomous body within the Agency that takes its decisions independently and objectively acting as the security accreditation authority for Union space components.

10. Building on the expertise developed by the Agency in the past years in management, operation and service provision for Galileo and for the European Geostationary Navigation Overlay Service (EGNOS), the Agency should continue to be entrusted with the management of the exploitation of the ‘Position, Navigation and Timing (‘PNT’)’ Union space component, including the implementation of the Design and Production Organisation tasks applicable to EGNOS that are defined in Commission Delegated Regulation (EU) 2023/1768 ⁵ (5) and Commission implementing Regulation (EU) 2023/1769 ⁶ (6), adopted on the basis of Regulation (EU) 2018/1139 of the European Parliament and of the Council ⁷ (7) in the field of aviation, and should coordinate all the operational tasks relating to the exploitation of those complex systems, except for the international cooperation.

11. Given its experience in the implementation of Galileo and EGNOS and other space activities, the Agency is well-placed to carry out, under the supervision of the Commission, certain tasks relating to the operation of the relevant governmental infrastructures and the provision of services for government-authorised users. For the purpose of carrying out those tasks, the Agency should develop further relevant capacities enabling it to be entrusted with the provision of certain services for government-authorised users, and with all or part of the operational management of the governmental infrastructure.

12. Space has transitioned into a new phase where government-authorised end-users have a significant impact and where there is a need for an increased coordination with Member States. The Agency should therefore establish and manage a user community network and provide analysis on the use or sharing of services for government-authorised users by end-users.

13. The Agency should continue to undertake the communication, market development and user adoption activities as regards the services offered by the PNT and the ‛Earth Observation (‘EO’)’ Union space components. In this context, the Agency should continuously monitor the market, the evolution and impact of the space economy and to provide user feedback and inputs on new user needs. This allows the Agency to continue benefiting from economies of scale and to continue developing new downstream applications based on several space components (integrated applications) increasing their utilisation in key strategic sectors for the European economy and for the resilience and autonomy of the Union. Moreover, additional market uptake related activities might be entrusted to the Agency as regards other Union space components. Those activities should not in any case prevent the Commission from entrusting service and user-uptake activities to other entities.

14. The Agency should continue to ensure that services and data provided by Union space components are widely adopted in the different sectors of the economy. To better achieve this, the Agency should continue to undertake activities fostering technological development and the commercialisation of Union space industry and services, helping entrepreneurs to grow and scale up, and supporting the implementation of the ‘space commercialisation and space economy’ Union space component. All those activities combined should contribute to creating business opportunities and quality jobs in the space sector, strengthening Union competitiveness, resilience, security, and autonomy while accelerating economic growth.

15. In the current geopolitical context, security and resilience, in space and on the ground, have become a key political priority of the Union. For space related matters, it is important that the Agency might be entrusted tasks in support of the Commission’s activities relating to safety, security and resilience in space, including as regards cybersecurity, notably by cooperating with the European Union Agency for Cybersecurity (ENISA), in particular in the domain of skills and ICT supply chain security.

16. To enable the Agency to effectively carry out its tasks, adequate human, administrative and financial resources should be made available.

17. Without prejudice to the powers of the Commission, the Administrative Board, the Security Accreditation Board, the Executive Director and the Deputy Executive Director should be independent in the performance of their duties and should act in the public interest.

18. Given the Agency’s mandate and the overall responsibility of the Commission for the implementation of Union space components, it is appropriate to provide that certain decisions taken by the Administrative Board should not be adopted without the favourable vote of the representatives of the Commission.

19. The Agency is to ensure the highest level of security for Union space activities, including the protection of critical infrastructures and the uninterrupted operation of space systems which is vital to the security, sovereignty, and strategic autonomy of the Union. To safeguard the continuity and resilience of Union space services, particularly in a crisis, it is essential that the Agency’s staff remains available on a 24-hour, 7-day-a-week basis. The necessary measures to secure such permanent operational readiness should be established to ensure the uninterrupted operation of space systems and the continuity of the services under all circumstances.

20. To ensure legal certainty and continuity of the Agency’s activities during the transition to the legal framework established by this Regulation, it is necessary to lay down transitional provisions on the Agency’s budget, Administrative Board, Security Accreditation Board, Executive Director and staff.

21. Since the objective of this Regulation cannot be sufficiently achieved by the Member States, but can rather, by reason of the scale and effects of the action that go beyond the financial and technical capacities of any single Member State, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 TEU. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.

HAVE ADOPTED THIS REGULATION:

Chapter 1
Principles

Article 1

Subject matter

This Regulation lays down the tasks and rules of operation of the European Union Space Services Agency (‘the Agency’).

Article 2

Legal status

1. The Agency shall be a body of the Union. It shall have legal personality.

2. In each of the Member States the Agency shall enjoy the most extensive legal capacity accorded to legal persons under their national laws. It may, in particular, acquire or dispose of movable and immovable property and be a party to legal proceedings.

3. The Agency shall be represented by its Executive Director.

Article 3

Seat and local offices

1. The seat of the Agency is located in Prague, Czechia.

2. Depending on the needs of the Union space components referred to in [Article 58 of the ECF Regulation], the Agency may establish local offices in the Member States in accordance with the procedure laid down in Article 13(2).

3. Staff of the Agency may be located in the seat of the Agency, in the local offices referred to in paragraph 2 or at any location of the Union space components’ ground-based infrastructure centres referred to in the Annex of Commission implementing Decisions (EU) 2016/413 ⁸ (8) and (EU) 2017/1406 ⁹ (9), in Article 1 of Commission implementing Decision (EU) 2024/3195 ¹⁰ (10), and in Article 1 of Commission implementing Decision (EU) 2024/1067 ¹¹ (11) or to be established in accordance with [Article 75 (5) of the ECF Regulation] to perform programmatic activities provided for in the relevant agreement.

Article 4

Tasks

1. The Agency shall have the following own tasks:

   1. to ensure, through the Security Accreditation Board referred to in Article 5(1), point (c) the security accreditation of Union space components in accordance with Article 16;

   2. when given the responsibility for the exploitation or the operational management of the ‘Position, Navigation and Timing (PNT)’ space component referred to in [Article 58(1) (a) of the ECF Regulation] or the ‘Earth Observation (EO)’ space component or one of its subcomponents referred to in [Article 58(1) (b) of the ECF Regulation], to perform all tasks related to its operational security, which consists of carrying out risk and threat analysis, preparing the relevant accreditation files, and monitoring the security of those components or subcomponents in operations, in particular monitoring their compliance with the respective general security requirements referred to in [Article 77(3) of the ECF Regulation];

   3. to ensure the operation of the space security monitoring structure for Union space components or subcomponents, in accordance with the general security requirements referred to in [Article 77(3) of the ECF Regulation] and, to prepare the necessary operational procedures for the implementation of the instructions developed under the scope of [Article [6] of Decision (CFSP) XXXX/XXX amending 2021/698 ¹² (12)];

   4. to establish and manage a user community network and to provide the analysis on the use or sharing of services for government-authorised users of Union space components or subcomponents as needed;

5. to undertake certain activities relating to user uptake, market development, communication and promotion activities as regards services, data and information offered by Union space components, including the coordination of user needs, technologies and user equipment as needed. This shall not affect the activities performed by other entrusted entities and the Commission;

6. to provide the Commission with its technical expertise and supply any information necessary for the performance of its tasks in the implementation of Union space components, in particular for security matters and for the preparation of space research priorities for the downstream market;

7. to perform the tasks assigned to it under Decision No 1104/2011/EU of the European Parliament and of the Council on the rules for access to the public regulated service (PRS) provided by Galileo subcomponent of PNT.

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

8. managing the exploitation of PNT including:

   1. the management, operation, maintenance, evolution and protection of space-based and ground-based infrastructure, including upgrades and obsolescence management;

   2. the development of current and future generations of the systems and the evolution of the services provided;

   3. the support of certification and standardisation activities;

   4. the continuous provision of data and services and extension of their coverage as needed;

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

   6. the implementation of the Design and Production Organization tasks for European Geostationary Navigation Overlay Service (EGNOS) subcomponent of PNT;

   7. contribution to radio-frequency interference monitoring services and complementary PNT;

9. operational management of the ‘Governmental Satellite Communication’ (GOVSATCOM) Hub referred to in [Article 61 (3) (d) of the ECF Regulation], including operational security;

10. certain activities related to the development of downstream, integrated applications, data ecosystems, or receivers and terminals based on the data and services of Union space components in the interest of the Union space-based economy.

    3. Subject to the operational readiness of the Agency and, where necessary, the establishment of relevant mechanism to ensure service continuity, the Commission shall entrust the following tasks to the Agency:

11. specific actions to support the security of the ‘Earth Observation Governmental Service (EOGS)’ and Copernicus sub-components of EO.

