Brussels, 07/01/2003 (Agence Europe) - Quarrels within the European Space Agency (ESA) over the management of Galileo finally won the day at the end of last year, whereas mid-December there was hope that this European satellite navigation and positioning system could finally take off again. The countries arguing over the management of part of the project under the general management of ESA had finally reached an agreement of principle: Germany, Italy, France and the United Kingdom were each to finance 17.5% of the EUR 550 million that ESA is to devote to the project (EUROPE of 19 December, p.9). The project's management and return on investments were thus to be shared. But the political agreement was not confirmed, but on the contrary, rejected by two countries. Germany, which is the main protagonist of the deadlock, and Italy, vetoed the deal. Spain too, as it could not agree to seeing its share reduced, ESA sources explain. The services of the Space Agency are trying to organise a "specific meeting, that could be held in the coming days", says its spokesperson. The next "ordinary" meeting of the ESA board is only scheduled for March.
In a press release, the Agency's director, Antonio Rodota, condemned this "hard blow for Europe". "The entire space industry in Europe will badly suffer from this break in negotiations", he declared. Already behind schedule, the Galileo project, jointly headed by the Commission and ESA will again be delayed. "While keenly aware of the economic, industrial and strategic importance of satellite navigation , our Member States failed to reach agreement, thereby delaying the start of the project's development and validation phase", added Mr. Rodota.
The European Community and ESA must both provide EUR 550 million for the development phase of the European satellite navigation and positioning project. After many months of dissension, the EU Council of Transport Ministers reached agreement in March 2002, then confirmed end-May, on pushing forward with the project and on the release of the Community envelope.
But with persistent difficulties between the same countries within ESA, the joint venture created to manage this new phase of the project was thus unable to begin its work nor conclude contracts with the private sector, no more than it could conduct the planned calls for tender.
Following the definition phase (1999-2000), the development and validation phase was to be spread over five years (2001-2005), so that the satellites could be deployed from 2006 and this rival system to the GPS would be operational in 2008.
The Commission has provided for organising a "Galileo Industry Day" on 18 March to inform industrialists of developments in the project.
Commission sources "deplore the haggling centred on industrial return", while assuring that the Galileo project "remains under control" and should not suffer further delay. Despite the lack of an agreement signed between the Commission and ESA on the functioning of the joint venture, necessary for the launch of the project, the Commission already brought together its Surveillance Council for the first time at the end of last year.
Commission sources hope that this Council will again meet late January or early February, this time to appoint its director and thus get the venture up and running. In that case, the joint venture could make calls for tender for the definition of services and the choice of the future contractors.
The same source assures us that this optimistic scenario is possible, hoping, on the one hand, that ESA will nevertheless send a representative to this Council, and stressing, on the other, that the decisions of the Surveillance Council being taken through a qualified majority, Germany and Italy will not be able to block the appointment of a director.
At the very end of last year, the Commission took the precaution of committing the EUR 240 million originally earmarked for the Galileo project in 2001 and 2002, and that could thus be spent, if the joint venture begins its work.
The statutes of the joint venture were published in the Official Journal L 138 of 28 May 2002.