Public funding of SESAR rollout ‘largely unnecessary’: EU audit

While Brussels has fostered progress in ATM modernisation, EU funding of projects has been largely unnecessary and beset by management shortcomings, according to a new report from the European Court of Auditors.

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The auditors assessed how well the European Commission managed the deployment of SESAR and how it helped meet the objectives of the Single European Sky policy. They examined whether the EU’s intervention was designed to address existing and future needs and whether it added value to the management of air traffic in Europe.

“With on average 30 000 flights per day, air traffic in Europe required a robust, harmonised and modern management system,” said George Pufan, the ECA member responsible for the report. “However, the benefits from EU money spent in deploying SESAR are far from clear.”

Overall, the EU has committed €3.8 billion to SESAR between 2005 and 2020, of which €2.5 billion was earmarked to support the deployment of such systems and procedures.

The auditors acknowledge that ATM modernisation is benefitting from regulation and coordination at EU level and that SESAR’s concept of common projects promotes coordinated action and mitigates the ‘last mover advantage’, where stakeholders tend to postpone investment knowing that benefits will only arrive when all stakeholders are equipped with the new technology.

“However, the first application – the Pilot Common Project – lacked adequate enforcement provisions and included functions which did not fulfil the necessary criteria for selection,” said the ECA.

EU funding for ATM modernisation was largely unnecessary, as a majority of projects would have been financed without EU support. Other shortcomings in implementation reduced the effectiveness of EU funding. “A substantial amount of funding was awarded without adequate prioritisation and consideration of effectiveness,” it added.

The auditors also noted that not enough has been done to mitigate the potential risk of conflicts of interest resulting from the current funding mechanism, whereby some beneficiaries are involved in screening their own applications.

The auditors warn that, for some projects, implementation is not on track to meet the regulatory deadlines, with an increasing risk of delays. They also found a lack of measurement of results in an actual operational environment.

The auditors make several recommendations on how to achieve better results. In particular, they ask the European Commission to:

• improve the focus of common projects and reinforce their effectiveness;
• review the EU’s financial support for modernising ATM;
• review and formalise the preparation and submission of applications for funding;
• ensure appropriate monitoring of performance benefits delivered by ATM

The ECA will now present its special reports to the European Parliament and Council of the EU, as well as to other interested parties such as national parliaments, industry and social stakeholders. “The vast majority of the recommendations we make in our reports are put into practice,” it said.

Read SESAR chief defends EU funding, counters conflict of interest claims

1 Comment

  1. ATM was the only transport infrastructure mode, financed by its users. SESAR and its funds changed this substantially. The question is whether EU should non rather enhance financing all other modes of transport to be financed by their users than the oposite.The funds, in effect, support the airspace users, as the money received by the ANSPs must be deducted from the prices charged to the users. That is fair. But second question is, why EU, in deciding to support the airline industry, have chosen the ATM, safety critical industry, to do that.

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