12. management of all or some of the contracts under EOGS after their award or signature;

13. provision of GOVSATCOM services and ‘Infrastructure for Resilience, Interconnectivity and Security by Satellite’ (IRIS2) services, the sub-components of the ‘Secure Connectivity’ Union space component referred to in [Article 58(1)(c) of the ECF Regulation], for government-authorised users, in particular through the GOVSATCOM Hub;

14. management of all or some of the contracts under the Secure Connectivity component, after their award or signature, including where relevant to ensure all or part of the operational management of the governmental infrastructure of IRIS2, or all of part of the operational management of relevant part of IRIS2 governmental infrastructure, including operational security;

15. overarching coordination of user-related aspects of the Secure Connectivity component in close collaboration with Member States, relevant Union agencies, EEAS and other entities;

6. activities related to user uptake of services, including support to user terminals development and availability, offered by the Secure Connectivity component without affecting the activities performed by the contractors referred to in [Article 61 of the ECF Regulation] or other entities entrusted by the Commission;

7. the provision of services of ‘Space Weather Events (SWE)’ subcomponent of ‘Space Situational Awareness (SSA)’ Union space component referred to in [Article 58 (1) (d) of the ECF Regulation] to end-users, and activities relating to the evolution of those services;

8. the provision of services of ‘Space Surveillance and Tracking (SST)’ subcomponent of SSA, except the service for government-authorised users, notably through the operational management of the relevant service centres, including associated security aspects, as well as the front desk providing the interface for the provision of services that are not for government-authorised users to end-users, and necessary award procedures;

9. management of all or part of the agreements with the SST Partnership referred to in [Article 62(3) of the ECF Regulation];

10. the provision of radio-frequency interference monitoring services for the needs of Union space components;

11. specific actions to support the implementation of ‘Access to space’ Union space component referred to in [Article 58(1) (e) of the ECF Regulation] without prejudice to the activities performed by other entities;

12. specific actions to support the implementation of ‘Space commercialisation and space economy’ Union space component referred to in [Article 58(1)(f) of the ECF Regulation], including of the CASSINI initiative without prejudice to the activities performed by other entities;

13. specific actions to support the implementation of ‘Technological sovereignty, research and innovation’ Union space component referred to in [Article 58(1)(g) of the ECF Regulation], without prejudice to the activities performed by other entities;

14. cooperate with the Commission to support space operators, notably as regards cybersecurity.

    4. The centres providing the services referred to in point (h) shall build on the expertise and relevant assets of existing centres, with the support of previous Member States’ operators of those centres, and arrangements shall be concluded, as necessary, with operators of the existing service centres with a view to ensuring service continuity and specifying, in particular, the scope and extend of the transfer of competence or equipment. The provisions of the arrangements shall be subject to the Commission’s prior approval.

    5. The Commission may, on the basis of the assessments referred to in Article 41, entrust other tasks to the Agency, provided that they do not duplicate activities performed by another entrusted entity and that they aim to improve efficiency of implementation of Union space components.

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

    7. The Agency shall ensure that contractual operators have competency frameworks, succession planning and operational capability allowing for continuity of services for government-authorised users during crisis or extended disruptions. This may include arrangements or agreements with hosting authorities to benefit from the support of national authorities and from measures established for ensuring the continuity of service of national critical infrastructure in case of crisis.

Chapter 2
Organisation of the Agency

Article 5

Administrative and management structure

1. The Agency’s administrative and management structure shall comprise:

   1. an Administrative Board;

   2. an Executive Director and a Deputy Executive Director;

   3. a Security Accreditation Board;

2. The Administrative Board, the Executive Director, the Deputy Executive Director and the Security Accreditation Board shall cooperate to ensure the operation of the Agency and coordination in accordance with the procedures determined by the Agency’s internal rules, the financial rules applicable to the Agency, the implementing rules of the Staff Regulations of Officials of the European Union (‘Staff Regulations’) and the rules governing access to documents.

Article 6

Composition of the Administrative Board

1. The Administrative Board shall be composed of one representative from each Member State, and three representatives of the Commission, all with voting rights. The Administrative Board shall also include one member designated by the European Parliament, with no voting rights.

2. The Chairperson or the Deputy Chairperson of the Security Accreditation Board, a representative of the Council, a representative of the High Representative of the Union for Foreign Affairs and Security Policy (‘the High Representative’) and a representative of the European Space Agency (ESA) shall be invited to attend the meetings of the Administrative Board as observers for matters related directly to them, under the conditions laid down in the rules of procedure of the Administrative Board.

3. Each member of the Administrative Board shall have an alternate member. The alternate member shall represent the member in their absence.

4. Each Member State shall nominate a member and an alternate member of the Administrative Board taking account of their knowledge in the field of the Agency’s tasks and relevant managerial, administrative and budgetary skills. In order to ensure continuity of the Administrative Board’s activities, the European Parliament, the Commission and the Member States shall endeavour to limit changes of their representatives on the Administrative Board. All parties shall aim to achieve a balanced representation between men and women in the Administrative Board.

5. The term of office of the members of the Administrative Board and their alternates shall be four years and shall be renewable once.

6. Where appropriate, the participation of representatives of third countries or international organisations and the conditions for such participation shall be established in the agreements referred to in Article 39(1) and shall comply with the rules of procedure of the Administrative Board. Those representatives shall have no voting rights.

Article 7

Chairperson of the Administrative Board

1. The Administrative Board shall elect a Chairperson and a Deputy Chairperson from among its members with voting rights. The Deputy Chairperson shall automatically replace the Chairperson if they are prevented from attending to their duties.

2. The term of office of the Chairperson and of the Deputy Chairperson shall be two years and shall be renewable once. Each term of office shall end when that person ceases to be a member of the Administrative Board.

3. The Administrative Board shall have the power to dismiss the Chairperson and the Deputy Chairperson.

4. A majority of two thirds of the Administrative Board’s voting members shall be required for the election and the dismissal of the Chairperson and the Deputy Chairperson.

Article 8

Meetings of the Administrative Board

1. The Chairperson shall convene the meetings of the Administrative Board.

2. The Executive Director shall take part in the deliberations of the Administrative Board, unless the Chairperson decides otherwise. The Executive Director shall not have the right to vote.

3. The Administrative Board shall hold ordinary meetings on a regular basis, at least twice a year. In addition, it shall meet on the initiative of its Chairperson, at the request of at least one third of its members or at the request of the Commission.

4. The Administrative Board may invite any person whose opinion may be of interest to attend its meetings as an observer. The members of the Administrative Board may, subject to its rules of procedure, be assisted by advisers or experts.

5. Where the deliberations concern the use of sensitive national infrastructure, the representatives of Member States and the representatives of the Commission may attend the meetings and deliberations of the Administrative Board on a need-to- know basis.

6. By way of exception from Article 11(1), where the deliberations concern the use of sensitive national infrastructure referred to in paragraph 5, only the representatives of Member States which possess such infrastructure and the representatives of the Commission shall have voting rights.

7. By way of exception from Article 7(1), where the Chairperson of the Administrative Board does not represent one of the Member States which possess the sensitive national infrastructure referred to in paragraph 5, they shall be replaced by the representatives of Member States which possess such infrastructure. The rules of procedure of the Administrative Board shall set out the situations in which this procedure may apply.

8. When a matter of confidentiality or conflict of interest is on the agenda, the Administrative Board shall discuss and decide on that matter without the presence of the member concerned. Detailed rules for the application of this provision may be laid down in the rules of procedure of the Administrative Board.

9. The Agency shall provide the secretariat of the Administrative Board.

Article 9

Tasks of the Administrative Board

The Administrative Board shall:

1. ensure that the Agency carries out its work under the conditions set out in this Regulation and adopt any necessary decision to that end. The decisions of the Administrative Board shall not affect the competences of the Security Accreditation Board for security accreditation activities.

