GALILEO: the Commission proposes the transition to the deployment and operational phases

Brussels, 6 October 2004

The European Commission today adopted a communication on moving to the deployment and operational phases of the European satellite radionavigation system. On the basis of the conclusions of this document, at the end of 2004 the Council will take the political decisions needed to launch these two phases concerning, in particular, funding and the definition of the services. In its communication, the Commission comes to the conclusion that the conditions are now met for launching the GALILEO programme. "There are no more obstacles to launching the subsequent phases of the programme" said Loyola de Palacio, Commission Vice-President.

In its communication, the Commission reiterated the four matters that needed to be settled prior to launching the deployment and operational phases:

• Establishment of the structures for the management of the system – This is now settled with the Regulation on the structures of the management of European satellite radionavigation programmes and the Joint Action on the security of the system, both of which were adopted by the Council on 12 July 2004.
• Total interoperability of the American and US systems is explicitly provided for in the agreement signed with the US on 26 June 2004.
• The definition of the services to be offered – The work carried out so far during the programme development phase is culminating in the definition of a range of services with the required characteristics and meeting the requirements imposed, in particular with regard to quality, public service and compliance with security standards.
• Confirmation that there will be a significant contribution from the private sector towards the funding of these phases – The Commission indicates that the Galileo Joint Undertaking has successfully completed the procedure for selecting the concession holder. The Joint Undertaking's report setting out the results of the procedure confirm not only the commercial viability of the operation of this system as a result of substantial income, but also the commitment of the private sector to fund a significant proportion of the subsequent programme phases. The two applicants for the concession have submitted innovative commercial ideas. Their bids indicate the willingness of numerous investors, in particular financial institutions, to assume financial responsibility for the construction and operation of the system. A summary of the Joint Undertaking's report is on the following website:

www.galileoju.com .

Since the necessary conditions are now met, the Commission concludes that it is now essential for the Council to confirm:

• the irrevocable transition to the programme deployment and operational phases;
• the essential features of the system, in particular as regards services;
• the commitment of the public authorities with regard to the funding of the deployment and operational phases.

Confirmation is necessary in order to enable the completion of the negotiation of the concession contract which will be signed in the course of 2005, and to enable private-sector stakeholders to confirm their bids and their financial commitments.

Further information about GALILEO is available on the following websites:

http:///europa.eu.int/comm/dgs/energy_transport/galileo/i...

http:///www.esa.int/export/esaSA/navigation.html

Item source: IP/04/1192 Date: 06/10/2004