Luxembourg Approves GovSat-2 Satellite Financing Law, Bolstering Defense Capabilities

Luxembourg Parliament Greenlights GovSat-2 Project

On January 21, 2026, Luxembourg's Chamber of Deputies overwhelmingly approved the GovSat-2 Satellite Financing Law with 57 votes in favour. This pivotal decision authorizes the government to finance the acquisition, launch, and operation of the second governmental and defence communications satellite, a strategic move to bolster the nation's space-based defence capabilities and support international commitments.

The GovSat-2 project, a continuation of the successful LuxGovSat S.A. public-private partnership—a 50/50 joint venture between the Luxembourg Government and SES—is designed to meet the increasing demand for secure satellite communication services from governmental and institutional users.

Strategic Importance and Enhanced Capabilities

Minister of Defence Yuriko Backes underscored the strategic significance of GovSat-2, stating it 'enables Luxembourg Defence to make a significant contribution to collective security and defence efforts at EU and NATO level, while offering a significant economic return for Luxembourg.'

Building upon the foundation of GovSat-1, launched in 2018, GovSat-2 will be positioned in geostationary orbit, providing expanded coverage across Europe, Africa, and the Middle East. The new satellite is engineered to address current and future threats, incorporating advanced technological developments. It will feature:

• New ultra-high frequency (UHF) channels
• X- and military Ka-band capabilities
• Enhanced protection against hostile attacks, including high-altitude nuclear explosions and jamming attacks
• Advanced digital processing capabilities to increase resilience against adversarial jamming, spoofing, and electronic warfare

Funding and Key Partnerships

The total budget for the GovSat-2 project amounts to €301 million. The financing law permits the government to increase its equity participation in LuxGovSat S.A. by €101 million to co-finance the satellite's acquisition, launch, and operation. Additionally, it authorizes the government to acquire satellite capacity from LuxGovSat S.A. up to a total of €200 million. A strategic budget reserve of €15 million is also included to address evolving technical, geopolitical, or operational needs.

Minister Backes highlighted the prioritization of European partners for the project, with the satellite to be built by French company Thales Alenia Space and its launch envisaged via European company Arianespace, integrating Luxembourgish companies into the value chain. The law also allows for strategic partnerships with partner countries, potentially involving up to €500 million, which is described as a 'accounting mechanism' for cooperation rather than a direct expenditure.

Future Outlook

GovSat-2 is set to support Luxembourg's own forces and missions led by NATO, the EU, and the UN, contributing to joint European efforts to strengthen sovereign, secure, and resilient military communication systems. This project reflects Luxembourg's ongoing commitment to increasing its defence efforts and investing in dual-use infrastructure.