Fast Facts

• Leonardo, Airbus, and Thales are negotiating a €10 billion joint venture to build satellites in Europe.
• The initiative, codenamed “Project Bromo,” aims to compete with US and Chinese satellite giants, including Elon Musk’s Starlink.
• The proposed company would be based in France and could be formalized as early as 2025.
• National interests and regulatory hurdles from Italy and France remain key obstacles.
• The project reflects the EU’s drive for strategic autonomy amid global tech rivalries.

Countdown to Liftoff: Europe’s Space Race

Imagine a chessboard stretching from Paris to Rome, where every move could decide the future of Europe’s place among the stars. That’s the high-stakes game now playing out between Leonardo (Italy), Airbus (France/Germany), and Thales (France), as they scramble to form a space alliance worth €10 billion. Their goal: to build a European satellite powerhouse capable of challenging the likes of Starlink - Elon Musk’s constellation that’s rapidly redrawing the map of global communications.

The project, known as “Project Bromo,” is more than just a business merger. It’s a strategic gambit in an era when satellite networks are the nervous system of global security, commerce, and digital life. As low-orbit satellite swarms like Starlink and China’s Guowang race to dominate the skies, Europe’s traditional giants risk being outmaneuvered - unless they consolidate their resources and expertise.

Strategic Synergy - or Bureaucratic Black Hole?

The stakes are clear: without a unified European player, the continent could lose ground in the booming “space economy.” Yet forging this alliance is anything but simple. Past attempts at cross-border aerospace cooperation in Europe have often crashed into the twin walls of antitrust scrutiny and national pride. The memory of failed joint ventures looms large, and current talks - while promising - are shadowed by the need to balance Italian and French interests, especially concerning company ownership and sensitive technologies.

Industry leaders like Michael Schoellhorn, CEO of Airbus Defence and Space, caution that such deals unfold in two acts: first, the formal commitment; then, the hard slog to final agreement. Insiders expect a memorandum of understanding within weeks, but the real signature might not come until 2025. Meanwhile, the EU’s push for “strategic autonomy” - the ability to act independently in critical sectors - adds urgency to the proceedings. Recent geopolitical shifts, from US policy changes to China’s tech ambitions, mean Europe can’t afford to watch from the sidelines.

Can Europe’s New Space Alliance Break the Mold?

If Project Bromo succeeds, it could mirror past joint ventures like MBDA (Europe’s missile consortium) or the GCAP fighter jet project, where ownership and decision-making are carefully divided. But this is uncharted territory: the satellite market is evolving fast, with demand for cheaper, low-orbit platforms that can deliver high-speed internet and secure communications worldwide. The new venture would need to be nimble, innovative, and shielded from the bureaucratic inertia that has plagued previous efforts.

The world will be watching: if Europe’s aerospace giants can finally move in sync, they might just chart a new orbit for the continent’s technological future.

WIKICROOK

• Joint Venture: A joint venture is a partnership where two or more parties combine resources to pursue a specific goal, sharing ownership, risks, and profits.
• Low Earth Orbit (LEO): Low Earth Orbit (LEO) is the area 500–2,000 km above Earth where satellites provide fast, responsive internet and communication services.
• Strategic Autonomy: Strategic autonomy is a nation's ability to act independently in vital sectors like defense and technology, minimizing reliance on foreign powers.
• Antitrust: Antitrust laws prevent companies from abusing market dominance or stifling competition, ensuring fair business practices and consumer protection.
• Space Economy: The space economy covers all goods and services related to space, including satellite communications, launches, data services, and emerging commercial activities.