EUROPEAN COMMISSION
Brussels, 17.11.2025
COM(2025) 693 final
2025/0351(NLE)
Proposal for a
COUNCIL DECISION
on the conclusion, on behalf of the Union, of an Agreement between the European Union, of the one part, and Iceland, of the other part, laying down the rules for participation of Iceland in the GOVSATCOM component of the Union Space Programme and in the Union Secure Connectivity Programme
EXPLANATORY MEMORANDUM
1.CONTEXT OF THE PROPOSAL
•Reasons for and objectives of the proposal
Iceland is a close EU Space partner participating several components of the Union Space Programme 1 , with some exceptions including the GOVSATCOM component.
On 14 December 2023 Iceland requested to start negotiations on an agreement in view of participating in the GOVSATCOM component of the Union Space Programme and in the Union Secure Connectivity Programme. On 25 February 2025 the Council authorised the opening of the negotiations on behalf of the Union. 2
As defined in the Union Security Connectivity Programme Regulation (EU) 2023/588 3 (the ‘Secure Connectivity Regulation’) and in the Union Space Programme Regulation (EU) 2021/696 4 (the ‘Space Regulation’), the participation of third countries in respectively Secure Connectivity and GOVSATCOM shall be organised via a stand-alone international agreement in accordance with Article 218 of the TFEU.
The Icelandic participation in Secure Connectivity and GOVSATCOM will be concluded in one agreement because both programmes are intertwined, GOVSATCOM being also the service centre for Secure Connectivity and because the same conditions apply to Iceland’s participation in both programmes.
From a geopolitical point of view, the participation of Iceland in the GOVSATCOM component of the Union Space Programme and in the Union Secure Connectivity Programme is of interest to the Union as it will contribute to strengthening Europe’s role as a global actor as it enlarges the Secure Connectivity use beyond the Union borders and will also promote international cooperation as defined in the Space Strategy for Europe 5 . An Agreement with Iceland strengthens the EU strategic posture which is an objective of the European Union Space Strategy for Security and Defence 6 .
The participation of a third country like Iceland is of interest to the European Union, also because by enlarging the use of Secure Connectivity, it generates income for the European Union.
•Consistency with existing policy provisions in the policy area
The Secure Connectivity Regulation offers the possibility to open the Secure Connectivity Programme to third countries, the first category of which are the EEA EFTA countries.
An agreement with Iceland will complement the Union Secure Connectivity Programme. An agreement will also promote and strengthen Secure Connectivity outside the Union, in the strategically important high North.
•Consistency with other Union policies
Given Iceland’s beneficial geographical location near the Arctic region Secure Connectivity is important to support key economic sectors, in particular telecommunications and transport.
A Secure Connectivity agreement with Iceland contributes to a number of EU priorities including the Green Deal, a Europe fit for the digital age, an economy that works for people and a stronger Europe in the World.
Given Iceland’s beneficial geographical location near the Arctic region, an agreement will also contribute to peace and security and the sustainable development of the Earth.
The Strategic Compass for security and defence adopted by the Council on 21 March 2022 proposes that the EU space systems offer global connectivity to security and defence actors. It also calls for the Union to work on the proposal for an EU space-based global secure communication system. An agreement with Iceland will contribute to that.
2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
•Legal basis
Under Article 189(2) TFEU, the European Parliament and the Council, acting in accordance with the ordinary legislative procedure, should put in place the necessary measures to attain the objectives of a European space policy. One measure is to conclude international space cooperation agreements, such as the one prepared under this initiative.
Article 218(6) of the Treaty on the Functioning of the European Union (TFEU) provides that the Council, on a proposal by the negotiator, shall adopt a decision concluding the agreement.
•Subsidiarity (for non-exclusive competence)
Through the Secure Connectivity Regulation and the Space Regulation, the Union is tasked to provide resilient, global, secure, protected, uninterrupted, guaranteed and flexible satellite communication solutions, built on a Union technological and industrial base, in order to increase the resilience of Member States’ and Union institutions’ operations.
Since the Union Secure Connectivity Programme and the Union Space Programme are Union programmes, the participation of third countries to both programmes cannot be achieved by the EU Member States themselves.
•Proportionality and choice of the instrument
As defined in the Secure Connectivity Regulation and in the Space Regulation, the participation of third countries in respectively Secure Connectivity and GOVSATCOM shall be organised via a stand-alone international agreement in accordance with Article 218 of the TFEU with a view to creating rights and obligations between the parties.
3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS
•Collection and use of expertise
The Commission collected the necessary information and expertise, also in its discussions with EU Member States, including on the participation rights and obligations of non-EU countries as referred to in the Secure Connectivity Regulation and the Space Regulation.
4.BUDGETARY IMPLICATIONS
Iceland will contribute to the Union Secure Connectivity Programme and GOVSATCOM subcomponent based on its GDP including the adjustment for 2023-2025 for Union Secure Connectivity and for 2021-2025 for GOVSATCOM.
5.OTHER ELEMENTS
•Implementation plans and monitoring, evaluation and reporting arrangements
The implementation of this agreement will be monitored by the Union and Iceland through a Joint Committee set up under the Agreement.
2025/0351 (NLE)
Proposal for a
COUNCIL DECISION
on the conclusion, on behalf of the Union, of an Agreement between the European Union, of the one part, and Iceland, of the other part, laying down the rules for participation of Iceland in the GOVSATCOM component of the Union Space Programme and in the Union Secure Connectivity Programme
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 189, in conjunction with Article 218(6), second subparagraph, point (a) thereof,
Having regard to the proposal from the European Commission,
Having regard to the consent of the European Parliament 7 ,
Whereas:
(1)In accordance with Council Decision (EU) …/…
8
of [date], the Agreement between the European Union, of the one part, and Iceland, of the other part, laying down the rules for participation of Iceland in the GOVSATCOM component of the Union Space Programme and in the Union Secure Connectivity Programme, and for access to their services
(the ‘Agreement’) was signed on behalf of the Union on …
9
, subject to its conclusion at a later date.
