Latest News

German Government Proposes Galileo Budget Cuts to the EC

By | October 26, 2010

      [Satellite TODAY Insider 10-26-10] The German Transport Ministry has asked the European Commission (EC) to propose cost-cutting measures for Europe’s Galileo satellite navigation system after an EC report confirmed the program was over budget and behind schedule, German government officials announced Oct. 25.
          In the EC proposal, Germany said it wants to shrink the costs of programs administered by the European Union (EU) and European Space Agency (ESA) by 500 million to 700 million euros ($696 million to $974 million). The German government said the measures are needed after its own research showed that the program faces further delays and additional costs of between 1.5 billion and 1.7 billion euros ($2 billion to $2.3 billion).
          German magazine Wirtschafts Woche reported Oct. 24 that the German government presented options in the EC proposal, which included scrapping plans to use Arianespace’s Ariane 5 launcher in favor of the Russian Soyuz launcher, which would see Galileo launch from Baikonur, Kazakhstan, instead of from French Guiana.
          The German government’s proposals follow an EC budgetary report, released Oct. 8, which found that the EU’s non-geostationary Galileo satellite constellation ran up extra costs and would not be ready for at least another seven years. The report also said that the Galileo project would be, “unprofitable over the long term, running at an annual loss of 750 million euros ($1.04 billion).”
          In May, the European Court of Auditors criticized the project as “ill-prepared and badly managed” and was skeptical that the EC would be able to begin Galileo operations in 2014. Overall, the EC estimates that the Galileo project’s development, construction and operating costs will cost EU taxpayers about 20 billion euros ($27.7 billion) over the next 20 years in development.
          It is now known whether the German government made recommendation to reduce satellite-manufacturing costs in the proposal. In March, Germany’s OHB System won an EU order for 14 satellites for Galileo. EADS Astrium and OHB are competing for orders for remaining satellites in the program.

      Related Stories-

      EC Finds Galileo Project ‘Over Budget, Behind Schedule and Unprofitable
          Satellite News   October 8, 2010
      [Satellite News 10-08-10] A European Commission (EC) budgetary report released Oct. 8 found that the European Union’s (EU) non-geostationary Galileo satellite navigation system is over budget, behind schedule and will be unprofitable for the first…

      Arianespace’s Le Gall Reveals Vega, Soyuz French Guiana Debut Plans    Satellite News   September 14, 2010
      [Satellite News 09-14-10] Arianespace, which recently signed a production contract with the European Space Agency (ESA) to produce the first operational Vega rocket launch, is looking to expand its order book with a wider variety of services, CEO…

      OHB’s Wunderkind Galileo Project Set to Leave the Nursery    Satellite News   April 16, 2010
      [Satellite News 04-16-10] In January, medium-sized German space systems provider OHB Systems received its largest single order to date a 566 million euro ($767.8 million) contract from the European Commission (EC) to build the first Galileo…

      Click on a tab to select how you'd like to leave your comment

      Leave a Reply