News around the Europe Press Digest. BETA

   BRUSSELS, March 15 (UPI) -- A breakdown in relations between governments and contractors has delayed plans to launch a European satellite navigation system.The European Galileo system, mired in a more than one-year delay, was seen as a rival to the U.S.

global positioning system.But, the European Union is trying to determine why the eight companies involved are having so much trouble, the Financial Times reported Thursday.Spain reportedly is blocking progress until guaranteed more jobs and work by the multinational Galileo consortium, the newspaper said.

Governments plan to confront contractors next week and a French spokesman promised an ultimatum.Companies in the consortium are reported balking at sharing development costs, which have doubled to about $2.6 billion, the Financial Times said.EU governments are reportedly afraid China will beat them to the punch before Galileo is airborne.

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