Committee on Industry, Research and Energy. Contributions in relation to UK withdrawal from the European Union

Transcription

1 Committee on Industry, Research and Energy Committee on Industry, Research and Energy Contributions in relation to UK withdrawal from the European Union At their meeting of 12 January 2017, the Coordinators of the Committee on Industry, Research and Energy endorsed the attached contributions in relation to UK withdrawal from the European Union, covering the matters falling within the committee remit, as laid down in Annex VI to the Rules of Procedure of the European Parliament. As a general point, it should be noted that the timing of withdrawal - namely, whether it takes place before, at or after the end of the ongoing financial framework period - will entail different legal consequences, both in operational and financial terms. It also seems very likely that, in some cases, implementation of the withdrawal will spread over several years, having an impact on a large number of legal acts of various types, where Parliament is involved in the procedure. With regard to the contributions themselves, it is important to recall that, given the short time available for their preparation and the fact that the UK position is still unknown, they can only constitute a very first assessment of the situation. It is therefore essential that the parliamentary committees be closely involved in following the negotiations and in the consent procedure as well as in discussions on any transitional arrangements and the future relationship, so that Parliament can benefit from the substantive knowledge held in the committees. Jerzy Buzek Chair of the Committee on Industry, Research and Energy

2 ITRE COMMITTEE Energy Policy First part (Impact on any pending or imminent procedure) 1. What is the possible impact on legislative files currently under discussion of impending UK departure? 2. What is the likely impact on these legislative files if they are not concluded pre-brexit and therefore only concluded post-brexit? The current and upcoming files likely to be affected are as follows: 1. Regulation (EU) No 994/2010 on security of gas supply is under revision. There are three issues to be addressed: i. The UK and Ireland are supposed to form the North-West region in the proposed regulation (regional groupings are designed to ensure better coordination and solidarity between Member States). Will the regional groupings need to be adapted? ii. The proposal includes a solidarity mechanism between Member States (to help ensure gas supplies in the case of a severe crisis). Should it be adapted to iii. take account of UK withdrawal? Should the notification obligations with regard to contracts with suppliers from third countries be adapted to take account of UK withdrawal? 2. Decision No 994/2012/EU establishing an Information Exchange Mechanism with regard to intergovernmental agreements in the field of energy (IGAs) is under review. The new Decision may oblige Member States to notify existing IGAs or IGAs that are being negotiated. Will the UK have to notify such agreements before its withdrawal? 3. The Commission recently published proposals to revise parts of the Third Energy Package 1. They mainly concern the electricity market. The proposed legislation does not have country-specific provisions, but UK withdrawal may have practical implications on the functioning of the market, which need to be taken into account in this revision; 4. The Commission recently published its proposal to revise Directive 2005/89/EC on security of electricity supply 2. There are no country specific provisions in the proposal, but the consequences of the UK possibly no longer forming part of the overall European framework for ensuring the security of electricity supply should be taken into account in this review; 1 The following proposals are expected: Proposal for a revised electricity Directive [COM(2016)864] (replacing the Internal Market in Electricity Directive (2009/72/EC)); Proposal for a revised electricity regulation [COM(2016)861] (replacing Regulation (EC) No 714/2009 on conditions for access to the network for cross-border exchanges in electricity); Proposal for a revised regulation on a European Agency for the Cooperation of Energy Regulators (ACER) [COM(2016)863]. 2 Proposal for a new regulation on risk preparedness in the electricity sector [COM(2016)862]

