site.btaThe Space Sector Urgently Needs Investment to Make the EU a World Leader

In an opinion that was adopted at its December plenary, the European Economic and Social Committee (EESC) urges the EU to step up public and private investment in space, with the end goal of reinforcing strategic autonomy and promoting innovation. The Committee also advises increasing the funds allocated to the European Union Agency for the Space Programme (EUSPA) in the next Multiannual Financial Framework (covering 2028–2034).
 
The EESC is calling for immediate structural measures in space investment and recommends increasing this to at least 0.2% of the EU’s GDP by 2030.
 
In its opinion, drawn up by Angelo Pagliara, the Committee points out that this boost would allow Europe to gradually close the gap with the US and China, making the EU a world leader in the space sector.
 
Europe’s investment in space is significantly smaller than that of its main competitors. The EU currently allocates only 0.07% of its GDP to space activities, compared to an average of 0.25% in the US, and higher levels still in China, India and Japan.
 
‘This structural imbalance undermines Europe’s ability to foster autonomous innovation, maintain strategic critical infrastructure and combat dependence on technologies, data and services from third countries,’ said Mr Pagliara, adding ‘We need to increase European public investment in the space sector’.
 
Boosting public and private investment
 
The EESC opinion assesses the European Commission’s EU Space Act and endorses its intention to enhance the space single market.
 
In order to make space activities sustainable, safe and resilient, the EU needs an immediate structural boost to its public investment in space activities. This means that the Union must take urgent action and adopt ambitious industrial policies, otherwise the objectives of the Commission’s proposal will not be met.
 
At the same time, the EESC underlines that it is important to have a clear regulatory framework in place to attract private investment. This must go hand in hand with an industrial and technological strategy that maximises economic and social return for Europeans, defines tools to reduce dependency on critical supplies from outside Europe and supports the development of European launch capabilities.
 
Space strategy must be linked to strategic autonomy
 
The Committee also urges the Commission to link the European Space Strategy to European strategic autonomy and to encourage complementary ecosystems and the multiplier effect of the space economy in support of specific sectors. These include precision farming, artificial intelligence, advanced robotics, orbital energy, environmental monitoring and telemedicine.
 
The space economy has great economic potential, to which the EU should pay more attention. According to the Draghi report, its global value reached EUR 572 billion in 2023 and is expected to exceed EUR 1 628 billion by 2035, with an annual growth rate of over 9%. The space economy also needs to be linked with other European policies and strategies, including the Green Deal and the twin transition, and the Commission should offer guidance to Member States as to how EU law can foster such synergies.
 
On this note, and with reference to the EU Agency for the Space Programme, the EESC agrees with the Commission that the agency’s operational role should be strengthened so that it can provide national administrations with technical assistance, guidance and coordination support. However, to match ambition with reality, EUSPA needs more financial resources: in this connection, the Committee is calling for the agency to be allocated adequate funds in the 2028–2034 Multiannual Financial Framework.
 
Background - EU Space Act
 
The European Commission has set EU space law as a priority and in June 2025 launched a proposal for an EU Space Act, which aims to ensure safety, resilience and environmental sustainability, while boosting the competitiveness of the EU space sector.
 
The objective is to introduce a harmonised framework for space activities across the Union. Currently, Europe’s regulatory landscape is fragmented: there are 13 different national approaches. This increases complexity and costs for business.
 
The EU Space Act will create a single market for space activities, making it easier for companies, particularly start-ups and SMEs, to grow and operate across borders.