EU aims to challenge U.S. in space

BRUSSELS, Belgium -- Talks on creating the company that is to challenge U.S. supremacy of satellite navigation are set to begin on Tuesday.

The company is the brainchild of the European Union, which is determined to have its own multi-billion euro transport monitoring system to compete with U.S. Global Positioning System (GPS) by 2008.

The EU version, Galileo, is also predicted to create more than 100,000 jobs across the continent.

Despite initial reluctance from some member countries for the project, most notably Britain, Germany and the Netherlands, European Commission transport ministers are set to start discussions focusing on the structure of the company to manage the project for the next four years.

The 3.4 billion euro project is set to be launched in 2006 and begin operating two years later.

It will beam signals around the world, allowing people or machines equipped with receivers to know instantly where they are.

Galileo, which is planned to consist of 30 satellites, could be used in traffic management, aviation navigation and scientific research.

Civilian use

Galileo was of "vital importance ... for the deployment of key high technology markets and the creation of more than 100,000 jobs," 38 leading European hi-tech firms said in a joint statement last week.

Those European companies which are keen to take part include French, Italian and Spanish aeronautical and electronics businesses including Airbus, Thales and Eutelsat.

It is hoped the system will overcome the perceived disadvantages of the U.S. system, run by the U.S. military.

Galileo will be mainly for civilian use and as a result will be less likely to be switched off during conflicts, EU officials say.

It will also cover extreme latitudes of the earth that GPS misses, it is hoped, and will guarantee undisrupted service for paying customers.

The EC has started discussions with the U.S. -- which has expressed misgivings over Galileo -- to ensure the two systems will be compatible.

EU leaders last week pushed ahead with the scheme during the Barcelona Summit, after it emerged that agreement on funding is almost assured.

Doubters questioned whether it would attract enough private funding.

EU transport ministers are set to sign off 450 million euros of EU money to go with the 100 million euros already authorised and 550 million euros from the European Space Agency.