Brussels, 23/06/2005 (Agence Europe) In its unanimous adoption at first reading of the report by Etelka Barsi-Pataky (EPP-ED, Hungary), the EP's committee on industry has approved the Commission's proposal to grant one billion EUR (at 2004 prices) for the period 2007-2013 for the funding of the two first stages of the Galileo system, to cover deployment and commercial exploitation operations. Phase 3 (deployment) is to start in 2006, and includes the construction and launch of satellites, and the development of the entire terrestrial component. Phase 4 (commercial exploitation), which is due to start in 2008, will cover the management, maintenance and updating of the system. Phase 1 (definition) finished in 2001 and phase 2 (development) is currently underway. The report states that this sum is indicative only. Once the forthcoming financial perspectives 2007-2013 are adopted, the Commission will propose an adjustment to the reference sum, as the sum total of each annual proportion will be decided upon as part of the annual budgetary procedure.
The Parliamentary committee, which feels that the Galileo project could be lucrative, adopted an amendment which calls upon the European Commission to include a profit-share arrangement, so that the Community's contribution can be reimbursed. The report states that the surveillance authority tasked with granting licences remains the owner of the intellectual property rights and the licences, whilst all revenue generated by the commercial exploitation of these rights goes to the private-sector company selected to hold the concession for the construction and exploitation.
Lastly, insofar as the project is based on a public-private partnership, the Parliamentary committee has asked for the approval of the Parliament and the Council to be required, in respect of budgetary rules, should the Community propose to grant financial guarantees exceeding the planned budgetary envelope, either directly or indirectly.
The report will be voted on in plenary in early September.