EU Commissioner slams delays in satellite project

Brussels, Mar 16: EU Transport Commissioner Jacques Barrot attacked delays in developing a European satellite navigation system, blaming the project consortium for failing to meet conditions set 15 months ago.

Barrot's spokesman yesterday told a news briefing the commissioner had written to the EU's German presidency as well as the consortium and the European Parliament to ''ring the alarm bell''.

The multi-billion euro project, known as Galileo, is meant to create a European answer to the U.S. Global Positioning System, giving the EU commercial and strategic autonomy.

Commission Spokesman Michele Cercone said the merger of two rival consortiums had been intended to create an improved offer, create a single entity with the autonomy to act, and have a leader that would speak for the consortium.

''At the moment, not one of the conditions is fulfilled and we are registering a series of delays in the signature of the consortium contract and this leads (us) to think that these delays could have an effect on the schedule and the agenda of Galileo,'' he said.

An industry source told sources on Tuesday that the Spanish government was blocking progress in the talks by pushing for more control centres to be based in Spain.

The consortium of French, German, Spanish, British and Italian industrial heavyweights is negotiating to build and deploy the 30-satellite system by 2010.

But delays in forming an umbrella company to manage the project and choosing a chief executive have, in turn, stalled talks between industry and EU officials over the 20-year concession contract to run the system.

The consortium is made up of European aerospace giant EADS, France's Thales and Alcatel-Lucent, Britain's Inmarsat, Italy's Finmeccanica, Spain's AENA and Hispasat, and an eighth member that includes Deutsche Telekom and the German Aerospace Centre.

The source said Spain wanted two control centres on top of those planned to be built in Germany and Italy. That demand had prevented the two Spanish firms signing a pact with the others.

Cercone said Barrot had requested a mandate to review the project so EU transport ministers could evaluate the way forward at a meeting in June.

''We are still on time to avoid major repercussions on this (Galileo's schedule) but we have to act urgently,'' he said.

Reuters

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