EU’s satellite project, Galileo, funded at last
BRUSSELS: After hours of haggling, the European Union on Friday salvaged its highest profile investment project, agreeing to divert \2.4 billion of public money to bail out its struggling satellite navigation project, Galileo.
Designed to rival the American GPS system, Galileo has been beset by funding difficulties and hit by lengthy delays after a consortium which was supposed to get the satellite network off the ground failed to agree on financial terms.
The deal Friday was reached after that bickering among private companies was mirrored by a round of horse-trading among national governments fighting over the economic spoils of the funding that will now be ploughed by taxpayers.
Late Thursday Spain sought to block the deal because, unlike Italy and Germany, it was not granted a ground station be placed in the country as part of the network of 30 satellites that will beam navigation signals to earth by 2013.
Madrid finally agreed to the funding plan Friday after the formal conclusions of the meeting hinted that the status of the body in Spain may be upgraded, describing it as one of a network of “three centers.”
Last week EU ministers agreed to earmark the \2.4 billion needed to salvage the \3.4 billion project from money inside the EU budget which was allocated to farm subsidies but has not been spent. At least a \1 billion more of public money has already been spent.
“The door is open to this high-technology project,” German Transport Minister Wolfgang Tiefensee said, describing it as a “smart combination of national strengths and fair competition.”
One senior European diplomat welcomed the decision, citing the economic benefits of a project which its supporters say will produce thousands of jobs in the transport sector and benefit motorists, train and shipping companies, airlines and emergency rescue teams amongst others.
“But just as important is the fact that this is a symbolic project, because it shows that Europe can do something - which is why the Americans are annoyed by it,” he added.
Britain, which has been skeptical about the plan, welcomed the deal, its Transport Minister, Rosie Winterton, saying that was “no doubt that Galileo offers real benefits to the UK space industry and the wider British economy.”
The focus will now be on the tendering process though, judged by the experience of recent months, this may not prove a seamless one.
After the private sector abandoned Galileo this year, the European Commission drafted rules to ensure large and small companies in many EU nations can benefit from the construction of the Galileo program. Germany, which pays most into the EU budget, had feared it would fail to get enough out of the project.
The new tender rules divide Galileo contracts into six segments covering various stages of the project and no single company can be the prime contractor for more than two segments.
Meanwhile the project will have to recover a reputation which has been severely battered by recent setbacks on funding. With precision of up to 1 meter, compared with 5 meters with GPS technology, Galileo was seen as a technological pioneer.
Now there are fears that delays have put it behind updated versions of GPS and Russian and Chinese satelite navigation projects which are planned.
