The future of the proposed European rival to the US global positioning system is hanging in the balance because of delays over politics and funding.

The consortium of 12 suppliers that will build the 30-satellite Galileo infrastructure missed this week’s deadline to provide the European Commission with a clear timetable for progress.

And EU transport commissioner Jacques Barrot is expected to report within the month on alternatives that could see the project cancelled or being entirely funded by the public sector.

Galileo will provide Europe with next-generation positioning and navigation services that are independent of either the US system or planned Russian and Chinese rivals.

It started in 2005 with the launch of an experimental satellite, but the completion date has slipped from 2008 to 2011 and it has already cost EU member states E388m (£264m) more than expected.

According to insiders, the project faces both political and financial obstacles.

The consortium has yet to form the private company to execute its part of the public private partnership, because of concerns over the commitment to provide two-thirds of the funding.

Political issues regarding the location of ground-based infrastructure such as control rooms are also yet to be resolved.

‘The delays are the result of a mix of national politics and commercial drivers,’ said a source.

Giles Chichester MEP told Computing that the extra funding for Galileo must not be at the expense of other projects.

‘Galileo is proving much more expensive than was expected, but what is not yet clear is where the extra money is coming from – whether it will raid the research budget or the structural fund budget, for example,’ he said.