In this blog post, I am looking at Europe's future in space by analyzing three different key documents published recently: ESA's Strategy 2040, the Draghi report on EU competitiveness, and the proposed EU Space Act.

The European Space Agency (ESA) has unveiled its Strategy 2040, a comprehensive vision that sets the course for Europe’s role in space over the next 15 years. The strategy is structured around five overarching goals, each with specific objectives aimed at ensuring Europe’s leadership in space, fostering innovation, and addressing global challenges. Below is a detailed summary reflecting ESA’s Strategy 2040.

The Draghi report on EU competitiveness aims at providing specific answers and strategies to overcome the competitive weaknesses of the EU in the space sector.

The proposed EU Space Act (previously EU Space Law) currently is at a very early stage, providing little guidance and content only. It remains to be seen whether the European lawmakers will consider the Draghi report and the goals stated in ESA's strategy 2040 during the drafting process.

The summary of ESA's Strategy 2024 (see part A) is followed by key learnings from the Draghi report on EU competitiveness (see part B) and remarks on the EU Space Act proposed by the EU (see part C), followed by conclusions.

A | ESA's Strategy 2040

The European Space Agency (ESA) has unveiled its Strategy 2040, a comprehensive vision that sets the course for Europe’s role in space over the next 15 years. The strategy is structured around five overarching goals, each with specific objectives aimed at ensuring Europe’s leadership in space, fostering innovation, and addressing global challenges.

1 Protect Our Planet and Climate

Space technology plays a fundamental role in tackling climate change and ensuring sustainable development on Earth. ESA’s commitment to environmental monitoring and Earth observation is reflected in the following objectives:

1.1 Enhance Earth Observation Capabilities

• Strengthen climate monitoring programs with next-generation satellites capable of detecting greenhouse gas emissions, ocean temperatures, and land-use changes.
• Improve integration of space data into climate models to support global and European climate policies.

1.2 Support Climate Adaptation Strategies

• Provide critical data for natural disaster prediction, mitigation, and response.
• Develop AI-driven analytics to enhance early warning systems for extreme weather events.

1.3 Foster Sustainable Space Operations

• Implement eco-friendly satellite designs and propulsion systems to minimize space debris.
• Establish guidelines and best practices for responsible use of space resources.

2 Explore and Discover

ESA is committed to pushing the boundaries of space exploration through robotic and human missions. Its objectives include:

2.1 Expand Lunar and Martian Exploration

• Develop European-led lunar exploration programs, including participation in Artemis and the Lunar Gateway.
• Advance Mars robotic missions as a stepping stone for future human exploration.

2.2 Advance Space Science and Deep Space Missions

• Launch flagship missions to explore exoplanets, cosmic structures, and fundamental physics.
• Foster international partnerships in planetary science and astrophysics.

2.3 Ensure European Leadership in Space Exploration

• Develop independent European capabilities for deep-space exploration.
• Increase investment in cutting-edge technologies such as in-situ resource utilization (ISRU) and AI-driven autonomy for space missions.

3 Strengthen European Autonomy and Resilience

To secure its strategic position in space, Europe must enhance its independence in critical space capabilities:

3.1 Guarantee Independent Access to Space

• Invest in reusable launch vehicles and innovative propulsion technologies to reduce reliance on foreign launch providers.
• Support the development of competitive European spaceports.

3.2 Enhance Space Security and Resilience

• Develop robust space traffic management systems to prevent collisions and satellite congestion.
• Strengthen cybersecurity for European space assets.

3.3 Secure Critical Space Infrastructure

• Establish redundancy and backup capabilities for satellite communications and navigation systems.
• Protect against threats from space weather and potential cyber threats.

4 Boost Growth and Competitiveness

ESA recognizes the importance of fostering a thriving space economy. Its key objectives include:

4.1 Foster a Competitive European Space Sector

• Support the growth of European space startups and SMEs through funding and innovation incentives.
• Encourage partnerships between public institutions and private space enterprises.

4.2 Drive Innovation in Space Technologies

• Invest in AI, quantum computing, and new materials for space applications.
• Promote the use of satellite data in commercial industries, including agriculture, finance, and logistics.

4.3 Strengthen Europe’s Position in the Global Space Market

• Secure trade agreements that benefit European space industries.
• Develop European-led space services that compete globally.

5 Inspire Europe

A strong space sector requires an engaged public and a skilled workforce. ESA’s goals for outreach and education include:

5.1 Promote STEM Education and Workforce Development

• Launch new space-related educational programs for schools and universities.
• Provide scholarships and internships to attract young talent to the space industry.