2. by 15 November each year, adopt by a majority of two thirds of its voting members the Agency’s work programme for the following year after incorporating, without any change, the section drafted by the Security Accreditation Board, and after having received the Commission’s opinion;

3. by 30 June of the first year of the multiannual financial framework provided for under Article 312 TFEU, adopt by a majority of two thirds of its voting members the multiannual work programme of the Agency for the period covered by that multiannual financial framework after incorporating, without any change, the section drafted by the Security Accreditation Board and after having received the Commission’s opinion. The European Parliament shall be consulted on the multiannual work programme of the Agency, provided that the purpose of the consultation is an exchange of views and the outcome is not binding on the Agency;

4. perform the budgetary functions laid down in Article 24;

5. oversee the operation of the security monitoring structure;

6. adopt arrangements to implement Regulation (EC) No 1049/2001 ¹³ (13), in accordance with Article 36;

7. approve the arrangements referred to in Article 39(2) by a majority of two thirds of its voting members after consulting the Security Accreditation Board on the provisions of the arrangements concerning security accreditation;

8. adopt the technical procedures necessary to perform its tasks;

9. adopt the annual report on the activities and prospects of the Agency, having incorporated, without any change, the section drafted by the Security Accreditation Board and forward it to the European Parliament, the Council, the Commission and the Court of Auditors by 1 July each year;

10. ensure adequate follow-up to the findings and recommendations arising from the evaluations and reporting referred to in Article 41, as well as those arising from investigations conducted by European Anti-Fraud Office (OLAF) and all internal or external audit reports, and forward all information relevant to the outcome of the evaluation procedures to the budgetary authority;

11. adopt by a majority of two thirds of its voting members the security rules of the Agency as referred to in Article 37(1);

50. approve an anti-fraud strategy, on the basis of a proposal from the Executive Director;

51. where necessary and on the basis of proposals from the Executive Director, approve the organisational structures referred to in point (l) of Article 13(1);

52. appoint an Accounting Officer, who may be the Commission’s Accounting Officer, who shall be:

    1. subject to the Staff Regulations and the Conditions of Employment of Other Servants of the Union (‘Conditions of Employment’), laid down in Council Regulation (EEC, Euratom, ECSC) No 259/68 ¹⁴ (14); and

    2. totally independent in the performance of their duties;

53. adopt, by a majority of two thirds of its voting members, and publish its rules of procedure;

54. approve by a majority of two thirds of its voting members the decision on the establishment of a local office as referred to in Article 3(2);

55. upon proposal of the Executive Director, adopt by a majority of two thirds of its voting members a decision declaring a situation of crisis, as defined under Article 2(22) of Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council ¹⁵ (15) for the purposes of Article 163(6) of that Regulation, in particular to ensure the continuity of services for government-authorised users. The rules of procedure of the Administrative Board shall include provisions allowing prompt reaction and the taking of the decision without delay.

Article 10

Appointing powers of the Administrative Board

1. With regard to the Agency’s staff, the Administrative Board shall exercise the powers conferred by the Staff Regulations on the appointing authority and by the Conditions of Employment on the authority empowered to conclude employment contracts (the ‘powers of the appointing authority’) as set out in paragraphs 2 to 8.

2. The Administrative Board shall adopt, in accordance with the procedure provided for in Article 110(2) of the Staff Regulations, a decision based on Article 2(1) of the Staff Regulations and on Article 6 of the Conditions of Employment, delegating the relevant powers of the appointing authority to the Executive Director and defining the conditions under which this delegation of powers can be suspended. The Executive Director shall report back to the Administrative Board on the exercise of those delegated powers. The Executive Director shall be authorised to sub-delegate those powers.

3. Where exceptional circumstances so require, the Administrative Board may temporarily suspend the delegation of the powers of the appointing authority to the Executive Director and those subdelegated by the Executive Director and exercise them itself or delegate them to one of its members or to a staff member other than the Executive Director.

4. By way of derogation from paragraph 2, the Administrative Board shall delegate to the Chairperson of the Security Accreditation Board the powers of the appointing authority with regard to the recruitment, assessment and reclassification of staff involved in the security accreditation activities and the disciplinary measures to be taken with regard to such staff.

5. Where exceptional circumstances so require, the Administrative Board may decide to temporarily suspend the delegation of powers of the appointing authority to the Chairperson of the Security Accreditation Board and exercise them itself or delegate them to another member of the Security Accreditation Board.

6. The Administrative Board shall adopt the implementing measures of the Staff Regulations and the Conditions of Employment in accordance with the procedure laid down in Article 110(2) of the Staff Regulations. It shall first consult the Security Accreditation Board and duly take into account its observations with regard to the recruitment, assessment and reclassification of the staff involved in the security accreditation activities and the relevant disciplinary measures to be taken with regard to such staff.

7. The Administrative Board shall adopt a decision laying down rules on the secondment of national experts to the Agency. Before adopting that decision, the Administrative Board shall consult the Security Accreditation Board with regard to the secondment of national experts involved in the security accreditation activities and shall duly take account of its observations.

8. The Administrative Board shall appoint the Executive Director and the Deputy Executive Director. The Administrative Board shall consult the Executive Director prior to the appointment of the Deputy Executive Director, and prior to any extension of their term of office or their removal from office.

9. The Administrative Board shall exercise disciplinary authority over the Executive Director and, in consultation with the Executive Director, over the Deputy Executive Director, in relation to their performance, in particular as regards security matters falling within the Agency’s competence.

Article 11

Voting rules of the Administrative Board

1. The Administrative Board shall take its decisions by a majority of its voting members except when a different majority is provided for by this Regulation.

2. Each representative of the Member States and of the Commission shall have one vote. In the absence of a member with the right to vote, their alternate shall be entitled to exercise their right to vote. Decisions based on Article 9, first paragraph, point (b) except for the section drafted by the Security Accreditation Board, Article 9, first paragraph, point (j) when adopting decisions related to the follow-up to OLAF reports, Article 9, first paragraph, point (n), Article 10, Article 24(8) and decisions related to Chapter 4 shall only be adopted with a favourable vote of the representatives of the Commission.

3. The rules of procedure of the Administrative Board shall establish more detailed voting arrangements, including the conditions for a member to act on behalf of another member as well as any quorum requirements as appropriate.

Article 12

Executive Director

1. The Executive Director shall manage the Agency.

2. This Article shall not affect the autonomy or independence of the Security Accreditation Board and of the Agency staff under its supervision and the powers granted to the Security Accreditation Board and the Chairperson of the Security Accreditation Board by this Regulation.

3. Without prejudice to the powers of the Commission and the Administrative Board, the Executive Director shall be independent in the performance of their duties and shall neither seek nor take instructions from any government or from any other body.

Article 13

Tasks and responsibilities of the Executive Director

1. The Executive Director shall perform the following tasks:

   1. represent the Agency;

   2. sign any financial framework partnership agreements and contribution agreements related to the Agency’s tasks following consultation of the Administrative Board; 

   3. prepare the work of the Administrative Board and participate, without having the right to vote, in the work of the Administrative Board;

   4. implement the decisions of the Administrative Board;

   5. prepare the multiannual and annual work programmes of the Agency and submit them to the Administrative Board for approval, except for the parts prepared and adopted by the Security Accreditation Board in accordance with points (a) and (b) of Article 17(3);

   6. implement the multiannual and annual work programmes, with the exception of the parts implemented by the Security Accreditation Board;

   7. prepare a progress report on the implementation of the annual work programme and, where relevant, of the multiannual work programme for each meeting of the Administrative Board, incorporating, without any change, the section prepared by the Security Accreditation Board;

   8. prepare the annual report on the activities and prospects of the Agency with the exception of the section prepared and approved by the Security Accreditation Board, and submit it to the Administrative Board for approval;

1. handle the day-to-day administration of the Agency and take all necessary measures to ensure the functioning of the Agency in accordance with this Regulation, including the adoption of internal administrative instructions and the publication of notices;

2. draw up a draft statement of estimates of revenue and expenditure for the Agency in accordance with Article 24 and implement the budget in accordance with Article 26;

3. ensure that the Agency, as the operator of the security monitoring structure, is able to respond to instructions provided under [Decision (CFSP) XXXX/XXX amending 2021/698] and to fulfil its role as referred to in Article 6 of Decision No 1104/2011/EU;

4. ensure the circulation of all relevant information, including that as regards security, within the Agency’s administrative and management structure referred to in Article 5(1);

5. determine the organisational structures of the Agency and submit them to the Administrative Board for approval, except for those relating to security accreditation activities;

6. ensure that the organisational structures referred to in point (m) reflect the specific characteristics of the various components of the Union space systems;

7. exercise the powers of the appointing authority delegated to them as referred to in Article 10;

8. ensure that secretarial services are provided to the Security Accreditation Board;

9. with the exception of the section of the action plan concerning the activities related to security accreditation, prepare an action plan for ensuring the follow-up of the findings and recommendations of the evaluations of the activities carried out to implement the Union space components and, after having incorporated, without any change, the section drafted by the Security Accreditation Board, submit a progress report to the Commission twice a year, which shall also be submitted to the Administrative Board for information;

10. take the following measures to protect the financial interests of the Union;

    1. preventive measures against fraud, corruption or any other illegal activity and making use of effective supervisory measures;

    2. recover sums unduly paid where irregularities are detected and, where appropriate, apply effective, proportionate and dissuasive administrative and financial penalties;

11. draw up an anti-fraud strategy for the Agency that is proportionate to the risk of fraud, having regard to a cost-benefit analysis of the measures to be implemented and taking into account findings and recommendations arising from OLAF investigations and submit the anti-fraud strategy to the Administrative Board for approval;

12. provide reports to the European Parliament or to the Council on the performance of their duties when invited to do so.

    2. The Executive Director shall decide whether it is necessary to establish a local office in accordance with Article 3(2). Before deciding to establish a local office, the Executive Director shall obtain the prior approval of the Commission, the Administrative Board and the Member States concerned. The decision shall specify the scope of the activities to be carried out at the local office in a manner that avoids unnecessary costs and duplication of administrative functions of the Agency.

