Europe
European Space Agency secures funding for first military-civilian program
Member states of the European Space Agency (ESA) have agreed for the first time to finance a program explicitly designed to meet both military and civilian needs simultaneously.
The agency’s proposed European Space Resilience (ERS) project has secured nearly all the funding it requested.
The project aims to create a military-grade “system of systems” that integrates national space assets to provide secure surveillance, communication, and navigation capabilities, as well as Earth observation for climate purposes.
ESA Director General Josef Aschbacher stated that the agency, whose 1970s convention mandates it to develop technology for “peaceful purposes,” has received an “explicit defense and security mandate from its member states.”
Although the agreement constitutes only 5% of the ESA budget, Aschbacher noted that this step is “likely the beginning of more to come.”
This shift comes amid growing concerns over the increasingly assertive space activities of both China and Russia, while the war in Ukraine highlights the critical importance of space-based communication, navigation, and observation capabilities for national security.
The ERS proposal secured approximately €1.2 billion of the €1.35 billion it requested at the ministerial summit in Bremen.
It will seek an additional tranche of around €250 million from European defense ministries in February.
Aschbacher said this is the first explicitly military-grade capability developed by the ESA and was developed in close cooperation with the European Commission.
The ESA chief mentioned that elements of the program were oversubscribed, meaning the “mission definition is very clear.”
Following two years of discussions and two days of last-minute negotiations, ESA member states agreed in Bremen to increase the agency’s total budget to €22.1 billion, just €200 million short of the requested amount. This represents a 32% increase adjusted for inflation, or a 17% nominal increase.
Germany, which has separately committed to investing €35 billion in military space capabilities by 2030, expanded its leadership as the ESA’s largest funder. In return, it received a commitment that a German astronaut will be the first European to fly on NASA’s Artemis moon missions.
France maintained its position as the second-largest contributor, closely followed by Italy. Spain surpassed Britain to become the agency’s fourth-largest backer.
Aschbacher said the support from the 23 member states (including non-EU members like the UK), which met nearly 100% of the ESA’s budget request, was unprecedented.
The agency received strong backing for scientific missions, such as the search for extraterrestrial life, and for developing commercial rocket and cargo services to space.
Maxime Puteaux, director of the space consultancy Novaspace, said the agency phased its fundraising for the military-grade project, “buying time to secure the remaining funds.” He noted that while the funds raised at the summit guarantee the project can start next year, it remains “politically fragile.”
“The next year will be decisive in determining whether Europe can truly establish a sovereign, rapid-response intelligence, surveillance, and reconnaissance constellation,” Puteaux added.
Member states are also rushing to finance the ESA’s European launch vehicle project, designed to develop reusable micro and mini-rockets that could eventually replace Europe’s heavy-lift launcher, Ariane 6.
Member states committed more than double the requested amount, which was 20% of the total €4.39 billion transportation budget.
Aschbacher’s efforts to foster the development of competitive commercial space companies also found support, with member states agreeing to provide approximately €3.6 billion for programs that can be co-financed with industry.
The Rosalind Franklin mission, a key European endeavor to send a rover to Mars, is now scheduled to launch in 2028 after NASA confirmed this week it would fulfill its commitment to provide launch services and critical components.
The ESA also announced it would begin studies for a mission to Enceladus, an icy moon orbiting Saturn, which astrobiologists consider the most likely place to find evidence of life beyond Earth.
Europe
Serbia’s Vucic criticises KFOR commander over Ibar Bridge withdrawal
Serbian President Aleksandar Vucic has reacted against the KFOR commander who decided to open the main bridge over the Ibar River in Kosovska Mitrovica.
Speaking to journalists during a visit to the new emergency department building of the health centre in Kursumlija, the President announced that he would write a letter to NATO Secretary General Mark Rutte to request that the main bridge over the river not be opened.
This step follows the decision by the Kosovo Force (KFOR) to withdraw from the main bridge dividing North and South Mitrovica after approximately 27 years.
