ESA isn’t forcing private companies building cargo capsules to hire contractors from all its partners
Capitalism in space: When the European Space Agency (ESA) in May 2024 awarded two contracts to the French startup The Exploration Company and the established Italian contractor Thales-Alenia to develop unmanned capsules for bringing cargo to and from orbit, it also made a major policy change that went unnoticed at the time.
During a press briefing on 23 May [2024], following the Phase 1 awards, ESA Director General Josef Aschbacher explained that the agency would not require participants in the initiative to adhere to its geo-return policy. The policy typically ensures that contracts are distributed among ESA member states in proportion to their financial contributions. “We contract very differently because we will be the anchor customer,” said Aschbacher. “That means we buy a service. We give industry all the freedom to find the best solution technically, but also the best partners, with whomever they want to work with.”
What means is that the two companies, in developing their capsules, have not been required to spread the work out across Europe. Instead, they have been free to do the work entirely in house, or hire just the subcontractors they prefer, from anywhere. As the CEO of The Exploration Company noted, “In plain terms, we choose our suppliers based purely on quality and cost—not because they’re French, Italian, or German. We choose the best supplier for the job.”
In the past, as part of its bureaucratic and political needs, ESA’s “geo-return policy” required every space project to spread the wealth to all of the ESA’s partner nations, in amounts proportional to their financial contributions to the ESA. The result was that every project went overbudget, took too long to complete, and was unrealistically complex. Many projects simply failed because of these issues. Others took decades to get completed, for too much money. And when it came to rockets, it produced the Ariane-6, that is too expensive and cannot compete in today’s market.
This decision last year means that ESA is very slowly adopting the concept of capitalism in space, whereby it acts merely as a customer, buying products that are completely owned and controlled by the seller.
This new policy presently only applies to the development phase of these capsules. Though no decision has been made about the construction phase, involving much more money, ESA publications indicate it will apply there as well.
Though it is taking time, Europe’s space bureaucracy is beginning to accept the idea of freedom and capitalism.
Readers!
My annual February birthday fund-raising drive for Behind the Black is now over. Thank you to everyone who donated or subscribed. While not a record-setter, the donations were more than sufficient and slightly above average.
As I have said many times before, I can’t express what it means to me to get such support, especially as no one is required to pay anything to read my work. Thank you all again!
For those readers who like my work here at Behind the Black and haven't contributed so far, please consider donating or subscribing. My analysis of space, politics, and culture, taken from the perspective of an historian, is almost always on the money and ahead of the game. For example, in 2020 I correctly predicted that the COVID panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Every one of those 2020 conclusions has turned out right.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
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Capitalism in space: When the European Space Agency (ESA) in May 2024 awarded two contracts to the French startup The Exploration Company and the established Italian contractor Thales-Alenia to develop unmanned capsules for bringing cargo to and from orbit, it also made a major policy change that went unnoticed at the time.
During a press briefing on 23 May [2024], following the Phase 1 awards, ESA Director General Josef Aschbacher explained that the agency would not require participants in the initiative to adhere to its geo-return policy. The policy typically ensures that contracts are distributed among ESA member states in proportion to their financial contributions. “We contract very differently because we will be the anchor customer,” said Aschbacher. “That means we buy a service. We give industry all the freedom to find the best solution technically, but also the best partners, with whomever they want to work with.”
What means is that the two companies, in developing their capsules, have not been required to spread the work out across Europe. Instead, they have been free to do the work entirely in house, or hire just the subcontractors they prefer, from anywhere. As the CEO of The Exploration Company noted, “In plain terms, we choose our suppliers based purely on quality and cost—not because they’re French, Italian, or German. We choose the best supplier for the job.”
In the past, as part of its bureaucratic and political needs, ESA’s “geo-return policy” required every space project to spread the wealth to all of the ESA’s partner nations, in amounts proportional to their financial contributions to the ESA. The result was that every project went overbudget, took too long to complete, and was unrealistically complex. Many projects simply failed because of these issues. Others took decades to get completed, for too much money. And when it came to rockets, it produced the Ariane-6, that is too expensive and cannot compete in today’s market.
This decision last year means that ESA is very slowly adopting the concept of capitalism in space, whereby it acts merely as a customer, buying products that are completely owned and controlled by the seller.
This new policy presently only applies to the development phase of these capsules. Though no decision has been made about the construction phase, involving much more money, ESA publications indicate it will apply there as well.
Though it is taking time, Europe’s space bureaucracy is beginning to accept the idea of freedom and capitalism.
Readers!
My annual February birthday fund-raising drive for Behind the Black is now over. Thank you to everyone who donated or subscribed. While not a record-setter, the donations were more than sufficient and slightly above average.
As I have said many times before, I can’t express what it means to me to get such support, especially as no one is required to pay anything to read my work. Thank you all again!
For those readers who like my work here at Behind the Black and haven't contributed so far, please consider donating or subscribing. My analysis of space, politics, and culture, taken from the perspective of an historian, is almost always on the money and ahead of the game. For example, in 2020 I correctly predicted that the COVID panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Every one of those 2020 conclusions has turned out right.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation or subscription:
4. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above.
Nationalism will always be more inspirational than globalism where everyone can be expected to continue the least they can get away with.
That’s fine for colliders and such –but not space-flight.
That takes “want-to.’
I have had to train kids who had no interest in their jobs who wash out– and management blame me for not training them right.
I can’t beat shiftlessness out of them like Sarge beat Sad Sack.