Brussels, 21/11/2001 (Agence Europe) - On Wednesday, the European Commission is to present an independent study concluding that Galileo is a useful project if one considers the advantages it holds for the European economy as a whole, but that the low level of profit margins for operators will require continued public sector investment. The study, conducted by PriceWaterhouse Coopers had been commissioned by the Transport Council of April this year in order to be able to take a definitive decision on the continuation of this European global satellite navigation and positioning system. According to the PriceWaterhouse Coopers study, procured by EUROPE, the profits would be considerable for the European economy as a whole, with a very positive cost/profit ratio of 4.6. The advantage for the economy would amount to EUR 17.78 billion for the years 2008 to 2020, against a cost of 3.9 billion (management of the system included). This evaluation takes into account the improvement of air traffic and maritime traffic management but not the profits for industrialists in the sector (satellite manufacturers). According to PriceWaterhouse, it is necessary to decide to continue the project on the basis of gains for users and the economy as a whole, in the knowledge that margins for operators would be small because of competition. Still according to the study, income would begin to exceed costs , with a low rate of return on investment (4.1%) because of the size of investment needed. According to the study, the large majority of earnings (that would range from EUR 66 million in 2010 to 515 in 2020) would come from several sectors: the personal use of tracking services (288 million in 2020), civil aviation (100 million) and police and fire services (20 million).
The decision to pursue Galileo must be taken at the Transport Council on 6 and 7 December and clearance has not yet been obtained. Transport Commissioner Loyola de Palacio warned on Tuesday, when speaking to the British press, that, if the Fifteen did not approve continuation of the project in December, she would be ready to suggest that the Commission withdraw its proposal and give up the project. This threat is especially intended to put pressure on the three most reticent countries: the United Kingdom, where Loyola de Palacio is to meet the Transport Minister on Thursday, the Netherlands and Germany. At the Commission, it is hoped that the United Kingdom will be more flexible because the United States, which holds practically a monopoly with the GPS rivalled only by Russian Glonass, would be less reticent towards this future competitor. The United States has taken a favourable view of Galileo since the attacks on 11 September, the Director General for Transport at the Commission, François Lamoureux, stressed on Wednesday, speaking before the European Parliament's Committee on Transport.