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Galileo Navigation Satellite System Funding Situation Confused

In mid-December ESA voted to approve funding for the Galileo navigation satellite system, followed days later by european transport ministers voting to refuse endorsement of the system. The vote has thrown Galileo’s funding in doubt.

The European Space Agency (ESA) agreed on Dec. 20 to spend US$45 million (Î 50 million) on Galileo, with an additional US$450 million (Î 500 million) to be committed in late 2001 to begin actual construction of the system. However, the ESA ministers said their approval was conditional on the European Union agreeing to finance an equal amount for the program.

European transport ministers on Dec. 22 refused to endorse the Galileo satellite-navigation system. The decision was made at 4 a.m. after several ministers had already left the Brussels meeting. The ministers called for further work detailing the management of the program and the eventual role the private sector would play in its financing. European Union governments are expected to review the program again at a meeting in March in Stockholm, Sweden. The European Commission, the executive arm of the European Union, had asked the transport ministers to clearly signal whether Galileo should proceed. Gilles Gantelet, a spokesman for the Transport Directorate, said several nations had imposed too many conditions on their approval for Galileo to be acceptable to the commission and to the other nations backing the project. The British, German and Dutch governments had expressed the most hesitation about Galileo, according to one industry official involved with Galileo.

ESA and European Union officials will meet during January to determine Galileo’s status and to determine whether preliminary work can be started prior to the European Union's March meeting in Stockholm.

Galileo is a 30-satellite navigation system planned to begin service in 2008. Its total costs have been estimated at Î3.5 billion, with at least some of that money to come from the private sector through revenues generated from Galileo commercial services.  

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January 8, 2001

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