Galileo sat-nav faces "grave crisis"

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Europe's Galileo satellite navigation system is facing further delays resulting from contractor infighting and a shortfall in public funding, the European Union (EU) has said.

Last month, EU politicians expressed alarm at the delays and the deadlock between contractors.

According to media reports, German Transport Minister Wolfgang Tiefensee, speaking on behalf of the EU, said: "Galileo is going through a deep and grave crisis."

The Galileo consortium, which is made up of eight companies -including Inmarsat, EADS and Thales - from Britain, France, Germany, Italy, and Spain is unlikely to come to agreement on the creation of a joint body to run the project before a deadline tomorrow.

"We're in a dead end street," he said. "The cardinal problem is that the companies still have not been able to agree on the way forward. We need to find an alternative solution."

At a meeting on May 16, the European Commission is expected to propose the public sector take over responsibility of the project and possibly some of the €2.4 billion in extra costs.

"There will be a stronger participation of the public sector in the construction phase of Galileo," said Tiefensee.

The Galileo project, seen by many as a competitor to the US Global Positioning System, was originally expected to be completed by 2008, but the rollout has since been pushed back to 2012. Just one of the eventual 30 satellites has been launched.

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