On 27/01/2025
In CSI articles
Five concrete proposals to strengthen the European Space Economy around the Franco-Italian core.
Written by : Titouan BRAUX SALVAYRE, Nicolas GUILBERT and Antoine CHESNE.
The article in a nutshell:
Today, space is at the heart of issues of sovereignty, security and global competitiveness. In 2024, the global space industry is valued at 480 billion dollars, with projections reaching 1,000 billion by 2040. Faced with these developments, Europe – despite a public spending deficit in the sector of around 1 to 9 with the United States – cannot afford to lag behind, and the Franco-Italian relationship appears to be a central pillar for structuring European leadership in this sector.
Here are our 5 key proposals for realising the ambition of a Franco-Italian partnership in the Space Economy.
Solid foundations: cutting-edge industrial and scientific capabilities
With sales of €70.2 billion in 2023, France is a major player in the aerospace sector. It has a robust ecosystem, combining major industrial groups (Airbus, Thales, Safran), cutting-edge research institutions (CNES – Centre national d’études spatiales, ONERA – Office national d’études et de recherches aérospatiales) and innovative start-ups. This industrial and scientific fabric, supported by an ambitious public policy, gives France a central position in European programmes.
Italy is the world’s seventh-largest aerospace producer and Europe’s fourth-largest, with sales of €13.5 billion. With its hundreds of SMEs and regional centres of excellence, such as the Piedmont aerospace basin, Italy is a key player from component manufacture to spacecraft, as well as in-orbit services.
As the third-largest contributor to the European Space Agency (ESA), with €3.1 billion between 2023 and 2027, it also stands out for ambitious projects such as the IRIDE programme, the fruit of the EU’s recovery plan, and the Vega-C launcher, developed and recently marketed by Avio.
Long-standing cooperation that is becoming fragmented
Space cooperation between France and Italy began in the 1960s and intensified with the founding of the ESA in 1975. Successes such as the Ariane and Vega launchers and collaboration via Thales Alenia Space bear witness to this. The Quirinal Treaty, signed in 2021, marked the political will to structure a “Franco-Italian core” to strengthen Europe’s strategic autonomy.
The Treaty establishes an ambitious framework for Franco-Italian cooperation in the space sector. Article 7 reaffirms the importance of this collaboration in building a Europe of space, which is essential to Europe’s strategic autonomy and economic development. It commits the two nations to harmonising their strategies for the exploration and peaceful use of space, while consolidating their space industries through joint projects in key sectors such as Ariane and Vega launchers, Earth observation, telecommunications and navigation. With these commitments, France and Italy have promised, at least on paper, to strengthen not only their own cooperation but also the competitiveness andintegration of the European space industry.
However, this cooperation is currently coming up against a number of obstacles:
- Industrial rivalries: The differences between ArianeGroup (France) and Avio (Italy) over the Ariane 6 and Vega-C launchers culminated in the decision taken in 2023 to transfer the marketing of Vega-C, previously handled by Arianespace, to Avio, the launcher’s manufacturer. This major decision, which distances the two countries after years of frustration and misunderstanding, reflects internal competition rather than strategic complementarity. In New Space, French and Italian start-ups operating in the same sector, such as Exotrail and D-Orbit for orbital transfer vehicles (OTVs), or Leaf Space and Skynopy in the field of ground antennas, often move forward without coordination.
- Lack of a shared strategic vision: Thales Alenia Space (two-thirds Thales and one-third Leonardo), long a symbol of transalpine synergy, is suffering from a misalignment between French and Italian technological priorities. The Turin site, which specialises in manned spaceflight, has won major contracts for the Lunar Gateway in the Artemis programme and for the future Axiom private space station, as well as working as a subcontractor on Northrop Grumman’s Cygnus cargo ship. The Rome site, which specialises in satellites, has won contracts from IRIDE to develop and manufacture radar imaging satellites. On the other hand, the French side of the business is not doing so well: the market for geostationary satellites, a speciality of Cannes, is in decline, and, due to a lack of major new projects in France, the company is planning to cut 900 jobs in France without affecting the Italian side. Its sister company Telespazio (two-thirds Leonardo and one-third Thales), which specialises in operations services, is still having difficulty adapting to the New Space environment.
