New Challenges for European Space Industrial Policy

The European space industry is globally competitive but faces challenges due to fragmented governance, reliance on commercial markets, and increased international competition. The European Union (EU) has become a major stakeholder in this sector, with a 'fragmented institutional market' shaped by policies, initiatives and programmes at multiple levels. The space governance structure is centred around the Governance Triangle, which involves the European Space Agency (ESA), the EU and individual states. While Europe's space industry has thrived, serving both institutional and private customers with advanced systems and maintaining a significant share of global commercial markets, it has done so without a unified industrial policy and has operated within a complex network of often incompatible policies. This article examines the pressing need for a unified, Europe-wide industrial policy that supports strategic autonomy, fosters innovation and ensures a level playing field for European companies. The proposed policy would harmonise the industrial approaches of the EU and ESA, align procurement standards and bolster institutional demand within Europe. Additionally, by strengthening technological independence and promoting integration of space technologies across sectors, such a policy would enhance Europe's economic resilience and competitive standing.