Parliament calls for Commission to secure private sector funding for Galileo
The European Parliament has expressed concerns over the financial viability of the Galileo project, which aims to create an independent satellite navigation system for Europe, in a resolution on the Commission's Galileo communication adopted on 3 October. During debate on the Commission's communication on 2 October, MEPs raised concerns that the financial viability of Galileo could be compromised by the lack of clarity and security over private sector funding. The Parliament called on the Commission to 'ensure sufficient private sector participation during each step of the project' and to guarantee that 'the financial consequences of a lack of participation by the private sector should not be passed on to the Community or national budgets.' The Parliament also called on the Commission to present a 'financial statement which is based on realistic funding estimates' and to deliver a proposal for a general financial structure for Galileo by 15 November. In addition, the Parliament wants to see a detailed cost-benefit analysis of Galileo, including 'a comparison with alternative communications systems for air, rail and maritime traffic, as well as for traffic management and control.' A spokesperson for Transport and Energy Commissioner Loyola de Palacio declined to comment on the Parliament's resolution until the Council has also given their opinion on the Galileo communication. The spokesperson added that Member States needed to clarify their position with regards to private sector participation in the ESA-EU joint undertaking backing Galileo, explaining that some countries which had initially been supportive of private sector representation in the joint undertaking were now expressing doubts about this. During the debate, Commissioner de Palacio called for MEPs to overcome their reservations about Galileo in order to ensure swift implementation, adding that she hoped to see it approved by the end of the year. Ms de Palacio also stressed the need for international cooperation in the project, and for the Galileo system to be compatible with the existing US and Russian satellite navigation systems, GPS and Glonass. She said that the events of 11 September reinforced the need for the EU to have a separate, additional satellite navigation network to provide an alternative to GPS and Glonass in times of heightened need. She added that the new system must be 'robust, precise' and able to withstand disruptions due to military activity. The Council is due to debate the Galileo communication on 7 December this year.