The European Commission will meet the €2.4bn (£1.7bn) funding shortfall for the Galileo European satellite navigation system by reshuffling resources.

Additional taxpayer funds will not be needed. Instead money will be transferred from agriculture, administration and research budgets.

The project hit delays when eight companies from France, Germany, Spain, Britain and Italy clashed over the development of the system.

EU member states must now decide whether to accept the Commission proposal and carry on with the project.

Galileo is seen as of key strategic importance for providing a GPS signal that does not rely on US military systems.