Under the deal, both EU and US satellites would send information on the same radio frequency, enabling receivers to get signals from both systems and combine the data.
According to Reuters benefits of the agreement will depend on makers of receivers wanting to accept both systems which the Americans are certain will happen.
The EU and the US want to have 60 satellites orbiting the earth between them by 2010. Galileo should be running by 2012.
While the idea will mean that it will possible to create a more accurate picture especially in areas where reception is weak because of the urban or natural landscape, it does somewhat defeat the purpose of Galileo.
The outside of Galileo's house in Florence. He looks a tad grumpy.
Galileo was designed to make sure that the EU was no longer dependant on the US system. Now it looks like while it can cope without the GPS, the EU will suffer without it.
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