Abstract
This paper examines the European space industry and the causes and effects of its recent restructuring. Following this analysis, the effects of a newly emerging European military space market in the competitiveness of the industry in commercial product markets are presented. It is shown that these effects are positive and sensitive to the demand characteristics of the European military space market, as well as the size of the joint economies in production of military and commercial space products. the policy implications of this are that the cooperation of the WEU and the ESA in establishing the required technical specifications of the contracted products is beneficial for the competitiveness of the European space industry.
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