In a continuation of the recent trend to go their own way in space, most of the largest partners in the European Space Agency (ESA) have decided to cut back their annual contributions this year to the agency.
The European Space Agency’s 2025 budget has dropped below its 2024 level after Germany, Italy, and the United Kingdom collectively cut their contributions by €430 million.
During his annual press briefing on 9 January, ESA Director General Josef Aschbacher revealed that the ESA budget for 2025 would be €7.68 billion, down from €7.79 billion in 2024. The reduction in the agency’s budget could have been far worse, as all of the ‘big four’ countries, apart from France, significantly reduced their contributions.
Germany, Italy, the United Kingdom, Belgium, and Spain all reduced their contributions. Except for Belgium, all have instead been recently diverting such funds directly either to space startups in their own country (see here and here), or forgoing contributing to large ESA projects and instead buying the services from other private sources (see here).
In general, it appears the bigger nations in Europe have realized that ESA has not been providing them a good deal. It takes their money, but doesn’t deliver competitive goods. Consider the Ariane-6 rocket. Conceived by ESA and ArianeGroup in 2015, it was five years late in launching. Worse, it was conceived as an entirely expendable rocket — even though SpaceX had just proven in ’15 that re-usability was possible — so that it is now too expensive to compete in today’s rocket market.
ESA also requires its projects to distribute contracts among all the partners, which increases costs and slows development.
In the past five years these countries have been increasingly bypassing ESA, especially when it comes to rocketry. Instead of having all European rockets built and managed by ESA’s commercial arm, Arianespace, these nations are switching to the capitalism model, whereby they each purchase launches from independent competing rocket companies.
The ESA budget cuts reflect this continuing trend. No point in giving cash to this moribund bureaucracy when the money can be better spent elsewhere.