Europe
European space agency targets major budget increase

The agency’s Director General, Josef Aschbacher, told Euractiv that the ESA is preparing plans for a military-grade reconnaissance satellite network with the EU as part of a record €21 billion budget spend.
The war in Ukraine and geopolitical tensions with the US have dispelled the ESA’s reluctance to invest in defense, prompting Aschbacher to discuss spending plans at a meeting with EU officials in Warsaw on Tuesday.
“We have a package that we are preparing already… it is in the order of magnitude of plus or minus around €21 billion today,” said Aschbacher.
The space agency is not part of the EU but has a partially overlapping membership, including the UK and Switzerland. Every three years, space ministers from ESA member states meet to determine and share spending on a range of science and exploration programs.
At the last summit in Paris in 2022, the capitals pledged a record spend of €16.9 billion.
National budget constraints were expected to hamper efforts to further increase the budget at the next ministerial meeting in Bremen in November.
But Elon Musk’s threats to cut off Ukraine’s access to Starlink and a more belligerent White House have upended those assumptions, focusing attention on developing space assets as part of a broader European defense push.
As part of the Bremen plan, Aschbacher is working to develop a reconnaissance satellite constellation program that will beam ultra-high-resolution optical infrared imaging from anywhere in the world to militaries and governments on demand every 20 or 30 minutes.
A number of EU companies, including Finland-based ICEYE, which provides commercial satellite services to Ukraine, have called for such a program to boost the bloc’s startup scene.
Regarding the plan, Aschbacher said, “This is exactly breakthrough, we don’t have this in Europe. I know that China is developing it, the US is developing it too.”
The Austrian space chief said that with all programs combined, the final ESA budget figure to be presented to ministers in November will be over €21 billion.
Europe is still a relative minnow in this area, spending a fifth of what the US allocates to its space programs each year.
The new German government, which overtook France as the largest contributor to the ESA budget last time and is a hub for rocket ventures, has made it clear that it intends to further increase its spending at the Bremen summit to help the mission catch up.
Europe
German military seeks high-tech edge with AI and drones

The German Armed Forces (Bundeswehr), following the lead of the new US administration, want to direct their armament efforts towards new technologies such as artificial intelligence.
The new federal government must decide on new armament projects as soon as possible, focusing particularly on high-tech projects.
This demand is supported by the Bundeswehr and some parts of the arms industry, especially young startups focused on military equipment.
For example, the German Armed Forces are demanding the purchase of a satellite fleet consisting of hundreds of satellites, which could cost up to 10 billion euros.
Furthermore, the armed forces have initiated the procurement process for unmanned vehicles, including kamikaze drones controlled by artificial intelligence (AI) that enemy jammers cannot disable.
AI kamikaze drones: German startups financed by Silicon Valley
One of the first procurement projects to be financed by the new federal government will be the equipping of the German armed forces with combat drones.
According to reports in the German media, Berlin plans to purchase drones from two Munich-based startups, Helsing and Stark Defence.
Stark Defence, founded in 2024 by former military pilot Florian Seibel, produces combat drones with a range of up to 100 kilometers. According to their own statements, the company uses components only from German suppliers; however, its financing is provided by the US venture capital firm Sequoia and US right-wing tech billionaire and mentor to US Vice President JD Vance, Peter Thiel.
Helsing, founded in 2021 and initially focused on producing artificial intelligence (AI) for tanks, submarines, and fighter jets, primarily produces kamikaze drones that use their explosive payload to hit and destroy the target.
The HX-2 model unmanned aerial vehicles are autonomously controlled by artificial intelligence and can reach a target up to 100 kilometers away without external control after the target is entered. This means the drones cannot be stopped by jammers.
Helsing currently produces about 1,000 of these drones per month, and 6,000 units will be delivered to Ukraine.
NATO’s ‘Drone Wall’ plan on the eastern border
Helsing is also pursuing ambitious goals in connection with NATO’s plans to build a “drone wall” on the eastern border.
According to reports, the company signed a 40 million euro contract in 2024 to establish a surveillance system consisting of sensors and unmanned aerial vehicles on the Lithuanian border.
