This paper discusses the key political issues involved in current and past attempts to come to a common European space programme. The history of European space policy has been characterised by different perceived interests on the national level. In the 1960s financial and above all political problems shattered the ideal of a unified Europe, and European collaboration in space largely failed. Political disagreement — particularly between the three main European space nations, France, F.R. Germany and the United Kingdom — continued into the 1970s. Finally, a renewed attempt for European technological cooperation was made by the setting up of the European Space Agency. Since its creation, in 1974, Europe's space policy has again been facing political uncertainty. As a result of the divergence of national interests and of inappropriate industrial policies at the European level, Europe is now unable to cope with the reality of competitive space markets (satellites, launchers, ground equipment, tracking stations, etc.). If Europe is to become competitive in the commercial space market, industrial policies will have to be altered — with possible profound consequences for the structure and existence of the European Space Agency. If, alternatively, political disagreements about joint European programmes are not resolved, and if Europe as a consequence fails to make a (already late) start in the commercial space sector, the consequences may be far-reaching. The European countries may then either revert to separate national (or bilateral) programmes or become largely dependent on outside suppliers for space technology products. Europe may thus find itself without any share of the world space market.