Brussels, 28/03/2000 (Agence Europe) - Opening work on Tuesday, the Transport Council heard a report by the European Commission on the definition phase of the project for a European satellite navigation system, Galileo. Work covers: i) radio frequency, ii) funding, mainly through public/private partnership; iii) cost/profit analysis; iv) the system's safety; v) negotiations with the United States and Russia for establishing cooperation with their navigation system, GPs (which currently dominates the market) and Glonass respectively. The ministers will assess the state of progress of work in December this year and will then decide on how appropriate it is to go on to the operational phase.
European Commissioner Loyola de Palacio insisted with ministers that Member States should defend the Galileo project during the international conference on the attribution of frequencies, to be held from 8 May to 2 June in Istanbul. The Commission has already proposed a Community stance for Istanbul which must be adopted by the Telecom Council on 2 May (see EUROPE of 8 March, p.11).
The Commissioner also updated on negotiations under way with the USSR and the United States, which have the only two systems that give worldwide coverage. Discussions with Moscow for cooperation between Galileo and Glonass are progressing well, said the Commissioner, specifying that the Russians seem willing to share frequencies needed for transmitting satellite signals. The aim, if political circumstances allow, is to conclude negotiations with Russia in July in order to have a legal base allowing contracts to be concluded with European and Russian companies. Discussions, on the other hand, are far more difficult with the United States, which fear the security problems posed by the private sector's entry to the management of the system (Ms Palacio spoke on Monday with US Transport Secretary Rodney Slatter).
Taking stock of the situation on private sector participation in the funding of the project, the Commissioner felt that response to the calls for bids have been positive and numerous. A European consortium proposed participation of EUR 1.5 billion.
The Member States gave a favourable welcome to the report by the Commissioner. The Netherlands and the United Kingdom insisted once more, however, on the analysis of costs and profits and raised the question of the military taking part in preparing the project. The Commissioner remarked that the project is first and foremost a civilian project. The Scandinavian countries expressed fear about the quality of coverage by Galileo in the northern regions.