Following the success of GovSat-1, the government is moving forward with GovSat-2, a strategic €501 million satellite project aimed at boosting defence and governmental communications.

Two months ago, the government announced plans to purchase, launch, and operate a second satellite. A draft law has now been presented that, once approved, will enable the government to carry out these plans, with a maximum budget of €501 million allocated for the project.

Projects like this reflect Luxembourg’s growing investment in defence, especially as NATO member states are expected to spend 5% of their GDP on security and defence annually starting in 2035. A satellite providing reliable communications for defence and governmental needs is considered a strategic investment by the liberal Minister of Defence, Yuriko Backes:

"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."

The main opposition party, the Luxembourg Socialist Workers' Party (LSAP), also expressed support for the project. Liz Braz emphasised Luxembourg’s commitment to NATO, while Sam Tanson of the Greens highlighted the satellite’s strategic value:

"This is something we can pursue intelligently. 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 welcomed the involvement of Luxembourg-based companies in the project, even if their contribution is limited. Regarding costs, she acknowledged that €500 million is substantial, but stressed that her party supports the budget to ensure continued investment in Luxembourg’s infrastructure, economy, and people.