Galileo Global Positioning threatened by the US Military?

I just read this article in The Register regarding the potential effect/degradation of the Galileo Global Positioning System by the US Military; apparently they are not that happy about its 1m resolution that is to be publicly available.
I sincerely hope that no such demands are accepted by the EU. Galileo is a fantastic project and it’s utility to Europeans and everyone else is paramount, both in civilian and military contexts. Unfortunately, I can see how the US military is concerned about this and how they will use their military and political muscle/influence to ‘convince’ the EU that Galileo should be degraded to a toy-GPS.