Funding arrangements for the controversial Galileo European satellite navigation system have taken a step forward.

EU member states have agreed that funds will be diverted from farm subsidies and research budgets to meet the programme's €2.4bn (£1.7bn) budget shortfall.

The move comes despite a report by the transport committee urging the UK to withdraw from funding the project without further cost-benefit analysis.

But the European Parliament still needs to approve the spending plan before it goes ahead.

Galileo is seen as of key strategic importance for providing a global positioning system that does not rely on the US military. The European Commission says the scheme will also create revenue and jobs for European countries.