
Article 1 
This Regulation sets up a Community agency, called the European GNSS Supervisory Authority (hereinafter referred to as the Authority), to manage the public interests relating to, and to be the regulatory authority for the European GNSS programmes.
Article 2 

1. The Authority shall carry out the following tasks:
(a) It shall be the licensing authority vis-à-vis the private concession holder responsible for implementing and managing the Galileo deployment and operating phases (hereinafter referred to as the concession holder); in this context, it shall conclude with the latter the concession contract; it shall ensure that the concession holder complies with the concession contract and the specifications annexed thereto and shall take all appropriate measures to ensure the continuity of services in case of default of the concession holder; it shall grant the concession holder the right to use the tangible and intangible assets referred to in Article 3(1) for the duration of the concession.
(b) It shall manage the funds specifically allocated to it for the European GNSS programmes and monitor the overall financial management in order to advise on the public sector contributions.
(c) It shall be entrusted with the responsibility — inherited from the Galileo Joint Undertaking — of managing the agreement with the economic operator charged with operating EGNOS and of presenting a framework on the future policy options concerning EGNOS, with due regard to the opinion of those parties who contributed to the funding of the development and deployment phases of EGNOS.
(d) It shall coordinate Member States' actions in respect of the frequencies necessary to ensure the operation of the system; it shall hold the right to use all these frequencies wherever the system is located; it shall deal directly with the concession holder on matters relating to the use of these frequencies.
(e) In order to assist the Commission in preparing proposals for the European GNSS programmes to be presented to the European Parliament and to the Council and in adopting the implementing rules, it shall prepare drafts thereof.
(f) It shall be responsible for the modernisation and development of new generations of the system.
(g) It may accomplish such budgetary implementation tasks as are entrusted to it by the Commission and that are linked to the European GNSS programmes in accordance with Article 54(2)(b) of Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities.
(h) It shall ensure that the components of the system are duly certified; it shall empower the appropriate authorised certification bodies for issuing the relevant certificates and monitoring the respect of related standards and technical specifications.
(i) It shall enforce and verify compliance by the concession holder with instructions issued pursuant to Joint Action 2004/552/CFSP.
(j) Without prejudice to Article 22, it shall manage all aspects relating to the system's safety and security. In particular, it shall:
((i)) approve the security annexes of industrial contracts;
((ii)) define the security specifications of the system and its components, and the standards of security for information techniques;
((iii)) define the cryptography which requires governmental approval;
((iv)) ensure that the European GNSS signals/services are controlled in compliance with security criteria, as specified in (i) and (ii);
((v)) be the European GNSS security accreditation authority, initiate and monitor the implementation of security procedures and perform system security audits;
((vi)) regarding the Public Regulated Service (PRS):

— define the specifications and instructions for manufacturing PRS receivers, in accordance with the policy of access to PRS defined by the Council,
— provide guidelines for the implementation of PRS management rules in the Member States;
((vii)) enforce and verify compliance by the concession holder with international rules and agreements (Wassenaar, Missile Technology Control Regime, international agreements, …);
((viii)) implement the relevant provisions for the exchange, handling and storage of classified information;
((ix)) develop coordination and consultation procedures on security-related matters with the Secretary-General of the Council of the European Union, High Representative for the Common Foreign and Security Policy (SG/HR);
((x)) identify and inform the Council of possible measures that could be taken by the Council in the event of a threat to the security of the European Union or of a Member State arising from the operation or use of the system, or in the event of a threat to the operation of the system, in particular as the result of an international crisis;
((xi)) give advice to the Council when invited to do so under Joint Action 2004/552/CFSP;
((xii)) give advice on security policy issues in international agreements related to the European GNSS programmes.
2. The ESA shall be requested to provide the Authority with technical and scientific support.
Article 3 

1. The Authority shall be the owner of all the tangible and intangible assets which are transferred to it by the GALILEO Joint Undertaking on completion of the development phase and which may be created or developed by the concession holder during the deployment and operational phases.
2. The procedures governing ensuing transfers of property will, in the case of the Galileo Joint Undertaking, be set out in the course of the winding-up proceedings laid down in Article 21 of the statutes of the Galileo Joint Undertaking annexed to Regulation (EC) No 876/2002 and, in the case of the concession holder, in the concession contract.
3. The Authority shall be the owner of all the tangible and intangible EGNOS assets subject to agreement with the EGNOS investors on the terms and conditions on the transfer from ESA of ownership of all or part of the EGNOS facilities and equipment.
Article 4 

