Source: the Economist Intelligence Unit

Taxpayers may have to subsidise the EU's space project

Little positive came out of the recent EU-Russia summit in Samara, except an agreement to "consider" pooling efforts on their respective Galileo and Glosnass satellite projects. That such a commitment should appear half-hearted is hardly surprising. Galileo, the flagship of EU space ambitions, lacks a strong commercial justification, something that the EU Commission itself admitted to in a May 16th review, when it conceded that the proposed public-private financing consortium had effectively broken down. This has not, however, deterred EU officials from doggedly pursuing its ambitions. Jacques Barrot, the EU transport commissioner, rejected any suggestion of abandoning the project, insisting that "our industry must be at the front of this technological revolution and therefore we must ensure there are no further delays". But if the private sector cannot see the commercial benefits, the Commission is surely not in a position to insist on them. Instead, it looks set to turn to the EU taxpayer to underwrite what may turn out to be an expensive "prestige" project, with little value to either the military or consumers.

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Posted by pichu at May 22, 2007 12:47 PM