In a vote on 20 June 2007, the Parliament has backed funding of the European satellite navigation programme Galileo in full from the EU budget. According to estimates, some €3.4 billion will be needed to put Galileo's 30 satellites into orbit, whereas currently only €1 billion is foreseen for the operational expenditure in the EU's long term budget 2007-2013.
Drafted by the Parliament Budget Committee and adopted in plenary on 20 June 2007, the resolution on the financing of Galileo states that Parliament "will oppose any solution that would combine Community funding with additional intergovernmental funding". According to a Parliament spokesman, MEPs wish to avoid a situation in which some member states would contribute more and Galileo would become vulnerable to the principle of "juste retour" (a proportionate return on investment).
In order for Galileo to be funded entirely from Community funds, the Parliament is calling on the Commission to "take the initiative of proposing a revision of the financial framework", agreed upon after difficult negotiations in 2006. The Resolution also urges the Commission to "present a revised proposal for a regulation on the financing of the Galileo programme, which must be agreed upon by Parliament and the Council in codecision".
"The Resolution is not legally binding, but needs to be taken into account by the other institutions as the Parliament holds budget co-decision powers, and its agreement is needed to free even the €1 billion currently earmarked for Galileo," said a diplomat.
"However, it is highly unlikely that the financial perspectives will be re-opened. The majority of the Council does not want that. We need to find the money from the current 1A heading, from programmes such as TEN, FP7 and structural funds or the available margin," the diplomat added.
EU finance ministers are set to give their view on funding Galileo in their meeting on 10 July 2007.
