Galileo - from private to public funding?

10 October 2007
 

 

European Commission communications have recently focused on the perceived failings of the public-private partnership consortium that had hoped to implement the EU global navigation satellite system (GNSS).

The latest Communication, adopted on 19 September 2007, proposes the deployment phase of Galileo to be entirely funded from the Community budget to ensure that the project continues.

The failure of the concession contract negotiations for the deployment and commercial operation of Galileo mean that changes are needed to the Commission’s initial proposal for a Regulation on the funding of the European satellite radionavigation programmes. The newly proposed Regulation provides for the responsibility for the deployment phase of Galileo to be fully assumed by the European Community acting on its own.

The budgetary resources required for funding EGNOS and Galileo are set at €3.4 billion for the 2007-2013 time period. €1 billion had already been earmarked for satellite navigation, leaving €2.4 billion that still need to be found.

The Commission has assessed two additional funding options, namely using the general budget or calling for additional funding from the Member States which are involved in the European Space Agency. Leftover funds earmarked for the agriculture sector, for research and for running the EU civil service could be used.

The 27 EU transport ministers, who met on 2 October, have unanimously expressed their support for the continuation of the Galileo project, although no specific decisions were taken on the means of funding, the actual final costs or details for procurement.

Whilst France and Spain seem in favour of the Commission's proposal, Germany, the Netherlands and the UK would like to see individual states contribute extra funds to the European Space Agency. The Member States are expected to make a decision in December.

Galileo should become operational in 2013, three years later than scheduled.

The Commission regards Galileo and EGNOS as vital for the independence of Europe. They should be regarded as an essential investment that will enable Europe to emerge in the area and retain a large share of the satellite navigation market.

"Europe needs a satellite radio navigation system as part of its essential infrastructure for crucial applications such as border control, transport logistics, financial operations and the surveillance of critical energy and communications infrastructures. The Commission is doing everything it can to guarantee its success", said Jacques Barrot, Commission Vice-President responsible for transport. "Galileo will make a major contribution to Community policies, and embodies Europe's ambitions in space, technology and innovation", he added.

Satellite radio navigation is a technology which enables users to pinpoint their location anywhere in the world at any moment in time. The European Galileo satellite radio navigation system consists of a constellation of 30 satellites in orbit at an altitude of 24 000 km offering five different services.

4 satellites have already been funded 50-50 by the European Space Agency and the general EU budget, leaving 26 satellites still to be paid for. Until now, only one of Galileo’s satellites has been launched, in December 2005.

 

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