1. Perspectives for a Harmonised Industrial Policy of ESA and EU INTERNATIONAL INSTITUTE OF AIR AND SPACE LAW Project 2001+ Conference, Cologne 1 10-06-2005 Perspectives for a Harmonised Industrial Policy of ESA and EU Dr. Frans von der Dunk Director Space Law Research International Institute of Air and Space Law

2. Perspectives for a Harmonised Industrial Policy of ESA and EU INTERNATIONAL INSTITUTE OF AIR AND SPACE LAW Project 2001+ Conference, Cologne 2 10-06-2005 What is ‘industrial policy’? The twins of ‘policy’ and ‘law’ ‘Industrial policy’:  Stimulates industrial  economic development  Curbs potential negative effects  Social, political, security-wise, environmental  Drafts legal texts to frame & support The ‘space industry’ in Europe

3. Perspectives for a Harmonised Industrial Policy of ESA and EU INTERNATIONAL INSTITUTE OF AIR AND SPACE LAW Project 2001+ Conference, Cologne 3 10-06-2005 Industrial policy in the EC/EU - 1 Focus on legal/institutional aspects  Tools: Regulations, Directives, Decisions Internal Market  Focus: market & private enterprise  Free movement goods, services, persons, capital  Competition regime –Cartels, monopolies, state aids  Harmonisation  External competence

4. Perspectives for a Harmonised Industrial Policy of ESA and EU INTERNATIONAL INSTITUTE OF AIR AND SPACE LAW Project 2001+ Conference, Cologne 4 10-06-2005 Industrial policy in the EC/EU - 2 General aims EC law/EU  Economic & social progress; improvement living & working conditions  Balanced development economic activities; high level employment & social protection; sustainable growth; competitiveness; environmental protection; standard of living & quality of life; cohesion & solidarity Including space…?

5. Perspectives for a Harmonised Industrial Policy of ESA and EU INTERNATIONAL INSTITUTE OF AIR AND SPACE LAW Project 2001+ Conference, Cologne 5 10-06-2005 Industrial policy in ESA - 1 Focus on technical/operational aspects – of space activities  Tools: mandatory & optional programmes Aims industrial policy  Cost-effectivity; world-wide competitiveness; using existing industrial potential Europe; preference for European industry; equitable member state participation; exploitation advantages competitive bidding

6. Perspectives for a Harmonised Industrial Policy of ESA and EU INTERNATIONAL INSTITUTE OF AIR AND SPACE LAW Project 2001+ Conference, Cologne 6 10-06-2005 Industrial policy in ESA - 2 N.B.: Industrial policy ESA &/or m/s… ‘Geographical distribution’  Preference for industry & organisations member states, resp. member states participating in a programme  Derogation only by Council determination  ‘Fair return’  ‘Ideal’ = return coefficient of 1  Some weighting possible

7. Perspectives for a Harmonised Industrial Policy of ESA and EU INTERNATIONAL INSTITUTE OF AIR AND SPACE LAW Project 2001+ Conference, Cologne 7 10-06-2005 The Clash… Internal Market principles vs. ‘Geographical distribution’  So far de facto justified by overriding European interests  accepted even by EC  Is that changing now…?  EC solution: bring ESA & activities in ESA  Sway of Commission  phase out fair return  “Don’t throw away the baby with the bathwater…”  ESA expertise & flexible system very valuable

8. Perspectives for a Harmonised Industrial Policy of ESA and EU INTERNATIONAL INSTITUTE OF AIR AND SPACE LAW Project 2001+ Conference, Cologne 8 10-06-2005 My solution EU member  of ESA  Precedents…!  Not two captains on one spaceship… …but one captain and one additional member of the shipping company board!  EU takes space policy initiative  Involvement & investment optional programme (ESA as instrument of industrial policy)  Introduce competition on EU contribution

9. Perspectives for a Harmonised Industrial Policy of ESA and EU INTERNATIONAL INSTITUTE OF AIR AND SPACE LAW Project 2001+ Conference, Cologne 9 10-06-2005 Visualising solution (1) Fair return Mk. I Fair return Mk. II State A State B State C State D Companies of State A Companies of State B Companies of State C (Ditto) State A State B EU State C Companies of State A Companies of State B Companies of EU choice (Ditto)

10. Perspectives for a Harmonised Industrial Policy of ESA and EU INTERNATIONAL INSTITUTE OF AIR AND SPACE LAW Project 2001+ Conference, Cologne 10 10-06-2005 Visualising solution (2) EU portion  Open competition  ‘Second chance’  Favour ‘European Companies’  Favour SME’s Flexible : “as competencies & activities grow, so does competition” Fair return Mk. III EU Companies of EU choice

11. Perspectives for a Harmonised Industrial Policy of ESA and EU INTERNATIONAL INSTITUTE OF AIR AND SPACE LAW Project 2001+ Conference, Cologne 11 10-06-2005 Towards a bright future? Basis EU & ESA not dissimilar N.B.: Framework Agreement  Does include option EU as member ESA…  …but does not elaborate…  …and creates uncertainties...  …as well as institutional complexity (Galileo!)  Use fair return to implement competition & harmonise industrial policy by increment!