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					€ 1 billion for Galileo satellite system
On 21 June Parliament's Industry Committee backed the European Commission's plans to
provide €1 billion over the period 2007-2013 to fund the final two phases of the Galileo
satellite navigation system, covering deployment and commercial operations.

In a first-reading report by Etelka BARSI-PATAKY (EPP-ED, HU), adopted unanimously,
MEPs stress that the figure of €1 billion is indicative, pending a decision on the financial
perspective. Once the FP has been adopted, say MEPs, the Commission must present a
proposal to adjust the funding for the programme. The amount of each annual subsidy will
then be decided under the annual budget procedure.

The aim of Galileo is to create a worldwide satellite radionavigation and positioning network
for civilian purposes. It consists of four phases. Phase one (definition), from 1999 to 2001,
was completed successfully. Phase two (development) runs from 2002 to 2005. Phase three
(deployment) starts in 2006 and involves building and launching the satellites and establishing
the entire ground-based component. Phase four (commercial operation) is due to begin in
2008 and will cover the management of the system as well as maintenance and updating.
During these last two phases, the construction and then the management of the system will be
carried out by a private concession holder working under the Supervisory Authority, a
Community agency which is to be the licensing authority for the system. The choice of a
concession contract was identified as the best way of ensuring the success of the programme
in the framework of a public-private partnership.

Since Galileo may prove lucrative, the Industry Committee adopted an amendment calling for
a profit-sharing mechanism to be set up to enable the Community contribution to be repaid.
MEPs also want ownership of the Intellectual Property Rights and licences to stay with the
Supervisory Authority but say the revenues deriving from the exploitation of these rights
could form the income of the concession holder. The Industry Committee believes the
Community will probably have to give financial guarantees and undertake liability
commitments because of the nature of the programme, especially the fact that it is a public-
private partnership. It therefore demands that these commitments be subject to budgetary
approval by Parliament and Council.

21.06.2005 Committee on Industry, Research and Energy
    In the chair: Giles Bryan CHICHESTER (EPP-ED, UK)
    Procedure: Codecision, first reading
    Plenary vote: September I

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