Analysts warn the capital boost is a lifeline, not a cure, and that Germany’s involvement will be key to Europe’s space ambitions.
France has pledged to invest €750M in debt-laden Eutelsat, leading a €1.5B investment from European Union member states. Europe is investing heavily in the satellite market to reduce its reliance on U.S. technology.
France is stepping up its efforts to build a European rival to Elon Musk’s Starlink, urging other European Union member states to invest in the satellite operator Eutelsat. The French government is leading a €1.5B capital increase to strengthen the company’s position in the highly competitive low-Earth orbit (LEO) satellite market.
Shareholders are expected to approve the funding plan on Tuesday. France is committing €750M for a 29.65% stake, while Britain will invest €163M to maintain a 10.89% share. The fundraising effort also includes Indian billionaire Sunil Mittal’s Bharti Space, shipping giant CMA CGM, and the insurer-backed Fonds Stratégique de Participations.
The collapse of the French government earlier this month raised fears of a budget deadlock, but Eutelsat said that the immediate funding was not at risk. The company added that any potential impact from the collapse would only affect the 2026 fiscal year.
President Emmanuel Macron has described the initiative as a matter of European sovereignty, warning that Europe cannot afford to rely exclusively on U.S. technology at a time when global politics are increasingly uncertain.
“France’s decision to strengthen its stake is a strong political act. But it cannot stop there. Germany, and other member states, should also step in. One country alone cannot carry this continental ambition in space,” Christophe Grudler, a French member of the European Parliament, said.
Eutelsat’s management confirmed that talks with Germany are in their early stages. So far, Berlin has not committed additional funding, even as Germany already pays for Ukraine’s access to Eutelsat services.
Excluding three Chinese constellations, Starlink controls as much as 90% of communication satellites in orbit. Starlink currently operates nearly 8,000 satellites, dwarfing Eutelsat’s OneWeb fleet of about 650. Eutelsat hopes to narrow the gap by deploying 340 more satellites, part of a multi-year, €2B investment plan.
The war in Ukraine has brought the importance of satellite internet to the fore, causing European lawmakers to press the European Commission to explore alternatives to Starlink for Ukraine’s military and civilian communications.
According to Eutelsat, it has already delivered thousands of user terminals to Kyiv, supported by German funding. The European Commission confirmed that operational planning and coordination with member states in Ukraine is ongoing.
Eutelsat shares had plunged to all-time lows after its expensive 2023 merger with OneWeb. But speculation about the company’s role in Ukraine, coupled with the investment from France, have helped Eutelsat’s stock rebound by 47% in 2025.
Eutelsat has also rebranded under new leadership, with a new CEO and chairman aiming to present the company as a stronger, more agile competitor.
Bernstein analyst Aleksander Peterc said the tandem of French and British government support has already made “a significant difference.” However, Peterc insists that Germany’s participation would be critical for Eutelsat to seriously present itself as Europe’s sovereign LEO provider.
Stifel analyst Antoine Lebourgeois described the capital increase as “a short-term lifeline and not a long-term cure.”
Eutelsat acknowledged Starlink’s head start in the market, but it stresses its competitiveness in key markets such as government contracts and corporate customers.
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