3 5. The Commission published its proposal to revise Directive 2012/27/EU on energy efficiency on 30 November How will the EU target for primary/final energy consumption under the current 2020 framework be affected (it is expressed in absolute terms and UK energy consumption will no longer be relevant)? 6. The Commission published its proposal to revise Directive 2009/28/EC on renewable energy on 30 November Under the current Directive, the UK has a binding national target of 15% of energy to come from renewable energy sources. It may be necessary to take account of UK withdrawal in the setting of targets and/or Member States contributions under the revised directive. Notwithstanding the UK withdrawal process, it is in the European interest to adopt and implement these files in the near future. Second part (provisions to be included in the Exit agreement and content of the future EU- UK relations agreement) 3. Are there policies or EU legislation in force likely to feature as part of the EU-UK withdrawal agreement, and if so in what way? 4. Are there policies or EU legislation in force likely to feature as part of the future EU- UK relationship agreement, and if so in what way? It is not yet clear what will be in the exit agreement and what will be in the future relations agreement. Relevant issues are therefore grouped together in this section. 1. The Third Energy Package is due to be revised (see above, part 1, point 3). Will the UK continue to be part of the energy market and what impact will UK withdrawal have on the completion of the energy market and the pan-european network codes for example? 2. In connection with the Package, the UK s status in relevant EU bodies such as ACER 3, ENTSO-E 4, ENTSO-G 5 will need to be clarified (third countries may participate in ACER if they conclude agreements with the Community whereby they have adopted and are applying Community law in the field of energy and, if relevant, in the fields of environment and competition. ) 6. Any financial matters relating to ACER would need to be resolved; 3. If the UK no longer applies energy market regulation, what will be the impact on markets of UK energy companies operating in the EU if they are no longer subject to market design rules 7 or energy-related state aid rules applying to EU-based companies? 4. Regulation (EU) No 347/2013 on the guidelines for trans-european energy infrastructure (TEN-E) supports the implementation of projects of common interest (PCIs): i. What will be the impact of withdrawal on PCIs in and/or connected to the UK on the list (revised every two years 8 )? In particular, what will be the status of 3 Agency for the Cooperation of Energy Regulators. 4 European Network of Transmission System Operators for Electricity. 5 European Network of Transmission System Operators for Gas. 6 Article 31 of the ACER Regulation (713/2009). 7 See in particular the proposals mentioned under footnote 1. 8 Currently, UK-related PCIs are as follows: 5 electricity PCIs planned before 2020, 5 PCIs after 2020, Northern Ireland 2 PCIs planned before 2020, one after 2020.

4 projects ongoing at the time of exit and will UK-linked projects be eligible for funding? Will UK withdrawal have an impact on the budget available? ii. Will withdrawal affect the criteria to be satisfied (e.g. the energy infrastructure priority corridors and areas ; the requirement for a connection to Member States (some projects may continue to do so) and the requirement to comply with EU legislation including detailed delegated legislation)? iii. The question of the TEN-E Regulation s application to the UK will need to be clarified; 5. How will funding instruments for energy be affected (e.g. Regulation (EU) 2015/1017 establishing the European Fund for Strategic Investment 9 and financing from the European Investment Bank)? It should be clarified whether UK projects (or projects that connect through the UK) will continue to be eligible for EFSI and EIB funding if they continue to satisfy the other applicable funding criteria. Transitional arrangements may also be required for on-going projects; 6. How will Regulation (EU) No 1316/2013 establishing the Connecting Europe Facility (CEF) be affected, both in terms of projects ending under the current CEF and any projects that run beyond 2020 and in terms of the CEF budget in the next MFF? 7. Will the UK continue to apply EU standards in relation to offshore oil and gas operations (see Directive 2013/30/EU on safety of offshore oil and gas operations)? The UK would no longer be a member of the European Union Offshore Oil and Gas Authorities Group but could be invited to take part in the Group s work 10. The Commission is responsible for facilitating the exchange of information between Member States with offshore oil and gas operations and adjacent third countries with similar operations; 8. It should be clarified whether legally the Article 50 notification procedure automatically applies to the EURATOM Treaty? Moreover, will the UK wish to have a role in EURATOM (e.g. as an associated Member)? 9. What role will the UK have in ITER 11 (the international fusion energy project), bearing also in mind the Joint European Torus in Culham, England (contracted to run until 2018), which is crucial for the planning of the next-generation ITER reactor? Any issues relating to the UK's contribution to ITER and division of assets and liabilities should be dealt with in the Article 50 Agreement (general budget, participation of UK in EU research programmes); 10. Will the UK continue to observe EU standards for nuclear safety, radioactive waste and radiation protection 12? 9 There is also a pending proposal for EFSI See Commission decision 18/07 of See: Council Decision 2007/198/Euratom establishing the European Joint Undertaking for ITER and the Development of Fusion Energy; and The Agreement on the establishment of the ITER international fusion energy organization for a joint implementation of the ITER project (OJ L 358/62 of 16 December 2006). 12 Relevant nuclear energy legislation includes: Directive 2009/71/EURATOM establishing a Community framework for the nuclear safety of nuclear installations; Directive 2011/70/EURATOM establishing a Community framework for the responsible and safe management of spent fuel and radioactive waste; and Directive 2003/122/EURATOM on the control of high-activity sealed radioactive sources and orphan sources.

