European plans to build a version of the US global positioning
system (GPS) have run into a financial roadblock and could be
cancelled unless approved at a meeting later this week.
European transport ministers failed to approve funding last week
for the European Union's (EU's) half-share of the $2.3bn (£1.6bn)
needed to fully develop the satellite-based Galileo location
system.
Loyola de Palacio, the EU's Energy and Transport minister, said
that the Galileo project would "go up in smoke", unless the funding
received approval by the end of the year.
Last month, the European Space Agency approved $466m in funding for
Galileo. However, the project cannot proceed without matching funds
from the EU, and it failed to receive approval from the needed
majority of eight EU transport ministers.
Countries opposed to funding the system expressed concern over
Galileo's cost/benefit ratios and the need for EU funding for more
than 20 years, even though the system is designed to be
self-supporting through user charges for advanced positioning and
location services and taxes on terminals.
The EU had originally backed Galileo to avoid dependence on the US
GPS system, which is funded by the Defence Department and subject
to shutdown, jamming or manipulation in time of war. Dual-band
Galileo/GPS receivers would also provide greater accuracy than
single-channel receivers.
GPS receivers are used in a variety of enterprise applications,
including surveying, fleet management, aircraft navigation and
truck and cargo tracking systems.