Europe's planned satellite-navigation system Galileo could cost taxpayers up to 3 billion euros extra, DPA QUOTED the European Commission as saying Thursday. It confirmed that it wants to scrap plans to build the project in partnership with private industry. A group of companies charged with developing and running the system had not met a deadline to bring the ailing project back on track, a commission spokesman told reporters. The best scenario now to get Galileo started would be to finance building the system's infrastructure with public funds only, he said. EU governments had given the industry consortium until Thursday to get talks on the project on course again. But the commission spokesman said that "at the moment ... the reaction (of the companies) is definitely insufficient." Financing Galileo from EU funds would cost the bloc's taxpayers an extra of up to 3 billion euros, the spokesman said. This would come on top of the 1.4 billion euros national governments have already committed for the 4 billion-euro-project, which is seen as Europe's answer to the United States-run global positioning system GPS. EU transport commissioner Jacques Barrot on May 16 is expected to propose member states that the costs for Galileo should be wholly footed by the public sector if the 27-nations bloc's biggest ever joint technological project is to survive. If EU governments adopt Barrot's proposal, the commission could get rid of the existing consortium and put out a new offer for bids on the work, the commission spokesman said. Galileo would be used for civilian purposes only, monitoring natural disasters, air and sea rescue services and for a range of commercial uses. There were originally to be 30 satellites in place by 2010, but the timeline for Galileo to be fully operational was moved to 2011- 2012 because the companies in the consortium are arguing over how to divide the workload. EU officials have warned that the bloc could lose out in the international competition in global space technology as the US, Russia, China and Japan are busy building and improving their satellite navigation technology. The GPS system - run by the US Defence Department - is offered free to businesses worldwide, while Galileo plans to charge users. Galileo's consortium includes European aerospace company EADS, France's Thales and Alcatel-Lucent, British company Inmarsat, Italy's Finmeccanica, AENA and Hispasat of Spain and a German group that includes Deutsche Telekom and the German Aerospace Centre.