(2)From a geopolitical point of view, the participation of Iceland in the GOVSATCOM component of the Union Space Programme and in the Union Secure Connectivity Programme will contribute to strengthening Europe’s role as a global actor and promote international cooperation as defined in the Space Strategy for Europe 10 . An Agreement with Iceland strengthens the EU strategic posture which is an objective of the European Union Space Strategy for Security and Defence 11 .
(3)The Agreement should be approved,
HAS ADOPTED THIS DECISION:
Article 1
This Agreement between the European Union, of the one part, and Iceland, of the other part, laying down the rules for participation of Iceland in the GOVSATCOM component of the Union Space Programme and in the Union Secure Connectivity Programme (the ‘Agreement’) is hereby approved.
Article 2
This Decision shall enter into force on the date of its adoption.
Done at Brussels,
For the Council
The President
LEGISLATIVE FINANCIAL STATEMENTS
LEGISLATIVE FINANCIAL STATEMENT ‘REVENUE’- FOR PROPOSALS HAVING BUDGETARY IMPACT ON THE REVENUE SIDE OF THE BUDGET
1.NAME OF THE PROPOSAL:
Agreement between the European Union and Iceland laying down the rules for participation of Iceland in the Union Secure Connectivity Programme and in the GOVSATCOM component of the Union Space Programme
[Iceland, Govsatcom]
2.BUDGET LINES:
Revenue line (Chapter/Article/Item): 6 6 0 0
Amount budgeted for the year concerned:
(only in case of assigned revenues):
The revenues will be assigned to the following expenditure line (Chapter/Article/Item): 04 02 03.01.
3.FINANCIAL IMPACT
◻ Proposal has no financial implications
◻ Proposal has no financial impact on expenditure but has a financial impact on revenue
x Proposal has a financial impact on assigned revenue
The effect is as follows:
(EUR million to one decimal place)
|
Revenue line |
12 months period starting 01/01/2026 (if applicable) |
Year N |
|
|
6 6 0 0 |
0.09 |
2026 |
|
|
Chapter/Article/Item … |
|
Situation following action |
|||||
|
Revenue line |
2027 |
[N+2] |
[N+3] |
[N+4] |
[N+5] |
|
6 6 0 0 |
0.12 |
||||
|
Chapter/Article/Item … |
|||||
(Only in case of assigned revenues, under the condition that the budget line is already known):
|
Expenditure line 14 |
2026 |
2027 |
|
04 02 03.01 |
0.09 |
0.12 |
|
Chapter/Article/Item … |
|
Expenditure line |
[N+2] |
[N+3] |
[N+4] |
[N+5] |
|
Chapter/Article/Item … |
||||
|
Chapter/Article/Item … |
4.ANTI-FRAUD MEASURES
5.OTHER REMARKS
(method/formula used for calculation of revenues)
For 2026 and 2027 contribution is based on the EFTA coefficient for the participation in the programmes, whereas for 2021-2025 retroactive participation is calculated based on actual amounts implemented in the period, as laid down in Decision of the EEA Joint Committee No xx/2025 of xx 2025.
LEGISLATIVE FINANCIAL STATEMENT ‘REVENUE’- FOR PROPOSALS HAVING BUDGETARY IMPACT ON THE REVENUE SIDE OF THE BUDGET
1.NAME OF THE PROPOSAL:
Agreement between the European Union and Iceland laying down the rules for participation of Iceland in the Union Secure Connectivity Programme and in the GOVSATCOM component of the Union Space Programme
[Iceland, USC]
2.BUDGET LINES:
Revenue line (Chapter/Article/Item): 6 6 0 0
Amount budgeted for the year concerned:
(only in case of assigned revenues):
The revenues will be assigned to the following expenditure line (Chapter/Article/Item): 04 01 02, 04 03 01, 13 05 01, 14 08 01.
3.FINANCIAL IMPACT
◻ Proposal has no financial implications
◻ Proposal has no financial impact on expenditure but has a financial impact on revenue
x Proposal has a financial impact on assigned revenue
The effect is as follows:
(EUR million to one decimal place)
|
Revenue line |
12 months period starting 01/01/2026 (if applicable) |
Year N |
|
|
6 6 0 0 |
0.8 |
2026 |
|
|
Chapter/Article/Item … |
|
Situation following action |
|||||
|
Revenue line |
2027 |
[N+2] |
[N+3] |
[N+4] |
[N+5] |
|
6 6 0 0 |
0.7 |
||||
|
Chapter/Article/Item … |
|||||
(Only in case of assigned revenues, under the condition that the budget line is already known):
|
Expenditure line 17 |
2026 |
2027 |
|
04 01 02 |
0.001 |
0.001 |
|
04 03 01 |
0.3 |
0.5 |
|
13 05 01 |
0.4 |
0.2 |
|
14 08 01 |
0.1 |
0.1 |
|
Expenditure line |
[N+2] |
[N+3] |
[N+4] |
[N+5] |
|
Chapter/Article/Item … |
||||
|
Chapter/Article/Item … |
4.ANTI-FRAUD MEASURES
5.OTHER REMARKS
(method/formula used for calculation of revenues)
For 2026 and 2027 contribution is based on the EFTA coefficient for the participation in the programmes, whereas for 2023-2025 retroactive participation is calculated based on actual amounts implemented in the period, as laid down in Decision of the EEA Joint Committee No xx/2025 of xx 2025.