Europe is facing a serious decline in competitiveness due to lower productivity, a lack of innovation, more expensive energy and high labour costs. The internal market remains fragmented, equity financing insufficient and dependence on critical raw materials high. Against a backdrop of fiercer world trade, these weaknesses exacerbate economic vulnerability. But there are long-term solutions for recovery.

Space has become essential to modern societies and the global economy, but Europe is losing ground to the great powers. ESA, which has celebrated its 50th anniversary, is launching Strategy 2040 to strengthen sustainability, autonomy, innovation and exploration, while modernising its methods. The 2025 ministerial meeting validated this ambition, with a record subscription from its members to take up the challenges. Thanks to these reforms, Europe intends to consolidate its resilience and its strategic role in a space sector undergoing radical change.

Europe is suffering from economic stagnation due to a lack of strategic vision and regulations that are sometimes ill-conceived, often cumbersome and unstable, holding back innovation and investment. The example of the regulation on deforestation shows how a positive intention can become an administrative burden. To remain competitive, the European Union must harmonise its rules, take account of sectoral realities and defend its innovative businesses. Regulation designed to serve a clear strategy would release the potential of the single market and support growth.

The Russian threat is rekindling deep concerns in Europe and revealing divergences in the way the danger is perceived. Democracies, weakened by polarisation and populism, must defend the rule of law more firmly and combat disinformation. The European Union is stepping up its solidarity, giving massive support to Ukraine and creating new tools for democratic protection. A collective response is emerging to preserve freedoms and security.

After the Cold War, Europe reduced its defence efforts and France maintained a minimal but credible nuclear deterrent. The return of aggressive forces and the erosion of international treaties have revived the importance of nuclear power in an increasingly unstable world. By its very existence, French deterrence already contributes to European security. Further development in the form of 'concerted' deterrence is only possible with genuine joint strategic dialogue among Europeans.

Agenda

Should we be concerned about European competitiveness?

The European Space Context (after the ESA Ministerial Council meeting in 2025)

In support of European regulation that is compatible with growth

Democratic resilience in Europe in a polarised world

French nuclear deterrence and Europe