What’s happening?
The 15th European Space Conference took place in Brussels on January 24-25, 2023.
Why this is important?
- The crisis of covid, Ukraine and inflation are hitting hard the aerospace sector
- For instance, inflation may generate €700 million in cost increases for the European aerospace space sector in 2023
- The events in Ukraine have fundamentally changed the geopolitical agenda
- For instance, European defense spending (26 countries) increased by 6% in 2021, in excess of € 200 billion for first time
- Space is a strategic and increasingly contested domain, not far from a battlefield
- The need to ensure an independent and guaranteed access to space for Europe is more important than ever
- European resilience and reciprocity in international relations should be increased
- For instance, Europe is dependent upon third countries for data about space traffic management (STM)
- European companies may not benefit from the US Inflation Reduction Act
- Progress has been made in terms of European space (private and public) investments, but the need to de-risk investments and close the “valley of dead” remain
- Institutions and agencies are adapting their governance and increasing the speed of their contracting and hiring processes
- It is difficult to find and retain talents; links between European universities and private companies should improve
- The links and synergies between the space and non-space (civil and defense) sectors should increase
What's in it for you?
- There is strong support for the EU secure connectivity initiative IRIS2, but many issues must still be sorted out
- Micro launchers are entering the European scene, but it is not yet clear how they be part of the ecosystem
- Europe is closely looking at which technologies and infrastructures are critical; this clearly includes certain satellites and spaceports
- European institutions such as the EC and ESA are amending their procurement rules to New Space and developments, but concerns remain
- Micro launchers will be able to participate to the EU fly ticket initiative
- The EC is considering proposing common rules in certain areas such as safety, registration requirements and space debris mitigation
- Euronext® Helios Space Index is creating visibility about the stock market performance of certain European space companies.
Next steps?
- The European Parliament will vote on the draft regulation establishing the EU secure connectivity initiative IRIS2 on February 14, 2022 and then the different phases of the procurement process will start
- The EU Space Strategy for Security and Defence will be issued in March 2023
- The EU Council could adopt conclusions on Fair and Sustainable use of Space in May 2023
- A mechanism to protect European companies from inflation (along the side of the US Inflation Reduction Act) could be adopted (this is not clear because inflation has decreased in December 2022)
- There may be budget increases for space during the 2023 MFF mid-term review
- The EC announced it is working on a Net-Zero Industry Act to stimulate the clean tech industry and setting up a European Sovereignty Fund to back research and innovation into clean technologies.