The Commission argues that Europe faces two real risks if it does not adopt a new approach to space policy. It may run the risk of decline as a space power and space companies could also suffer because of weak commercial markets, and critical knowledge and skills could be permanently lost to Europe.

Space at work in Europe

Space is a key contributor to job creation and competitiveness in the EU in many crucial high-tech sectors, especially telecommunications. Today, the European space sector directly employs over 30,000 people in about 2,000 companies. Restructuring of the EU space industry is of critical importance for its future survival. To attract the necessary investment for the future, the EU space industry will need a steady flow of work, in particular from a strong public procurement market.

EU space policy: for a cleaner and safer Europe

The White Paper also presents solutions for the policy challenges that are facing the Union today. Space has substantial concrete contributions to make in a wide range of domains such as the environment, transportation, telecommunications and security. Europe already has cutting-edge technical capabilities in areas where services and applications are necessary to support the implementation of EU policies. In addition to operational communication systems, the EU has adopted ambitious programmes for satellite navigation, timing and positioning (GALILEO) and for global monitoring and earth observation (Global Monitoring for the Environment and Security: GMES).

Getting down to business

Space technologies support policies. Another important factor is that they can deliver large commercial benefits. For instance, the market for satellite navigation services and derived products around the world is growing by 25% a year and could reach €100 billion by 2010, creating 40,000 skilled jobs in Europe. Additionally, the worldwide market for space applications is rapidly expanding and could reach an estimated total €350 billion turnover by 2010. Each euro invested in space applications generates a turnover of €7-8 due to the development of added-value services.

How?

The White Paper details specific concrete recommendations for guaranteeing independent access to space, enhancing space technology, promoting space exploration, attracting more young people into careers in science, strengthening European excellence in space science, and fostering competitive, entrepreneurial companies.

The Multi-Annual Space Programme

It is proposed that these activities will be implemented under the aegis of a multi-annual European Space Programme that would determine priorities, set objectives, allocate roles and responsibilities and define annual budgets. To be reviewed and updated every five years, the Programme would incorporate research and development, infrastructure development, and services and technology.

The first Multi-Annual Space Programme would cover the 2004-2007 period and would implement the activities covered by the recent Framework Agreement between the European Community and the ESA. A second phase will start in 2007 with the coming into force of the European Constitutional Treaty, providing it establishes space as a shared competence between the Union and the Member States.

How much?

The Commission proposes three main budget scenarios to support the Action Plan. A first option would be to support the needs identified during the consultation on the European Commission's space policy (see IP/03/82 and IP/03/880) and would involve an annual expenditure growth rate of 4.6%, with respect to the overall public level of funding in 2003 (€5,380 billion). The second scenario presents an annual growth rate of 3.4%, a higher rate than the global growth rate of the EU economy. The third is more modest and is based on the current level of EU expenditures with a growth rate of 2.3 %, which, it is argued, would not be sufficient to guarantee EU independence with respect to technology and access to space.