ABSTRACT
In 2002, the EU began developing the Galileo satellite navigation system to gain independence from the existing systems US global positioning system and the Russian GLONASS and to secure the EU’s share of the global market for satellite navigation services. Galileo was designed as a public–private partnership (PPP) for reasons of efficiency and cost-effectiveness. The project suffered a severe setback when the negotiations for the Galileo PPP collapsed in 2007. This chapter asks why the negotiations for the Galileo PPP failed and what lessons can be learned for upcoming EU space PPPs. There is no universal recipe for successful PPP negotiations, but the experience of Galileo shows that the PPP concept might be suitable for future space projects if the design is carefully tailored to the specific framework conditions. This study identifies two key determining factors: (1) the terms of contract should be carefully tailored to the requirements of the individual project and (2) it is important to consider the individual interests of all public and private actors involved.
