At a Dec. 18, 2024, ESA council briefing, Director General Josef Aschbacher announced plans to simplify the long-standing principle of geo-return in 2025. This principle mandates that ESA compensates member states equally based on their contributions. Critics argue that this approach has hindered Europe’s competitiveness in the global space industry, particularly in response to technological advancements.
In light of these criticisms, ESA is testing a new model called 'fair contribution.' This approach allows companies to compete for projects, with funding allocated based on their performance in the European Launcher Challenge. This shift aims to stimulate the European launcher industry, which has been described as 'in crisis' by former Italian Prime Minister Mario Draghi.
ESA's focus is on establishing effective bureaucracy rather than merely increasing overall funding. Currently, the funding disparity between ESA and major players like NASA is significant. To achieve strategic autonomy, Europe must attract more investment and foster a supportive environment for startups, particularly those in dual-use technologies.
European startups often face skepticism from government agencies, limiting their access to substantial funding. This stagnation allows talent to migrate to more supportive environments like the U.S. and Asia. The absence of programs similar to the U.S. DARPA, which funds startups in critical technologies, exacerbates this issue.
As competition intensifies from nations like India and Japan, and with the U.S. bolstering its private space sector, ESA risks being sidelined. To maintain relevance, it must adapt its strategies, reduce reliance on NASA, and leverage the influence of leading European nations.
While the shift towards fair competition and relaxing geo-return represents a change in ESA's approach, it may not be sufficient to reinvigorate European space ambitions. Without significant funding directed towards startups, the continent's aspirations may remain unfulfilled. A cultural transformation is necessary to dismantle barriers and redirect investments towards Europe's burgeoning space sector.
Robert Brüll, CEO of FibreCoat, emphasizes the importance of addressing these issues to ensure that European startups can thrive in the competitive space landscape.