The experience gained from this project can be used for the “drone wall” that Helsing co-founder Gundbert Scherf said should be established based on satellite surveillance of NATO’s external borders and include reconnaissance-focused unmanned aerial vehicles and numerous suicide drones for defense against any attack. Helsing’s HX-2 model is a possible candidate for this purpose.
Helsing has received positive media reactions in Germany so far, but was recently subjected to a critical review by Bloomberg. According to the analysis, Ukrainian military personnel using Helsing products believe that the German drones are lower in quality compared to some competing models and also significantly more expensive.
Helsing is thought to have “extremely good connections”: The company’s co-founder Scherf is a former McKinsey employee who served as “Head of Strategic Armament Control” in Ursula von der Leyen’s Ministry of Defence between 2014 and 2016.
Later, a Bundestag investigative committee examined the McKinsey networks active during that period.
Munich, a stronghold for military startups
Other startups producing robots or artificial intelligence for military use also hope to receive orders from the Ministry of Defence in the near future.
These include drone defense specialist Alpine Eagles and Arx Robotics, which develops autonomous ground systems and is currently establishing a company in Ukraine. Like Helsing and Stark Defense, both are located in Munich.
McKinsey military expert Jakob Stöber says that “proximity to the Bavarian aerospace industry, highly qualified talent from institutions like the Technical University of Munich and the Federal Armed Forces University,” and “targeted startup support” “particularly support innovation in this area.”
Industry experts also praise the Innovation Center at the Federal Armed Forces University in Munich. According to the center’s own statements, it serves the purpose of “transferring the results of digitalization and technology research to deep tech spin-offs” and “preparing early-stage startups for market entry in incubator and accelerator programs.”
The narrowing of the funding gap between the EU and the US regarding defense startups constitutes a significant advantage for German companies: From 2017 to 2020, only $310 million was invested in Europe, while this figure was $1.5 billion in the US. From 2014 to 2024, this figure was $2.2 billion in Europe and $5.4 billion in the US.
Satellite constellations: The goal of establishing a German ‘Starlink’
In addition to the procurement of unmanned aerial vehicles, combat robots, and artificial intelligence for military use, the German Armed Forces are also discussing the purchase of new satellites.
Currently, NATO countries in Europe have only 46 satellites for military use, while this number is 171 in the US.
10 of the 46 European satellites belong to the Bundeswehr, but two of them (two SARah reconnaissance satellites launched into space by Bremen-based OHB at the end of 2023) are not operational.
According to a report in the newspaper Handelsblatt, a complete satellite constellation will now be built; that is, a network consisting of several hundred individual satellites with communication or reconnaissance functions is being discussed.
The cost of a satellite constellation is estimated to be up to 10 billion euros, and the purchase of several constellations is not out of the question.
According to reports, the plan is to include the project in the budget after the new government is formed. The politically controversial point is that the project will likely separate from the IRIS2 project, which the Commission officially launched in December and aims to place one or more satellite constellations in space. The joint project can now be replaced by a national project.
Cockroach army
While a national satellite constellation is said to offer opportunities for the entire German space sector, especially for new space companies currently suffering from “weak commercial satellite business,” other examples show that future high-tech wars will not be limited to just satellites, unmanned aerial vehicles, robots, and other basically familiar military equipment.
For example, the startup Biotactics in Kassel is reportedly planning to build a cockroach army. According to reports, the cockroaches will be remotely controlled “like toy cars” using electronic impulses.
The Pentagon is said to have been researching this topic for decades; tiny electromechanical systems will be implanted in insects to receive impulses. The goal is to use them for surveillance purposes.
Last year, according to other reports, experts in Singapore succeeded for the first time in “remotely controlling a group of 20 cockroaches with the help of tiny computers attached to their backs and maneuvering them together over rough terrain.” Biotactics has not yet achieved a breakthrough, but according to reports, “investors are already lining up.”
Europe
Merz fails to secure chancellorship in first round vote

Friedrich Merz, the leader of the conservative Christian Democratic Union and Christian Social Union (CDU/CSU) alliance in Germany, failed to obtain the necessary majority in the first round of the chancellorship vote in the Federal Parliament (Bundestag) and was not elected as Germany’s chancellor.
