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Friday 21 September 2007

Get lost (reprise)

One of my first posts back in May concerned the European Gallileo project. It now appears that "The British Government, along with every other EU state, signed up to the principle of Galileo in 2000 on the basis that it would be co-funded with industry in a public-private partnership. The original plan was for taxpayers to finance for the first four satellites, and industry to pay for two thirds of the costs of the next 26.

The project was allocated €1 billion (about £700 million) in the current EU budget. But the complete withdrawal of funding from commercial companies has left Galileo in urgent need of a further €2.4 billion to stay on schedule for completion by 2012. With just one satellite in orbit, four more need to be launched as soon as possible to get the system back on track.

Britain has found itself powerless to stop the spiralling costs – initially €915 million – because all the main decisions are taken by qualified majority voting and a strong group of countries that believe firmly in grand European projects – including France, Germany, Italy and Spain – have consistently voted in favour."

So now the French have decided to bail out the project with a €2.1 billion raid on the EU farming budget. This would of course break many EU budgetary rules and set an alarming precedent. However, with European prestige and Gallic pride at stake the French government has won the backing of the European Commission to use public money.

How is this possible you may ask? The answer is that all the main decisions are taken by qualified majority voting and a strong group of countries that believe firmly in grand European projects, including France, Germany, Italy and Spain, have consistently voted in favour.

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