On the basis of the document's conclusions, the Council will take political decisions by the end of this year needed to launch the two phases, paying particular attention to funding and definition of services. In its communication, the Commission restated the four matters that had required settlement before the deployment and operational phases could be launched.

The establishment of structures to manage the system were settled with the adoption of regulatory and security resolutions by the Council on 12 July 2004. Total interoperability with the American system was explicitly provided for in an agreement signed with the US on 26 June 2004.

The work carried out so far during the programme development phase is culminating in the definition of a range of services with the required characteristics and meeting requirements imposed with regard to quality, public service, and compliance with security standards.

Finally, there is confirmation that there will be a significant contribution from the private sector towards funding of deployment and operation.

The bids of two commercial applicants indicate the willingness of numerous investors, particularly financial institutions, to assume financial responsibility for these phases.

With these necessary conditions now met, the Commission concludes that it is now essential for the Council to confirm the irrevocable transition to the programme's deployment and operational phases, the essential features of the system, and the commitment of the public authorities with regard to funding.

Confirmation is necessary in order to enable the completion of the negotiation of the concession contract which will be signed next year and to enable private sector stakeholders to confirm their bids and their financial commitments.

MJ Information No: 20032