According to the Bild daily, Merz received 310 votes in favor and 307 against in the first round of voting, while he needed the support of at least 316 of the 630 members of parliament to be elected chancellor.
This situation occurred despite the CDU/CSU alliance having reached an agreement with the Social Democratic Party of Germany (SPD) to form a government coalition.
The two parties together hold 328 seats in parliament, which under normal circumstances should have guaranteed Merz’s election.
This event was the first instance in the history of the Federal Republic of Germany where a chancellor candidate, following successful coalition talks, did not receive the support of an absolute majority in the first round.
It was stated that Merz was expected to be appointed as chancellor on May 6, take the oath, and the cabinet was expected to start its duty the same evening.
Furthermore, Merz was planned to make an official visit to France on May 7, followed by a visit to Poland.
In a statement from the Social Democratic Party of Germany (SPD) parliamentary group, it was stated that Merz’s failure in the vote was the fault of the CDU/CSU, and that all social democrats were present in the hall and voted “yes”.
A source close to SPD Chairman Lars Klingbeil told Bild, “We assume full support was given from our side. [From the party group] There were no missing members of parliament.”
Since the voting was secret, it is not yet possible to confirm or deny this claim.
According to the German Constitution, if a chancellor candidate is not elected in the first round, the Bundestag can elect the same candidate or another candidate with an absolute majority within 14 days.
If the Bundestag cannot determine the future chancellor in the third attempt, a simple majority will be sufficient; meaning the person who receives the most votes will win.
For comparison, the outgoing German Chancellor Olaf Scholz managed to win in the first round of the secret ballot; 395 of the 736 members of parliament at that time voted for him.
The conservative CDU/CSU alliance led by Friedrich Merz had come first in the early parliamentary elections held in late February 2025.
Following this result, the 69-year-old Merz was referred to as the country’s future chancellor.
Europe
Trillions needed to upgrade Europe’s energy infrastructure

The European Union’s (EU) energy system requires comprehensive modernization that will cost trillions of euros to prevent potential power outages, support the growing green energy sector, and update energy storage capacities.
According to experts who spoke to Reuters, these investments are critically important for the continent’s energy security.
The need for modernization has become even more urgent following a recent major power outage centered in Spain that affected Portugal, Andorra, and parts of France and Belgium.
According to the report, the outage coincided with Spain’s acceleration of its transition to renewable energy sources to reduce dependence on fossil fuels after disruptions in oil and natural gas supplies began with the war in Ukraine.
The increase in solar and and wind energy, due to the variable nature of these sources, created additional challenges and instability in the grid, leading to major outages.
Experts emphasize that the aging of grids is also a significant problem, with half of the transmission lines in the EU being over 40 years old.
Furthermore, the increasing energy demand from data centers and electric vehicles, along with the need for protection against cyberattacks, are cited as other reasons necessitating modernization.
Significant funding is required for the integration of renewable energy sources into the system and the updating of infrastructure.
The International Energy Agency (IEA) estimates that $600 billion needs to be spent annually until 2030 for the necessary modernizations.
The European Commission, on the other hand, predicts that 2 to 2.3 trillion euros will be needed to renew the grids by 2050.
According to analysts at the think tank Bruegel, the 80 billion euros invested by European companies in energy grids in 2023 (although above the previous level of 50 to 70 billion euros) is insufficient, and this figure needs to be increased to 100 billion euros annually.
Spain was the most affected by the outage at the end of April.
Madrid Barajas International Airport suspended operations, and metro services in Valencia and Madrid were disrupted. Additionally, train services experienced interruptions, and traffic lights did not work.
Nuclear power plants were also temporarily shut down “for safety reasons.” It is estimated that approximately 7 people lost their lives and 25 were injured in Spain during the outage.
Along with these developments, according to a Bloomberg report, the European Commission is preparing to propose a full ban on both pipeline and liquefied (LNG) Russian gas imports to EU countries by the end of 2027.
These measures are expected to be implemented as part of the EU’s roadmap for phasing out Russian gas, which is anticipated to be presented on May 6.
In 2022, the EU provided 1 billion euros in emergency aid and 400 electricity generators for the urgent restoration of energy supply to Ukraine.
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