Airbus CEO Calls for European Space Industry Restructuring

BRUSSELS (Reuters) – The chief executive of Airbus, Guillaume Faury, stated that Europe's space industry must undergo restructuring and consolidation to compete with private U.S. firms and investments from China.

Faury emphasized, "We are fragmented in a world where some giants have emerged, especially in the U.S. but not only; they are also growing in China," during a news conference.

Airbus and Thales Alenia Space, comprising France's Thales and Italy's Leonardo, are reportedly in early discussions about merging satellite operations.

Micael Johansson, CEO of Swedish defense firm Saab, urged European nations to collaborate on defense and source more from European suppliers, declaring it a "make or break" moment for Europe.

Both executives spoke at an ASD Europe meeting, coinciding with a heightened defense focus due to Russia's invasion of Ukraine and concerns over U.S. support.

EU defense spending has surged by 31% since 2021 and is projected to reach 326 billion euros (approximately $344.42 billion) in 2024, equating to 1.9% of the EU's GDP, with growing consensus on the need for increased expenditure.