Highlights

© European Space Agency.
P. Carril. Artist's impression
of Galileo System Test Bed-Version 2/b in orbit.

On 31 March the Council reaffirmed Europe's commitment to developing and financing its satellite radio navigation programmes (EGNOS and Galileo), and asked the Commission to reflect further on how to avoid cost overruns in future.

These were the conclusions reached by the Council after analysing the Commission's mid-term review of the two programmes, which among other issues indicates that an additional € 1.9 billion may be needed over the period 2014-2020 to complete the Galileo infrastructure. It estimates that the operational costs of both Galileo and EGNOS (European Geostationary Navigation Overlay Service, the precursor to Galileo) may come to approximately € 800 million per year.

These figures are provisional, however, with the final amounts to be decided under the multiannual financial framework (the framework for planned EU expenditure), taking into account the efforts being made by member states to place their deficit and debt on a more sustainable path.

Over the 2007-2013 period, the programmes will receive € 3.4 billion from the EU budget.

The 27 ministers agree that Galileo and EGNOS should be financed by the EU because of the programmes' large scale and specificity and because they will provide public services whose costs will not be offset by the direct revenue they generate.

These programmes will allow the EU to compete on the global space technology market, providing opportunities for job creation and for a multitude of economic activities leading to innovation and wealth creation. It is estimated that 6-7 % of Western countries' GDP, i.e. € 800 billion in the EU, is currently dependent on satellite radio navigation. The markets associated with global satellite navigation have been growing fast and their annual turnover worldwide is expected to reach approximately € 240 billion by 2020.

The programmes will also ensure EU autonomy with respect to other GNSSs (global navigation satellite system).

The Council has asked the Commission to pursue its cost and risk analysis and to explore possible ways of achieving savings.

More information:
Council conclusions (pdf)
Press release (pdf)
Press conference webcast
European Space Agency