1. The Authority shall be a body of the Community. It shall have legal personality.
2. In each of the Member State, the Authority shall enjoy the most extensive legal capacity accorded to legal persons under their law. It may, in particular, acquire or dispose of movable and immovable property and be a party to legal proceedings.
3. The Authority may decide to establish local offices in Member States subject to their consent, or in other countries participating to the programme in accordance with Article 21.
4. The Authority shall be represented by its Executive Director.
Article 5 

1. An Administrative Board is hereby set up to carry out the tasks listed in Article 6.
2. The Administrative Board shall be composed of one representative appointed by each Member State and one representative appointed by the Commission. The duration of the term of office of the Board members shall be five years. The term of office may be renewed once.
3. When appropriate, the participation of representatives of third countries and the conditions thereof shall be established in the arrangements referred to in Article 21.
4. The Administrative Board shall elect a Chairperson and a Deputy Chairperson from among its members. The Deputy Chairperson shall automatically take the place of the Chairperson if he/she is prevented from attending to his/her duties. The term of office of the Chairperson and of the Deputy Chairperson shall be two and a half years and shall expire when they cease to be members of the Administrative Board. The terms of office may be renewed once.
5. The meetings of the Administrative Board shall be convened by its Chairperson.The Executive Director of the Authority shall take part in the deliberations.The Administrative Board shall hold an ordinary meeting twice a year. In addition, it shall meet on the initiative of its Chairperson or at the request of at least a third of its members.The Administrative Board may invite any person whose opinion can be of interest to attend its meetings as an observer. Where security issues are being discussed, a representative of the SG/HR and the Chairperson of the System Safety and Security Committee shall attend as observers. The members of the Administrative Board may, subject to the provisions of its rules of procedure, be assisted by advisers or experts.The secretariat of the Administrative Board shall be provided by the Authority.
6. Unless otherwise provided in this Regulation, the Administrative Board shall take its decisions by a two-thirds majority of its members.
7. Each member shall have one vote. The Executive Director of the Authority shall not vote.The rules of procedure shall establish the more detailed voting arrangements, in particular the conditions for a member to act on behalf of another member.
Article 6 
The Administrative Board shall:

((a)) appoint the Executive Director pursuant to Article 7(2);
((b)) adopt, by 30 November each year and after receiving the Commission’s opinion, the work programme of the Authority for the coming year and forward it to the Member States, the European Parliament, the Council and the Commission. This work programme shall be adopted without prejudice to the annual Community budgetary procedure;
((c)) perform its duties in relation to the Authority's budget pursuant to Articles 11 and 12;
((d)) be responsible for all decisions related to the tasks set out in Article 2(j) which, in all cases, will be taken following consultation with, or on the basis of proposals from, the System Security and Safety Committee;
((e)) exercise disciplinary authority over the Executive Director;
((f)) adopt the special provisions necessary for the implementation of the right of access to the documents of the Authority, in accordance with Article 19;
((g)) adopt the annual report on the activities and prospects of the Authority and forward it, by 15 June, to the Member States, the European Parliament, the Council, the Commission, the European Economic and Social Committee and the Court of Auditors; the Authority shall forward to the budgetary authority all information relevant to the outcome of the evaluation procedures;
((h)) adopt its rules of procedure.
Article 7 

1. The Authority shall be managed by its Executive Director, who shall be completely independent in the exercise of his/her duties, without prejudice to the respective competencies of the Commission and the Administrative Board.
2. The Executive Director shall be appointed by the Administrative Board on the 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. The Administrative Board shall take its decision by a three-quarters majority of its members.Power to dismiss the Executive Director shall lie with the Administrative Board, according to the same procedure.The term of office of the Executive Director shall be five years. This term of office may be renewed once.
3. The European Parliament or the Council may call upon the Executive Director to submit a report on the performance of his duties.
Article 8 
The Executive Director:

((a)) shall be responsible for representing the Authority and be in charge of its management;
((b)) shall prepare the work of the Administrative Board. He/she shall participate, without having the right to vote, in the work of the Board;
((c)) shall be responsible for implementing the annual work programme of the Authority under the control of the Administrative Board;
((d)) shall take all necessary steps, including the adoption of internal administrative instructions and the publication of notices, to ensure the functioning of the Authority in accordance with this Regulation;
((e)) shall draw up estimates of the Authority's revenue and expenditure in accordance with Article 11, and shall implement the budget in accordance with Article 12;
((f)) shall prepare a draft general report each year and submit it to the Administrative Board;
((g)) shall define the organisational structure of the Authority and submit it for approval to the Administrative Board. He/she shall establish a suitable permanent structure for the implementation of security-related decisions and the necessary security-related operational contacts;
((h)) shall exercise, in respect of the staff, the powers laid down in Article 16;
((i)) may adopt, after approval of the Administrative Board, the necessary measures to establish local offices in Member States in accordance with Article 4.
Article 9 