- European coordination and the emergence of private players: The governance mechanisms within ESA and the EU are too fragmented and bureaucratic, slowing down decision-making and diluting Franco-Italian ambitions in the face of international competition (SpaceX, Chinese initiatives). Added to this is a major difficulty: the inability of both countries to develop private space champions capable of competing on global markets. In France, Eutelsat, although a major player in the telecoms sector, is struggling to renew itself outside OneWeb, illustrating the limitations of a business model largely centred on public and semi-public projects. This weakness is holding back a unified and competitive response on an international scale.
The challenges: a vital boost to cooperation
The current fragmentation weakens the ability of both countries to :
- Protect their strategic autonomy against a backdrop of increased rivalry with the United States, China and Russia.
- Capitalising on complementary strengths for a sustainable space economy: France and Italy need to build on their respective strengths to structure an integrated, competitive and innovative European space ecosystem. However, current fragmentation and cumbersome bureaucratic processes not only hamper coordination between the two countries, but also their ability to develop a truly lucrative space economy. This should not only contribute to industry and trade, but also strengthen the balance of trade and add value to the know-how of their engineers. A joint effort to overcome these obstacles could transform the space sector into a major economic driver for both nations.
- Mobilising the funding needed to support technological developments and meet the challenges of New Space.
In the face of these challenges, the strategic objective is clear: to re-establish solid, coordinated Franco-Italian cooperation, as well as a fluid and transparent market, capable of meeting Europe’s ambitions in terms of sovereignty and competitiveness in space.
Proposals for a stronger partnership
To make this ambition a reality, here are our 5 key proposals:
1. Creating an integrated space market
Establish a collaboration platform to highlight the complementary nature of the supply chain in the two countries. Give it a mandate to produce an overview of the technologies and services available to companies and institutes in each country, to help the French and Italians get to know each other better, and to facilitate contacts and support the establishment of collaborations between partners. A platform of this kind would make it possible to capitalise on the technological strengths of each country, from the manufacture of components to complete space systems.
Creation of a joint Franco-Italian commission for the aerospace sector to structure strategic cooperation between the two nations. Made up of representatives from the ministries, space agencies (CNES – Centre national d’études spatiales and ASI – Agenzia Spaziale Italiana), manufacturers (Thales Alenia Space, Leonardo, Avio) and academic experts, this body would centralise the coordination of joint projects. It would develop shared policies, harmonise regulatory frameworks, and steer joint programmes such as satellites and launchers. By mobilising pooled funding and facilitating innovation through calls for projects for start-ups and SMEs, this commission would strengthen bilateral competitiveness on global markets, while supporting Europe’s strategic autonomy in space.
2. Investing in innovation and New Space technologies
Venture capital funds and joint incubators: Although both countries have national incubators (Tech2Moon, Starburst on the French side, Takeoff on the Italian side) and national venture capital funds (Expansion or CosmiCapital in France, PrimoVentures in Italy, etc.), there is no real Franco-Italian initiative. Setting up a Franco-Italian fund with incubation capacity would enable many start-ups to establish a presence in both countries at the seed stage. At the same time, help companies to set up in the other country via an ambassador and mentoring programme, focusing on space activities.
Cross-border regional programmes: Encourage centres of excellence, such as those in Toulouse (Aerospace Valley) and Piedmont (the future Città dell’aerospazio in Turin), to work closely together on joint projects.
3. Investing in innovation and New Space technologies
Development of joint Franco-Italian space platforms: Encourage French and Italian decision-makers to work together to define their needs, so that manufacturers, particularly Thales Alenia Space, can create joint space platforms and avoid duplication. These platforms would be designed to meet observation, communication and navigation needs, thereby strengthening industrial cooperation between the two countries.
