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Theresa May tonight caved into Brussels again and abandoned attempts to stay part of the EU's Galileo satellite system – without any guarantees of getting our money back.

Conceding defeat over Galileo is a major blow to the PM, who vowed to explore building our own satellite system that could help guide military drones, run energy networks and provide crucial services for smartphones.

Conservative estimates suggest a UK system – dubbed “Goldeneye” in Whitehall after the 1995 James Bond film - could cost up to £5billion.

The EU's system is costing £9billion.

Gleeful Brexiteers will seize on the defeat as proof of Brussels' hostility to the UK – and could demand cutting the Britain's £39billion divorce bill to take account of cash we have already invested in the project.

(Image: Getty Images)

Meanwhile Remainers will say quitting the bloc is a waste of money and Britain could stay part of Galileo by changing its mind and staying in the bloc.

The European Commission and European Space Agency project will see 30 satellites in orbit by 2021.

But Brussels said because the UK will be a third country after Brexit, it should be shut out of access to security and defence parts of the scheme.

Brexit deal countdown Early December: Theresa May tours UK and G20 with two-week "campaign" to sell her deal directly to the British public. 11 December: A vote in the House of Commons on the deal. 13 December: The last chance EU Council summit, where deal could come back for more negotiation. 20 December: Parliament rises for its Christmas break. Final or 're-run' vote by MPs must be held before now. If it fails there could be no deal, or a general election, or a second EU referendum. 26 January 2019: By this point Theresa May must return to Parliament and make a statement if she still has no agreement. MPs then vote on a motion based on the government statement 7 days later. 29 March 2019: Brexit Day. If there's a deal, this will be a total anticlimax because a transition will be in place. If there's No Deal, planes could be grounded, ports jammed up and customs checks thrown into chaos at 11pm. 31 December 2020: If there's a deal, this is when the transition period - which continues pretty much all the EU rules we have now - is supposed to end. But it could be extended by two more years. 1 January 2021: If there's still no deal, under current plans a "backstop" would kick in. This could keep the UK tied to EU customs rules, until a proper agreement is reached, in exchange for keeping the Northern Ireland border open. Read the full guide to the timetable here.

(Image: REUTERS)

The PM earmarked £92million for a British system in August – and tonight confirmed the UK will go it alone.

She said: “Given the Commission's decision to bar the UK from being fully involved in developing all aspects ofGalileo it is only right that we find alternatives.

“I cannot let our armed services depend on a system we cannot be sure of.

“That would not be in our national interest.”