To recall, the development phase of Galileo was intended to be carried out by a Public Private Partnership (PPP) and to be completed by 2008, at a total estimated cost of €2.1 billion, with the private sector contributing €1.4 billion. However, it is well known that negotiations with the private sector on a concession agreement collapsed in 2007. Brussels agreed, therefore, to fund the deployment phase of Galileo entirely from the Community budget, which meant, at the time, that EU taxpayers will pay a bill of €3.4 billion.
At the Conciliation meeting on the budget for 2008 the Council and the European Parliament confirmed that the total estimated costs for Full Operational Capability of Galileo is EUR 3 400 million for the period 2007-2013 and concurred to provide this funding by a revision of the Multiannual Financial Framework 2007–2013. The European Parliament, the Council and the Commission stated “the use of the Financial Framework revision and the use of funds from the margin of the previous year is an exceptional measure and will in no way set a precedent for future revisions.” For the Galileo implementation, deployment and commercial operating phases, approximately €1005 million had been properly accounted for in the EU’s financial framework for 2007-2013. The additional €2.4 billion has been found from the revision of the Financial Perspectives. EUR 1.6bn was taken from agricultural expenditure not used in 2007 moreover it was agreed that EUR 400 million have come out from the transport related research activities financed under the 7th Research Framework Programme, EUR 200 million redeployed within sub-Heading 1a (Competitiveness and growth), EUR 300 million will be made available from the margin available under sub-Heading 1a for the years 2008-2013.
The European Court of Auditors published, last year, a report analyzing the development and validation phase of the Galileo programme where it slammed the Commission over the Galileo programme management. The Court concluded that the Galileo programme was inadequately governed. One cannot forget that the Commission took over the programme management of Galileo. The report includes several recommendations for the Commission and member states and pointed out that the EU has two options, or it works toward fostering early market development of Galileo, to generate direct revenues, or it will have to accept to fund Galileo’s costs, “potentially 10 billion euro over the coming 20 years.”
The European Commission has said, last January, that Galileo will begin operation in 2014. However, according to EUbusiness, the Financial Times Deutschland reported, today, that it wouldn’t be ready before 2018. Moreover, taxpayers will have to pay 20 billion euros for Galileo’s development, construction and operating costs.
This is another example of Brussels wasting taxpayer’s money.
