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The new American James Webb satellite explores the outer boundaries of the universe. Private US starts ups Space X and Blue Origin are pioneering commercial space exploration and the launch of inexpensive low orbit satellites. In contrast, the European Space Agency (ESA) seems grounded.

Radical change is required. Europe must consolidate its public space agencies and encourage its private space companies to grow. This requires a harmonized and united European front on space exploration.

Established in 1975, Europes Space Agency (ESA) lacks power over the EUs national agencies. It acts as an intergovernmental mechanism allowing members to cooperate and exchange information on international and national space law. Translated from Eurospeak, this means the ESA acts as a technical and legal consultant to national space agencies, not as a coherent, centralized, strong leader. In addition, only 22 of the EUs members participate, with small states such as Bulgaria, Cyprus, and Slovakia, staying away.

The ESA is not part of the European Union structure, though it receives much of its funding from the European Commission. The EU has its space program, called the European Space Program, adding to the confusion.

Part of the reason behind this decentralized structure is that much space research concerns defense. Under EU law, national security remains a national responsibility, out of the EU scope.

Unnecessary duplication and slow decision-making results. Even the most ambitious ESA projects such as the Rosalind Franklin rover (headed for Mars) or Electra (a telecommunications satellite) focus on providing unmanned services and exploration research, rather than pursuing ambitious manned or defense missions.

The funding represents another challenge. The ESA budget totals a mere EUR14 billion over five years compared to the US, which spent 54 billion dollars in 2021, or China, which spent a little over $10 billion last year.

Europe needs to pool its resources to pursue ambitious projects such as the colonization of Mars, and the Moon, or defense-oriented measures such as missile defense or advanced satellite networks.

This goal could be achieved by remodeling the ESA in the spirit of NASA. In a public presentation, ESA manager Martin Born says his organization must increase flexibility and reduce bureaucracy. For example, he points out that while NASA holds weekly risk meetings, ESA requires lengthy paper risk reports. NASA conducts a streamlined three-part progress review. ESA has a five-step drawn-out review system. NASA takes direction from a single government administration, allowing it to develop and implement a coherent, and often ambitious, set of priorities. In contrast, the ESA must balance the interest of its member states.

Challenges arise concerning the role of private companies: in the US, NASA cooperates with and compliments space startups producing cheap rockets and satellites. In Europe, the ESA imposes onerous regulations on companies through stringent supply chain reporting, creating a barrier for private companies, and leaving Europes space startups struggling for finance.

Brexit presents another obstacle. When the UK pulled out of the EU, it was frozen out of the ESAs Galileo project, which is building a rival to the US GPS. Britain boasts a potentially dynamic satellite company called OneWeb, which is building hundreds of low-flying satellites. The UK has big ambitions for mass-produced small satellites.

OneWeb and Frances Eutelsat recently announced a merger to create a strong competitor to Elon Musks SpaceX. Both EU and UK antitrust regulators need to approve the deal. Investors are wary: Eutelsats shares fell by more than one-third in the two days after news of its planned deal with OneWeb emerged. Some UK politicians have expressed concerns about the deal.

Comprehensive reform of Europes public space sector remains required. When European Commission President Ursula Von Der Leyen took office in 2019, she called for cross-fertilization between civil, defense and space industries and focus on improving the crucial link between space and defense and security, In 2020, the Commission published an Action Plan calling for better coordination between civil, defense and space projects.

The most straightforward solution would be to give the European Commission a leadership role. Work has already been done to consolidate the two agencies, although bureaucratic infighting has hampered its progress. In 2021, the ESA and EU took new steps to guarantee that they would work in closer collaboration. The European Space Forum, scheduled for the end of October, represents an appropriate venue to launch an ambitious overhaul. Lets hope Europe doesnt miss the opportunity to blast off.

Jonathan Garraffo is an intern in CEPAs Business Development Program. Alexander Wirth is a Program Officer in CEPAs Digital Innovation Initiative.

Read more:
How Europe's Space Industry Could Blast Off - Center for European Policy Analysis