    3. The Executive Director shall decide to locate one or more members of staff in a local office in the Member States or at any location of the Union space components' ground-based infrastructure centres referred to in Article 3(3) for the purpose of carrying out the Agency’s tasks in an efficient and effective manner. Where possible, the impact in terms of staff allocation and budget shall be incorporated in the draft single programming document referred to in Article 24(6).

Article 14

Deputy Executive Director

1. A Deputy Executive Director shall assist the Executive Director. If the Executive Director is absent or indisposed, or the post is vacant, the Deputy Executive Director shall replace them.

2. The Administrative Board shall define the tasks of the Deputy Executive Director after having consulted the Executive Director.

Article 15

Security Accreditation Board

1.  The Security Accreditation Board established within the Agency shall be the security accreditation authority for Union space components.

2. 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 once.

3. Some meetings of the Security Accreditation Board or parts thereof may take place without the participation of the representative of the Commission only if the Commission has given its prior written consent. The Security Accreditation Board shall provide the Commission with any document and information exchanged during those meetings or any document and information circulated in preparation for or after those meetings.

4. Participation in the meetings of the Security Accreditation Board shall be on a need-to-know-basis. Where appropriate, the Chairperson of the Security Accreditation Board may invite representatives of the Agency not involved in security accreditation and representatives of ESA to attend the meetings of the Security Accreditation Board as observers.

5. The Chairperson of the Security Accreditation Board may also invite representatives of Union Agencies, third countries or international organisations to attend meetings of the Security Accreditation Board as observers for matters directly related to those Union Agencies, third countries or international organisations, in particular matters concerning the infrastructure belonging to them or established on their territory. Arrangements for the participation of representatives of third countries or international organisations and the condition for such participation shall be laid down in the relevant agreements referred to in Article 39(1) and shall comply with the rules of procedure of the Security Accreditation Board.

6. Upon invitation of the Commission, representatives of contractors involved in governmental infrastructure and services for government-authorised users of the Union space components may attend the meetings of the Security Accreditation Board, as observers, for matters directly relating to those contractors.

Article 16

General principles of security accreditation

1. Union space components or subcomponents subject to the general security requirements referred to in [Article 77(3) of the ECF Regulation] shall undergo an accreditation process, leading to a formal statement by a security accreditation authority that the component or sub-component is approved to operate as established in those general security requirements.

2. Security accreditation shall be carried out in accordance with the following principles:

   1. security accreditation activities and decisions shall be undertaken in a context of collective responsibility with a view to protecting the security of both the Union and Member States;

   2. the Security Accreditation Board shall make every effort to take its decisions by consensus;

   3. security accreditation activities shall be carried out with the use of 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 to not lower the general level of security of that component and taking into consideration the continuity of services and provision of new services;

   4. security accreditation activities shall be carried out taking into account the schedule for implementation of each relevant component and shall not unduly delay or prejudice this implementation;

   5. 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;

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

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

   8. following the process defined in the strategy approved by the Security Accreditation Board in accordance with Article 17(2), point (a), the decisions of the Security Accreditation Board on security accreditation shall be based on local decisions on security accreditation taken by the respective national security accreditation authorities of the Member States;

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

2. 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 space component or subcomponent concerned and for the provision of related services, and with regard to the Executive Director and the Administrative Board;

3. 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;

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

Article 17

Tasks and responsibilities of the Security Accreditation Board

1. The Security Accreditation Board shall perform its tasks without prejudice to the responsibilities of the Commission or the other bodies of the Agency, in particular for matters relating to the exploitation of Union space components or subcomponents and the continuity of services and security, and of the entrusted entities and without prejudice to the competences of Member States as regards security accreditation.

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

   1. defining and approving a security accreditation strategy which sets out:

      1. the scope of the activities necessary to perform and maintain the accreditation of Union space components or subcomponents, or parts of those components or subcomponents and any interconnections between them and other systems or components;

      2. a security accreditation process for Union space components or subcomponents, or parts of those components or subcomponents, with a degree of detail commensurate with the required level of assurance and clearly stating the accreditation conditions;

      3. the role of relevant stakeholders involved in the accreditation process;

      4. an accreditation plan that complies with the phases of Union space components or subcomponents, in particular as regards the deployment of infrastructure, service provision and evolution as established by the Commission;

      5. the principles of security accreditation for networks connected to systems set up under Union space components or subcomponents or for parts of those components or subcomponents, and for equipment connected to systems established by those components or subcomponents, which shall be performed by the national entities of Member States that are competent in security matters;

   2. taking decisions on security accreditation, including on the approval of the security procedures for satellite launch or on the single approval for launches in case of constellations, the authorisation to operate the systems set up under Union space components or subcomponents or the elements of those components or subcomponents 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;

   3. taking decisions concerning the networks and the equipment connected to the PRS service provided by Galileo, or connected to any other secure service stemming from Union space components or subcomponents, 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 determined for each component or subcomponent in accordance with [Article 77(3) of the ECF Regulation], taking into account the advice provided by national entities competent in security matters and the overall security risks;

   4. examining and approving all documentation relating to security accreditation, except as regards documents related to acts adopted under [Article 77(3) of the ECF Regulation] and to acts adopted in accordance with Article 8 of Decision No 1104/2011/EU ;

   5. examining and approving the security risk assessment drawn up in accordance with the monitoring process referred to in Article 16(2), point (i) taking into account the compliance with the documents referred to in point (d) and the documents drawn up in accordance with [Article 77(3) of the ECF Regulation], and cooperating with the Commission to define risk mitigation measures;

   6. checking the implementation of security measures in relation to the security accreditation of Union space components or subcomponents by undertaking or sponsoring security assessments, inspections, audits or reviews, in agreement with and under the supervision of national entities competent in security matters;

   7. endorsing the selection of approved products and measures which protect against electronic eavesdropping (TEMPEST) and of approved cryptographic products used to provide security for Union space components or subcomponents;

8. 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 Union space components or subcomponents or under parts of those components or subcomponents and other systems;

9. agreeing with the relevant Member State on the template for access control referred to in Article 23(4);

10. 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;

11. carrying out consultations which are necessary to perform its tasks;

12. adopting and publishing its rules of procedure;

13. publishing the declarations of non-conflict of interest of its members.

    3. By way of exception from Article 9 and Article 13 the Security Accreditation Board shall:

14. prepare and approve that part of the multiannual work programme concerning the operational activities related to security accreditation and the financial and human resources needed to accomplish those activities, and submit it to the Administrative Board in good time for it to be incorporated into the multiannual work programme;

15. prepare and approve that part of the annual work programme concerning the operational activities related to security accreditation and the financial and human resources needed to accomplish those activities, and submit it to the Administrative Board in good time for it to be incorporated into the annual work programme;

16. prepare and approve that part of the annual report concerning the Agency’s activities and prospects related to security accreditation and the financial and human resources needed to accomplish those activities and prospects, and submit it to the Administrative Board in good time for it to be incorporated into the annual report.

Article 18

Voting rules of the Security Accreditation Board

1. The Security Accreditation Board shall seek to reach its decisions by consensus.

2. If consensus 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 High Representative shall not vote The representative of the Commission shall not vote except for financial and human resources matters in which case the decisions shall only be adopted with a favourable vote of the representatives of the Commission. The Chairperson of the Security Accreditation Board shall sign, on behalf of the Security Accreditation Board, the decisions adopted by the Security Accreditation Board.

3. The representative of the Commission and the representative of the High Representative shall be present during all the discussions and deliberations of the Security Accreditation Board except under the conditions referred to in Article 15(3), and shall have access to the Security Accreditation Board draft decisions in due time in order to provide an opinion as to their impact on the proper conduct of Union space components or subcomponents, including in terms of the security of the Union.

Article 19

Organisational aspects of the Security Accreditation Board

1. The Security Accreditation Board shall have access to the human and material resources required to perform its tasks independently. It shall have access to any information necessary for the performance of its tasks in the possession of the other bodies of the Agency, without prejudice to the principles of autonomy and independence referred to in Article 16(2), point (j).

2. The Security Accreditation Board and the Agency staff under its supervision shall perform their work in a manner that it ensures their autonomy and independence in relation to other activities of the Agency, in particular operational activities associated with the exploitation of Union space components or subcomponents.

3. A member of the Agency’s staff under the supervision of the Security Accreditation Board shall not at the same time be assigned to other tasks within the Agency that may hinder their autonomy and independence in relation to other activities of the Agency. To that end, an effective organisational segregation shall be established within the Agency between the staff involved in activities related to security accreditation and the other staff of the Agency.

4. The Security Accreditation Board shall immediately inform the Executive Director, the Administrative Board and the Commission of any circumstances that could hamper its autonomy or independence. In the event that no remedy is found within the Agency, the Commission shall examine the situation, in consultation with the relevant parties. On the basis of the outcome of that examination, the Commission shall take appropriate mitigation measures to be implemented by the Agency and shall inform the European Parliament and the Council thereof.

