Galileo grounded?

As you can see in this article by BBC, the Galileo system is in a deep crisis. Galileo is supposed to be in service around 2011-2012, but now it seems there are problems already when the 2nd satellite is to be launched.

Hope is receding that a private consortium asked to run the system can end its infighting and meet a 10 May deadline to move the project forward.
This is likely to mean European taxpayers stepping in to cover costs.