Brussels, 19/09/2007 (Agence Europe) - On Wednesday 19 September, the European Commission adopted a communication explaining how it is planning to get the European satellite navigation programme into orbit (see EUROPE 9503), along with a draft review of the EU budget, known as the Financial Perspectives, to ensure public funding for constructing the Galileo system. The proposal the Commission will be submitting to the European Parliament and Council (the latter will be deciding on it through a qualified majority vote) covers funding for Galileo €2.4 billion) and the European Technology Institute (€309 million). The Commission is suggesting that the money be stumped up from margins under the upper limits in Heading 2 (Agriculture), namely €2.189 billion for 2007 and 2008, and Heading 5 (Administration), namely €220 million. The remainder would be found by transferring €300 million in research funding for Galileo from the transport section of the 7th framework programme for research and development.
Unveiling the plans, Transport Commissioner Jacques Barrot against stressed the importance of Galileo for Europe's strategic autonomy. He said it was really a huge project which would have an impact in the member states, listing the expected gains from satellite navigation for transport, civil protection, emergency services, security and many other areas. Barrot explained that it had proved impossible to establish a public-private partnership and anyway, all the satellite navigation systems around the world were built from public finance and are operated by states. The Commission is giving up on the idea of funding from the private sector for the moment, but is still hoping that the private sector will return when the system is up and running. On the funding mechanism, the Commissioner admitted that there had been a strong temptation to call on the European Space Agency but ten EU member states are not members of the ESA which, as far as the Commissioner is concerned, is sufficient justification for EU funding from existing margins available under budget headings 2 and 5. He stressed that use of the margins in question would not jeopardise policy in any way because it is in fact a type of 'virtual money' which the finance ministers were hoping not to have to spend. This is where the problem lies. The Commissioner explained that the finance ministers now had to be brought round to the idea, but hinted that the European Parliament was already on board. Barrot said he was prepared to address COREPER (the committee of member state's representatives) in person to win over the member states. (oj)