5. The Security Accreditation Board shall set up special subordinate groups composed of experts from Member States, acting on its instructions, to deal with specific issues. In particular, while ensuring necessary continuity of work, it shall set up a panel to conduct security analysis reviews and tests and produce the relevant risk reports in order to assist it in preparing its decisions. The Security Accreditation Board may set up and disband expert groups to contribute to the work of the panel.

Article 20

The Chairperson of the Security Accreditation Board

1. The Security Accreditation Board shall elect a Chairperson and a Deputy Chairperson from among its members by a two-thirds majority of all members with the right to vote. Where a two-thirds majority has not been achieved following two meetings of the Security Accreditation Board, a simple majority shall be required.

2. The Deputy Chairperson shall automatically replace the Chairperson if the Chairperson is unable to attend to their duties.

3. The Security Accreditation Board shall have the power to dismiss the Chairperson, the Deputy Chairperson or both of them. It shall adopt the decision to dismiss by a two-thirds majority.

4. The term of office of the Chairperson and of the Deputy Chairperson of the Security Accreditation Board shall be two years, renewable once. Each term of office shall end when that person ceases to be a member of the Security Accreditation Board.

Article 21

Tasks of the Chairperson of the Security Accreditation Board

1. The Chairperson of the Security Accreditation Board shall ensure that the Board carries out its security accreditation activities independently and shall perform the following tasks:

   1. manage security accreditation activities under the supervision of the Security Accreditation Board; 

   2. implement the part of the Agency’s multiannual and annual work programmes related to security accreditation under the supervision of the Security Accreditation Board;

   3. cooperate with the Executive Director to help to draw up the draft establishment plan referred to in Article 24(1) and the organisational structures of the Agency’s staff involved in the activities related to security accreditation;

   4. prepare the section of the progress report concerning the operational activities related to security accreditation, and submit it to the Security Accreditation Board for approval and to the Executive Director in good time for it to be incorporated into the progress report on the implementation of the annual work programme and, where relevant, of the multiannual work programme;

   5. prepare the section of the annual report and of the action plan, concerning the operational activities related to security accreditation, and submit it to the Executive Director in good time for it to be incorporated into the annual report on the activities and prospects of the Agency;

   6. represent the Security Accreditation Board for the activities and decisions related to security accreditation;

   7. with regard to the Agency’s staff involved in the activities related to security accreditation, exercise the powers referred to in Article 10(4) . 

2. For matters related to security accreditation, the European Parliament and the Council may call upon the Chairperson of the Security Accreditation Board for an exchange of views on the work and prospects of the Security Accreditation Board.

Article 22

Communication and impact of decisions of the Security Accreditation Board

1. The decisions of the Security Accreditation Board shall be addressed to the Commission together with all the information justifying that decision.

2. The decisions of the Security Accreditation Board shall be based on information to which the Commission had access and had the opportunity to provide an opinion as to their impact on the proper conduct of Union space components or subcomponents, including in terms of the security of the Union.

3. In duly justified cases, the Commission may request the Security Accreditation Board for a decision to be issued within three months. In the absence of decision from the Security Accreditation Board within this timeframe the decision shall be considered affirmative.

4. 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 Union space components or subcomponents and of the implementation of residual risk treatment plans. The Security Accreditation Board shall take note of any such information received from the Commission.

5. Upon the invitation of the Commission, the Security Accreditation Board shall inform the European Parliament and the Council without undue delay of its decisions and of the impact of those decisions on Union space components or subcomponents, notably in terms of costs schedule or performance.

6. If the Commission considers that a decision taken by the Security Accreditation Board may have a significant effect on the proper conduct of Union space components or subcomponents in terms of costs, schedule or performance, including in terms of the security of the Union, it shall immediately inform the European Parliament and the Council. Taking into account the views of the European Parliament and of the Council, which shall be expressed within one month, the Commission or the Security Accreditation Board, as relevant, shall adopt any adequate measures.

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

8. The timetable for the work of the Security Accreditation Board shall not hamper the timetable for the activities set out in the Agency’s work programme.

Article 23

Role of 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 allow 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 Article 16(2), point (i). That access shall be without any discrimination on 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:

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

   2. 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 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 Union space components or subcomponents, and report, to this end, to the Security Accreditation Board.

6. By way of exception from Article 15(1), Member States shall be responsible for the compliance to the general security requirements referred to in [Article 77(3) of the ECF Regulation] and accreditation of nationally owned assets or of services provided by those assets, notably for providers of SST and GOVSATCOM services for government-authorised users.

Chapter 3
Establishment and structure of the budget

Article 24

Establishment of the budget

1. Each year, the Executive Director shall, in close collaboration with the Chairperson of the Security Accreditation Board for activities related to security accreditation, draw up a provisional draft estimate of the Agency’s revenue and expenditure for the following financial year, making clear the distinction between those elements of the draft estimate which relate to security accreditation activities, and those relating to the Agency’s other activities. The Chairperson of the Security Accreditation Board may write a statement on that draft and the Executive Director shall forward both the draft estimate and the statement to the Administrative Board and the Security Accreditation Board  respectively, together with a draft establishment plan to the Administrative Board.

2. The provisional draft estimate shall be based on the objectives and expected results of the annual programming document, and shall take into account the financial resources necessary to achieve those objectives and expected results, in accordance with the principle of performance-based budgeting.

3. Based on the provisional draft estimate of revenue and expenditure and in close cooperation with the Security Accreditation Board for activities related to security accreditation, the Administrative Board shall adopt a draft statement of estimates of revenue and expenditure for the Agency for the following financial year.

4. By 31 January each year, the Administrative Board shall forward a draft single programming document including inter alia a draft statement of estimates, a draft establishment plan and a provisional annual work programme to the Commission and to the third countries or international organisations with which the Agency has entered into arrangements in accordance with Article 39(2).

5. The Commission shall forward the draft estimate of revenue and expenditure to the European Parliament and to the Council (the ‘budgetary authority’) together with the draft general budget of the Union. The draft estimate shall also be made available to the Agency.

6. On the basis of the draft estimate, the Commission shall enter in the draft general budget of the Union the estimates it considers necessary for the establishment plan and the amount of the contribution to be charged to the general budget, which it shall place before the budgetary authority in accordance with Articles 313 and 314 TFEU.

7. The budgetary authority shall authorise the appropriations for the contribution from the general budget of the Union to the Agency and shall adopt the establishment plan for the Agency.

8. The budget shall be adopted by the Administrative Board by a majority of two thirds of its voting members. It shall become final following final adoption of the general budget of the Union. Where necessary, the budget shall be adjusted accordingly.

9. For any building project likely to have significant implications for the budget of the Agency, Commission Delegated Regulation (EU) 2019/715 ¹⁶ (16) shall apply.

Article 25

Structure of the budget

1. Estimates of all revenue and expenditure of the Agency shall be prepared each financial year and shall be shown in the Agency’s budget. The financial year shall correspond to the calendar year.

2. The Agency’s budget shall be balanced in terms of revenue and of expenditure.

3. Without prejudice to other resources and dues, the revenue of the Agency shall comprise:

   1. a Union contribution entered in the general budget of the Union;

   2. any voluntary financial contribution from the Member States;

   3. any contribution from third countries participating in the work of the Agency, as provided for in Article 39(1);

   4. possible Union funding in the form of delegation agreements or ad hoc grants in accordance with the Agency’s financial rules referred to in Article 28 and with the provisions of the relevant instruments supporting the policies of the Union;

5. charges for publications and fees for any service provided by the Agency.

   4. The expenditure of the Agency shall include staff remuneration, administrative and infrastructure expenditure, operating costs and expenditure associated with the functioning of the Security Accreditation Board, and the contracts and agreements concluded by the Agency in order to accomplish the tasks entrusted to it.

Article 26

Implementation of the Agency’s budget

1. The Executive Director shall act as authorising officer and shall implement the Agency’s budget. 

2. Each year, the Executive Director shall communicate to the budgetary authority all information relevant to the findings of the evaluation procedures.

Article 27

Presentation of the Agency’s accounts and discharge

The presentation of the Agency’s provisional and final accounts and the discharge shall follow the rules and timetable of Regulation (EU, Euratom) 2024/2509 and of Commission Delegated Regulation (EU) 2019/715.

Article 28

Financial rules

The financial rules applicable to the Agency shall be adopted by the Administrative Board after consulting the Commission. They shall not depart from Commission Delegated Regulation (EU) 2019/715  unless such a departure is specifically required for the Agency’s operation and the Commission has given its prior consent.

Article 29

Combating fraud

1. In order to combat fraud, corruption and other unlawful activities, the provisions of  Regulation (EU, Euratom) No 883/2013  of the European Parliament and of the Council ¹⁷ (17) shall apply.  

2. The Agency shall accede to the Interinstitutional Agreement of 25 May 1999 between the European Parliament, the Council of the European Union and the Commission of the European Communities concerning internal investigations by the European Anti-fraud Office (OLAF) ¹⁸ (18) and shall adopt the appropriate provisions applicable to its staff using the template set out in the Annex to that Agreement.

