Galileo satellite navigation system is the European civil alternative to the US Global Positioning System. Galileo is based on a constellation of 30 satellites and ground stations. It will provide information in various sectors among which transport (vehicle location, speed control, guidance system or route searching …). The €3.6 bn project was supposed to be funded both by public subsidies (1/3 of the amount) and the private sector. The consortium partners (mainly Alcatel, EADS, Thales) have not been able to come to an agreement to establish a legal entity, nominate a leader and present a final concession contract in spite of European Commission pressure.
On June 20 the European Parliament accepted that the project would be financed fully from EU budget but asked the Commission to present a revision of the financial framework before October 2007.
According to initial plans Galileo was supposed to be operational in 2008 but due to serious delays the date might be postponed until 2014.