European space industry needs a single market approach, recommends Letta report – Euractiv

Former Italian prime minister Enrico Letta is urging for the integration of the EU space market, stating that the European space industry is no longer competitive in the global space economy. In a draft report seen by Euractiv, Letta emphasizes the need for a dynamic space sector that can thrive in global competition and contribute to Europe’s strategic autonomy and security.

The report, which is expected to be published on Thursday, highlights the lack of integration in the European space industry and the concentration of industrial resources in only a few countries and companies within the EU. Letta also points out the significantly smaller private investments in the EU space sector compared to the US, as well as the absence of common EU rules to support competitiveness.

According to Letta, the use of civil and commercial space infrastructures for defence purposes is becoming increasingly important, as seen in the example of the war in Ukraine where Elon Musk’s Starlink system is being used for telecommunications by both military and civilians. He notes that European space defence capabilities are relatively underdeveloped compared to civil use.

To achieve stronger integration in the EU space market, Letta suggests clarifying the roles and competencies of the European Space Agency (ESA) and the EU Agency for the Space Programme (EUSPA). He acknowledges that the possibility of ESA being under EU institutions has become more remote with the establishment of EUSPA and Brexit.

In conclusion, Letta’s report calls for revising the current approach to the European space industry to boost competitiveness on the global stage, particularly in relation to US players. Integrating the EU space market and clarifying the roles of ESA and EUSPA are seen as crucial steps towards achieving a more competitive and strategic European space sector.