Starlink saga shows why Europe must catch up in space

Two stark events, barely a week apart, ought to focus minds in Brussels on the need to bolster European presence in space. First a throttling of Elon Musk-owned Starlink’s satellite network hampered Ukraine’s air defences and its own drone strike campaign. Then Andrew Puzder, US ambassador to the EU, warned of “devastating” retaliation if the bloc proceeds with plans to favour European companies when spectrum suited for satellite-to-device internet communication comes up for renewal.

Both incidents show how Europe’s reliance on US technology leaves it vulnerable in commercial and security terms. Under President Donald Trump, pressuring Brussels to protect US companies from regulatory constraints has become policy. But Washington risks undermining its own commercial interests. Threats and technological restrictions only reinforce European fears that the US is willing to weaponise their dependence. Ironically, Puzder’s intervention strengthens the case for the bloc to rapidly build up its own capabilities in critical technologies.

Recognising the need for autonomy, however, is easier than achieving it. Nowhere is that clearer than in low Earth orbit, where satellites operate close enough to the ground to provide reliable, high-speed internet connectivity. Musk’s SpaceX was early to see the demand, and adept at raising the vast resources needed to scale up its rocket-launching operations and drive down costs. The company has transformed the economics of space. Last year, SpaceX conducted 170 launches, compared with just eight by European providers. Europe lags behind in satellite networks, launch capacity and cost competitiveness. That leaves it — and Ukraine — dependent on American technology for the foreseeable future.

Europe could close some of the gap by harnessing the scale of its own market, which it has so far failed to do. Giving European companies greater certainty of demand — much as Brussels is pursuing a “Buy European” approach in other strategic sectors — would encourage investment and help drive down costs. Indeed, combined with the security imperative, there is a strong case for reserving some satellite spectrum for European operators. On Monday, four of Europe’s largest telecoms groups announced plans for a joint spectrum bid.

But preferential access to the European market alone is not enough. Europe also needs to quickly scale up satellite manufacturing, foster competition among launch providers and co-ordinate procurement to give companies confidence to invest. Even then, matching established rivals on price will take time, requiring carefully targeted public funding.

There are signs of progress. The EU’s IRIS² programme aims to develop a sovereign satellite communications network, while the bloc’s new arctic strategy identifies spaceports and launch services as priorities. The EU’s space programmes and the separate European Space Agency, of which the UK is part, have also seen their funding boosted. What matters is turning these initiatives into a competitive industry, rather than a collection of national projects and protected incumbents.

Being the first mover in an innovative technology that requires massive scale is how many US and Chinese industries came to dominate markets ranging from satellites to digital services. Europe cannot hope to replicate every part of America’s space industry, nor should it seek to shut out foreign competitors. But in technologies essential to its security and economic resilience, it needs credible alternatives. The Starlink saga should inject fresh urgency into Europe’s efforts to develop them.