The establishment of the Spanish Space Agency (AEE) in Andalusia has provided an additional boost to the region’s aerospace ecosystem, reflected in tangible developments such as increased public funding for projects in the sector.

A few weeks ago, Antonio Castro, Managing Director of the public business support agency Andalucía TRADE, presented the organization’s business financing offer to the aerospace industry. The agency plans to make €432 million available to the market, funds that “will be highly beneficial for the aerospace sector, helping it grow and tackle the new projects emerging from the changing global landscape, particularly in Europe, in the fields of civil and defense aviation and space.”

Castro highlighted Andalucía TRADE’s comprehensive package of incentives and business development support instruments, describing it as “a hybrid business financing system capable of addressing a large share of the Andalusian aerospace sector’s needs.”

This financing system was launched with direct incentive programs for industrial development and business creation, non-competitive R&D, and internationalization, with a combined budget of €255.6 million co-financed by the European Regional Development Fund (ERDF), and therefore primarily targeted at SMEs.

“The results have been very significant,” Castro noted. “In just two and a half years, 612 business projects have received support through incentives worth €152 million, generating total investments of €351 million. This represents a strong commitment to companies, whereby for every euro of private investment, the Regional Government of Andalusia, through Andalucía TRADE, contributes one euro of public funding, with an average incentive intensity of 47.2%.”

Additional competitive R&D funding calls will be launched throughout 2026, also co-financed by the ERDF, with a budget of €70 million. This initiative will provide Andalusia with the most ambitious public R&D&I incentive program in its history.

Alongside direct incentives, venture capital funds—also ERDF co-financed and currently undergoing a tender process (with eight applications submitted for three funds)—will be introduced. Three funds will manage two investment lines (Startup and Expansion), backed by €58.8 million in public funding, representing a 62% increase compared to previous funds.

To broaden access to public business support instruments beyond SMEs, Andalucía TRADE is also developing additional mechanisms. These include the FAST Fund, endowed with €30 million from the Andalusian Government’s own resources to support strategic technologies; a new incentive scheme designed to facilitate companies’ access to alternative financing markets, currently under development and backed by €1 million in self-financed funding; and an incentive program to cover guarantee fees and financial costs associated with loans secured through Reciprocal Guarantee Societies operating in Andalusia. This latter initiative, funded with €16.5 million, is expected to leverage €90 million in private investment.

 The Spanish Space Agency Raises Andalusia’s Profile

The Spanish Space Agency has also played a significant role in positioning both Seville and Andalusia on the national and international stage. Recently, the Andalusian capital hosted the 3rd TEDAE Space Congress—organized by the Spanish Association of Defense, Security, Aeronautics and Space Technology Companies—under the theme “One Country, One Space.”

According to Juan Carlos Cortés, Director of the Spanish Space Agency, the congress “confirmed the remarkable level of maturity reached by Spain’s space sector, which is no longer an isolated industry but a critical, cross-cutting infrastructure essential to our economy and security.”

 Flagship Projects Driving Growth

Cortés also emphasized that Spain has overcome the fragmentation of capabilities that once characterized the sector and has succeeded in consolidating a comprehensive end-to-end vision. This has enabled the country to lead complete missions from start to finish through flagship projects such as the MIURA launch vehicles and the Atlantic Constellation.

As Cortés explained during his address, this capability to lead full-scale missions has a direct impact on society, reinforcing space as a fundamental infrastructure for climate resilience, communications, and the digital economy.

To further consolidate this position, he argued that the sector’s priorities should now evolve. After reaching a historic annual contribution of €455 million to the European Space Agency (ESA), “the real challenge is no longer securing funding, but ensuring excellent execution and achieving efficient technological and societal returns that directly benefit industry and citizens.”

Source: El Español