‘Galileo Should not be Delayed’

Year 2006 was marked by the successful transmission of the first Galileo signals from space. The Galileo Programme now faces an organisational issue: the implementation of the adopted Public Private Partnership starting from such early stage of the Programme is questioned. This issue must not delay nor jeopardize the Galileo Programme as each year of delay makes it more difficult for Europe and its Industry to capture its share of the market.

The market now is served primarily by GPS and for some niches by the Russian GLONASS. Galileo has the potential of becoming an attractive alternative or addition to these systems for a long range of applications. However, the Chinese COMPASS system is aggressively claiming a role as a new, global system that might even be available earlier than Galileo. Three more COMPASS satellites have already been launched this year. For this reason, it could even for some users become a more attractive alternative.

Satellite navigation is an essential element of 21st century infrastructure. Today, at a scale unimaginable ten years ago, satellite navigation is deeply embedded in everybody’s life. About a decade ago, Europe decided to invest in Galileo for reasons of sovereignty, economic development, global presence, etc. These reasons are increasingly more valid.

Galileo will cost ten billion euros over the next 20 years, i.e. 500 million euros per year. The public investment in the infrastructure will be reimbursed to the Member States through taxes, social contributions, etc. on the expected jobs generated by the downstream market. Not to mention growing VAT revenues on sales of Galileo products and services.

Galileo has a leverage effect, as the market for receivers, applications and services is estimated at tens billions euros per year in 2010 and reaching hundreds of billions euros annually by 2025. It is one of the key projects to reach the Lisbon objective.

One third of the market is expected to be captured by European Industry and in particular by SMEs. This is even more critical, as the market of navigation and positioning is one of the key markets of the future, promised to grow even higher than mobile communications some years ago. Europe has to succeed in this market the same way it has succeeded in GSM.