I believe the encryption units in the Galileo satellites are UK manufactured and covered by various security agreements - perhaps even ITAR regulations (e.g. algorithms used to generate daily changing encryption codes). If the UK withdraws clearance for export then moving production abroad is not an option - unless those who do so wan5 to face long jail sentences. Additionally, use of any existing equipmen5 by Galileo if the existing clearances and licences were withdrawn would also be illegal.
In this instance the EU Commission really is cutting off its nose to spite its face.