EU eyes 2.4 bn euros to save satellite system
The funds are to plug a budget in its satellite navigation system, Galileo.
By PTI |
BRUSSELS: The European Union's executive proposed on Wednesday to inject 2.4 billion euros ($3.36 billion) from the bloc's budget to save its troubled satellite navigation system, Galileo.
The funds are to plug a hole left in the 3.4 billion-euro project, meant to rival the US’ Global Positioning System (GDP), after private firms refused to pay part of the bill. The system would now be fully funded with public cash.
"I am convinced that Europe needs Galileo. Today, I put on the table all elements that will allow the European Parliament and ministers to take necessary decisions on the programme and its financing before the end of the year," EU Transport Commissioner Jacques Barrot said in a statement.
The Commission said 2.1 billion euros in new funds for Galileo would come from farm funds budgeted for this year and 2008 which are likely to be unused. Three hundred million euros would be redirected from the EU's scientific research budget.
Each year several billion euros earmarked for various EU projects are unused and later returned to national coffers. The planned cash injection to Galileo would mean part of this money would not be returned.
EU ministers conceded in June that plans to secure financing for Galileo under private-public partnerships had failed, but
The Commission said governments and the European Parliament should approve the new funds this year or risk not having Galileo's 30 satellites become fully operational in 2012 as planned.
The funds are to plug a hole left in the 3.4 billion-euro project, meant to rival the US’ Global Positioning System (GDP), after private firms refused to pay part of the bill. The system would now be fully funded with public cash.
"I am convinced that Europe needs Galileo. Today, I put on the table all elements that will allow the European Parliament and ministers to take necessary decisions on the programme and its financing before the end of the year," EU Transport Commissioner Jacques Barrot said in a statement.
The Commission said 2.1 billion euros in new funds for Galileo would come from farm funds budgeted for this year and 2008 which are likely to be unused. Three hundred million euros would be redirected from the EU's scientific research budget.
Each year several billion euros earmarked for various EU projects are unused and later returned to national coffers. The planned cash injection to Galileo would mean part of this money would not be returned.
EU ministers conceded in June that plans to secure financing for Galileo under private-public partnerships had failed, but
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did not agree whether a resulting shortfall should be covered by EU states or the 27-nation bloc's collective budget. The Commission said governments and the European Parliament should approve the new funds this year or risk not having Galileo's 30 satellites become fully operational in 2012 as planned.
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