WRITTEN QUESTION E-1519/01

by Jacqueline Foster (PPE-DE) to the Commission

(21 May 2001)

Subject: The Galileo satellite navigation project

Funding

The Memorandum of Understanding signalling the provisional funding from private sector bodies of Euro 200 million needs further explanation. Could the Commission give examples of some of the industries which have agreed to the funding? Could the Commission also confirm the reports that unless a firm political decision is taken on the definitive phase by June 2001 then such engagement of funding by the private sector will become obsolete?

In the interest of transparency may I call on the Commission to make absolutely clear its intentions with the funding of this project and whether, in the absence of substantial private sector interest, it will fund the project solely from the EU budget, including the Euro 220 million it will cost to maintain the project per annum. Could the Commission also provide an up-to-date breakdown of the contributions foreseen from individual Member States?

Development

Is the Commission aware that whilst the EU has been spending millions on Galileo, the US has been updating its existing technology? Its advances will enable protection against electromagnetic pulses and will provide the American GPS with greater accuracy on positioning. Therefore, could the Commission confirm that the Galileo satellite navigation system will not be technologically lagging behind latest development, if and when, it becomes operational?

Operations

Could the Commission justify why Galileo will only be used for civilian purposes as it seems absurd that the EU decides to construct its own satellite navigation system, yet denies it a military capacity? Is it foreseen that there will ever be a military capacity to Galileo?

Predicted projected costs of Galileo have come in at in excess of Euro 6 billion and yet in the definitive phase we are still asking how it will work; if private funding will be secured; and if it is involved, how much power the private sector will yield?

Answer given by Mrs de Palacio on behalf of the Commission

(5 July 2001)

On 20 June 2000, on the basis of Article 171 (ex Article 130n) of the Treaty establishing the European Community, the Commission adopted a proposal for a Council Regulation on the establishment of the Galileo Joint Undertaking, which is to be open to private investment.

Consultation undertaken has confirmed that the private sector is willing to participate in financing the development phase of the Galileo Programme and this would be facilitated by setting up the joint undertaking. It is, however, too early to identify specifically which firms will be involved.

The Commission expects the December 2001 Transport Council to confirm the launch of the development phase and that this decision to proceed will encourage the private sector to honour its commitments.

At the December 2000 Council a number of Member States made their approval for the transition to the development phase in 2002 conditional upon private sector involvement as of that phase.

The Commission is closely monitoring developments involving the satellite radionavigation market and service providers. The development of Galileo probably influenced the decision on increasing GPS accuracy announced by the United States shortly before the May 2000 World Radiocommunications Conference in Istanbul. The Commission hereby confirms that, following on from its successes in the space and aeronautics sector, Europe is developing a cutting edge radionavigation system which should be operational by 2008.

The Transport Council of 4 April 2001 stressed that Galileo is a civil programme under civil control.

As regards the estimated costs of 3 (and not 6) billion, it is quite natural in the definition phase of all major infrastructure projects like Galileo for the financing to be put in place before the deployment phase. This is a task that the Commission has undertaken through extensive studies and contacts with Member States and the private sector.