5 Third part (any other relevant element) UK withdrawal is likely to have an impact on the situation of Ireland. Ireland is connected to the rest of the EU through the UK. Moreover, Ireland and Northern Ireland (NI) form a Single Energy Market (SEM), and the Irish and NI governments and regulatory authorities are engaged in a programme to align the SEM with the EU Network Codes, with a view to creating an Integrated Single Electricity Market. Essentially, a single set of markets (forward, day-ahead, intraday and balancing) will cover both Ireland and Northern Ireland with a number of the key roles being carried out on an all-island basis by EirGrid, the holder of the Irish TSO and market operator licences, and SONI, its NI subsidiary that holds corresponding NI licences.

6 ITRE COMMITTEE Telecoms Policy First part (Impact on any pending or imminent procedure) 1. What is the possible impact on legislative files currently under discussion of impending UK departure? 2. What is the likely impact on these legislative files if they are not concluded pre-brexit and therefore only concluded post-brexit? The current and upcoming files likely to be affected are as follows: 1. The Commission has proposed an amendment to the Connecting Europe Facility (CEF) Regulation and to Regulation (EU) No 283/2014 on guidelines for trans- European networks in the area of telecommunications infrastructure ( WiFi4EU ) to promote Internet connectivity in local communities 13. Funding is proposed to be on a first come, first served basis. The issue of funding for UK projects may need to be addressed? 2. The BEREC Regulation 14 is under revision. BEREC is the forum for cooperation among national telecoms regulators (NRAs) and between them and the Commission. In the event of withdrawal, the UK s participation in BEREC would need to be clarified: under the existing regulation, NRAs from EEA States and from candidate countries have observer status on the Board of Regulators and are represented at an appropriate level. BEREC may invite other experts and observers to attend its meetings; under the amending Commission proposal, BEREC will be open to the participation of third-country regulators, in particular those of EEA EFTA states and candidate countries, on the basis of an international agreement, specifying, in particular, the nature, extent and manner of the participation, including provisions relating to participation in the initiatives undertaken by BEREC, financial contributions and staff. Second part (provisions to be included in the Exit agreement and content of the future EU- UK relations agreement) 3. Are there policies or EU legislation in force likely to feature as part of the EU-UK withdrawal agreement, and if so in what way? 4. Are there policies or EU legislation in force likely to feature as part of the future EU- UK relationship agreement, and if so in what way? It is not yet clear what will be in the exit agreement and what will be in the future relations agreement. Relevant issues are therefore grouped together in this section. 13 The WIFI4EU proposal: COM(2016) 589 final. 14 See Regulation (EC) No 1211/2009 establishing the Body of European Regulators for Electronic Communications (BEREC) and the Office. This Regulation is under revision.

