Galileo will be funded by the European Union, and the principle of actually launching it is the same as when it was decided that Europe needed an independent access to space in order to launch into orbit commercial and scientific satellites.
Now Ariane is one of the top launchers in the world and it wouldn't surprise me that Galileo evolved into the most popular navigation systems because, mostly, it would be completely civilian. No degrading of the resolution in times of war.
Also, Galileo will mean a SERIOUS boost for europe's hi-tech industry. It is truly a huge project and, IMHO, a good use of government (in this case pan-european) spending.
I have some good friends working for the Galileo project and it's looking real good. If only politicians would leave engineers and scientists to work... the world would be a better place

Daniel