Transport Council gives the go ahead to Galileo, March 2002

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Series Details 28.3.02
Publication Date 30/03/2002
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In the future, European citizens will be able to pinpoint their precise location, scientists will be able to track environmental changes, companies will be better equipped to prospect for oil and even financial transactions will be improved. All this will be a result of Galileo, a European satellite radionavigation system, which was given the go ahead by the Council of Transport Ministers, on 26 March 2002. The ministers, following on from the unanimous conclusions of the Barcelona European Council, agreed to provide the €450 million needed to develop Galileo as well as adopting the regulation establishing the joint undertaking responsible for operating it.

The decision represents an important step forward in the European Union's involvement in space projects, as summed up by the European Commissioner for Energy and Transport, Loyola de Palacio, who said,

Europe has finally taken the political decision to launch this strategic programme. Today we are seeing the creative side of Europe. This is good news and it shows the European Union's capacity to carry out an ambitious industrial project that will create 150 000 highly qualified jobs and generate income of some €10bn a year. It will help Europe to maintain its autonomy, its sovereignty, its technological capacity and control of its knowledge.
European Commission: Press Release: IP/02/478

Background

  • What is Galileo?

It is a global network of 30 satellites and ground stations that will be run by Europe, which will enable people to ascertain their position to within one metre by using a cheap receiver. The system will mainly be used as a navigational network for planes, ships, cars and lorries, and spacecraft, but it will also be useful in providing surveying references for building bridges, roads and cities, as well as helping scientists to map environmental changes and in the future it may even be used in new personalised services for mobile phone and pocket computer users.

The programme was launched on the initiative of the European Commission who presented a proposal on an independent satellite radionavigation programme, to be known as GALILEO, to be developed in four phases: definition in 2000, development by 2005, deployment by 2007 and operation and exploitation after that in a Communication on 10 February 1999 [COM(1999)54]. A further proposal on the joint undertaking of the Galileo programme programme was presented by the European Commission in 2001 [COM(2001)336]

  • Why does Europe need Galileo?

Currently, there are two satellite positioning systems in use - GPS, run by the United States, and Glonass, the Russian network. Supporters of Galileo argue that both these systems have military applications and therefore Europe is not guaranteed an uninterrupted service because military interests could control how the services are used. As states on the European Commission Directorate-General Energy and Transport's website for Galileo,

The European Union cannot afford not to become involved in what, it is already clear, will be one of the main sectors of industry in the twenty-first century. That would mean becoming dependent on systems and technologies developed outside Europe for applications vital to the running of the society of tomorrow.
DG Energy and Transport: The need for Galileo

By developing its own satellite positioning system, Europe would not need to rely on these other systems and since Galileo will be under civilian control, its services would not be disrupted by military interests. Moreover, Galileo will provide much better coverage of Europe than either of the current systems and is likely to create at least 100,000 jobs.

However, there also strong cases against the need for Galileo such as the high cost to the taxpayer, - the estimated cost for Galileo is €3 billion - the duplication of existing systems and the perceived few benefits to the consumer.

A more detailed discussion about the need for Galileo can be found on the DG's Energy and Transport website.

Galileo - Three Phases

The European Commission has identified three phases in the Galileo programme:

The initial definition phase sought to define the basic elements of the project and led to the publication of a High Level Mission Definition document, which presents a picture of the main characteristics and performance of the Galileo Mission.

The development and validation phase, scheduled to last from 2002-2005, will now be able to get underway following the Council's March 2002 decision to support the programme. The first part - the development phase - covers the definition and subsequent manufacture of the various system components: satellites, ground components, user receivers. The validation phase will require the putting into orbit of prototype satellites from 2004 and the creation of a minimal terrestrial infrastructure.

The final deployment phase will consist in gradually putting all the operational satellites into orbit from 2006 and in ensuring the full deployment of the ground infrastructure so as to be able to offer an operational service from 2008 onwards.