7 1. The telecommunications regulatory framework 15 is under revision. Issues relating to the rights of EU providers in the UK and of UK providers in the EU might need to be addressed (general authorisation scheme, free movement of services, capital, etc.). There may also be a significant impact on business; 2. The issue of spectrum management and harmonisation might need to be addressed, including in reference to interference. How will the UK regulator cooperate with Member State regulators and EU bodies such as the Radio Spectrum Policy Group 16 in the management and harmonisation of spectrum? 3. In the event of UK withdrawal, any financial matters relating to BEREC and the BEREC Office would need to be resolved; 4. The same applies with regard to the European Union Agency for Network and Information Security (ENISA) 17. Moreover, under the current regulation - which is currently under review by the Commission - UK participation in ENISA would depend on whether it had adopted and applied Union legal acts in the field of network and information security 18 ; 5. Under Regulation (EU) No 910/2014 on electronic identification and trust services for electronic transactions in the internal market, trust services provided by thirdcountry trust service providers are recognised as legally equivalent to qualified trust services provided by EU-established providers on the basis of an agreement between the EU and the third country in question 19. Such an agreement would be required with the UK; 6. What will be the impact on Regulation (EU) No 1316/2013 establishing the CEF combined with Regulation (EU) No 283/2014 (see also part 1, point 1), under which support is provided for projects in the area of telecommunications? In particular, how will UK withdrawal affect projects ending under the current CEF and any projects that run beyond 2020 and how will withdrawal affect the budget for such activities in the next MFF? 7. The ISA² programme 20, which runs until 2020, supports the development of digital solutions that enable public administrations, businesses and citizens in Europe to benefit from interoperable cross-border and cross-sector public services. The status of any projects involving the UK that run until the end of the programme period would 15 The Commission has published a proposal for a directive establishing the European Electronic Communications Code, which is designed to recast the following legislation: Directive 2002/19/EC on access to, and interconnection of, electronic communications networks and associated facilities (Access Directive); Directive 2002/20/EC on the authorisation of electronic communications networks and services (Authorisation Directive); Directive 2002/21/EC on a common regulatory framework for electronic communications networks and services (Framework Directive); Directive 2002/22/EC on universal service and users' rights relating to electronic communications networks and services (Universal Service Directive); Directive 2009/140/EC amending Directives 2002/21/EC, 2002/19/EC, and 2002/20/EC. 16 A high-level advisory group that assists the Commission in the development of radio spectrum policy. Each Member State and the Commission have a representative. Representatives of the EEA countries and the candidate countries are also invited to attend plenary meetings as observers. 17 Regulation (EU) No 526/2013 concerning the European Union Agency for Network and Information Security. 18 See Article 30 of Regulation (EU) No 526/ See Article 14 of the Regulation. 20 Decision (EU) 2015/2240 establishing a programme on interoperability solutions and common frameworks for European public administrations, businesses and citizens (ISA2 programme) as a means for modernising the public sector.

8 need to be clarified 21. UK withdrawal may also have an impact on the budget available for any successor programme; 8. Since Regulation (EU) No 531/2012 on roaming will no longer apply with respect to the UK, impacting business and other travellers to and from the UK, transitional arrangements will be necessary. 21 The programme is open to participation by EEA and candidate countries. Cooperation with other third countries and with international organisations or bodies is encouraged.

