It's not obvious that the EU has the innovation ability or startup culture necessary to compete with spacex. For example in the whole of the EU, Spotify is the only company less than 25 years old and with a market cap over $50b.

I think this is happening to promote Musk's biographical documentary which opens in U.S. theaters October 16th. :D

Europe will take years and fight over what member will make what piece. It’s the same problem NASA has when senators what to spread the job making program to their states.

The EU telcos will sweep up spectrum to inhibit new entrants from becoming successful. An EU rocket/satellite marker should be doing all of this.