5.2 Increase Public Engagement in Space Activities

• Enhance communication efforts to showcase Europe’s achievements in space.
• Organize citizen science projects and interactive programs that allow public participation in space missions.

5.3 Encourage Inclusivity and Diversity in the Space Sector

• Support initiatives to increase gender and cultural diversity in the European space workforce.
• Establish mentorship programs for underrepresented groups in STEM fields.

Implementing the Strategy 2040

ESA’s Strategy 2040 lays out a structured approach to achieving these goals by:

• Strengthening collaboration between ESA, the EU, and national space agencies.
• Increasing investment in AI, digitalization, and next-generation space technologies.
• Encouraging international partnerships to ensure Europe remains a key player in global space initiatives.

B | Draghi Report on EU Competitiveness

The Draghi report analyses the current state of the European space economy and identifies several structural weaknesses limiting the ability of the EU to maintain leadership in the space sector.

Current State of the European Space Sector

Europe has historically been a leader in space exploration and satellite technology, with major programs such as Galileo (satellite navigation) and Copernicus (Earth observation). However, Europe’s global competitiveness in space is declining, particularly in comparison to the United States and China. The rise of private sector players, such as SpaceX, has also shifted the industry dynamics, while Europe remains dependent on non-European entities for key components, launch capabilities, and emerging space services.

Despite strong technical expertise and a well-established institutional framework, the European space industry faces several structural challenges that hinder its long-term sustainability and leadership.

Root Causes of Europe’s Competitiveness Gap in the Space Sector

The Draghi report identifies seven key root causes of this competitiveness gap.

1 Fragmented Governance and Decision-Making

The governance of the European space sector is overly complex, with responsibilities divided among multiple organizations, including:

• The European Space Agency (ESA), an intergovernmental agency outside the EU framework.
• The European Commission, which manages space-related policy and funding through programs like Horizon Europe.
• National space agencies, each pursuing their own priorities.

This fragmentation leads to inefficiencies, delays, and duplication of efforts. Unlike the U.S., where NASA leads a coordinated national strategy, Europe lacks a single, unified governance structure, making decision-making slow and less responsive to industry needs.

2 Lack of Sufficient Public Investment

Europe’s public funding for space activities is significantly lower than that of the United States and China.

• The U.S. space budget (NASA + commercial programs) is nearly four times the EU’s.
• China is rapidly increasing its space spending, with projections suggesting it could overtake Europe in the coming years.

This funding gap restricts the development of next-generation space technologies and prevents Europe from competing in new commercial space markets, such as satellite-based internet services and in-orbit servicing.

3 Weak Private Sector Investment and Risk Capital

Private sector investment in space remains limited in Europe compared to the U.S., where companies benefit from strong venture capital backing and government contracts.

• European space startups struggle to secure private investment due to risk-averse financial markets and limited access to venture capital.
• The European space industry lacks strong incentives to attract private funding, slowing the commercialization of space technologies.

Without a more dynamic investment ecosystem, European companies risk falling behind in the emerging space economy.

4 Declining Industrial Competitiveness

Europe’s space industry faces rising global competition, particularly from:

• U.S. private space companies, which benefit from strong domestic demand and government funding.
• Chinese state-supported space programs, which receive strategic long-term investments.

At the same time, Europe relies on foreign suppliers for key space technologies, such as advanced semiconductors and propulsion systems. This creates supply chain vulnerabilities and reduces Europe’s ability to compete on cost, speed, and innovation.

5 Dependence on Non-European Launch Capabilities

European space access has been weakened by delays and setbacks in its launch programs:

• The Ariane 6 launch vehicle has been delayed multiple times.
• The Vega-C rocket has faced technical challenges.
• Europe lost access to Soyuz launches after Russia’s invasion of Ukraine.

As a result, Europe has been forced to rely on U.S. providers, such as SpaceX, for launching satellites—undermining European space sovereignty. Without a fully independent launch capability, Europe’s ability to deploy and sustain its space infrastructure is at risk.

6 Slow Innovation and Commercialization

Europe has strong research institutions, but the transition from R&D to commercial space applications is slow. Key obstacles include:

• Long approval processes for new space projects.
• Limited funding for technology transfer from research to industry.
• Regulatory barriers that slow down market entry.

This prevents new business models from emerging companies and makes it difficult for European startups to scale up. In contrast, the U.S. fosters faster innovation cycles, allowing companies to commercialize new space technologies more quickly.

