Defense spending lifts Europe’s space economy

European government space spending in Europe rose 12% to €13.5 billion in 2025, driven by defense programs like Germany’s €35 billion space security plan by 2030 and France’s €4.2 billion military space investment, while global space spending fell 3% to €119 billion. The U.S. still led with 58% of global budgets, followed by China at 15% and Europe at 11%. ESA warned Europe’s space industry faces structural disadvantages due to open markets and limited procurement preferences, despite rising defense budgets.