“It is a fact, that space research is a symbol of power and prestige worldwide. All nations with global ambitions therefore carry out such research,” answered the EU-Commissioner Günther Verheugen to a user question. Initiating the 3.4 billion euro project Galileo – the GPS competing project – the EU saddled itself with a space prestige project. It is under pressure to succeed. Due to the annually rising demand of 25 percent in this sector and with an estimated 236 billion euro civilian market volume in 2025 success should not be a problem.
Nevertheless the industry was afraid to pre-finance the 30 satellites in advance. The hitherto biggest cooperation project between state and industry failed. As was the case with the banks, the European tax payers had to cover the expenses. Agriculture aids were channelled into the Galileo budget. Further sources of financing had to be found. Promises did not hold any more. Because the military demand covers almost 50 percent of the overall demand in the satellite navigation market, the initially agreed civilian use of Galileo turned into a “necessity” to “use Galileo for independent ESDP missions in an unrestricted fashion.” This is what a current lobbyist of the defence industry and the former chair of the SEDE subcommittee Karl von Wogau demanded in his parliamentary report.
The EU “cow” Galileo stands on thin ice not only because of the pressure to succeed. The industry is aware of this and is therefore calmly milking the full “udder” of the tax payers. In the Committee on Budgetary Control the Italian EU-Commissioner Antonio Tajani announced a further “increase of 60 to 80 percent in the price, especially for launching ramps”. But he “does not intend to give in to blackmail attempts.” According to his calculations one saves 90 billion euros due to Galileo for some inexplicable reasons. Even the conservative EU MEP Ingeborg Grässle does not believe this: “If the calculations are correct, I will buy you all a drink”.