Galileo - Stumbling Blocks

The main obstacles to the development of the Galileo programme have been a number of key Member States, namely the United Kingdom, the Netherlands and Germany, who have opposed the programme because of the cost and profitability prospects of the project. A study published in November 2001 by the accountancy firm, PriceWaterhouse Coopers, compounded these doubts as it suggested the programme would cost the public sector €2.5 billion.In the wake of the report, ministers were unable to agree at the Transport/Telecommunications Council in December 2001 to the funding needed. Following on from this government ministers, meeting at the European Council, Laeken, 14-15 December 2001 called for a decision to be reached by the end of March 2002, at which point the parallel funding of €550 million committed by the European Space Agency would expire.As a result, the Galileo programme was the key item on the agenda at the Transport Council on 26 March 2002. However, this time ministers managed to agree on the €450 million - in addition to the €100 million already authorised - which will pay for the next phase of the development programme.It seems that the reason for the go-ahead on this occasion was that the German and UK governments were both prepared to support for the programme for different reasons. The German government agreed in February 2002 to the extra funds as long as extra costs were met from transport and research budgets rather than the general exchequer. While the UK announced that it was satisfied with a compromise that would exclude private companies until after a tendering offer had been put into place at the end of next year.

US Opposition to Galileo

Although all the key European stakeholders have come round to supporting the project, the United States of America remains strongly opposed to Galileo, fearing that it will not be interoperable with the U.S. Global Positioning System and fear that it may also push the US system out of the European market. On 7 March 2002, these concerns were clearly highlighted in a media report which read,

"The U.S. delegation has raised potential concerns about various aspects of the Galileo project as it has been described by Europe. These potential concerns fall into three broad categories: trade-related, technical, and security".
United States Mission to the EU: Media note on Galileo

Since the decision by the Transport Council on the 26 March 2002 the US Mission to the EU has been fast to emphasise that they are keen to work with the Europeans, as emphasised by Richard Boucher in a press briefing on the same day when he said,

"We will continue our discussions with the European Commission on cooperation between the Global Positioning System and the Galileo system. We started talks two years ago with the United States and the Europeans trying to look for a cooperative agreement on how the two systems could provide benefits for users of both systems. We anticipate delegations of experts will convene in Brussels this spring to address these issues'.
United States Mission to the EU: Press Briefing.

However, the decision on Galileo clearly comes at a time when transatlantic tensions are running high following the US imposition of tariffs on steel imports.

Galileo - The Future

With the funding agreed, the second phase of the Galileo programme can now get underway on schedule. However, it will not be until 2008 when Galileo becomes operational that European Member States will really be able to judge whether the benefits outweigh the initial cost. Some remain to be convinced. The Economist (No.8265, 23.3.02, p39) quotes one critic, Edward Bannerman, of the Centre for European Reform, saying that Galileo is " the common agricultural policy in space".

Further information within European Sources Online:

European Sources Online: Topic Guides
Common Transport Policy
The Research and Development Policy of the European Union
European Sources Online: European Voice
10.06.99: Ministers to cut funds for satellite navigation project
24.06.99: 17 June: Transport Council
08.07.99: Tripartite talks on launch of satellite project
02.03.00: EU set to clash with US over radio waves
14.12.00: Galileo project moves into launch pad phase
08.03.01: Galileo space project brought down to earth
22.03.01: Power battle over Galileo risks loss of 100,00 jobs
29.03.01: Galileo all set for go ahead
12.04.01: Dutch doubts resurface over Galileo satellite
17.05.01: Private cash key to launch of Galileo satellite
29.11.01: Satellite project facing burn-up over private investment dispute
06.12.01: Report may keep Galileo earthbound
07.02.02: De Palacio set for climb-down over Galileo incentive
28.03.02: EU ready to switch off Galileo to aid US security
 
European Sources Online: Financial Times
31.12.01: A Europe fragmented in space
05.04.01: Europe set to get to grips with Galileo
10.04.01: Doubts cast on satellite's viability
07.08.01: PwC to advise on Galileo project
16.11.01: European Space Agency funding agreed
05.12.01: Funding disputes may ground Galileo project
08.12.01: Cost worries put Galileo satellite plan in doubt
18.12.01: Brussels eases threat to Galileo
19.12.01: Chirac urges more spending on space sector
10.01.02: Fresh blow for satellite project
08.02.02: Double blow to EU's Galileo satellite project
28.02.02: Berlin to back satellite system
01.03.02: Galileo set for go-ahead
27.03.02: Satellite wish [FT.com]
27.03.02: EU to go ahead with satellite system [FT.com]

Further information can be seen in these external links:
(long-term access cannot be guaranteed)

EU Institutions

European Commission: DG Energy and Transport
Galileo
  The need for Galileo
  Applications
  Technical Features and Programme Phases
  Galileo: An imperative for Europe
  Final report of the inception study to support the development of a business plan for the GALILEO Programme [November 2001]
  Galileo Newsletter
 
European Commission: DG Research
11.07.01: Galileo, the guardian angel of mobility
Galileo: The challenge of autonomy [RTD Info No.25]
 
