European Commission, European Space Agency, and European Investment Bank join forces to support space companies’ financing
The European Commission (EC), European Space Agency (ESA), and European Investment Bank (EIB) have signed an agreement to collaborate and assist space companies in accessing financing. This partnership aims to streamline the process of obtaining financial resources to enhance Europe’s space ecosystem.
Untapped potential of the Strategic European Security Initiative (SESI)
The EIB currently invests in the space sector through the Strategic European Security Initiative (SESI), an 8 billion euro ($8.7 billion) fund launched in 2022. However, only a small portion of this fund has been allocated to space projects, despite their growing strategic importance. The EC, ESA, and EIB recognize the need to leverage their resources to support the development of the space industry in Europe.
Overcoming financing challenges in the space sector
Despite efforts to support domestic space projects, access to financing remains a significant challenge for the sector. Timo Pesonen, the EC’s director-general for defense and space, acknowledges this issue and emphasizes the importance of finding solutions to address it. Regular meetings between the three institutions will be held to identify and discuss bottlenecks in space financing.
Providing financial advice and promoting public-private partnerships
As part of their alliance, the EC, ESA, and EIB will proactively identify promising European space projects and offer them financial advice through advisory services. The goal is to accelerate and simplify their access to debt financing. Additionally, the institutions plan to share best practices on public-private partnerships (PPP) to facilitate more PPP space projects in the EU.
Boosting defense investments with the European Investment Fund
In addition to their collaboration, the European Investment Fund (EIF) has launched a 175 million euro equity fund for defense investments. This fund can benefit the space industry and aligns with Europe’s space entrepreneurial initiative, Cassini, which includes a one billion euro seed and growth fund. The collective efforts of the EC, ESA, EIB, and EIF aim to create a more supportive environment for space companies in terms of financing and investment.
About the author
Jason Rainbow is a journalist who covers satellite telecom, space finance, and commercial markets for SpaceNews. With over a decade of experience in the global space industry, he is well-versed in the business aspects of this sector. As the former Group Editor-in-Chief for Finance Information, Jason Rainbow brings a wealth of knowledge and expertise to his reporting.
Analyst comment
Positive news. The partnership between the European Commission, European Space Agency, and European Investment Bank aims to streamline the process of obtaining financing for space companies, addressing the challenge of limited access to funding. Regular meetings will be held to identify and discuss bottlenecks in space financing. Financial advice will be provided, and best practices on public-private partnerships will be shared to facilitate more PPP space projects in the EU. The collaboration also aligns with the European Investment Fund’s equity fund for defense investments. This collective effort will create a more supportive environment for space companies in terms of financing and investment.
