EU space package to launch European aerospace industry ‘Back to the Future’ – POLITICO

Space exploration is perhaps mankind’s longest dream. The night sky has always allowed our imagination to fly. It took our creative and innovative spirit to new places, even new galaxies. Today, the age of space commercialization is upon us, showing how the stars have captivated us and driven us to achieve the unattainable.

It is clear that the aerospace sector is unlike any other industry. The satellite has come to affect every aspect of our daily lives: it allows us to communicate – in an instant – on smartphones, on the Internet, or to use Galileo or GPS signals at sea, on land or in the air. It impacts all aspects of our society: sustainable mobility, health, and perhaps most importantly, it ensures our safety.

The war in Ukraine is a stark reminder of how important secure satellite relays have become in modern warfare. The “space race” has always been competitive, as evidenced by the Cold War era. But with the fall of the Iron Curtain, governments instinctively found other priorities in space. Russia’s recent invasion of Ukraine, as well as growing tensions between Western nations and China, have put space policy firmly back at the top of the international security agenda.

The “space race” seems very real again. This time with many other global players involved. Companies and private countries are investing billions in new technologies and innovative services.

Europe too has space firmly on its radar. Our institutions, our member countries, our agencies and our companies must up our game to ensure that we keep a seat at the global table. The recent agreement to establish a European program for secure connectivity, IRIS², must be the accelerator of such a vision.

We know that “made in Europe” works and that the results of effective European collaboration can be exceptional. Great examples in the aviation sector include Airbus, the world’s leading defense systems specialist aircraft manufacturer MBDA and there are many others.

If we want to achieve the same success in the space sector, we must recognize that no European company is big enough to make a splash alone. However, if we pool our capabilities from all businesses and combine them with public sector initiatives, then we can take our reputation to the last frontier.

space currency

There is no new magic formula for getting ahead in today’s “race to space”. As has always been the case in any other industry, investment is the engine of success. The EU needs to dig deep if it wants to compete with the new pioneers with billions of dollars in funding.

However, instead of the European Union creating a new public system, the European institutions must be a customer, a financial partner and a believer in the innovative capacities of its local talents. This should not be a throwback to the 1970s era of massive government intervention on vanity projects that cost taxpayers billions. A public-private partnership is the way forward.

possible mission – between intervention and liberalization

It starts with a collaboration between like-minded CEOs of European companies who want to jointly compete on the global stage. Consolidating partnerships between actors is not unusual. This is necessary to challenge the singularity of the European aeronautics sector where competitors are also partners, customers and suppliers.

Next comes liberalization, by which the future European champion optimizes its European supply chain, creating wider working fields for level 1 partners, more responsibility, more scalability, more entrepreneurship.

This creates healthy competition in the marketplace rather than traditional geo-return dependence in the European space sector, in which all member countries receive the majority of their contributions in the form of industrial contracts. This in turn leads to innovation and provides a great environment to get started–ups and SMEs to thrive and benefit from scale. It allows supply chains to gain in efficiency and effectiveness to avoid the pitfalls encountered in the old aerospace and defense programs.

Finally, strengthened by the public authorities, Europe can gain in competitiveness at world level.

We are looking for an agile concept and a flexible formula adapted to the modern economy of Europe. We’ve done it before, we can do it again.

Back to the future

It is clear that governments and industry need to engage with each other on how best to cooperate in this unique sector. IRIS² is an opportunity to rejuvenate proven methods at a time of global reset. Space is our next frontier. We must think global and act local with courage and determination to define Europe’s leading position in the space sector.