Europe’s space ambitions are at a critical juncture, according to Bernard Liautaud, managing partner at Balderton Capital. Speaking at the Italian Tech Week event, Liautaud warned that the continent risks falling behind in the rapidly expanding space and defence sectors due to an excessive dependence on American companies, particularly Elon Musk’s SpaceX. While European start-ups have made notable advances in satellite technology and defence innovation, SpaceX’s dominance in launch services and communications infrastructure poses a “huge risk” to Europe’s technological sovereignty and national security. Liautaud urged governments to accelerate investment in domestic capabilities and nurture home-grown innovation to strengthen Europe’s position in the global space race.
Europe’s growing dependence on SpaceX and US space technology
Liautaud cautioned that European nations remain overly reliant on American firms for satellite launches and space-based infrastructure. SpaceX, now valued at around $400 billion (£315 billion), dominates both the commercial launch market and the communications satellite sector, a dependency he described as strategically dangerous. “We need to be more self-sufficient,” he said, underlining that control over space technology is becoming a decisive factor in military and economic strength. Despite US dominance, Europe’s start-up ecosystem is showing promising growth. Liautaud argued that supporting such enterprises is essential for Europe’s strategic autonomy, calling start-ups “a key ingredient” in the effort to achieve technological sovereignty.
Defence, investment, and the new space race
European investment in defence and aerospace technology has surged since Russia’s full-scale invasion of Ukraine, driving the emergence of new firms specialising in drones, battlefield software, and orbital infrastructure. Liautaud stressed that space-based capabilities are now integral to both military supremacy and global competitiveness. By cultivating independent launch systems and communications networks, Europe can reduce its exposure to foreign political and commercial pressures.Industry leaders share Liautaud’s concern. Hélène Huby, founder of The Exploration Company and a former Airbus executive, described Europe as “quite weak right now regarding space-based infrastructure.” With US giants like SpaceX and Blue Origin racing ahead, the window for Europe to build independent capabilities is rapidly closing. “We must act now,” Liautaud urged, framing Europe’s challenge not merely as a question of innovation but of strategic survival in the new era of space competition.
