WRITTEN QUESTION E-0140/02

by Salvador Garriga Polledo (PPE-DE) to the Commission

(1 February 2002)

Subject: Commission's position on the Galileo satellite localisation project

Since its inception, the Galileo project, which is vital for navigation and the development of third generation UMTS, has encountered serious problems within and outside the EU which may jeopardise its future.

The recent European Council in Laeken instructed the Council of Transport Ministers to take a final decision by March 2002 on funding the development phase of the project, which will require EUR 1 100 million.

Will the Commission say what financial commitment is needed by the Union and the Member States to develop this important European satellite localisation project, which may be of vital importance in ensuring Europe's independence in the sector covered by Galileo and in the development of a vital navigation network and third generation UMTS?

Answer given by Ms de Palacio on behalf of the Commission

(13 March 2002)

The total cost of the Galileo satellite positioning programme is estimated at between EUR 3,2 and EUR 3,4 billion. It comprises three phases.

The development and validation phase will last from 2001 to 2005. It will include both developing the satellites and the ground components, and validating the system in orbit. It will cost EUR 1,1 billion, shared equally between the EU and the European Space Agency. Budget provisions have already been made in the current Community financial perspective for the EU's contribution of EUR 550 million provided from the trans-European networks appropriations. For its part, the European Space Agency decided to approve its contribution of EUR 550 million at its meeting in Edinburgh on 15 November 2001.

The deployment phase (2006-2007) will include the construction and launch of the satellites, and the installation of the complete ground segment. Total costs are estimated at between EUR 2 and EUR 2,1 billion, including both private and public sector contributions. To finance this phase, the Commission will make appropriate proposals under future financial perspectives in order to make the

necessary appropriations available in the framework of the appropriations assigned to trans-European networks and research. Moreover, the Sixth Framework Programme for Research and Technological Development (RTD) makes space a priority area. These proposals will be based on public and private sector funding. Each sector's contribution will be determined on the basis of the proposals to be made by the joint undertaking depending on the results of the tender competitions it launches for selecting the Galileo operator or operators. As for all such infrastructure projects, it is not possible at this stage to give more precise figures.

The commercial operation phase will start in 2008. The most recent studies anticipate gradually decreasing public funding until 2015. It should be pointed out that EU contributions during the operation phase are in fact compensation for services provided by the operator. The effects of this on public expenditure could be offset by the yield from possible charges or taxes on the receivers.

In conclusion, except for the development phase funded by the European Space Agency, national budgets will not bear any of the public funding costs for the various phases of the Galileo programme.