NASA's budget is only that large because it was large during the Cold War, when the US needed to compete with the SU for the prestige manned space programs bring. Nowadays, the US, to a lesser extent, still fund a large manned program because of prestige and for other political reasons (jobs, indirect subsidies to military contractors).<br /><br />ESA was set up under a completely different premisis. It was created to offer European countries an independent unmanned access to space, that is for military sats and commcercial sats as well as scientific equipment. That premisis has not changed yet. The human spaceflight program is just an add-on which came to be out of the mostly French push for a prestigious project. Today, Europe is still not unified enough that a human spaceflight program could be used for enhancing "europewide pride". And as long as single nations will spend money both on their own separate space program and on projects within the ESA's framework, that will not change. <br /><br />The question is, does that matter? From a commercial standpoint, investments in high-tech technology such as space systems is a good thing. However, in a Europe dominated by a EU that spends more than 50 % of its meager budget on agriculture, there needs to be a fundamental change in policy beforehand. As long as that does not happen, ESA will remain what it is - an organization primarily dedicated to medium and small unmanned scientific missions and dedicated to provide an independent unmanned space access for commercial and governmental European sats.