Posted: Thu, Mar 27, 2003, 9:15 AM ET (1415 GMT)
A continuing dispute between Germany and Italy regarding contracts with for the Galileo satellite navigation system forced the European Space Agency to cancel a meeting about the program, Space News reported Wednesday. ESA cancelled a meeting of its ruling council, scheduled for Wednesday, at the last minute after negotiations between representatives of the two countries failed to produce a resolution to their long-standing dispute. The two countries have been unable to reach an agreement about how contracts for ESA's participation in the satellite program will be divided among the member nations, with both countries trying to get the largest share of the awards. The continued dispute threatens ESA's overall participation in the first phase of the program, which is a joint effort with the European Commission. Transport ministers from EU nations plan to meet Friday to start awarding contracts for the initial development phase of Galileo, and commission officials said they would start work on the program without ESA if the agency cannot reach an agreement among its member nations.

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