"Space represents potential benefits to a wide range of industrial sectors, not just for what we call the traditional space companies," said Spanish Secretary of State Pedro Morenés. "The kind of scientific and technological innovation that comes out of the space industry can have important ramifications in many other areas and will have direct effects on the well-being of European citizens."

Vicente Gómez, Director General of Spain's Centre for the Development of Industrial Technology (CDTI) , said, "Clearly we need to maintain a balanced and efficient industrial structure including all of the links in the supply, production and end-user chain. Public resources are a key component, and the co-ordination of our efforts in the space sector has received a new impetus thanks to the Commission and the European Space Agency (ESA) . Space is crucial to ensuring economic and social development and therefore public institutions must take the lead in pushing the agenda forward."

An industry in crisis

European efforts in the space sector over several decades have made it possible to create a solid industrial base, giving Europe a significant and recognised capability in the fields of launchers, science and technology and space-related applications. But participants in Madrid were unanimous in their agreement that the space industry is now in a state of crisis.

In her opening remarks, EUROSPACE President Pascale Sourrisse said, "There are a number of factors at play here. We have seen a sharp and sustained drop in the commercial market for satellite launches, but this has also been accompanied by a decline in government spending on space-related programmes. There is a very large gap between ourselves and our competitors in the United States, where 80% of space sector turnover comes from government contracts. In Europe that percentage is less than 50%." According to Sourisse, the very viability of the European space industry is now at risk, with high profile restructuring and layoffs taking a heavy toll. "If Europe is to retain its knowledge base and hence its independent capabilities in space," she said, " we need to see immediate action on the part of our institutions to provide the support and direction we need."

Commercial versus institutional markets

Much has been made of European success in the commercial launch market, but a comment from one conference attendee drew gasps from some participants and uncharacteristic applause from the rest. SNECMA's Jacques Cipriano said, "We hear all this talk about 'commercial market, commercial market'. Look, the commercial market represents 5% of the total space market. So when we speak with great satisfaction about Europe holding 50% of the commercial market, we are really looking at 50% of 5%! Let's face it, people. The real space market is the institutional market. Without it we are talking peanuts!"

The majority of the presenters agreed that a high level of dependence on unsteady and unpredictable commercial markets is not in the long-term interest of the space sector. Increasing the number and size of institutional contracts is therefore crucial. The development and acceptance, at the highest political levels, of a coherent European Space Policy is seen as a basic stepping-stone in that process, allowing for the definition of the specific goals and programmes needed to meet its objectives. Such programmes, backed by financial support commensurate with the importance of these objectives, will provide the stable foundation that has so far been lacking.

Defence and security

It is widely understood that much of the funding for space activities in the United States is provided for under that nation's enormous defence budget. The issue of defence is one that Europeans have, until now, managed largely to avoid, but recent events have tended to focus attention on the growing need for a common European defence policy. Many of the speakers in Madrid called for the inclusion of defence in the space debate.

Clearly, coherent policies addressing both space and European defence are needed to provide a framework within which funds can be allocated. Meanwhile, many space-based systems, including satellite navigation and earth observation satellites, retain the potential for dual use, meaning they are capable of serving both civil and defence needs if called upon to do so.

The vision to inspire

The question of how to recruit the best and the brightest of Europe's scientists, engineers and technicians was raised repeatedly and there seemed to be widespread agreement that there is more to it than just job security.

"We are the children of the Apollo programme," said GMV 's Luis Mayo. "Many of us who sit here today will have been inspired as young people when we watched the American astronauts on their magnificent mission to the moon. But where is that sense of excitement today? Most of our generation will be retired soon and we will be followed by a generation who see space as a high-risk sector offering low job security and no real excitement. What we need is to reintroduce the sense of romance and discovery that brought many of us to dedicate our lives to the space adventure."

Mayo's statement was supported by a number of participants, including European astronauts Frank De Winne and Franco Malerba. The Aurora programme, aimed at putting a European on Mars, was mentioned specifically as the type of visionary mission capable of bringing fresh and talented minds into the space field.

Speaking on behalf of the European Astronaut Corps , Dewinne said, "A human presence, a human mind in space is fascinating and we believe it is our destiny to continue to go farther, to keep looking around the next corner. Our heritage as Europeans is one of exploration and discovery, but programmes like the International Space Station and Aurora are also important for the space industry, providing major, long-term contracts and, as we've said, inspiring the best of our young people to contribute."

Only the beginning

Pascale Sourisse closed the meeting, summarising what had been said over the course of the day's discussions. She will report the results of the meeting to the Green Paper closing conference in Paris on 23-25 June 2003.

The next Green Paper consultation event will take place in Berlin on 8 April 2003 and will focus on Science. For more information, see the Consultation Events page .

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