3. The European Court of Auditors shall have the power of audit, on the basis of documents and on the spot, over all grant beneficiaries, contractors and subcontractors that have received Union funds from the Agency.

4. OLAF may carry out investigations, including on-the-spot checks and inspections with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union in connection with a grant or a contract funded by the Agency, in accordance with the provisions and procedures laid down in Regulation (EU, Euratom) No 883/2013 and Council Regulation (Euratom, EC) No 2185/96 ¹⁹ (19).

5. Without prejudice to paragraphs 1 to 4, working agreements with third countries and international organisations, contracts, grant agreements and grant decisions of the Agency shall contain provisions expressly empowering the European Court of Auditors and OLAF to conduct such audits and investigations, according to their respective competences. 

Chapter 4
Staff

Article 30

The Agency’s staff

1. The Staff Regulations and the Conditions of Employment of Other Servants and the rules adopted by agreement between the institutions of the Union for giving effect to those Staff Regulations and the Conditions of Employment of Other Servants shall apply to the staff of the Agency.

2. The staff of the Agency shall consist of servants recruited by the Agency as necessary to perform its tasks. It may also include officials that have been assigned or seconded by the Commission or by the Member States on a temporary basis under the conditions set out in Article 32. They shall all have security clearance appropriate to the classification of the information they handle.

3. The Agency’s internal rules, including the rules of procedure of the Administrative Board, the rules of procedure of the Security Accreditation Board, the financial rules applicable to the Agency, the rules implementing the Staff Regulations and the rules for access to documents, shall ensure the autonomy and independence of staff performing the security accreditation activities relative to staff performing the other activities of the Agency.

4. The Agency’s internal rules shall include crisis management and business continuity provision.

5. In the event of a situation of crisis being declared following the decision of the Administrative Board in accordance with Article 9, first paragraph, point (q), the Executive Director shall take the necessary measures, including imposing to the Agency staff the performance of their activities to ensure the continuity of services or to preserve the security of the Union space systems’ infrastructures and operations.

Article 31

Appointment and term of office of the Executive Director and the Deputy Executive Director

1. The Executive Director and the Deputy Executive Director shall be recruited as a temporary member of staff of the Agency in accordance with Article 2, point (a), of the Conditions of Employment.

2. The Executive Director and the Deputy Executive Director shall be appointed by the Administrative Board on grounds of merit and documented administrative and managerial skills, as well as relevant competence and experience, from a list of at least three candidates proposed by the Commission, after an open and transparent selection procedure, following the publication of a call for expressions of interest in the Official Journal of the European Union.

3. The candidate selected by the Administrative Board for the post of Executive Director may be invited at the earliest opportunity to make a statement before the European Parliament and to answer questions from its members.

4. The Chairperson of the Administrative Board shall represent the Agency for the purpose of concluding the contract of the Executive Director and of the Deputy Executive Director. The Administrative Board shall take its decision to appoint the Executive Director and the Deputy Executive Director by a two-thirds majority of its members.

5. The term of office of the Executive Director and of the Deputy Executive Director shall be five years. Before the end of that term of office, the Commission shall carry out an assessment of the performance of the Executive Director or of the Deputy Executive Director, taking into account the future tasks and challenges facing the Agency.

6. On the basis of a proposal from the Commission, taking into account the assessment referred to in paragraph 5, the Administrative Board may extend the term of office of the Executive Director and of the Deputy Executive Director once for a period of up to five years. Any decision to extend the term of office of the Executive Director and of the Deputy Executive Director shall be adopted by a two-thirds majority of the members of the Administrative Board. An Executive Director and a Deputy Executive Director whose term of office has been extended shall not thereafter take part in a selection procedure for the same post.

7. The Administrative Board shall inform the European Parliament of its intention to extend the term of office of the Executive Director. Before the extension, the Executive Director may be invited to make a statement before the relevant committees of the European Parliament and answer their members’ questions.

8. The Administrative Board may dismiss the Executive Director and the Deputy Executive Director, on the basis of a proposal by the Commission or of one third of its members, by means of a decision adopted by a two-thirds majority of its members.

9. The European Parliament and the Council may call upon the Executive Director for an exchange of views on the work and prospects of the Agency, including with regard to the multiannual and annual work programmes. That exchange of views shall not touch upon matters relating to the security accreditation activities.

Article 32

Seconded national experts and other staff

1. The Agency may make use of seconded national experts and other staff not employed by the Agency, as well as, pursuant to Article 39(2), national experts from third countries and international organisations participating in the work of the Agency. Those experts shall have security clearance appropriate to the classification of the information they handle. The Staff Regulations and the Conditions of Employment of Other Servants shall not apply to such staff.

2. The Agency may make use of staff from Member States who are interested and available for a short-term deployment of no longer than two years, when this is required to face peaks of work or urgent situations affecting the continuity of services. A preliminary national list of available operational staff for short-term deployments shall be provided to the Agency on a yearly basis. Member States may update the list at any moment and communicate such update in writing to the Agency.

3. The Administrative Board shall adopt a decision laying down rules on the secondment of national experts to the Agency, including for a short-term deployment.

Article 33

Privileges and immunities

Protocol No 7 on the Privileges and Immunities of the European Union annexed to the to the Treaty on the Functioning of the European Union shall apply to the Agency and its staff.

Chapter 5
General provisions

Article 34

Headquarters and local offices hosting arrangements

1. The headquarters agreement concluded between the Agency and the Member State where the seat of the Agency is located shall lay down the hosting arrangements concerning the accommodation to be provided for the Agency in the host Member State where the seat of the Agency is located and the facilities to be made available by that Member State together with the specific rules applicable in the host Member State to the Executive Director, members of the Administrative Board, the Agency staff and members of their families and other staff and members of their families used by the Agency in accordance with Article 32.

2. Where necessary for the operation of a local office established in accordance with Article 13(2) a hosting agreement between the Agency and the Member State concerned where the local office is located shall be concluded after obtaining the approval of the Administrative Board.

3. The Agency’s host Member States shall provide the best possible conditions to ensure the smooth and efficient functioning of the Agency, including multilingual, European-oriented schooling and appropriate transport connections.

Article 35

Linguistic arrangements

1. EEC Council Regulation No 1 ²⁰ (20) shall apply to the Agency.

2. The translation services required for the functioning of the Agency shall be provided by the Translation Centre of the Bodies of the European Union.

Article 36

Transparency and communication

1. Regulation (EC) No 1049/2001 of the European Parliament and of the Council ²¹ (21) shall apply to documents held by the Agency.

2. The processing of personal data by the Agency shall be subject to Regulation (EC) No 45/2001 of the European Parliament and of the Council ²² (22) and Regulation (EU) 2018/1725 of the European Parliament and of the Council ²³ (23).

Article 37

Protection of classified information and sensitive non-classified information

1. After consulting the Commission, the Agency shall adopt its own security rules. Those rules shall be based on the principles and rules laid down in the Commission’s security rules for protecting European Union classified information (EUCI) and sensitive non-classified information and shall include provisions for the exchange of such information with third countries and processing and storage of such information as set out in Commission Decision (EU, Euratom) 2015/443 ²⁴ (24) and Commission Decision (EU, Euratom) 2015/444 ²⁵ (25).

2. The Administrative Board shall adopt the Agency’s security rules by a majority of two thirds of its voting members following approval by the Commission.

3. Members of the Administrative Board, the Executive Director, external experts participating in ad hoc working groups, and members of the staff of the Agency shall comply with the confidentiality requirements under Article 339 TFEU, even after their duties have ceased.

4. The Agency may take the necessary measures to facilitate the exchange of information relevant to its tasks with the Commission and the Member States and, where appropriate, the relevant Union institutions, bodies, offices and agencies. Any administrative arrangements concluded to that end with regard to the sharing of EUCI or, in the absence of such arrangements, any exceptional ad hoc release of EUCI, shall have received the Commission’s prior approval.

Article 38

Liability

1. The Agency’s contractual liability shall be governed by the law applicable to the contract in question.

2. The Court of Justice of the European Union shall have jurisdiction to give judgment pursuant to any arbitration clause contained in a contract concluded by the Agency.

3. In the event of non-contractual liability, the Agency shall, in accordance with the general principles common to the laws of the Member States, make good any damage caused by its departments or by its servants in the performance of their duties.

4. The Court of Justice of the European Union shall have jurisdiction in disputes over compensation for the damage referred to in paragraph 3.

5. The personal liability of its staff towards the Agency shall be governed by the provisions laid down in the Staff Regulations or Conditions of Employment applicable to them.

Article 39

Cooperation with third countries and international organisations

1. The Agency shall be open to the participation of third countries and international organisations that have entered into international agreements with the Union to this effect.