9 ITRE COMMITTEE Research Policy First part (Impact on any pending or imminent procedure) 1. What is the possible impact on legislative files currently under discussion of impending UK departure? 2. What is the likely impact on these legislative files if they are not concluded pre-brexit and therefore only concluded post-brexit? The only current legislative file in the research field is the proposal for a decision on the participation of the Union in the Partnership for Research and Innovation in the Mediterranean Area (PRIMA) 22. Withdrawal is unlikely to affect this proposal directly, since the UK has not indicated that it intends to participate in this Article 185 TFEU proposal. Second part (provisions to be included in the Exit agreement and content of the future EU- UK relations agreement) 1. Are there policies or EU legislation in force likely to feature as part of the EU-UK withdrawal agreement, and if so in what way? 2. Are there policies or EU legislation in force likely to feature as part of the future EU- UK relationship agreement, and if so in what way? It is not yet clear what will be in the exit agreement and what will be in the future relations agreement. Relevant issues are therefore grouped together in this section. 1. In respect of the Framework programme for research (Horizon 2020) 23, at least the following issues need to be addressed: i. Will there be a shortfall of funding in the remaining Horizon 2020 framework programme, if the UK withdrawal takes effect before the end of the current MFF period? ii. What is the position in respect of projects (whether grants or financial instruments) involving UK beneficiaries ongoing at the time of exit, taking account of the prominent role played by the UK 24? 22 COM(2016) See the following: Regulation (EU) No 1291/2013 establishing Horizon the Framework Programme for Research and Innovation ( ); Regulation (EU) No 1290/2013 laying down the rules for participation and dissemination in "Horizon the Framework Programme for Research and Innovation ( )"; Decision establishing the specific programme implementing Horizon the Framework Programme for Research and Innovation ( ); Regulation (EU) No 1292/2013 amending Regulation (EC) No 294/2008 establishing the European Institute of Innovation and Technology; Decision No 1312/2013/EU on the Strategic Innovation Agenda of the European Institute of Innovation and Technology (EIT): the contribution of the EIT to a more innovative Europe. 24 The UK is the:

10 iii. What will be the impact of UK withdrawal on the Public-Private Partnerships in Horizon 2020 (especially the Joint Technology Initiatives 25 ), bearing in mind that the participation of industrial partners is governed by commercial law? Is it necessary to revise the basic and further implementing rules if a partnership has been established with companies in UK, taking into account that some Joint Technology Initiatives 26 have UK companies listed as founding members in the basic act?; iv. What will happen to the Knowledge and Innovation Communities (KICs 27 ), in particular those with co-location and/or regional implementation and innovation centres in UK? Is it necessary to revise the contractual relationship between European Institute of Technology and Innovation and the KICs? v. What will be the status of the Public-Public Partnerships 28 in which the UK is partner? first Member State in terms of applicants ( out of from Member States from 2014 to the end of 2016 (in total, from all countries)); fourth Member State in terms of number of participants (1.581 unique participants, out of from Member States from 2014 to the end of 2016 (in total, from all countries)); second Member State in terms of number of participations (5.977 participations, out of from Member States from 2014 to the end of 2016 (in total, from all countries)) second Member State in terms of share of participation in signed grant agreements (until now: 12,87 % out of total participations in H2020) second Member State in terms of EU contribution (Germany: 17,15 %; UK: 15,19 %; France: 10,31 %; Spain: 8,96 %; Italy: 8,17 %). Out of EUR deployed so far in H2020, the UK has received See Council Regulations (EU) No 557/2014 establishing the Innovative Medicines Initiative 2 Joint Undertaking; (EU) No 559/2014 establishing the Fuel Cells and Hydrogen 2 Joint Undertaking; (EU) No 558/2014 establishing the Clean Sky 2 Joint Undertaking; (EU) No 560/2014 establishing the Bio-based Industries Joint Undertaking; (EU) No 561/2014 establishing the ECSEL Joint Undertaking; (EU) No 642/2014 establishing the Shift2Rail Joint Undertaking; (EU) No 721/2014 amending Regulation (EC) No 219/2007 on the establishment of a Joint Undertaking to develop the new generation European air traffic management system (SESAR) as regards the extension of the Joint Undertaking until For example, Shift to Rail. 27 There are currently five KICs and each focuses on a different societal challenge: Climate-KIC: addressing climate change mitigation and adaptation; EIT Digital: addressing Information and Communication Technologies; KIC InnoEnergy: addressing sustainable energy; EIT Health: addressing healthy living and active ageing; EIT Raw Materials: addressing sustainable exploration, extraction, processing, recycling and substitution. 28 See the following: Decision No 553/2014/EU on the participation of the Union in a Research and Development Programme jointly undertaken by several Member States aimed at supporting research and development performing small and medium-sized enterprises; Decision No 555/2014/EU on the participation of the Union in a European Metrology Programme for Innovation and Research (EMPIR) jointly undertaken by several Member States; Decision No 556/2014/EU on the participation of the Union in a second European and Developing Countries Clinical Trials Partnership Programme (EDCTP2) jointly undertaken by several Member States; Decision No 554/2014/EU on the participation of the Union in the Active and Assisted Living Research and Development Programme jointly undertaken by several Member States.

