Brussels, 22/03/2002 (Agence Europe) - Progress is being made towards a probable decision at the Transport Council next Tuesday to continue with the Galileo project, but the result has not yet been achieved. The meeting of the EU15 Permanent Representatives on Friday made it possible to resolve one of the obstacles to the adoption, on Tuesday, of the decision to release EUR 450 million for continuing the project and creating this common venture. During the rather short discussion on Galileo, no delegation was opposed to the adoption of a "rendez-vous clause" fixed for end 2003, but a rendez-vous clause which seems limited to financial balance without having to question whether or not the project will be continued. Representatives of Member States agree, it is explained by diplomatic sources, that, at that moment, the Commission will inform the Council of the results of the procedure for bidding launched by the joint venture, which will deal with the current phase of development of the European satellite navigation project. On the basis of this information, the Council "would take the decisions necessary for the deployment and operational phases, including on the maximum level of Community funding, in order to ensure that the programme is soundly managed". We recall that it is foreseen that deployment should begin in 2006 and that Galileo will begin to be operational in 2008. In this respect, Coreper reportedly said it agreed with the formula that the deployment phase, whose cost is evaluated at a maximum of EUR 2.15 billion, should be at least two-thirds financed by the private sector, with Community contribution being limited to one third at most. The United Kingdom and the Netherlands insisted that a rendez-vous clause should be adopted, and had also even called for one for 2005, if not 2007.
The United Kingdom, the Netherlands and Denmark maintain general reservation pending ministerial discussions. And the question of private participation in the joint undertaking still remains to be settled. There are two conflicting positions. On one side, the European Commission, which considers the project "indispensable", and, on the other, the United Kingdom, the Netherlands and the European Parliament, which are opposed. They invoke conflict of interest caused by the participation of private companies in the structure dealing with calls for bids. Six or seven Member States have apparently said they are open to participation from the private sector.