2. Under the relevant provisions of the international agreements referred to in paragraph 1, arrangements shall be established specifying, the nature, extent and manner in which the third countries and international organisations concerned are to participate in the work of the Agency. Those arrangements shall include provisions relating to participation in the initiatives undertaken by the Agency, financial contributions and staff. As regards staff matters, those arrangements shall comply with the Staff Regulations . When relevant, the arrangements shall also lay down the provisions on the exchange and protection of classified information with third countries and international organisations. Those provisions shall be subject to the Commission’s prior approval.

3. The Administrative Board shall adopt a strategy on relations with third countries and international organisations, in the framework of the international agreements referred to in paragraph 1, concerning matters for which the Agency is competent.

4. The Commission shall ensure that, in its relations with third countries and international organisations, the Agency acts within its mandate and the existing institutional framework by concluding an appropriate working arrangement with the Executive Director.

Article 40

Conflict of interests

1. Members of the Administrative Board, of the Security Accreditation Board, the Executive Director, the Deputy Executive Director, seconded national experts and observers shall make a declaration of commitments and a declaration of interests indicating the absence or existence of any direct or indirect interests which might be considered prejudicial to their independence. Those declarations shall be:

   1. accurate and complete;

   2. made in writing upon the entry into service of the persons concerned;

   3. renewed annually; and

   4. updated whenever necessary, in particular in the event of relevant changes in the personal circumstances of the persons concerned.

2. Before any meeting which they are to attend, members of the Administrative Board, of the Security Accreditation Board, the Executive Director, the Deputy Executive Director, seconded national experts, observers and external experts participating in ad hoc working groups shall accurately and completely declare the absence or existence of any interest which might be considered prejudicial to their independence in relation to any items on the agenda, and, if such an interest exists, shall abstain from participating in the discussion of and from voting upon such points.

3. The Administrative Board and the Security Accreditation Board shall lay down, in their rules of procedure, the practical arrangements for the rules on declaration of interest referred to in paragraphs 1 and 2 and for the prevention and management of conflicts of interest.

Article 41

Reporting and evaluation

1. Every five years, the Agency shall submit to the Commission a report on the operation of this Regulation.

2. Not later than five years after the entry into force of this Regulation, and every five years thereafter, the Commission shall commission an evaluation of the Agency’s performance in relation to its objectives, mandate, tasks, governance and locations in accordance with Commission’s guidelines. The evaluation shall, in particular, address the possible need to modify the mandate of the Agency and the financial implications of any such modification. It shall also address the Agency’s policy on conflicts of interest and the independence and autonomy of the Security Accreditation Board. The Commission may also evaluate the Agency’s performance to assess the possibility to entrust with additional tasks. 

3. On the occasion of every second evaluation done in accordance with paragraph 2, the Commission shall assess the results achieved by the Agency having regard to its objectives, mandate, governance and tasks, including an assessment of whether the continuation of the Agency is still justified in regard to these objectives, mandate, governance and tasks.

4. The Commission shall report to the European Parliament, the Council and the Administrative Board on the evaluation findings. The findings of the evaluation shall be made public.

Chapter 6
Transitional and Final provisions

Article 42

Transitional arrangements

1. The Agency as governed by this Regulation shall continue operations and activities of the Agency under Regulation (EU) 2021/696 as regards all ownership, agreements, legal obligations, employment contracts, financial commitments and liabilities.

2. The Executive Director appointed pursuant to Article 89 of Regulation (EU) 2021/696 shall remain in office and exercise the duties of the Executive Director as referred to in Article 13  of this Regulation for the remaining part of the Executive Director’s term of office.

3. The members of the Administrative Board and alternate members appointed pursuant to Article 73 of Regulation (EU) 2021/696 shall remain in office and exercise the functions of the Administrative Board as referred to in Article 9 and  Article 10 of this Regulation for the remaining part of their term of office.

4. The members of the Security Accreditation Board appointed pursuant to Article 39 of Regulation (EU) 2021/696 shall remain in office and exercise the functions of the Security Accreditation Board as referred to in Article 17 of this Regulation for the remaining part of their term of office.

Article 43

Amendments

Articles 29, 34 to 42 and 70 to 99 of Regulation (EU) No 2021/696 are deleted.

Article 44

Entry into force and date of application

1. This Regulation shall enter into force on the twentieth day of its publication in the Official Journal of the European Union.

2. It shall apply from 1 January 2028.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT

1. FRAMEWORK OF THE PROPOSAL/INITIATIVE

   11. Title of the proposal/initiative

Regulation of the European Parliament and of the Council on the European Union Space Services Agency amending Regulation (EU) 2021/696.

12. Policy area(s) concerned

02 Competitiveness, prosperity and security.

13. Objective(s)

131. General objective(s)

General Objective 1 – Lay down the tasks and rules of operation of the European Union Space Services Agency, to provide the legal certainty and clarity necessary for effective long-term planning and operation beyond the MFF periods.

132. Specific objective(s)

Specific objectives

Specific Objective 1 – Ensure a high degree of security for the Union space activities.

Specific Objective 2 – Support the implementation of the Union space components.

Specific Objective 3 – Foster the market uptake of information, services and data provided for those components.

133. Expected result(s) and impact

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted.

The Regulation is expected to provide a clear legal basis for the Agency as the Union Agency supporting the implementation of space systems and space policy under the proposed ECF Regulation. The designation of clear tasks and rules of operation aims to provide the legal certainty and clarity necessary for effective long-term planning and continuity of operations beyond the MFF periods.

134. Indicators of performance

Specify the indicators for monitoring progress and achievements.

The effectiveness of the proposed Regulation, with respect to specific objective no. 1, will be determined based on the number of successfully accredited space components, adherence to EU security standards, and the frequency and effectiveness of security audits conducted on operational systems.

The effectiveness of the proposed Regulation, with respect to specific objective no. 2, will be determined based on the increase in the user base and market share for EU space services, as well as the number of new partnerships and collaborations formed with businesses and research entities.

The effectiveness of the proposed Regulation, with respect to specific objective no. 3, will be determined based on the reduction in downtime and increased reliability of space systems and services, as well as the rate of successful upgrades and system enhancements implemented annually.

The overall effectiveness of the proposed Regulation will be monitored through periodic evaluations of the Agency to be initiated by the Commission. Moreover, as the proposed Regulation is linked to the proposal for the ECF Regulation, the latter envisions its monitoring through the performance framework for the 2028-2034 MFF, which is covered in a separate proposal.

14. The proposal/initiative relates to:

0. a new action

1. a new action following a pilot project/preparatory action ²⁶ (1)

2. the extension of an existing action

0. a merger or redirection of one or more actions towards another/a new action

   15. Grounds for the proposal/initiative

       151. Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of the implementation of the initiative

Like the other EU decentralised agencies, the Agency should not subject to a seven-year time limitation since its activities are designed to continue beyond the financial cycles. The current proposal will provide the Agency with a self-standing founding act with no time limitation that would allow it to operate effectively and efficiently and also onboard new tasks seamlessly.

The Agency’s tasks are described in Article 4 and are divided in three groups: the Agency's own tasks listed in paragraph 2, and the tasks that Commission shall entrust to the Agency listed in paragraph 3, are both tasks that the Agency's currently performs. The third group of tasks listed in paragraph 4 show the evolution of the Agency and are those tasks that the Commission shall entrust to the Agency subject to its operational readiness and where necessary to the establishment of relevant mechanisms to ensure service continuity.

152. Added value of EU involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this section 'added value of EU involvement' is the value resulting from EU action, that is additional to the value that would have been otherwise created by Member States alone.

The objective of this proposal cannot be achieved at the Member State level. This initiative is needed to provide the Agency with a clear legal framework and prepare the ground for current and future broader role. By their nature, because they are linked to the Union space programmes, the Agency's tasks can only be carried out at EU level. Adopting a self-standing Regulation is necessary to enable the Agency to address current and future challenges, and have clear description of its own tasks, and tasks entrusted or in the process of being entrusted to the Agency through various legislative proposals (existing or under preparation).

153. Lessons learned from similar experiences in the past

The current proposal is also the result of the performance assessment undertaken by the Commission in the context of the Interim review, which concluded that the overall performance of the Agency is good, and it is reaching all its targets, providing unique value in several key areas. 

154. Compatibility with the multiannual financial framework and possible synergies with other appropriate instruments

The budget proposed is fully in line with the Commission proposal for the MFF 2028-2034.

155. Assessment of the different available financing options, including scope for redeployment

N/A.

16. Duration of the proposal/initiative and of its financial impact

0. limited duration

   0. in effect from 1.1.2028 to 31.12.2034

   1. financial impact from YYYY to YYYY for commitment appropriations and from YYYY to YYYY for payment appropriations.

1. unlimited duration

Implementation with a start-up period from YYYY to YYYY,

followed by full-scale operation.