1. Without prejudice to Article 2, the Administrative Board may set up a Scientific and Technical Committee and appoint its members and chairman from among acknowledged experts from Member States and the Commission. The Member States and the Commission shall propose candidates to that effect. When appropriate, the participation of representatives of third countries in the Committee and the conditions thereof shall be established in the arrangements referred to in Article 21.
2. The Scientific and Technical Committee may be given responsibility for:
(a) delivering opinions on technical questions or on proposals involving major changes in the design of the European GNSS system;
(b) making recommendations on the modernisation of the system;
(c) carrying out any other task necessary for the development of expertise in the area of satellite radio-navigation.
3. Subject to approval by the Administrative Board, the Scientific and Technical Committee shall draw up its rules of procedure.
Article 10 

1. The Administrative Board shall establish a System Safety and Security Committee. It shall be composed of one representative per Member State and one for the Commission from among acknowledged security experts. A representative of the SG/HR shall attend the Committee meetings as an observer.
2. The Committee shall be consulted on and may initiate proposals on the safety and security questions referred to in Article 2(j).
3. The Committee shall elect a Chairperson and a Deputy Chairperson from among its members and draw up its rules of procedure.
Article 11 

1. Without prejudice to other resources and dues yet to be defined, revenue of the Authority shall include a Community subsidy entered in the general budget of the European Union in order to ensure a balance between revenue and expenditure.
2. The expenditure of the Authority shall cover staff, administrative and infrastructure expenditure, operating costs and expenditure associated with the functioning of the Scientific and Technical Committee, the System Safety and Security Committee and the contracts and agreements concluded by the Authority with a view to implementing the European GNSS programmes.
3. The Executive Director shall draw up a draft statement of estimates of the revenue and expenditure of the Authority for the following year and shall forward it to the Administrative Board, together with a draft establishment plan.
4. Revenue and expenditure shall be in balance.
5. Each year the Administrative Board, on the basis of the draft statement of revenue and expenditure, shall produce a statement of estimates of revenue and expenditure for the Authority for the following financial year.
6. This statement of estimates, which shall include a draft establishment plan together with the provisional work programme, shall, by 31 March, be forwarded by the Administrative Board to the Commission and to the States with which the Community has concluded agreements in accordance with Article 21.
7. The statement of estimates shall be forwarded by the Commission to the European Parliament and to the Council (hereinafter referred to as the budgetary authority) together with the preliminary draft general budget of the European Union.
8. On the basis of the statement of estimates, the Commission shall enter in the preliminary draft general budget of the European Union the estimates it deems necessary for the establishment plan and the amount of the subsidy to be charged to general budget, which it shall place before the budgetary authority in accordance with Article 272 of the Treaty.
9. The budgetary authority shall authorise the appropriations for the subsidy to the Authority and shall adopt the establishment plan for the Authority.
10. The budget shall be adopted by the Administrative Board. It shall become final following final adoption of the general budget of the European Union. Where appropriate, it shall be adjusted accordingly.
11. The Administrative Board shall, as soon as possible, notify the budgetary authority of its intention to implement any project which shall have significant financial implications for the funding of the budget, in particular any projects relating to property such as the rental or purchase of buildings. It shall inform the Commission thereof.
12. Where a branch of the budgetary authority has notified its intention to deliver an opinion, it shall forward its opinion to the Administrative Board within a period of six weeks after the date of notification of the project.
Article 12 

1. The Executive Director shall implement the budget of the Authority.
2. By 1 March following each financial year, the accounting officer of the Authority shall communicate the provisional accounts to the Commission's accounting officer, together with a report on the budgetary and financial management for that financial year. The Commission's accounting officer shall consolidate the provisional accounts of the institutions and decentralised bodies in accordance with Article 128 of Regulation (EC, Euratom) No 1605/2002.
3. By 31 March following each financial year, the Commission's accounting officer shall forward the provisional accounts of the Authority to the Court of Auditors, together with a report on the budgetary and financial management for that financial year. The report shall also be forwarded to the European Parliament and the Council.
4. On receipt of the Court of Auditors' observations on the provisional accounts of the Authority, under Article 129 of Regulation (EC, Euratom) No 1605/2002, the Executive Director shall draw up the final accounts of the Authority under his/her own responsibility and submit them to the Administrative Board for an opinion.
5. The Administrative Board shall deliver an opinion on the final accounts of the Authority.
6. The Executive Director shall, by 1 July following each financial year, forward the final accounts to the European Parliament, the Council, the Commission and the Court of Auditors, together with the Administrative Board's opinion.
7. The final accounts shall be published.
8. The Executive Director shall send the Court of Auditors a reply to its observations by 30 September. He/she shall also send this reply to the Administrative Board.
9. The Executive Director shall submit to the European Parliament, at the latter’s request, all information necessary for the smooth application of the discharge procedure for the financial year in question, as laid down in Article 146(3) of Regulation (EC, Euratom) No 1605/2002.
10. The European Parliament, on a recommendation from the Council acting on a qualified majority, shall, before 30 April of the year N + 2, give a discharge to the Executive Director in respect of the implementation of the budget for year N.
Article 13 
The financial rules applicable to the Authority shall be adopted by the Administrative Board after the Commission has been consulted. They may not depart from Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities unless such departure is specifically required for the operation of the Authority and the Commission has given its prior consent.
Article 14 

