The agreement between three of Europe’s leading defense firms to merge their space businesses is driven not only by market competition from US rival SpaceX but also by growing concerns among European nations about safeguarding collective sovereignty, according to government officials and industry experts.
A Response to US Dominance
The move by Airbus, Leonardo, and Thales to form a joint company, temporarily dubbed Project Bromo, reflects a growing focus on bolstering military space capabilities among key European institutions and major space powers like France, Germany, and Italy.
Strategic Autonomy
The three firms emphasized in a joint statement that their new venture aims to strengthen Europe’s „innovation capability, strategic autonomy and competitiveness” across the space sector, excluding launch activities. The partners anticipate an annual turnover of €6.5 billion ($7.5 billion).
Rivaling Starlink?
While the merger has been widely portrayed as a European effort to create a satellite powerhouse capable of rivaling SpaceX’s Starlink, analysts suggest that Project Bromo, along with the EU’s IRIS2 satellite communications network, is only part of a larger strategy to enhance regional influence and maintain a foothold in the escalating geopolitical competition in space.
A Sovereignty Play
„Project Bromo is a sovereignty play,” explained Caleb Henry, director of research at Quilty Space. He noted that merging Europe’s largest satellite manufacturers would have been considered anti-competitive a decade ago, but today, the greatest perceived competitive risk is being left behind by the US and China. This consolidation allows European space giants to focus on winning business against external competition and preserving Europe’s role in the power politics of space.
Military Space Focus
The merger is also intended to strengthen Europe’s position in military space, according to a European government official. European countries are increasingly aware of the importance of space capabilities for military strength and the growing threats to space systems posed by Russia and China.
Timing Aimed at Influencing Policy
The timing of the merger agreement appears to be strategic, coinciding with major year-end meetings of European institutions to set priorities and allocate future funding.
European Space Shield
The 27-member European Union’s European Council recently approved a new five-year plan for building defense capabilities, called Preserving Peace — Defence Readiness Roadmap 2030, which includes the development of a „European Space Shield” as one of its four pillars. The council emphasized the need for accelerated joint development of space assets and services that serve security and defense purposes, as well as the protection of existing assets, given their importance for Europe’s strategic autonomy.
Future Funding Decisions
The European Commission has proposed the new plan but has provided limited details about the space shield concept, except to mention that it will build upon existing EU programs such as Galileo and IRIS2. Additionally, the European Space Agency (ESA) will hold its ministerial meeting in late November, where member nations will decide on a proposal to increase spending by 36 percent over the last budget, reaching €23 billion ($26.25 billion).