The current commander of the NATO-led Kosovo Force (KFOR) is Major General Ozkan Ulutas.
Italian Carabinieri removed their tents on the northern side of the bridge, marking the start of a gradual withdrawal of the permanent presence of NATO-led international troops.
In a statement to German broadcaster Deutsche Welle, KFOR said that after the completion of the process, it would maintain a visible and strong presence in North Mitrovica and throughout northern Kosovo, and would “continue to contribute to maintaining a safe and secure environment for all communities.”
No statement was made regarding whether the Kosovo Police would take over the security of the bridge.
The newspaper Srpske novine had previously reported that Brussels had confirmed the necessary conditions for opening the Ibar Bridge.
Now, for the first time, a concrete written step is coming from Serbia’s highest official, addressed directly to the head of the Alliance.
“I will send a letter to Rutte this evening. So what can we do? We will fight as much as we can,” Vucic said.
Placing the Ibar Bridge issue within the broader context of relations with Pristina and the West, the President claimed that this was an attempt to exert pressure on Belgrade.
The Serbian leader continued:
“They thought everything was going in their favour; first they broke up Yugoslavia, then Serbia and Montenegro; now they want to separate Kosovo, which Serbia does not and will not accept, and they think they can use this to pressure us.”
Asked by a reporter about growing concerns among Serbs in Kosovo regarding the conduct of Albanian Prime Minister Albin Kurti, Vucic asserted that Serbs were being “harassed with unfounded accusations” and were subsequently not even allowed to prove their innocence.
“This is an act of terror; it stems not only from Albin Kurti, but also from his backers in the West,” Vucic said.
The President cited the case of Nenad Raskovic as an example. According to his claim, media outlets had reported for a month that this individual had been beaten over a gambling debt.
Vucic said hundreds of reports had been published claiming Raskovic had a gambling debt and was beaten by Serbs, but they later admitted to filing lawsuits against two police officers.
The President maintains that the admission that an investigation had been launched against two police officers over their conduct toward Raskovic refutes earlier claims that the beating stemmed from a gambling debt.
He also sharply criticised the KFOR command on this matter:
“What liars, what scoundrels. And the situation of those who support them and open the Ibar Bridge is even worse. Everyone is playing dumb, even the KFOR commander is playing dumb. Tonight I will send a letter to Rutte.”
It remains unclear whether the Serbian president’s letter will affect the timeline for transferring control of the bridge from international troops to the Kosovo Police. According to the Pristina administration’s interior minister, this process has already begun.
Europe
German investment in the US drops to three-year low in first half
German companies reduced their investments in the US in the first half of 2026 to their lowest level in three years.
According to Reuters, this resulted from firms limiting their exposure to Washington’s uncertain trade policies.
Calculations by the German Economic Institute (IW) show that direct investment in the first half dropped by roughly two-thirds year-on-year to 4.3 billion euros ($5 billion).
This marks the lowest level since 2023.
According to the report, which is based on Deutsche Bundesbank data, this figure represents a decline of approximately 80% compared with the same period in 2024.
“This is a continuation of the downward trend observed since the start of Donald Trump’s second term in January 2025,” IW researcher Samina Sultan told Reuters.
Since returning to office, Trump has threatened most of the US’s international trading partners with tariffs in an effort to extract concessions advantageous to Washington.
For instance, to avert steep tariffs on its exports to the US, the European Union signed an agreement last year that included an investment pledge of $600 billion.
Data show that during the five years preceding the COVID-19 pandemic, first-half investments by German companies in the US averaged 15.8 billion euros. That figure is nearly four times the 2026 level.
However, Sultan noted that the 2020–2023 period was shaped by the “extraordinary circumstances” of the pandemic, with net investment outflows recorded in certain years.
Researchers also examined the composition of investment flows throughout 2025 and found that both direct investment loans and reinvested earnings were exceptionally high, whereas equity capital in the narrower sense—the balance between new investments and liquidations—remained below average.