Given the skills of each country, structuring industrial projects could take the form of a leader/follower duo, with each country leading the other in the development of a complementary activity:
- Italian leadership. Franco-Italian leadership for a European manned module in orbit: France and Italy could become the driving forces behind a manned module project for a Low Earth Orbit (LEO) station. This would involve the creation of a project company with French and Italian capital, positioning the two countries not only as manufacturers but also as operators of a manned European access to space. This would enable France to get its foot back in the door of manned space, while benefiting from Italian expertise in pressurised manned modules.
- French leadership. Franco-Italian stackable microsatellite platform: Developing a stackable microsatellite platform architecture compatible with the Vega C, Ariane 6, Maia One and Zephyr launchers. This Franco-Italian project, optimising space for the deployment of microsatellites, would represent the next step in microsats and could support the second phase of IRIS². The IRIS² programme, the future European constellation of secure satellites, is mobilising €6 billion of public and private investment. France and Italy are expected to account for between 30% and 40% of the technical contributions to this project. For the time being, however, Italy remains on the sidelines of the consortium of operators (Eutelsat, SES, Hispasat) and would benefit from closer collaboration with French industry as a subcontractor.
4. Strengthening safety and sustainability in space
Franco-Italian legislation for the exploitation of space resources: Develop a common legislative framework for the sustainable and equitable exploitation of space resources, drawing on the successful example of Luxembourg, and common legislation to govern space operations. This initiative would enable France and Italy to support innovation while attracting European entrepreneurs to the space sector within a simple and standardised legal framework, giving companies visibility.
Space surveillance and security: To strengthen space security, it is proposed to create Franco-Italian cooperation on debris surveillance systems (SSA/SDA), space cybersecurity (anti-jamming), optical telecommunications via ground stations (Cailabs) and in-orbit data relays. This collaboration is an extension of our collaboration on military communications satellites (Athena-Fidus, Sicral). By 2027, new joint secure communications systems are planned at an estimated cost of 500 million euros. The protection of these systems involves joint invitations to tender, encouraging technology and service providers to work on both sides of the Alps. These joint calls for tender would also stimulate innovation and enable both countries to secure their space infrastructures, while strengthening industrial and technological links in the space sector.
Joint French-Italian invitations to tender for environmental spatial data: Similarly, create joint invitations to tender between France and Italy for the use of spatial data to benefit the environment. The objectives include detecting forest fires, anticipating drought, preventing natural hazards and combating pollution. These calls would encourage Franco-Italian cooperation and support technological innovation while involving businesses in environmental protection.
5. Creating innovative governance mechanisms
Franco-Italian task force for technological sovereignty: In parallel with the creation of the joint platform, the creation of a Franco-Italian task force would make it possible to identify common dependencies on non-European technologies or technological gaps at Franco-Italian level. This initiative would encourage the definition of strategic avenues of collaboration to strengthen the sovereignty and common interests of the two countries.
Creation of a Franco-Italian space exchange programme: Set up a programme offering work placements, sandwich courses and doctorates in the space sector, with a group of companies in the sector in both countries. Set up binational training courses tailored to the needs of industry.
Conclusion: a cornerstone for the future of Europe in space
Franco-Italian space cooperation is at a turning point. If the two nations can overcome their differences and align their priorities, they will be in a position to guide Europe towards a leading position in the global space economy. By combining their industrial, financial and technological strengths, France and Italy can not only strengthen their strategic autonomy, but also build a united, innovative and sovereign Europe in the exploration and exploitation of space. This cooperation must also be in line with a logic of wealth creation, be it financial, human or technological. While the United States and China are exploiting space as a direct economic lever, Europe must draw inspiration from this pragmatic approach to anchor its ambitions in concrete, lasting results.