European Commission: DG Press and Communication
Press Releases
14.07.99: Commission takes further step towards international cooperation in satellite navigation [IP/99/501]
09.12.99: Next decisive step in the Galileo definition phase [IP/99/962]
08.03.00: Commission calls for adequate radio spectrum to ensure growth of 3rd generation mobile phones and satellite navigation [IP/00/233]
04.05.00: Commission and European Space Agency open joint office to accelerate work on Galileo Satellite Navigation System [IP/00/440]
16.05.00: Galileo: Ms de Palacio pledged support for Europe requests for frequencies [IP/00/482]
05.06.00: Commission confident that radio spectrum talks will secure growth of 3rd generation mobile phones and Galileo satellite navigation project [IP/00/572]
12.07.00: Commission proposes decision on radio spectrum [IP/00/751]
22.11.00: Continuation of the Galileo project: The Commission underlines the need for rapid decisions [IP/00/1336]
29.01.01: GALILEO Project: Loyola de Palacio calls for rapid implementation of the programme development phase [IP/01/125]
22.03.01: GALILEO: the European Commission mobilises €200 million in funding[IP/01/431]
20.06.01: A Joint Undertaking for Galileo [IP/01/863]
14.11.01: Romano Prodi unveils his vision for Europe's space strategy [IP/01/1583]
22.11.01: Independent study confirms economic viability of Galileo [IP/01/1637]
17.12.01: After Laeken, Loyola de Palacio calls on the Member States to take fast decisions because more time is likely to compromise the Galileo project [IP/01/1843]
26.03.02: Galileo: Yes at last! [IP/02/478]
 
Speeches
26.04.01: The importance of Galileo for Europe [SPEECH/01/189]
 
Memos
10.12.01: Decisive progress in certain areas despite the failure of the discussions on Galileo [MEMO/01/429]
27.03.02: Europe finally launches Galileo: Results of the Transport Council
 
European Parliament
Reports
Report on the proposal for a Council regulation on the establishment of the GALILEO Joint Undertaking [COM(2001) 336]
Report on the Commission Communication to the European Parliament and the Council on Galileo [COM(2000)750]
 
The Legislative Observatory
Galileo, satellite radionavigation programme: development phase, joint undertaking [COM(2001)336]
 
Intergovernmental Organisations
 
European Space Agency
Homepage
What is Galileo?
Why Europe needs Galileo?
Who's involved in Galileo
Galileo technology developments
Market prospects and business opportunities
Press Releases:
20.03.02: ESA welcomes conclusions of the Barcelona European Council on Galileo
26.03.02: Galileo gets the go ahead
 
National Organisations
 
United Kingdom: Department of Transport, Local Government and the Regions
Homepage
Consultation on the European Commission's Communication on Galileo - involving Europe in a new generation of Satellite Navigation Services [April 1999]
 
United States: The United States Mission to the European Union
17.01.02: U.S. Position on Galileo
12.02.02: U.S. Officials Cite Concerns about Planned European Satellite System
07.03.02: U.S. explains Position on GPS-Galileo
26.03.02: Statement by the U.S. mission to the EU on GPS-Galileo cooperation
26.03.02: State department spokesman on GPS and Galileo
 
Nongovernmental Organisations
 
PriceWaterhouse Coopers
Homepage
06.08.01: PricewaterhouseCoopers Leads Study on Major European Space Programme
 
Advanced Aviation Technology Limited
Homepage
Galileo - European Satellite Navigation System [August 2001]
 
Eutelsat
Galileo services founded to support Galileo programme
 
GPS World
Homepage
26.03.02: Vive Galileo!
 
Galileo's World
Homepage
 
News Organisations
 
BBC News Online
04.12.01: Funding doubts for Galileo project
07.12.01: EU satellite project may never fly
18.12.01: US warns against EU navigation satellites
08.03.02: EU rebuffs US over satellite project
15.03.02: Satellite decision draws near
16.03.02: EU summit agrees key reforms
23.03.02: Q&A: What is Galileo?
26.03.02: Galileo system gets go-ahead
26.03.02: Galileo: How will it work?

Further and subsequent information on the subject of this In Focus can be found by an 'Advanced Search' in European Sources Online by inserting 'Galileo' in the keyword field.

Helen Bower
Compiled: 28 March 2002

Galileo, a European satellite radionavigation system, was given the go ahead by the Council of Transport Ministers on 26 March 2002

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