Though I doubt it Sam Aethi says its confirmed:
http://www.vecosys.com/2007/05/24/google-mobile-phone-powered-by-02-confirmed/

[...]Today I can confirm that Google have done the deal to launch Google Mobile and branded Nokia phones following a conversation with 02. Expect this announcement in a few weeks.

   We’ve heard from a good source in the mobile industry that Google may be preparing to launch its own branded mobile network in the UK in the next few weeks. If our source is accurate, Google will become a Mobile Virtual Network Operator (MVNO) via a deal with UK mobile phone company O2 – TechCrunch 21st May 2007

In the UK, the most successful MVNO to date has been Virgin Mobile who partnered with T-Mobile. Recently BT partnered with Vodafone to create BT mobile and now Google with O2.[..]

Major news around here, so... O_O

How precedented is it for Google to make a major release like this in Europe first? As far as I know it, almost every big launch was rolled out in the US first...

It's probably in the UK first because MVNOs do better in the UK than elsewhere. Take the example of Virgin Mobile/Media. It has 3 million users and is an MVNO on the T-Mobile network.

I have gotsta get myself a Google mobile!

I wonder whether it will include any truly cool integration like Maps on the iPhone, or whether it'll just be full of bloatware?

This is exciting. It'll be interesting to see how this affects Google Mobile, perhaps changing from a collection of products to more of a platform.