On Wednesday 21 January 2026, Luxembourg’s Directorate of Defence announced that the Chamber of Deputies (parliament) had approved a draft law on the GovSat-2 communications satellite and the acquisition of satellite capabilities.

A total of 57 out of 60 MPs voted in favour, authorising the government to finance the acquisition, launch and operation of the GovSat-2 government and defence communications satellite.

​"GovSat-2 is a strategic project that enables Luxembourg Defence to make a significant contribution to collective security and defence efforts at the EU [European Union] and NATO level, while offering a significant economic return for Luxembourg," said Minister of Defence Yuriko Backes.​

GovSat-2 will follow GovSat-1, the first communications satellite developed under the LuxGovSat SA public-private partnership, a 50/50 joint venture between the Luxembourg government and SES. Like its predecessor, GovSat-2 will also be placed in geostationary orbit, covering the same areas of interest: Europe, Africa and the Middle East.

The project aims to provide communication capabilities to Luxembourg Defence, the EU, NATO and Luxembourg's partner countries.

According to the government, GovSat-2 addresses current and future needs, technological developments and the space environment, which is characterised by an increase in threats, such as high-altitude nuclear explosions and jamming attacks.

"Current political developments highlight the importance of strengthening Europe's strategic autonomy. For the GovSat-2 programme, we have therefore given priority to European partners: the satellite will be built by the French company Thales Alenia Space, integrating Luxembourg companies into the value chain, and the satellite is expected to be launched into orbit by the European company Arianespace," emphasised Minister Backes.

​The new satellite project budget amounts to €301 million, and the financing law authorises the government to make the following investments:

  • €101 million capital increase in LuxGovSat by the Luxembourg Directorate of Defence;

  • €200 million for the firm's acquisition of satellite communication capacity, including €180 million over the twelve years following the launch date of GovSat-2 and up to €20 million over two years for GovSat-1 capacity, pending the launch of the new satellite.

In addition, the budget includes a reserve of €15 million. This reserve does not represent a fixed expenditure but provides budgetary flexibility to address potential technical, operational or geopolitical contingencies associated with the GovSat-2 programme, which is expected to run for nearly two decades.

The law also authorises the government to enter into strategic partnerships with partner countries for up to €500 million. Reportedly, this envelope does not represent an expense for Luxembourg but serves as an accounting mechanism to enable cooperation with partners before GovSat-2 becomes operational. The mechanism remains budget-neutral allowing the government to transfer partner funds through the state budget to make GovSat-2 capacities available as soon as the satellite enters service.

​The government stated that “in a rapidly changing geopolitical context, the ability to have secure and reliable communications is crucial”. It added that the armed forces' satellite communications needs will grow in the coming years, both in terms of quantity and quality of service, thus deeming the launch of a second communications satellite “essential” in terms of resilience.

​"While satellites play a crucial role in military communications, navigation, command and control operations, and the transmission of strategic data, they have become priority targets in any strategy destabilisation or asymmetric confrontation. GovSat-2 is a strategic response to these developments," concluded Minister Backes.