Brussels, 22/03/2007 (Agence Europe) - Thursday's adoption of conclusions on the status of concession negotiations for the Global Navigation Satellite System (GALILEO) means that the Transport Council's position follows that of the Commission, in the search for solutions to the impasse that has been threatening the effective functioning of the whole programme for three months now. The Council gave its support to the ultimatum launched last week by the Commission vice president in charge of transport, Jacques Barrot, to the 8 companies: (EADS, Thales and Alcatel-Lucent from France, Immersat from the United Kingdom, HispaSat and Aena from Spain, Fianmecannica from Italy and Teleop from Germany), which form the consortium. In terms of this ultimatum, the companies have until 10 May for creating the necessary conditions (establishment of an operational entity in charge of supervising and deploying the remaining 26 satellites, and appointing its executive director) for resuming negotiations with the GSA (Galileo Supervisory Association) in view of signing the Head of Terms for using Galileo. The Council also invited the Commission to prepare the June Council with a report on negotiations, as well as provide it with “alternative scenarios”.
Adoption of the conclusions is testimony to the support (uncertain till now) national governments and company partnerships gave to the Commission on Thursday. As some sources affirm, negotiations are blocked because of “government interest in getting their slice of the cake”, namely, the famous contracts. The contract grants the future operational entity, formed by a public-private partnership, the right to use the system for 20 years as from 2010 but which also compels it to develop this programme. This is where the problem arises because companies are “aware of the risk” and were hoping for greater public sector participation in funding the project. Its first phase was jointly funded to the tune of “€1.5bn by the Commission and European Space agency. The second, which is expected to begin, according to the initial plan, at the beginning of 2009, will come from the public sector (1/3) and the other by the private, namely the consortium (2/3). The Council therefore indicates the character of the Galileo public-private partnership in its conclusions and calls on the consortium to fulfil its commitments before 10 May 2007.
The conclusions also call on the Commission to submit the June Council, the GSA and the European Space Agency (ESA), current Commission partner with “alternative scenarios for costs, risk and affordability”. In this context, Commissioner Barrot ruled out on several occasions any renunciation of the public-private partnership. Diplomatic sources affirm that it is still possible that a new consortium is set up or a new funding structure implemented.
During a press conference, the German transport minister, Wolfgang Tiefensee, said, “Galileo has still not got over the crisis”, even if industrial leaders had made progress over the last few days: under pressure from governments and the Commission, the consortium set up an ad hoc company, a first step allowing it to meet its commitments. The minister underlined the fact that “the organisation, technique and division of labour are questions on the agenda”, and justified the fact that the “mandate” was granted to the Commission to find solutions “in the event that the consortium does not work”.
Ministers also adopted the mandate allowing the Commission to begin negotiations with third countries, in view of concluding agreements on their participation as members involved in cooperation with the GSA, under Regulation 1321/2004 setting up the GSA. (aby)