1. In order to combat fraud, corruption and other unlawful activities, the provisions of Regulation (EC) No 1073/1999 of the European Parliament and of the Council of 25 May 1999 concerning investigations conducted by the European Anti-Fraud Office (OLAF) shall apply without restriction.
2. The Authority 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) and shall issue, without delay, appropriate provisions applicable to all staff of the Authority.
3. The decisions concerning funding, and the implementing agreements and instruments resulting therefrom, shall explicitly stipulate that the Court of Auditors and OLAF may, if necessary, carry out on-the-spot checks on the recipients of funding of the Authority and the agents responsible for allocating it.
Article 15 
The Protocol on Privileges and Immunities of the European Communities shall apply to the Authority.
Article 16 

1. The Staff Regulations of Officials of the European Communities, the Conditions of employment of other servants of the European Communities and the rules adopted jointly by the institutions of the European Community for the purposes of the application of those Staff Regulations and Conditions of employment shall apply to the staff of the Authority. The Administrative Board, in agreement with the Commission, shall adopt the necessary detailed rules of application.
2. Without prejudice to Article 8, the powers conferred on the appointing authority by the Staff Regulations and the Conditions of employment of other servants shall be exercised by the Authority with respect to its own staff.
3. The staff of the Authority shall consist of servants recruited by the Authority as necessary to perform its tasks, but may also include officials assigned or seconded by the Commission or the Member States on a temporary basis.
Article 17 

1. The contractual liability of the Authority shall be governed by the law applicable to the contract in question. The Court of Justice shall have jurisdiction to give judgement pursuant to any arbitration clause contained in a contract concluded by the Authority.
2. In the event of non-contractual liability, the Authority 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.
3. The Court of Justice shall have jurisdiction in any dispute relating to compensation for damage referred to in paragraph 2.
4. The personal liability of its servants towards the Authority shall be governed by the provisions laid down in the Staff Regulations or Conditions of employment applicable to them.
Article 18 

1. The provisions laid down in Regulation No 1 of 15 April 1958 determining the languages to be used in the European Economic Community shall apply to the Authority.
2. The translation services required for the functioning of the Authority shall be provided by the Translation Centre for the bodies of the European Union.
Article 19 

1. Regulation (EC) No 1049/2001 of the European Parliament and of the Council of 30 May 2001 regarding public access to European Parliament, Council and Commission documents shall apply to documents held by the Authority.
2. The Administrative Board shall adopt arrangements for implementing Regulation (EC) No 1049/2001 within six months after the entry into force of this Regulation.
3. Decisions taken by the Authority in pursuance of Article 8 of Regulation (EC) No 1049/2001 may be the subject of a complaint to the Ombudsman or an action before the Court of Justice of the European Communities, under Articles 195 and 230 of the EC Treaty respectively.
4. When processing data relating to individuals, the Authority shall be subject to the provisions of Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data.
Article 20 
The Authority shall apply the security principles contained in Commission Decision 2001/844/EC, ECSC, Euratom of 29 November 2001 amending its internal Rules of Procedure. This shall cover, inter alia, provisions for the exchange, handling and storage of classified information.
Article 21 

1. The Authority shall be open to the participation of third countries, which have entered into agreements with the European Community to this effect.
2. Under the relevant provisions of these agreements, arrangements shall be developed specifying, in particular, the nature, extent and manner in which these countries will participate in the work of the Authority, including provisions relating to participation in the initiatives undertaken by the Authority, financial contributions and staff.
3. The participation of any third country in the Authority shall be submitted for approval to the Council.
Article 22 
In cases where the operation of the system affects the security of the Union or its Member States, the responsibilities and competence of the European Union, including in exceptional cases where the urgency of the situation is such that it requires immediate action, are set out in Joint Action 2004/552/CFSP.
Article 23 
This Regulation shall enter into force on the 10th day following its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 12 July 2004.
For the Council
The President
B. BOT