Brussels, 11/01/2001 (Agence Europe) - While each of the parties involved - Member States, Commission, industry - seem very concerned that people may think that the European Galileo project for satellite navigation and positioning will see failure and that the blame will be its, the EU 15 and the European Commission have returned for the first time on Wednesday, during a working meeting, to the failure of the Transport Council in December. Contrary to what was foreseen, the Council had not ended with the adoption of the resolution that would have launched the second stage (detailed definition and validation) of the European Galileo satellite navigation and positioning project (see EUROPE OF 25 DECEMBER, P.5). Galileo, let us recall, is aimed at competing with the current American GPs system, with an operation starting in 2008 after EUR 3.25 billion in investments.
The meeting on Wednesday enabled, according to one observer, to "explain themselves on what happened in the Council". It also enabled France, which presided to Council in December, to present "conclusions of the Presidency", which remain confidential. According to sources close to the dossier, these conclusions bring detail the results of the Council, and invite the Member Sates and the European Commission to work together, by April, to resolve the various problems and to define the details for the transition to the following phase of Galileo. The launching of the second phase of Galileo could in fact be decided at the next Transports Council in April. Continuing with the concern not to caste discredit on this project, many recalled during the meeting that they remain very attached to the success of the Galileo project.
The fundamental question, which infers the debate ad the position of each, is that of the participation of the private sector in the financing of the project. The desire to convince the private sector to participate in the project is found in the talks on the resolution that the Council should - and must still - adopt. The degree of control by the Member States over the management of the Galileo project being an call for discord. Despite attempts to compromise, the position where to far apart in December to reach a compromise, with at the two extremes the European Commission - which called for a short and political text, necessary according to it to convince the businessmen to take part in the project - and certain Member States, (Germany, the United Kingdom and the Netherlands in the lead), decided to gain more details and guarantees, especially over the financing by the businesses, before giving their assent. Several diplomatic sources assure that the EU 15 where very close to an agreement, on the basis of the draft resolution established by the permanent representatives (Coreper). Text, which according to them, would have been approved by the Commission representative during the talks, which the Commission denies strongly, rebuking the accusations of sudden changes in attitude between the Coreper and Council meetings. The draft resolution established by the Council being very detailed, called for several reports (too many, for the Commission, which feared that this could distance the private sector), including the independent audit of the project, as well as a significant involvement of Member States with the project.
Certain member States still await "proof of the participation of the private sector", feeling that we can only launch such a project without knowing what this will cost the States purses. The report presented in November by the Commission being, according to them, "not detailed enough and substantial for the analysis of cost-benefits, and the participation of the private sector". In the report presented in November, the Commission said it counted on a contribution of EUR 1.5 billion from the private sector.
Businessmen say they are initially very reticent to any participation in the financing of the project, feeling that if they may effectively participate in the applications that will serve them directly there is no reason for them not to tale part in the project itself, which covers the infrastructures. However, according to sources that are in agreement, one of the two consortiums already taking part in the works on Galileo sent a letter indicating that they would accept to take part in the financing of the programme on several conditions, which are not at all negligible, and include the granting of a concession for a "certain duration" on the services that will be given by Galileo, in order to guarantee to it a return on their investments. Another condition will be the participation in the decision-making bodies of Galileo, which should also ask for Galileo to be operational by 2006 and not 2008. This proposal will be studied, among other less detailed ones, by the Commission. It had already been raised by Commissioner Loyola de Palacio during the Transport Council in December and had thus not apparently, or at least in this form, sufficed to convince all the Member States". By April, the Commission will not be able to give a guarantee of the participation of the private sector, but it will be able to explain in great detail how it will achieve it", assure Commission sources, which also insist to add that the work will continue as planned.