“Consequently, companies already operating in the US continue to reinvest the profits they generate there back into the country. This shows that the US remains an attractive market overall,” Sultan said.
On the other hand, Sultan added that companies are hesitant to commit fresh capital.
European governments are also growing increasingly cautious regarding American investments in the Old Continent.
According to an assessment by The Economist magazine, while US firms do not hold a large share of overall investment in Europe, they are concentrated in critical sectors.
Two-fifths of the business that American firms generate from foreign governments comes from the IT and defence sectors, where switching to new suppliers is costly and complex.
At an aggregate level, the magazine estimates that American companies account for a relatively small share of public spending abroad.
Of the $25 trillion in sales generated by listed American companies last year, roughly $500 billion (or 2%) came from foreign governments.
This corresponds to approximately 7% of public procurement across non-US OECD countries, which account for the vast majority of that spending.
Some countries are more dependent than others. In terms of the volume of government contracts won by American firms last year, figures from data provider TenderAlpha show that Australia (6% of contracts) and the UK (4%) are more reliant than France (2%) and Germany (1%).
Europe
Iran weighs strikes on US bases in Europe if tensions escalate
The Iranian leadership is weighing the option of striking American military facilities in Europe should US President Donald Trump escalate tensions.
According to a report by the Financial Times citing two sources close to Iranian officials, Tehran has worked on potential strike plans targeting American facilities in Southeastern Europe. In this context, Bezmer Air Base in Bulgaria, used by the US military for aircraft refuelling, alongside Cyprus, which hosts British military bases, were listed among potential targets. Iran was also reported to have evaluated the possibility of attacking undersea fibre-optic cables in the Strait of Hormuz.
The sources stated that in the event of a new conflict, Tehran could expand its strike range beyond the borders of the Middle East. One source said: “If the US goes too far, Iran will defend itself at all costs, go beyond the region’s borders, and strike Europe.”
The Tehran government has previously attempted strikes against long-range targets. The US announced in February that missiles were launched towards the Diego Garcia base in the Indian Ocean, while Türkiye stated in March that it intercepted Iranian-origin ballistic missiles in mid-air. The report noted that Tehran might find it more convenient to act through allied groups in Iraq, Lebanon, and Yemen rather than via direct action.
Iran accelerates preparations for potential major conflict
According to a report by The Wall Street Journal citing Iranian and Arab officials, Tehran has prepared a comprehensive plan against the possibility of conflict reigniting in the Middle East. Sources indicated that Tehran views the memorandum signed with the US in June as an attempt by Washington and Israel to buy time ahead of a new offensive.
Iran has been conducting preparations over the past two months against the prospect of an expanded conflict. The report noted that officials have increased Islamic Revolutionary Guard Corps oversight of the regular armed forces, appointed veterans of the Iran-Iraq War to key posts, expanded counterintelligence operations, and accelerated missile and drone production.
Data from Arab intelligence services indicates that Iran also maintains contact with armed groups in Yemen and Iraq. Tehran’s objective is reportedly to raise costs for the US and prevent a recurrence of the previous conflict.
The Wall Street Journal sources also reported that Tehran expects attempts to instigate domestic unrest. Commenting on the matter, Mehdi Mohammadi, an adviser to Iran’s chief negotiator, said: “Iran is ready for a major conflict.”
The war between the US and Iran began in February. The two countries signed a ceasefire memorandum in June, but the resulting agreement lasted only a few weeks. Following the resumption of hostilities, Iran maintained its naval blockade in the Strait of Hormuz, while the US continued its blockade of Iranian vessels and ports.
Negotiations for a new agreement are currently suspended. Trump stated that the US is maintaining negotiations and economic pressure on Tehran, adding that ending the Iranian nuclear programme remains one of the primary goals of the American operation. However, citing its own sources, Al Arabiya reported on 17 August that Washington and Tehran had extended the peace agreement.
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