Perspectives for a Harmonised Industrial Policy of ESA and EU
INTERNATIONAL INSTITUTE OFAIR AND SPACE LAW
Project 2001+ Conference, Cologne
1
10-06-2005
Perspectives for aHarmonised IndustrialPolicy of ESA and EU
Dr. Frans von der Dunk
Director Space Law Research
International Institute of Air and Space Law
Perspectives for a Harmonised Industrial Policy of ESA and EU
INTERNATIONAL INSTITUTE OFAIR AND SPACE LAW
Project 2001+ Conference, Cologne
2
10-06-2005
What is ‘industrialpolicy’?
The twins of ‘policy’ and ‘law’
‘Industrial policy’:
Stimulates industrial economicdevelopment
Curbs potential negative effects
Social, political, security-wise, environmental
Drafts legal texts to frame & support
The ‘space industry’ in Europe
Perspectives for a Harmonised Industrial Policy of ESA and EU
INTERNATIONAL INSTITUTE OFAIR AND SPACE LAW
Project 2001+ Conference, Cologne
3
10-06-2005
Industrial policy in theEC/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
Perspectives for a Harmonised Industrial Policy of ESA and EU
INTERNATIONAL INSTITUTE OFAIR AND SPACE LAW
Project 2001+ Conference, Cologne
4
10-06-2005
Industrial policy in theEC/EU - 2
General aims EC law/EU
Economic & social progress; improvementliving & 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…?
Perspectives for a Harmonised Industrial Policy of ESA and EU
INTERNATIONAL INSTITUTE OFAIR AND SPACE LAW
Project 2001+ Conference, Cologne
5
10-06-2005
Industrial policy in ESA- 1
Focus on technical/operationalaspects – of space activities
Tools: mandatory & optional programmes
Aims industrial policy
Cost-effectivity; world-wide competitiveness;using existing industrial potential Europe;preference for European industry; equitablemember state participation; exploitationadvantages competitive bidding
Perspectives for a Harmonised Industrial Policy of ESA and EU
INTERNATIONAL INSTITUTE OFAIR 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 & organisationsmember states, resp. member statesparticipating in a programme
Derogation only by Council determination
‘Fair return’
‘Ideal’ = return coefficient of 1
Some weighting possible
Perspectives for a Harmonised Industrial Policy of ESA and EU
INTERNATIONAL INSTITUTE OFAIR 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 overridingEuropean 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 thebathwater…”
ESA expertise & flexible system very valuable
Perspectives for a Harmonised Industrial Policy of ESA and EU
INTERNATIONAL INSTITUTE OFAIR 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 additionalmember of the shipping company board!
EU takes space policy initiative
Involvement & investment optionalprogramme (ESA as instrument of industrialpolicy)
Introduce competition on EU contribution
Perspectives for a Harmonised Industrial Policy of ESA and EU
INTERNATIONAL INSTITUTE OFAIR 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)
Perspectives for a Harmonised Industrial Policy of ESA and EU
INTERNATIONAL INSTITUTE OFAIR AND SPACE LAW
Project 2001+ Conference, Cologne
10
10-06-2005
Visualising solution (2)
EU portion
Open competition
‘Second chance’
Favour ‘EuropeanCompanies’
Favour SME’s
Flexible :
“as competencies &activities grow, sodoes competition”
Fair return Mk. III
EU
Companies
of EU choice
Perspectives for a Harmonised Industrial Policy of ESA and EU
INTERNATIONAL INSTITUTE OFAIR 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 implementcompetition & harmoniseindustrial policy by increment!