EU Raises Satellite-Project Cost to 6.4 Billion Euros

The European Union said its flagship satellite project will cost 1.9 billion euros ($2.6 billion) more than planned, citing “high” risks that led industry to abandon a funding pledge and the EU to arrange a bailout.

The European Commission said the Galileo road, rail, ship and air-traffic control network will cost about 6.4 billion euros rather than a previously projected 4.5 billion euros. The venture meant to rival the U.S. Global Positioning System should start operating in 2014, six years later than originally planned, the commission said.