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Europe Daily Bulletin No. 9514
Contents Publication in full By article 10 / 31
GENERAL NEWS / (eu) eu/transport council

Council reaffirms importance of Galileo but bickers about its funding

Luxembourg, 02/10/2007 (Agence Europe) - Galileo's lift-off is proving terribly difficult! Meeting in Luxembourg on 2 October, EU transport ministers' views profoundly differed about how to fund the programme but they did, once again, manage to agree on the need to continue the project. At the end of the lively exchange of views, the EU27 adopted confusion in which they confirm the intention to take “concerted” action before the end of this year and reaffirm the need to continue implementation of EGNOS (the four initial satellites prefiguring the system) in a way that ensures signal availability before the end of the year. The Proposal adopted by the Commission on 19 September involves funding for the programme out of the Community budget and will be examined by finance ministers during the Ecofin Council on 9-10 November, before it is returned to the transport ministers' table during their November Council. Whatever happens, it is more than likely that the December European Council will reach a decision on this dossier.

Although member states have all admitted the political, strategic and economic importance of Galileo, an agreement on how to fund it was unforthcoming due to profound differences of views between member states on what financing options should be adopted. France and to a lesser extent, Spain, fully support Community funding and the proposal presented by the Commission on 19 September (EUROPE 9505). Germany and the United Kingdom would have preferred to have seen other options on the table. The French Secretary of State for Transport, Dominique Bussereau did not hide the fact that the debates had been very lively and that the positions of Paris and Berlin went in opposite directions. Addressing the press, Bussereau said that he was, “entirely in agreement with Mr Barrot's proposal”, which, as part of the mandate granted him by the June 2007 Transport Council (EUROPE 9442), calls for funding of Galileo's development phase to come out of the Community budget (mobilisation of margins under the ceiling available in the Agriculture and Administration section: EUROPE 9505). Germany, on the other hand believes that the European Commission proposal does not contain enough alternatives and is proposing that additional funding is provided by ESA. One diplomat said, “this is our main idea but it is only one option” but did not, however, put any other alternatives forward. One issue causing Germany problems is funding after 2013. Berlin is also concerned about how perspectives will be affected if the planned €3.4bn for the development phase proves insufficient. The United Kingdom reaffirmed its position stated last June, namely, the 2007-13 financial perspectives should not be reopened and that they should remain within these perspectives. New member states are keen that Community funding of Galileo does not deprive them funding earmarked for them in the financial perspectives.

Speaking on behalf of the presidency of the EU, the Portuguese minister for public works, transport and communications, Mario Lino, declared that the conclusions adopted provided, “a strong signal confirming” the importance of the programme. Jacques Barrot, vice president of the Commission and Commissioner for transport was delighted by the fact that the Council had adopted conclusions that, “express a desire to continue the programme” and that Galileo could be operational in 2013. After examining financial questions by ministers of finance, their counterparts at transport will return to this question during their next Council on 24-25 November. The European Council on 13-14 December is likely to close this dossier. (aby)

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