WRITTEN QUESTION E-1519/01 by Jacqueline Foster (PPE-DE) to the Commission. The Galileo satellite navigation project.
Date: 2001-05-21
Institutions: European Parliament, Provisional data
Subjects: EU financing, EU research policy, choice of technology, international competition, militarisation of space, private investment, project management, satellite navigation

11.12.2001

EN

Official Journal of the European Communities

C 350 E/177

Answer given by Mr Liikanen on behalf of the Commission

(24 July 2001)

small and medium-sized enterprises

in Commission
The definition of
Recommendation 96/280/EC of 3 April 1996 concerning the definition of small and medium-sized
enterprises (1), is intended to replace the various existing national definitions and the various definitions of
SMEs at Community level in cases where a definition of SMEs is to be used in Community policies applied
within the Community and the European Economic Area. This joint definition, which has been adopted by
limits the danger of distorting competition between enterprises and the risks of
the Member States,
inconsistency in the application of Community policies within the Union and the European Economic
Area.

(SMEs), which is

set out

the 1996 Recommendation
The Commission work programme for 2001 provides for a review of
concerning the definition of SMEs. The main objective of this review is to adapt the threshold for turnover
and balance-sheet total in order to take account of economic changes and to examine other issues, taking
into account, for example, the experience acquired in the functioning of the criterion of independence of
the enterprises concerned. The fact that there are these two alternative thresholds already enables the
situation of enterprises with different characteristics to be taken into account, without the need for a more
detailed breakdown. The contribution of SMEs to employment and the difficulties they may encounter, for
example, in terms of financing, are in fact characteristics which are common to SMEs in all sectors, and
there seems to be no point in establishing a complex system which would result from treating individual
sectors differently.

Moreover, if certain enterprises or sectors needed to be looked at by the Commission or public authorities
in the Member States, the Commission is of the opinion that it would be more appropriate to deal with
the question under the relevant programmes and policies rather than adopt a definition of SMEs which
differed according to the markets, enterprises and/or sectors concerned. In particular, the definition of
SMEs should not be dependent on the degree of competition in the various sectors, which is mainly
a matter to be considered from the point of view of competition policy and policy with respect to state
aid.

In conclusion, the Recommendation concerning the definition of SMEs is not an instrument designed to
conduct sectoral policies and the Commission therefore has no plans at present
to introduce new
categories or treatment which differs according to sector.

(1) OJ L 107, 30.4.1996.

(2001/C 350 E/191)

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?

C 350 E/178

Official Journal of the European Communities

EN

11.12.2001

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 (cid:145)Galileo is a civil programme under civil control.(cid:146)

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.