Mitigate the costs of inflation to sustain the competitiveness of the European space supply chain

Rising inflation and the scarcity of some critical components is a huge issue for all industries in Europe, and particularly so for the space industry. It is expected to generate costs increases within the European space industry of around 700M€ per year as soon as 2023. Inflation is a strong concern for the upcoming ESA Council of Ministers.

We believe that Member States must use this critical moment to take actions to mitigate the effects of inflation on multiyear contracts, and to preserve the sustainability and competitiveness of the whole European space supply chain.

This Position Paper, available here, addresses the situation from the perspective of the European space industry, and promotes the investigation of suitable avenues to mitigate its effects and preserve the sustainability and competitiveness of the European space supply chain, to ensure the same level of speed and ambition in the execution of European space programmes in an inflationary context.