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23-07-10, 12:35 AM
Ares
A Defense Technology Blog
ESA eyes new cost cutting measures
Posted by Michael A. Taverna at 7/22/2010 10:32 AM CDT
The European Space Agency is preparing a new cost-cutting plan to prepare for possible future budget cutbacks by member nations that have been particularly hard hit by the economic crisis. The plan is one of a set of preemptive moves revealed last spring by ESA Director General to head off a possible cash crunch. Among them was a budget freeze for 2010 and 2011 that will see that spending does not surpass 2009 levels. However, since then a number of nations have announced austerity plans, and Dordain said at the Farnborough air show last week that the agency must seek to further reduce its costs as an additional contingency measure.
As before, he insisted that the agency will do its utmost to ensure that new programs approved at its ministerial summit in late 2008 are not affected.In a phone interview from Paris, Ludwig Kronthaler, ESA’s resource management director, said no member state has yet indicated any intention to significantly reduce program implementation spending in 2011, echoing an earlier statement by Dordain in the spring. In fact, Germany has even signaled it is ready to increase spending by 80 million euros ($96 million). Spain said earlier it would be willing to take out a loan.Nevertheless, “there is no guarantee member states will not come back after the summer recess with requests for cutbacks, so ESA has embarked on its own austerity plan just in case,” Kronthaler says.
Currently, 2011 expenditures are expected to total around 3.8 billion euros, including activities on behalf of third parties, plus perhaps 100-200 million euros that could be carried over form 2010.Some short-term measures, such as eliminating unnecessary travel and deferring publicity, education and standards activities, are already planned. Travel costs—around 45 million euros a year--were already cut 5% in 2009 and are expected to be reduced a similar amount this year and next, says Kronthaler. Even if modest, such measures “send a positive signal,” he says.Longer term, planners are looking at measures that could bring substantially bigger savings. Among options being explored are tightening up agency organization, streamlining program management and rationalizing infrastructure. Another is improving how ESA works in partnership with the European Union. Kronthaler notes that efforts along these lines helped generate savings of 15 million euros in 2010, which were used to increase funding for general technology studies. ESA managers expect to meet with member states in late September to discuss options and develop an action plan.
A Defense Technology Blog
ESA eyes new cost cutting measures
Posted by Michael A. Taverna at 7/22/2010 10:32 AM CDT
The European Space Agency is preparing a new cost-cutting plan to prepare for possible future budget cutbacks by member nations that have been particularly hard hit by the economic crisis. The plan is one of a set of preemptive moves revealed last spring by ESA Director General to head off a possible cash crunch. Among them was a budget freeze for 2010 and 2011 that will see that spending does not surpass 2009 levels. However, since then a number of nations have announced austerity plans, and Dordain said at the Farnborough air show last week that the agency must seek to further reduce its costs as an additional contingency measure.
As before, he insisted that the agency will do its utmost to ensure that new programs approved at its ministerial summit in late 2008 are not affected.In a phone interview from Paris, Ludwig Kronthaler, ESA’s resource management director, said no member state has yet indicated any intention to significantly reduce program implementation spending in 2011, echoing an earlier statement by Dordain in the spring. In fact, Germany has even signaled it is ready to increase spending by 80 million euros ($96 million). Spain said earlier it would be willing to take out a loan.Nevertheless, “there is no guarantee member states will not come back after the summer recess with requests for cutbacks, so ESA has embarked on its own austerity plan just in case,” Kronthaler says.
Currently, 2011 expenditures are expected to total around 3.8 billion euros, including activities on behalf of third parties, plus perhaps 100-200 million euros that could be carried over form 2010.Some short-term measures, such as eliminating unnecessary travel and deferring publicity, education and standards activities, are already planned. Travel costs—around 45 million euros a year--were already cut 5% in 2009 and are expected to be reduced a similar amount this year and next, says Kronthaler. Even if modest, such measures “send a positive signal,” he says.Longer term, planners are looking at measures that could bring substantially bigger savings. Among options being explored are tightening up agency organization, streamlining program management and rationalizing infrastructure. Another is improving how ESA works in partnership with the European Union. Kronthaler notes that efforts along these lines helped generate savings of 15 million euros in 2010, which were used to increase funding for general technology studies. ESA managers expect to meet with member states in late September to discuss options and develop an action plan.