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European Union

Galileo Satellite Navigation System Faces Budget Challenges and Unanimous Approval

Strategic Insights

— 2 min read

The European Union's ambitious Galileo satellite navigation system is facing budget problems and potential political uproar due to cost-cutting measures proposed by the German government. The program, which aims to provide an independent satellite navigation system in Europe, is over budget and behind schedule, with estimated costs reaching 20 billion euros over the next 20 years. Despite these challenges, the European Space Agency (ESA) program continues to secure contracts, with a recent joint venture between the German Aerospace Center's SpaceOpal and Finmeccanica's Telespazio SpA winning a 194 million euro contract to provide space and ground infrastructure for the EU's Galileo land- and air- traffic control network observation platform.

Key Takeaways:

  • The Galileo satellite navigation system is facing budget problems and potential political uproar due to cost-cutting measures proposed by the German government.
  • The program is estimated to cost 20 billion euros over the next 20 years, with delays and additional costs of between 1.5 billion and 1.7 billion euros.
  • Germany's OHB System won an EU order for 14 satellites for Galileo in March, beating out Europe's largest space companies, such as EADS Astrium.
  • The German government's proposal to scrap plans to use Arianespace's Ariane 5 launcher in favor of the Russian Soyuz launcher could save 500-700 million euros, but has not received unanimous approval from EU member states.
  • The EU has not yet decided who to transfer the responsibility of satellite operation to and who to name as a subcontractor to provide services.
  • The first launch is scheduled for October 2012, and the EU should have a plan of action concerning the budget by then.
  • The European Court of Auditors criticized the Galileo project as "ill-prepared and badly managed" and had doubts about the EC's ability to begin Galileo operations in 2014.
  • The EC has awarded three Galileo contracts worth a total of about 1 billion euros for engineering support, launchers, and satellites, with two remaining contracts to be awarded in early 2011.
  • The program aims to provide 100,000 new jobs in Europe, with the remaining satellites to be developed in Germany as well.

Statistics:

  • Estimated costs of the Galileo satellite navigation system: 20 billion euros over the next 20 years.
  • Cost-cutting measures proposed by the German government: 500-700 million euros.
  • Delayed costs and additional costs of the Galileo program: between 1.5 billion and 1.7 billion euros.
  • EU funding for the Galileo program: 3.4 billion euros.
  • Number of satellites to be developed in Germany: 14.
  • Number of new jobs expected to be created in Europe: 100,000.
  • Total value of Galileo contracts awarded: 1.194 billion euros.

Sources:

  • [Satellite News 10-26-10]
  • [European Court of Auditors]

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