EU Lawmakers Begin Talks on New Galileo Financing, Governance as Old Money Worries Remain
A European Commission roadmap for the future of satellite navigation system Galileo and the European Geostationary Navigation Overlay System (EGNOS) began moving through the European Parliament Wednesday. Lawmakers in the Industry, Research and Energy Committee said they're generally enthusiastic about the programs, which are seen as a way to boost European growth, competitiveness and clout, but they remain wary about the cost overruns that have plagued Galileo. Questions about financing and governance remain, they said.
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The EC published its proposed plan in late November after a series of consultations on the programs’ technical, legal and operational aspects, the draft said. That input showed public support for development of an independent satellite navigation system; the need for its stable governance; that the planned “safety of life” service proposed for Galileo should be redefined in view of changing user expectations; and the need for long-term commitments for EGNOS services to ensure their use by civil aviation, it said.
The draft regulation would allocate euro 7 billion ($9 billion) for the two programs for 2014-2020, said Paul Flament of the EC Galileo Unit at the ITRE meeting. It covers not only the end phase of infrastructure deployment but also the operation of EGNOS and Galileo for that period, he said. The guiding principle is to define responsibilities clearly and to use existing infrastructure and entities, he said. The proposal is for the GNSS Agency (GSA) to manage both programs and market their services, he said. The ultimate goal is to enable the general public to benefit from expected satellite applications as fully as possible, he said. The EC will remain responsible for the system as a whole and guarantee its security, he said.
EGNOS has been operational for two years and works well, and its use by the civil aviation sector is increasing, Flament said. Galileo launched two operational satellites in October, both of which are performing to specifications, he said. Eight new satellites are on their way and there’s a new agreement to allow Ariane 5 to launch satellites in addition to Soyuz, he said.
Galileo and EGNOS will succeed only if there’s a long-term governance framework in place, said Fiona Hall, of the U.K. and Alliance of Liberals and Democrats. The regulation must also make clear that the EU owns the systems because the GSA and the European Space Agency, which will each play a role, must remain independent, she said. Hall warned that the issue of cost overrun “can’t be ignored,” particularly because the proposed budget more than doubles the amount allocated for the current funding period. No future over-spending should be allowed, she said.
There has been “budgetary drift” in the past, but the proposed figure is based on actual, existing contracts and risk forecasts, Flament said in response. In the future, once the infrastructure is in place, public funds will be used to pay for operations, he said. After 2020, GSA will run all of the infrastructure, he said.
Other lawmakers said more work is needed on provisions guaranteeing the safety of the satellite programs, and on clarifying what applications and services are planned and how they'll be paid for. Lambert van Nistelrooij, of the Netherlands and the European People’s Party, asked what guarantees there are that industry, which failed to get its act together in the first phase of Galileo deployment, prompting the EC to take over management of the program, will succeed now.
The U.K. Commons European Scrutiny Committee also raised questions when it considered the draft Jan. 25. Universities and Sciences Minister David Willetts told lawmakers the government wants Galileo services to begin as quickly as possible, with launch of initial services by 2014-2015 expected to give industry the confidence to invest in downstream uses, the panel said in a later report. However, that support is tempered by the government’s top priority, “budgetary restraint,” it said. The U.K. opposes increased funding for Galileo and “will be seeking to reduce this,” it said.
Britain is critical of EC management of the programs, particularly their budgets and delays, the Commons committee said. Among other things, officials will push the EC to clarify the plan to ensure that U.K. businesses aren’t disadvantaged in future procurements for Galileo and EGNOS and to establish an agreed figure for Britain’s financial contribution, it said.
"Clearly adoption of this draft Regulation would mark the start of the next significant steps” in Europe’s global navigation satellite program, the panel said. But it put off further consideration of the proposal until it hears whether officials made progress in obtaining the amendments and clarifications sought, it said.
EU transport ministers are expected to consider the proposal in June, the Commons report said. The legislative response will probably be prepared and discussed in committee next month, an ITRE spokeswoman told us. It will be voted on May 8, ITRE said Wednesday.