Council Regulation (EC) No 876/2002 of 21 May 2002 setting up the Galileo Joint Undertaking

Publication Date28 May 2002
Official gazette publicationOfficial Journal of the European Communities, L 138, 28 May 2002
Consolidated TEXT: 32002R0876 — EN — 25.07.2009

2002R0876 — EN — 25.07.2009 — 002.001

This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents



of 21 May 2002

setting up the Galileo Joint Undertaking

(OJ L 138, 28.5.2002, p.1)

Amended by:

Official Journal





COUNCIL REGULATION (EC) No 1943/2006 of 12 December 2006

L 367





L 196





of 21 May 2002

setting up the Galileo Joint Undertaking


Having regard to the Treaty establishing the European Community, and in particular Article 171 thereof,

Having regard to the proposal from the Commission ( 1 ),

Having regard to the opinion of the European Parliament ( 2 ),

Having regard to the opinion of the Economic and Social Committee ( 3 ),



On 13 January 1999 the European Parliament adopted a Resolution on the Communication from the Commission to the Council and the European Parliament ‘Towards a trans-European Positioning and Navigation Network: including a European Strategy for Global Navigation Satellite Systems (GNSS)’ ( 4 ).


On 10 February 1999 the Commission adopted the Communication ‘Galileo — Involving Europe in a new generation of satellite navigation services’.


The conclusions of the European Council in Cologne (3 and 4 June 1999), Feira (19 and 20 June 2000), Nice (7 to 11 December 2000), Stockholm (23 and 24 March 2001), Laeken (14 and 15 December 2001) and Barcelona (15 and 16 March 2002) make reference to Galileo.


On 19 July 1999 the Council adopted a Resolution on the involvement of Europe in a new generation of satellite navigation services — Galileo — Definition phase ( 5 ).


On 22 November 2000 the Commission adopted a Communication to the European Parliament and the Council on Galileo.


The Council adopted a Resolution on Galileo on 5 April 2001 ( 6 ).


On 26 March 2002, the Council adopted conclusions on Galileo.


The first research contracts and feasibility studies were funded under the fourth and fifth framework programmes for research and development.


The technological development phase was funded from the appropriations assigned to the trans-European transport networks on the basis of Article 4(g) of Decision No 1692/96/EC of the European Parliament and of the Council of 23 July 1996 on Community guidelines for the development of the trans-European transport network ( 7 ), which provides for the possibility of funding for research and development, and Article 17 of Council Regulation (EC) No 2236/95 of 18 September 1995 laying down general rules for the granting of Community financial aid in the field of trans-European networks ( 8 ).


At the beginning of 2001, the management of the Galileo satellite radio-navigation programme, hereinafter referred to as the ‘Galileo programme’, entered its development phase aimed at verifying and testing the assumptions made during the definition phase, in particular with regard to the various components of the architecture of the system.


The development phase should be followed by the deployment phase consisting of the production of satellites and terrestrial components, satellite launching and the installation of terrestrial stations and equipment in order to enable the system to be operational in 2008.


Taking into account the number of players who will need to be involved in this process, and the financial resources and technical expertise needed, it is vital to set up a legal entity capable of ensuring the coordinated management of the funds assigned to the Galileo programme during its development phase. For reasons of legal certainty, it should be specified that this entity, which is not designed to fulfil an economic purpose and is responsible for managing a public research programme of European interest, must be considered as an international organisation within the meaning of the second indent of Article 15(10) of the Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes ( 9 ) and the second indent of Article 23(1) of Council Directive 92/12/EEC of 25 February 1992 on the general arrangements for products subject to excise duty and on the holding, movement and monitoring of such products ( 10 ).


The Stockholm European Council noted that ‘the private sector is ready to supplement the public budgets for the development phase’. The representatives of the main industries concerned signed a Memorandum of Understanding in March 2001 whereby they committed themselves to indicating their contribution to the total amount of EUR 200 million for the development phase of the Galileo programme by subscribing to the capital of the Joint Undertaking or contributing in some other form.


It is therefore necessary to set up a Joint Undertaking under Article 171 of the Treaty, since the Galileo programme involves a major research and development component which justifies and will continue to justify the use of funds assigned to the research and development framework programmes. In addition, this programme should make it possible to make considerable progress in the development of satellite navigation technologies.


The Joint Undertaking's main task should be, in accordance with Council decisions, successfully to complete the development of the Galileo programme during its development phase by combining public and private sector funding. In addition, it should make it possible to ensure the management of major demonstration projects.


The Joint Undertaking's financial regulations should respect the broad principles and rules as laid down in the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities ( 11 ).


In formulating its proposal for the nomination of the Director of the Joint Undertaking, the Commission should consider that he/she be appointed on the grounds of merit and managerial skills, as well as competence and relevant experience, and should be independent of any undertaking in the performance of his/her duties,


Article 1

For the implementation of the development phase of the Galileo programme, a Joint Undertaking within the meaning of Article 171 of the Treaty is hereby set up ►M1 until 31 December 2006.

The aim of the Joint Undertaking shall be to ensure the unity of the administration and the financial control of the project for the research, development and demonstration phase of the Galileo programme, and to this end mobilise the funds assigned to that programme.

The Joint Undertaking shall be considered as an international organisation within the meaning of the second indent of Article 15(10) of Directive 77/388/EEC and the second indent of Article 23(1) of Directive 92/12/EEC.

Its seat shall be located in Brussels.

Article 2

The Statutes of the Joint Undertaking, as set out in the Annex hereto, are hereby adopted.

Article 3

1. In order to ensure an adequate flow of information and effective political control by Member States of the implementation of the development phase of the Galileo programme, a Supervisory Board shall be established. It shall be composed of one representative of each Member State of the European Union, and of the representative of the Commission at the Administrative Board of the Joint Undertaking.

2. The Supervisory Board shall be chaired by the representative of the Member State which holds the Presidency of the Council of the European Union.

3. In due time, and at least 15 days before each meeting of the Administrative Board, the Commission shall convene the Supervisory Board and submit all documents to its members convening the issues on the agenda for that meeting.

The Supervisory Board shall take a decision on all issues that are on the agenda of the upcoming meeting of the Administrative Board and may put other items on that agenda. The Commission shall, when carrying out its functions on the Administrative Board, do everything possible to ensure that decisions taken by the Administrative Board reflect the decisions and views of the Supervisory Board.

4. The Supervisory Board shall take its decisions by qualified majority of the votes of the representatives of the Member States, these votes being weighted in accordance with Article 205(2) of the Treaty. The representative of the Commission shall not participate in the vote.

5. The Supervisory Board shall adopt its rules of procedure.

Article 4

Every year, the Commission shall present to the Council the annual report on the progress of the Galileo programme as well as the programme development plan, including the financial aspects.

At the end of 2003, the Commission shall inform the Council of the results of the tendering procedure launched by the Joint Undertaking in accordance with Article 4 of its Statutes.

Article 5

The Commission shall report to the Council on the accession of new members.

Any participation of new members, including the participation of members from third countries, shall be submitted to the Council for approval.

Article 6

The Joint Undertaking shall be subject to the rules contained in Council...

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