Further commercialization of the space industry is already heavily underway in Europe and is pretty much orienting towards a market-based approach anyway, it's just going to take a while to truly see the effects.

The funding allocated for Ariane, Vega and new micro launcher startups across Europe to guarantee domestic launch options is pretty much nothing and is less market-distorting than those humongous budgets China and US have for space, whether civilian or military.

You do know EU governments and ESA have used and will use SpaceX rockets for some of their launches, right? ESA and its member states are never going to catch up to US or Chinese government funding on space. They simply lack the needed ambition. I'm just hoping European NewSpace companies are going to pick up the slack with mostly private funding.