EU ministers back Galileo, delay financing issue 

After the meeting of the 27 EU transport ministers on 2 October, the Portuguese minister Mario Lino reiterated the "unanimous support and commitment" of all member states to moving forward on Galileo. He also said that the Commission's proposal to provide €3.4 billion from the EU budget to finance the project "continues to be the basis" for further discussions and the work to be conducted in the coming months. 

"No specific decisions were taken on means of funding, the actual final costs or details for procurement. In any case, the Commission's proposal has budget implications and therefore the adequate ministers need to be consulted before any final decision," said EU Transport Commissioner Jacques Barrot.

According to Barrot, the final decision should be taken in the meeting of EU-27 transport ministers on 28-29 November 2007. However, "if there are still residual difficulties, the issue will go to the December Summit. Anyhow, the European Council of 13-14 December 2007 will finalise the dossier," he added.

"The German government disagrees with the European Commission proposal and we are going to say this today," said German Minister for Transport Wolfgang Tiefensee just before the Council meeting on 2 October 2007. Germany's opposition is backed by the UK and the Netherlands.

The announce was made in response to the Commission communication , presented two weeks ago, proposing to revise the EU's multiannual financial framework to provide for the extra €2.4 billion needed to be funded from Community funds (€1 billion is already committed) in order to put Galileo into orbit by 2013.

Germany, the Netherlands and the United Kingdom would like to see individual states contribute the extra funds to the European Space Agency (ESA), which could finance and manage the project, whereas the Commission's funding proposal is backed by the European Parliament and, according to diplomats, by a majority of the EU-27. 

The Commission proposal would help avoid a situation where some member states would contribute more and Galileo would become vulnerable to the principle of juste retour (a proportional return on investment).