Prevent SpaceX monopoly - Germany, Italy and France will invest more than $350 million annually in aerospace company Arianespace

French company Arianespace will receive government contracts and funding from three European countries. The aerospace firm has signed an agreement with Germany, France and Italy.

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The contract will see an increase in government orders and budget allocations. Each year, Germany, Italy and France will collectively invest more than $350 million in Arianespace. In return, the company will reduce the cost of its rockets by 11%.

The aim of the new project is to bring the European missile programme to the level of China and the US. In addition, the European Union is trying to prevent a total monopoly of SpaceX. Right now, the American company is the only option for the EU. It will even send secret satellites into orbit.

There are three reasons why SpaceX has become the no-alternative choice. Firstly, the EU has refused to use Russian rockets. Second, Arianespace has not yet completed work on the Ariane 6 rocket. Thirdly, the Ariane 5 operation has come to an end.

An annual $350 million will help complete the development of Ariane 6. Germany, Italy and France guarantee the company a minimum of four orders per year from each country. They also promise to order a minimum of three missions using Vega-C rockets.

Source: Bloomberg