A memorandum of understanding was signed this morning by the Walloon Region, represented by Minister-President Elio Di Rupo, Vice-President and Minister for the Economy Willy Borsus, and Budget Minister Adrien Dolimont; and the European Investment Bank (EIB), represented by Vice-President Kris Peeters. The two sides seek to use the transformation potential of the space technology sector to serve the region and position it as a sector leader in Europe.

The memorandum of understanding (MoU) signed today sets out a framework for close cooperation between the EIB and the Walloon Region intended to support the development of the Walloon space sector. The goal: to help the Walloon Region identify the projects where EIB support could be provided, in the form of financing and technical or financial advisory assistance. The MoU also enables the EIB to provide financing arrangements for projects promoted by the Walloon Region in the space sector. Furthermore, it aims to create the necessary conditions to attract private sector investment. It also grants scope to explore setting up a specific financial platform for regional space companies.

Developing the space economy requires large investments, and space projects need to find adequate financing to scale up in the European Union and at regional level.  As the biggest financier of the European space sector, the EIB supports both established operators launching new initiatives and up-and-coming companies scaling up.

These large investments go to finance industrial and scientific research and innovation, including by developing innovative materials and processes; embedded technology and communication systems, and cybersecurity in particular; as well as the data and service economy built on Earth observation data. There are many sectors impacted and challenges to meet.

This MoU further strengthens the already thriving relations between the EIB and the Walloon Region in terms of loans and guarantees for large-scale projects in the region.

EIB Vice-President Kris Peeters explained, “With this cooperation agreement, our joint ambition is to accelerate Walloon aerospace investment, especially by providing the EIB’s expertise in complex co-financing structures to help fund the expansion of the Walloon space sector. Wallonia has a long aerospace tradition, and this memorandum of understanding will allow the EIB to effectively support the dynamism of this ecosystem, which is a driver of economic and societal progress.”

Elio Di Rupo, Minister-President of Wallonia, stated, “I am very pleased about this new cooperation agreement between the EIB and the Walloon Region, which will further strengthen this sector’s competitiveness for Wallonia. Space is a vector for economic growth and an extremely promising sector of the future. For years, our region has been building deep expertise in this area. As part of its recovery plan, the Walloon government has approved financing for several projects to develop a space value chain in Wallonia, like designing double-sided solar panels for microsatellites in the field of Earth observation, or the project for integrated, intelligent actuation systems for reusable launch vehicles. It is important to continue on this path and position the sector on the European stage!”

Vice-President and Minister for the Economy Willy Borsus added, “This agreement is another step in the structural development of our space sector. Growing the space economy requires significant investment, and space projects need adequate funding to develop in Europe. Wallonia has a strong space sector, with around 40 robust industrial and scientific players, generating annual turnover of over €300 million and employing more than 2 000 people in Wallonia. Our goal is to continue fuelling its growth, and to become a space sector leader in Europe.”

According to Budget Minister Adrien Dolimont, “Space has been a strategic sector for Wallonia for more than 50 years. Historically, our region has been home to firms with expertise recognised worldwide, and in the last decade it has seen newer companies emerge that show exponential growth. The sector is going through a big change, with new applications developing, especially to serve the climate transition. New Space is breaking the mould. That means enormous opportunities for Wallonia in this dynamic. That is why I, as Budget Minister, welcome the addition of this EIB support to our private sector and public instruments.”

Recall that in 2022, EU leaders identified space as a strategic area and called for a space strategy for the European Union’s security and defence capabilities. Building on this political momentum, the European Commission and the High Representative have developed the first ever EU Space Strategy for Security and Defence. This MoU could thus serve as the foundation for new financing operations in the Walloon Region, in particular as part of the EIB’s Strategic European Security Initiative (SESI).

Of immediate interest for Walloon companies are the two themes to be prioritised under this agreement: Earth observation and reusable launch vehicles. These two areas are also included in the Walloon Region’s recovery plan.

Skywin, Wallonia’s aerospace cluster, has developed a roadmap for each of these themes.

Through this MoU, the EIB commits to discussing the investment and financing aspects of projects related to the Earth Observation 2025 roadmap and the Reusable Launchers 2025 roadmap. The Walloon Region will work to calibrate potential investment schemes to funding sources, and will discuss co-financing alternatives with the EIB.

With the Bank’s expertise, Wallonia will maximise its opportunities for developing space sector projects.

Background information

The EIB is the long-term lending institution of the European Union, owned by the Member States. It provides long-term finance in support of quality projects to help achieve key EU objectives in Europe. It devoted around €2.3 billion to projects in Belgium in 2022. The EIB is a key partner in the development of various sectors in Belgium, including energy efficiency and renewable energy, environment, health and education, digital connectivity and research, development and innovation. It has provided finance to the Walloon Region, particularly for transport infrastructure, healthcare, water management and the electricity distribution network, as well as for schools.