7 Underdeveloped Synergies Between Civil, Commercial, and Defense Space Programs

Europe has not fully leveraged the synergies between civil, commercial, and military space activities. In contrast:

• The U.S. integrates military and commercial space to drive innovation.
• China’s state-driven model combines civil and defense efforts under a single strategy.

By keeping its military and civilian programs separate, Europe limits its ability to develop dual-use technologies and misses opportunities to maximize investments. A more integrated approach could enhance European security, resilience, and industrial competitiveness.

Strategic Recommendations to Strengthen Europe’s Space Sector

To address these challenges, the Draghi report proposes three core strategic priorities:

1 Achieve European Space Sovereignty

• Develop independent launch capabilities (accelerating Ariane 6 and next-gen rockets).
• Reduce reliance on non-European suppliers for key technologies.
• Secure uninterrupted access to space services for navigation, Earth observation, and communications.

2 Increase Investment and Industrial Competitiveness

• Boost public funding for strategic space programs.
• Support private investment in space startups and scale-ups.
• Strengthen Europe’s space manufacturing base to reduce supply chain risks.

3 Improve Coordination and Market Growth

• Establish a more unified European space governance framework.
• Streamline regulatory processes to speed up market entry for new space companies.
• Encourage cross-sector collaboration between civil, defense, and commercial space programs.

Conclusion

The Draghi report emphasizes the urgency of strengthening Europe’s space sector. Without action, Europe risks losing strategic autonomy and falling further behind the U.S. and China. By addressing the seven root causes outlined above, Europe can enhance its global leadership, build a competitive space industry, and secure its future in the new space economy.

C | EU Space Act

As of today, the proposed EU Space Act is still a black box with little disclosed to the public. Based on the limited information available, it seems that the EU Space Act will focus on three pillars: (1) safety, (2) security/resilience, and (3) sustainability.

A website by the European Economic and Social Committee (EESC) indicates that a study group will discuss the proposed EU Space Act during the plenary session on September 17-18, 2025, and might publish an opinion or information report. The study group has stated:

The European Commission is therefore planning to propose an "EU space act" in the second quarter of 2025, with common rules on safety, resilience, and sustainability in space. Such a proposal would try to address the current challenges in the space domain, which include proliferation of satellites with the related risks of congestion and collision, and a high level of security threats against space infrastructures.

This is in line with the Joint Communication "European Union Space Strategy for Security and Defence" (JOIN/2023/9 final of 3 March 2023) which includes the following objectives of the EU's Space Strategy:

• Ensuring a shared understanding of space threats;
• Enhancing the resilience and protection of space systems and services in the EU;
• Strengthening the collective ability of the EU to respond to any attacks and threats putting at risk the EU security interests;
• Developing dual-use space capabilities, including for security and defence purposes;
• Fostering global partnerships.

Based on the initial Call for evidence for an impact assessment for the EU Space Act (previously "EU Space Law"), the European Commission planned to propose a regulation rather than a mere directive, and stated:

This initiative aims to lay down rules to ensure a coherent EU approach to: (1) safety, by laying down common rules on avoiding collision and mitigating space debris; (2) resilience, by laying down common rules on risk management and cybersecurity that are tailored for the space sector; and (3) sustainability, by laying down common rules for life cycle assessment of space activities and to prevent light pollution of the night sky.

However, it is unclear if, to which extent, and how the European Commission will include the three core pillars – (1) safety, (2) security/resilience, and (3) sustainability – in the draft proposal for a EU Space Act.

Conclusion

ESA’s Strategy 2040 represents a bold roadmap for Europe’s future in space. By focusing on autonomy, exploration, sustainability, and innovation, ESA aims to position Europe as a leader in the global space sector while addressing pressing challenges on Earth and beyond.

The goal of the detailed Draghi report is to provide specific solutions to overcome the current structural weaknesses of the EU in the space sector. It would be preferable if the weaknesses identified, and the solutions proposed would be discussed by the legislative bodies of the EU when drafting the EU Space Act.

Currently, there is little guidance on the content of the proposed EU Space Act. In view of the challenges discussed above, the European Union needs to find the right balance between a free market and regulating products and activities in the space sector. While each of the three key pillars identified so far (safety, security/resilience, sustainability) are important goals, some may be more important than others (perhaps safety and cybersecurity/resilience), and some may simply not be achievable for a – struggling – single market floating in space (sustainability). Sustainability must be achieved on a global level. For European space companies, it would be preferable if the EU Space Act will focus on product and mission safety as well as cyber security and resilience in the space sector by integrating the fragmented EU laws on cybersecurity and resilience (included in the NIS 2 Directive, CER Directive, CRA, etc.) in the future EU Space Act.