The European Union has agreed to proceed with Galileo, a satellite navigation project designed to rival the GPS system of the United States. The project has been fraught with difficulties, primarily squabbles about how to divide the spoils among the consortium of states backing the effort. Those problems were solved by the traditional European cure-all — horse trading.

Still, some of the questions that have dogged Galileo — in particular whether it makes economic sense — persist. But Galileo's real significance is symbolic, and moving forward may well make sense even if the numbers do not add up.

Galileo was first mooted in 1999, when European scientists explored the possibility of developing an alternative satellite navigation system. Europeans were worried because GPS was primarily a military system, and the U.S. maintained the right to shut down or dilute signal strength to other users. Europeans also sought the follow-on technological and economic benefits that would flow from the development of their own system.

After the Sept. 11, 2001, terror attacks, U.S. ambivalence about the Galileo project shifted to outright hostility. That along with the usual political tensions within the EU slowed progress, despite agreement to move forward. As the project slowed, costs increased, creating yet more resistance within the EU. Earlier this year, Galileo was in crisis and looked as if it might collapse. Originally intended as a public-private partnership, the private companies abandoned the effort, fearing that it could not compete with GPS.

The EU agreed late last month on a new funding scheme that would allow Galileo to go forward. The decision will divert 2.4 billion euro of unspent farm subsidies to the project. That decision was made possible when Spain, upset because it felt it was not getting its fair share of the project, switched its vote, a move facilitated by the decision to site a ground station in the country. In addition, the EU agreed to new rules that ensure that contracts for the project are spread more widely throughout the EU.

Last month's agreement has not ended the doubts about the program. Fiscal conservatives blanch at the bailout: 1 billion euro has already been spent on Galileo and even more may be needed. Others worry that customers will prefer free GPS data to the untested Galileo.

That fear is compounded by the project's technological challenges. It is already behind schedule: The second of the 30 planned satellites short-circuited shortly before its scheduled launch at the end of 2006. It is still on the ground.

Supporters counter that the money is well spent. Galileo will be more accurate than the GPS system — providing resolution of 1 meter, compared with the 5 meters of GPS — will more than double GPS coverage and will be available in areas not well served by GPS, such as high-latitude countries in northern Europe and dense urban areas where signals can be blocked by tall buildings. (Critics counter that the delays have diminished some of those advantages and note that Russia and China are now developing their own systems, which will cut the pool of potential subscribers — and hence profitability.)

In addition, supporters point to thousands of jobs that will be created in the transportation sector and the benefits it will afford travelers and individuals in emergencies.

Galileo also promises new opportunities in the aerospace sector. With growing utilization of tracking technology in crucial military devices, Galileo ensures that European companies can compete in defense sales, too.

Just as important is the assertion of European independence from the U.S. Indeed, some supporters argue that Galileo is most valuable for its symbolism: Europe's determination to develop its own critical technology infrastructure. While the U.S. has reportedly disabled the function that would allow the military to cut GPS signals in times of emergency, Europeans are not so trusting. With increasing amounts of civilian and military technology dependent on satellite signals, an independent European capacity is, ultimately, the foundation of Europe's autonomy in security.

To rely on GPS is to have to rely on the U.S. Europe's dream of becoming a real center of power in the world requires nothing less than its own satellite data. Once again, Galileo has the ability to reshape global politics.