CHAPTER IIBUDGETARY CONTRIBUTION AND MECHANISMS

Article 7Activities

1.

The Union budgetary appropriations assigned to the Galileo and EGNOS programmes for the period 2014-2020 under this Regulation shall be granted to finance activities relating to:

(a)

the completion of the deployment phase of the Galileo programme as referred to in Article 3(c);

(b)

the exploitation phase of the Galileo programme as referred to in Article 3(d);

(c)

the exploitation phase of the EGNOS programme as referred to in Article 4;

(d)

the management and monitoring of the Galileo and EGNOS programmes.

2.

The Union budgetary appropriations assigned to the Galileo and EGNOS programmes shall, in accordance with Article 9(2), also be granted to finance activities relating to research and development of fundamental elements, such as Galileo-enabled chipsets and receivers.

3.

The Union budgetary appropriations assigned to the Galileo and EGNOS programmes shall also cover Commission expenditure relating to the preparation, monitoring, inspection, audit and assessment activities required for the management of the programmes and the implementation of the specific objectives referred to in Article 2(4) and (5). Such expenditure may cover in particular:

(a)

studies and meetings with experts;

(b)

information and communication activities, including institutional communication on the policy priorities of the Union where they are directly linked to the objectives of this Regulation, with a particular view to creating synergies with other relevant Union policies;

(c)

IT technology networks, with the objective of processing or transferring data;

(d)

any other technical or administrative assistance given to the Commission for the management of the programmes.

4.

The costs of the Galileo and EGNOS programmes and of the different phases of those programmes shall be clearly identified. The Commission shall, in accordance with the principle of transparent management, inform the European Parliament, the Council and the Committee referred to in Article 36 ("the Committee") on an annual basis of the allocation of Union funds, including the contingency reserve, to each of the activities specified in paragraphs 1, 2 and 3 of this Article and of the use of those funds.