Luxembourg Commits €500 Million to GovSat-2 Defence Satellite

Luxembourg is preparing to strengthen its role in secure communications with the launch of GovSat-2, a €501 million satellite project designed to support defence and governmental needs. The initiative follows the success of GovSat-1, which overcame initial launch hurdles to become fully booked and widely regarded as a strategic asset.

A draft law has now been tabled, setting aside the budget for the purchase, launch, and operation of the new satellite. Once approved, GovSat-2 will extend Luxembourg’s capabilities in secure communications while aligning the country more closely with NATO requirements. From 2035 onwards, member states are expected to dedicate 5% of GDP to defence and security spending.

Minister of Defence Yuriko Backes called the satellite a “good investment,” noting that GovSat-1 has already proved its worth:

“We have GovSat-1, which initially faced some challenges during launch. In the meantime, it has been a success and is fully booked. That is why the government has decided it would be a good investment to develop GovSat-2, which will also allow us to ensure an economic return.”
Support for the project extends across party lines. The opposition Luxembourg Socialist Workers' Party (LSAP) emphasised the importance of Luxembourg’s NATO commitments, while the Greens highlighted the opportunity to reinforce Luxembourg’s standing in the satellite and aerospace sectors. Green MP Sam Tanson described GovSat-2 as a project that builds on existing strengths.

“These are technologies we already have, and where we have built a strong reputation based on our satellites. We can expand that, position Luxembourg as a satellite hub, and link it to defence and aerospace efforts.”

Tanson also acknowledged that while the €501 million price tag is high, her party supports the budget, stressing the satellite’s long-term benefits for infrastructure, the economy, and national security.

Luxembourg entered the field of secure satellite communications with GovSat-1, launched in 2018 as a public-private partnership between the government and SES. Its proven success has paved the way for GovSat-2, a project that not only meets defence needs but also cements Luxembourg’s position as a key player in the European space and security landscape.

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