Brussels, 07/12/2001 (Agence Europe) - The Transport Commissioner Loyola de Palacio warned that Galileo was on the point of sinking without trace, as she left the Transport Council on Friday at which the EU failed to endorse the creation of a joint venture to manage the next phase of the EU global satellite navigation system. Neither did ministers manage to agree on releasing the funding required for continuing the Galileo project. Eight Member States opposed the Council deciding on Friday to create a joint venture, against the wishes of the European Commission, of course, but also the Presidency, France, Greece, Italy, Spain, Luxembourg and Finland. The European Commission will now ask for the issue to be submitted to the EU heads of state at Laeken. If Member States prove reluctant to approve it at the Summit, the Commission has pledged to continue with its proposal for Galileo to be continued. The acting President of the Council, Isabelle Durant, said that she would not resign herself to this negative state of play but did not make a clear appeal for the dossier to be discussed at the Laeken Summit. Heavy hearts at the Presidency when reflecting the long list of issues to be added to the already packed agenda for the European Summit in Laeken, but they believe that since the Commission and various Member States are being so insistent, there is no way round adding Galileo to the list.
Like the Commissioner, Isabelle Durant insisted on the importance of launching the Galileo project swiftly so that the system may become operational before the American GPs system is entirely modernised. The Commissioner, for her part, raised the spectre of a European Union that is forced to become a consumer of products supplied by a third country with the GPS. Ms de Palacio repeatedly insisted during the day that the Galileo project is important. Speaking to the press, she acknowledged that the Price Waterhouse Cooper study shows public funding should be more substantial than foreseen, but insisted on the fact that the study showed strong economic profitability.
British sources affirm that they still back the project but need more time to analyse the Price Waterhouse study in detail, which shows "a very high cost and benefits much lower than expected.". The United Kingdom especially raises three problems: the public greater investment needed than expected once Galileo is up and running, private participation and the economic viability. Like the Netherlands, Sweden, Denmark and Germany, Britain would like the decision on whether or not to pursue with Galileo to be postponed to March. The Irish Minister, on the other hand strongly defended the project, criticising her counterparts who say they are in favour of Galileo but refuse to adopt the necessary decisions. Like Saint Augustin, they say "God make me good (…) but not right away", said Ms. O'Rourke