11 vi. Are the tangible or intangible assets created or developed under the Research Framework programmes affected by UK withdrawal? vii. Clarification is needed on a possible future UK involvement in the next framework programme, including any possible financial contribution; viii. Is there an impact on the EU s joint liability risks for the EU budget in the future? ix. How will UK withdrawal affect planning and strategic ambition for FP9 in the next MFF, also considering that the next MFF programmes will be proposed at the beginning 2018? The same applies to the Defence Research Fund, which is planned for the post-2020 multiannual financial framework29; 2. What is the impact on the European Research Area (ERA), bearing in mind that the UK has a leading position as a location for science and that research and innovation benefit from clear long-term frameworks? The following issues are of particular relevance: i. Will UK withdrawal have an impact on researcher mobility, since this is a key element of the ERA (15% of all academic staff at UK universities are from other EU countries)? How does this affect actions under for example the Marie ii. Sklodowska-Curie programme? What does the UK envisage as regards its involvement in ERA, considering that 60% of the UK s internationally co-authored research papers are written with EU partners? 3. The assessment of ITER (the international fusion energy project) is covered under the ITRE contribution on energy policy. 29 See the Defence Action Plan (COM2016)950).

12 ITRE COMMITTEE Industry, including SMEs, and European Space Policy First part (Impact on any pending or imminent procedure) 1. What is the possible impact on legislative files currently under discussion of impending UK departure? 2. What is the likely impact on these legislative files if they are not concluded pre-brexit and therefore only concluded post-brexit? Industrial policy is mainly non-legislative, although a wide range of EU legislation affects industry. The main issue is whether the UK remains a member of the single market. With regard to space, the only file currently before the committee is the Space Strategy for Europe, which is non-legislative. The 2017 annual work programme includes a GOVSATCOM initiative (on governmental satellite communication). The Commission proposal is due to be published at the end of 2017, so it is too early to know what the impact of UK withdrawal might be. Second part (provisions to be included in the Exit agreement and content of the future EU- UK relations agreement) 3. Are there policies or EU legislation in force likely to feature as part of the EU-UK withdrawal agreement, and if so in what way? 4. Are there policies or EU legislation in force likely to feature as part of the future EU- UK relationship agreement, and if so in what way? It is not yet clear what will be in the exit agreement and what will be in the future relations agreement. Relevant issues are therefore grouped together in this section. 1. The EU support programme for SMEs is COSME 30. As a minimum, he following issues need to be addressed: i. The status of any projects involving UK beneficiaries planned to run beyond the date of withdrawal; ii. The possibility of there being a shortfall of funding if withdrawal takes effect before the end of the current MFF period; iii. The position of the UK in the European Enterprise Network31 and the position of UK intermediaries32 in the Equity Facility for Growth and the Loan Guarantee Facility; 30 Regulation (EU) No 1287/2013 establishing a Programme for the Competitiveness of Enterprises and small and medium-sized enterprises (COSME) ( ) and repealing Decision No 1639/2006/EC. COSME is open to participation by EEA countries, candidate countries and European neighbourhood countries. Other third countries may also participate but are not entitled to receive Union financial contributions, except where it is essential for the COSME programme. 31 There are EEN contact points in third countries. 32 Financial intermediaries must be established in a Member State or in an associated COSME country.