17. Method(s) of budget implementation planned ²⁷ (2)

0. Direct management by the Commission

   0. by its departments, including by its staff in the Union delegations;

   1. by the executive agencies

1. Shared management with the Member States

2. Indirect management by entrusting budget implementation tasks to:

   0. third countries or the bodies they have designated;

   1. international organisations and their agencies (to be specified);

   2. the European Investment Bank and the European Investment Fund;

   3. bodies referred to in Articles 70 and 71 of the Financial Regulation;

   4. public law bodies;

   5. bodies governed by private law with a public service mission to the extent that they are provided with adequate financial guarantees;

   6. bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that are provided with adequate financial guarantees;

   7. bodies or persons entrusted with the implementation of specific actions in the common foreign and security policy pursuant to Title V of the Treaty on European Union, and identified in the relevant basic act

   8. bodies established in a Member State, governed by the private law of a Member State or Union law and eligible to be entrusted, in accordance with sector-specific rules, with the implementation of Union funds or budgetary guarantees, to the extent that such bodies are controlled by public law bodies or by bodies governed by private law with a public service mission, and are provided with adequate financial guarantees in the form of joint and several liability by the controlling bodies or equivalent financial guarantees and which may be, for each action, limited to the maximum amount of the Union support.

Comments

N/A.

2. MANAGEMENT MEASURES

   21. Monitoring and reporting rules

The Agency shall submit to the Commission a report on the operation of this Regulation every five years. Also every five years, the Commission shall assess the Agency’s performance, in relation to its objectives, mandate, tasks, governance and location(s) based on a cost-benefit analysis. 

The Commission issues an opinion on the single programming document of the agency which will cover the tasks in the mandate of the agency and the financial resources allocated to them.

22. Management and control system(s)

    221. Justification of the budget implementation method(s), the funding implementation mechanism(s), the payment modalities and the control strategy proposed

This Legislative Financial Statement includes an increase of the contribution to the Agency for the next period 2028-2034. It relates to the continuation of current tasks but also to the new activities,. The financial and staff resources necessary to conduct these tasks will be included in the EU contribution to the Agency and in the overall staff allocation to the agency during the annual budgetary procedure. The Commission, in the context of its supervision of decentralised entities, will apply its respective control strategies to this expenditure. In addition, every financial year, the European Parliament, following a recommendation from the Council, grants discharge to each EU agency for the implementation of its budget; this procedure also applies to the Agency.

222. Information concerning the risks identified and the internal control system(s) set up to mitigate them

The resources put at the disposal of the Agency will be covered by their internal control and risk management systems that are aligned with the relevant international standards. The Commission will apply the controls through its supervision of decentralised agencies. No specific risks are identified in relation with the implementation of the additional budget to be provided to the Agency.

223. Estimation and justification of the cost-effectiveness of the controls (ratio between the control costs and the value of the related funds managed), and assessment of the expected levels of risk of error (at payment & at closure)

The risk of error at payment and at closure is expected to remain under 2%. The agencies are fully responsible for the implementation of their budget, while the Commission is responsible for the regular payment of the contributions.

23. Measures to prevent fraud and irregularities

In addition to the controls stemming from the anti-fraud strategy of the Agency, the action is subject to scrutiny of the Internal Audit Service, in its capacity of internal auditor of the Commission and of the decentralised agencies, and of the European Court of Auditors, in its capacity of external auditor of the EU Institutions. The Commission maintains robust antifraud strategy. The Commission services complement this by the antifraud strategy that covers the activities falling under its remit.

3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

   31. Heading(s) of the multiannual financial framework and expenditure budget line(s) affected

Existing budget lines

In order of multiannual financial framework headings and budget lines.

New budget lines requested

In order of multiannual financial framework headings and budget lines.

32. Estimated financial impact of the proposal on appropriations

    321. Summary of estimated impact on operational appropriations

0. The proposal/initiative does not require the use of operational appropriations

1. The proposal/initiative requires the use of operational appropriations, as explained below:

   3211. Appropriations from voted budget

EUR million (to three decimal places)

EUR million (to three decimal places)

The amount of appropriations to be allocated to the agency in the next MFF is indicative and subject to the agreement on the MFF. It should be integrated into the Agency’s subsidy due to the permanent nature of the tasks allocated by this proposal and will be compensated, if relevant, by an equivalent reduction of a relevant programme envelope under the same MFF heading. If a compensatory reduction is needed, the resources allocated to the Agency may also need to be revised.

EUR million (to three decimal places)

3212. Appropriations from external assigned revenues

EUR million (to three decimal places)

EUR million (to three decimal places)

EUR million (to three decimal places)

322. Estimated output funded from operational appropriations (not to be completed for decentralised agencies)

Commitment appropriations in EUR million (to three decimal places)

323. Summary of estimated impact on administrative appropriations

0. The proposal/initiative does not require the use of appropriations of an administrative nature

1. The proposal/initiative requires the use of appropriations of an administrative nature, as explained below:

   3231. Appropriations from voted budget

3232. Appropriations from external assigned revenues

3233. Total appropriations

The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the DG, together, if necessary, with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.

324. Estimated requirements of human resources

0. The proposal/initiative does not require the use of human resources

1. The proposal/initiative requires the use of human resources, as explained below

   3241. Financed from voted budget

Estimate to be expressed in full-time equivalent units (FTEs) ³⁶(14)

3242. Financed from external assigned revenues

3243. Total requirements of human resources

The staff required to implement the proposal (in FTEs):

Description of tasks to be carried out by:

325. Overview of estimated impact on digital technology-related investments

Compulsory: the best estimate of the digital technology-related investments entailed by the proposal/initiative should be included in the table below.

Exceptionally, when required for the implementation of the proposal/initiative, the appropriations under Heading 7 should be presented in the designated line.

The appropriations under Headings 1-6 should be reflected as "Policy IT expenditure on operational programmes". This expenditure refers to the operational budget to be used to re-use/ buy/ develop IT platforms/ tools directly linked to the implementation of the initiative and their associated investments (e.g. licences, studies, data storage etc). The information provided in this table should be consistent with details presented under Section 4 "Digital dimensions".

326. Compatibility with the current multiannual financial framework

The proposal/initiative:

0. can be fully financed through redeployment within the relevant heading of the multiannual financial framework (MFF).

1. requires use of the unallocated margin under the relevant heading of the MFF and/or use of the special instruments as defined in the MFF Regulation.

2. requires a revision of the MFF.

   327. Third-party contributions

The proposal/initiative:

0. does not provide for co-financing by third parties

1. provides for the co-financing by third parties estimated below:

Appropriations in EUR million (to three decimal places)

328. Estimated human resources and the use of appropriations required in a decentralised agency

Staff requirements (full-time equivalent units)

Appropriations covered by the EU budget contribution in EUR million (to three decimal places)

Appropriations covered by fees, if applicable, in EUR million (to three decimal places)

The proposal for a Regulation on the safety, resilience and sustainability of Space activities in the Union (EU Space Act) forsees a possibility for the Agency to collect fees. Any revenue from fees and charges collected by the Agency should reduce the EU budget contribution to the Agency accordingly.

Appropriations covered by co-financing, if applicable, in EUR million (to three decimal places)

Overview/summary of human resources and appropriations (in EUR million) required by the proposal/initiative in a decentralised agency

33. Estimated impact on revenue

0. The proposal/initiative has no financial impact on revenue.

1. The proposal/initiative has the following financial impact:

   0. on own resources

   1. on other revenue

   2. please indicate, if the revenue is assigned to expenditure lines

EUR million (to three decimal places)

For assigned revenue, specify the budget expenditure line(s) affected.

[...]

Other remarks (e.g. method/formula used for calculating the impact on revenue or any other information).

[...]

4. DIGITAL DIMENSIONS

   41. Requirements of digital relevance

If the policy initiative is assessed as having no requirement of digital relevance, provide an explanation as to why digital means are not used.

N/A.

Otherwise, please list the requirements of digital relevance in the table below:

42. Data

High-level description of the data in scope and any related standards/specifications

Alignment with the European Data Strategy

Explain how the requirement(s) are aligned with the European Data Strategy

[...]

Alignment with the once-only principle

Explain how the once-only principle has been considered and how the possibility to reuse existing data has been explored

[...]

Explain how newly created data is findable, accessible, interoperable and reusable, and meets high-quality standards

[...]

Data flows

For each data flow, please fill the table below:

43. Digital solutions

For each digital solution, please provide the reference to the requirement(s) of digital relevance concerning it, a description of the digital solution's mandated functionality, the body that will be responsible for it, and other relevant aspects such as reusability and accessibility. Finally, explain whether the digital solution intends to make use of AI technologies.

For each digital solution, explain how the digital solution complies with the requirements and obligations of the EU cybersecurity framework, and other applicable digital policies and legislative enactments (such as eIDAS, Single Digital Gateway, etc.).

Digital solution #1

Digital solution #2

44. Interoperability assessment

Describe the digital public service(s) affected by the requirements

Assess the impact of the requirement(s) on cross-border interoperability

Digital public service #1

45. Measures to support digital implementation

For each measure to support digital implementation, please fill in the table below