The European Commission is warning that the Galileo project is in danger of collapsing unless decisions on the satellite navigation system are made by the end of the year.

Europe's transport ministers decided earlier this month to delay the release of further funding until March to give more time for cost and revenue investigations.

The commission was hoping to get the Galileo project on the agenda of the European Union summit on 14 and 15 December as Flight International went to press, in a bid to gain approval for the European equivalent of the US global positioning system.

Europe's transport ministers failed to release an extra euro450 million in funding and approve the "Joint Undertaking" to manage the programme at their meeting on 6 and 7 December.

The recently released Price waterhouseCooper's cost-benefit study failed to allay cost concerns of Austria, Denmark, Germany, the Netherlands, Sweden and the UK. Europe's space and communication industry believes Galileo start-up in 2008 is only feasible if key go-ahead decisions are made by March.

Source: Flight International