The Galileo project is a developmental project in Europe to construct a communications system of about 30 satellites in space. It is scheduled to become operational in 2013 in order to relieve the European dependence on the U.S. Global Positioning System (GPS). However, cost overruns, missed deadlines, bickering among the members of the consortium, and other monetary and technical problems have troubled the project in recent months.

The private consortium named to head the development of Galileo is called the European Satellite Navigation Industries (ESNI). The joint venture consists of the following entities: Alcatel Alenia Space (French multinational company), EADS Astrium (European Aeronautic Defense and Space Company headquartered in Germany and the United Kingdom), Magellan (formerly Thales, a private French navigation and positioning company), and Finmeccanica (Italian public company based in Rome).

ESNI also consists of Galileo Sistemas y Servicios (a group of seven Spanish companies), one of them being AENA (Aeropuertos Españoles y Navegacion Aerea, or Spanish Airports and Air Navigation). The venture also is associated with Hispasat (Spanish communications satellites owned by Eutelsat and other private Spanish shareholders), Inmarsat (international telecommunictions company based in the United Kingdom), and Teleop (based in Germany).

The European Union (EU) is considering the following three options: (1) completely taking over the Galileo project, financing it partially, or eliminating it. If the EU completely takes over the project, experts estimate that the project would cost about $2.7 billion dollars in addition to the $2 billion dollars already spent.

EU officials have given the ESNI a May 10, 2007 deadline to work out the differences among its members. They are pessimistic that the ESNI will meet this deadline.

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