Brussels, 20/06/2001 (Agence Europe) - On Wednesday, the European Commission formally proposed to create a joint venture to manage the development phase of the European satellite navigation project Galileo. Announced at the end of February by Romano Prodi, this proposal is aimed at ensuring a single management framework for the project over the next four years, with an Board that will be formed of the European Commission, the European Space Agency (ESA), and very probably the European Investment Bank. The Commission hopes that the Council will adopt this plan at the end of this year, in order for the joint venture to be created in the first half of next year.
The joint venture, a structure foreseen by Article 171 of the Community Treaty, will oversee the implementation of the programme's development phase (which should end in 2005) and prepare the deployment phase. In fact, the issues of research and technology - research and development actions, launching of a first series of test satellites - will be delegated to the ESA through an agreement that will link it to the joint venture. The joint venture will be more directly responsible with establishing a business plan covering all the phases of the programme, on the basis of information provided by the Commission on the services and revenues. On this basis, it should establish, before the end of 2002, a global financing plan for the programme notably including the details for the financial participation by the private sector during the deployment phase. It will also prepare the establishment of the structure that will succeed it for the deployment and functioning of Galileo. Of course, the political decision and the continuation of financing should remain within the hands of the Council, on the Commission's proposal.
According to the Commission proposal, all of the budget foreseen for the development phase (550 million from the Community budget and 550 from the ESA) will be allocated to the joint venture. Each will have 30 votes on the Board. Private companies could join the capital of the company by contributing at least EUR 20 million for large companies and 1 million for SMEs (respectively 5 and 0.25 million for a subscription before 31 December 2002). These companies would have a vote on the Board according to the capital subscribed.
The details on the functioning of the joint venture are not as yet decided, but they should initially employ between 15 and 20 people, of which a few detached from the Commission.
Furthermore, the European Commission has just launched a call for tenders to establish a first business-plan, aimed at convincing the Council to give its assent in December for the continuation of the project.