13 iv. Possible future UK involvement in COSME s successor (if there is one), including any possible financial contribution, and how will this affect funding for the successor programme. 2. The two EU flagship space programmes are Galileo and EGNOS 33 and Copernicus 34. As a minimum, the following issues need to be addressed: i. The EU is the owner of all tangible and intangible assets created or developed under the Galileo and EGNOS programmes and the Copernicus programme. Does the UK have a claim to part of those assets? ii. What is the situation with regard to any infrastructure based in the UK or in an overseas country or territory connected with the UK 35? iii. What is the situation with regard to the European Centre for Medium-Range Weather Forecasts 36, which is the entrusted entity for the Atmosphere Monitoring and the Climate Change services and is based in the UK? iv. What is the situation with regard to the security elements of Galileo and EGNOS and Copernicus: o o Access to the Galileo Public Regulated Service (PRS) 37 is restricted, and third countries may become PRS participants only after concluding two agreements with the EU: a security of information agreement and an agreement laying down the terms and conditions of the detailed rules for access to the PRS 38 ; Does UK withdrawal have implications for UK access to the Copernicus security service, which provides information in support of the civil security challenges of Europe and support for the Union's external action; v. What is the situation with regard to ongoing and future procurements involving the UK under the Galileo and EGNOS and Copernicus programmes, particularly bearing in mind that procurements may be subject to measures to protect the essential security interests? Would it be acceptable for a company based in a third country to have a central role in the construction of Galileo or Copernicus satellites? vi. In particular, what is the situation in relation to PRS procurements, since security modules cannot be manufactured in a third country and the manufacture of PRS receivers in a third country depends on the conclusion of an agreement on detailed rules for access to the PRS (see point (v), first bullet point)? vii. The role of the UK in the EU-GNSS Agency 39 would need to be clarified 40. Any financial matters relating to the Agency would need to be resolved; 33 Regulation (EU) No 1285/2013 on the implementation and exploitation of European satellite navigation systems. 34 Regulation (EU) No 377/2014 establishing the Copernicus Programme. 35 For example, the back-up site for the Galileo Security Monitoring Centre is located in the UK, and the UK has a role in the Copernicus ground segment. 36 The Centre is an independent intergovernmental organisation, supported by 34 states. 37 The PRS is the Galileo service for government-authorised users only. See in particular Decision No 1104/2011/EU on the rules for access to the public regulated service provided by the global navigation satellite system established under the Galileo programme. 38 Negotiations for an agreement on the detailed rules for access to the PRS are under way with Norway and the United States of America. 39 Established by Regulation (EU) 912/2010, as amended by Regulation (EU) No 512/ The Agency is open to the participation of third countries on the basis of an international agreement.

14 viii. Clarification is needed on possible future UK involvement in the Galileo and EGNOS and Copernicus programmes, including any possible financial contribution; 3. The Space Surveillance and Tracking (SST) Support Framework 41 provides for the establishment of a consortium of Member States that own and operate the necessary sensors for tracking spacecraft and space debris and process the relevant data. The UK is part of this consortium, but there is no provision for third countries to take part in the consortium. Should the UK continue to participate in some capacity and make a financial contribution and how should that be arranged (this would likely require an international agreement)? Moreover, what will be the status of funding allocated to the UK in the current MFF period? 4. How will UK withdrawal affect funding for space in the next MFF? This is in a context where the EU will seek to continue financing Galileo and EGNOS and Copernicus and has plans to launch a GOVSATCOM initiative 42 (on governmental satellite communication) and to turn the current SST service into a comprehensive Space Situational Awareness programme (to address also space weather and cyber alerts). 41 See Decision No 541/2014/EU. 42 The Commission proposal is scheduled to be published at the end of 2017.