Financial Times FT.com

Profit doubts halt Galileo development

By Andrew Bounds in Brussels

Published: March 15 2007 02:00 | Last updated: March 15 2007 02:00

Development of a European satellite navigation system to rival the US global positioning system has halted amid doubts among private contractors involved in the project over its profitability.

Jacques Barrot, European Union transport commissioner, said yesterday he had written to the eight companies building the Galileo system to discover the reason for more than a year's delay in the space project. "[The companies] are just not working," said his spokesman.

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