The role of the European Parliament
78. The decision on Galileo and the re-opening of
the Financial Perspective does not fall to Council alone. Transport
policy is subject to co-decision whereby Parliament and Council
are equal partners in the decision-making process. The Budgetary
Authority of the European Union is also made up of the Council
and the European Parliament jointly. In some policy areas, the
two institutions have equal say on budget provisions, whilst Council
has the final say on funds in other areas.[116]
The budget heading to which Galileo belongs is decided equally
by Council and the European Parliament, but the Council has the
final say in decisions under the Agriculture heading,[117]
because this is categorised as compulsory expenditure. This point
is important because the Commission proposal would see funds transferred
from the agriculture budget to the Galileo programme.
79. On 25 October 2007, the European Parliament voted
to give the draft general budget of the European Union for 2008
its First Reading. The Parliament amended the 2008 budget, increasing
the 2008 funding for Galileo from €151 million to €890
million in commitments, contingent on the relevant change in the
Financial Perspective being made.[118]
The increase voted through by the Parliament falls €50 million
short of the full amount for 2008 requested by the Commission
in its proposal to re-open the Financial Perspective 2007-13.[119]
After the vote, a press release from the European Parliament stated
that:
"The [European Parliament] wants Galileo
to be funded wholly by the Community and upholds the Commission's
proposal requesting a revision of the financial perspective to
provide adequate financing for Galileo […] over the 2007-2013
period. The Galileo project could fail unless sufficient
funding is provided. The funding level proposed by the Council
in its first reading (€151m in commitments), is regarded
as utterly inadequate by both MEPs and the Commission (which in
September put forward a new funding plan). […] By their vote,
MEPs clearly affirmed their request for a revision of the medium-term
financial planning."[120]
80. The European Parliament acknowledged that differences
of opinion exist between itself and the Council on the financing
of Galileo, and notes that these differences will be the subject
of conciliation negotiations on 23 November 2007. The 2008 EU
budget needs to be approved and signed in Strasbourg in December.[121]
The Parliament's position on the 2008 budget adds significant
pressure to the process of deciding the future of the Galileo
project. The fact that Galileo funding is part of the (urgent)
process to finalise the 2008 EU budget, along with the European
Parliament's position on it greatly increases the pressure on
the Council of Ministers to reach a decision on Galileo fast.
Given the affection with which many Member State Governments view
the Galileo programme, and the general willingness to increase
the funding for it, it appears unlikely that a qualified majority
of Member States would risk bringing the 2008 EU budget into jeopardy
in order to uphold financial discipline and prudence on the Galileo
project.
81. Furthermore, the sheer complexity of a process
whereby the decision on Galileo has to be reached not only through
negotiation between 27 Member States, but also through conciliation
and compromise between Council and the European Parliament increases
the risk that Galileo will simply become part of the gigantic
web of 'give and take' between different countries and different
EU bodies. The real danger is that no person or body will take
the ultimate responsibility for such a momentous decision and
spending commitment.
82. The process for reaching a decision on the
future of Galileo and its funding is impenetrably complex. We
fear that this complexity, along with the fact that the Galileo
decision is now caught up in the negotiations on the 2008 EU budget,
is creating an unstoppable momentum for a very expensive decision
that is not supported by any robust evidence. We are deeply concerned
that, with no one individual or body taking ultimate responsibility
for a decision of this magnitude, a path of least resistance will
simply be taken. This path is rapidly becoming a decision to proceed
with and fund Galileo in the manner proposed by the European Commission
in September. The Galileo train appears to have left the station
without a qualified driver or anyone to apply the brakes. It would
be a shameful indictment of EU decision-making if our worst fears
were vindicated.
107 
